-----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, EHHTvl3wmrTMxEy+PJisQ0CmY701f+C49yFTrzY31AI5EWDXlGvYlRWd7bHGY+P8 hY6VALZbu3dq8yXZXgVDAA== 0000936772-02-000289.txt : 20020808 0000936772-02-000289.hdr.sgml : 20020808 20020808150107 ACCESSION NUMBER: 0000936772-02-000289 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020531 FILED AS OF DATE: 20020808 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: 02722880 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 edg8035.txt - -------------------------------------------------------------------------------- GLOBAL VALUE - -------------------------------------------------------------------------------- AllianceBernstein Global Value Fund Semi-Annual Report May 31, 2002 [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 July 23, 2002 Dear Shareholder: This report provides the performance, market review and outlook for AllianceBernstein Global Value Fund (the "Fund") for the semi-annual reporting period ended May 31, 2002. Investment Objective and Policies This open-end fund seeks long-term growth of capital by investing primarily in a diversified portfolio of equity securities from around the world, including the United States. The Fund's investment policies emphasize investment in companies 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 is not reflected in the current market price of their securities. In order to hedge a portion of its currency risk, the Fund may from time to time invest in currency futures or forward contracts. Investment Results The following table provides performance data for the Fund and its benchmark, the Morgan Stanley Capital International (MSCI) World Index, for the six- and 12-month periods ended May 31, 2002. INVESTMENT RESULTS* Periods Ended May 31, 2002 ------------------------- Total Returns ------------------------- 6 Months 12 Months - -------------------------------------------------------------------------------- AllianceBernstein Global Value Fund Class A 3.84% -2.44% - -------------------------------------------------------------------------------- Class B 3.44% -3.13% - -------------------------------------------------------------------------------- Class C 3.33% -3.03% - -------------------------------------------------------------------------------- MSCI World Index -2.10% -12.24% - -------------------------------------------------------------------------------- * The Fund's investment results are total returns for the periods shown and are based on the net asset value (NAV) of each class of shares as of May 31, 2002. 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 unmanaged MSCI World Index is a market capitalization-weighted index that measures the performance of stock markets in 23 developed countries. An investor cannot invest directly in an index, - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 1 - ---------------------- LETTER TO SHAREHOLDERS - ---------------------- and its results are not indicative of any specific investment, including AllianceBernstein Global Value Fund. Additional investment results appear on pages 5-8. The Fund outperformed its benchmark, the MSCI World Index for the six- and 12-month periods ended May 31, 2002. The Fund's outperformance was driven by fundamental research based stock selection, which was widely spread across most sectors, particularly in financials, consumer cyclicals and construction and housing. During the six-month period under review, the Fund derived an unusually strong benefit from sector allocations. In particular, our continued underweight position in technology, which continued to sink as investors worried that it might take longer than initially expected to recover, contributed to performance. Additionally, our overweight positions in industrial commodities and financials served to our benefit. The main detractors from stock selection over the past six months were the Fund's early and modest forays into telecommunications, notably WorldCom and Qwest. Despite these events, we continue to see emerging value opportunities in this sector and continue to allocate significant research resources towards them. Market Overview The period under review was a difficult one for all markets. Rather than focusing on economic growth and the timing of an earnings recovery, investors have become concerned that the real issue in the aftermath of the late-1990s equity bubble is a more fundamental one: whether to trust corporate managements and reported earnings. It is becoming apparent that the excesses encouraged by the capital markets during the bubble developed in some cases into outright fraud. Both the excesses of the bubble and the loss of confidence following its collapse are consistent with the history of capital markets. However, one intriguing question is whether the recently uncovered accounting problems in the U.S. and resulting crisis of confidence could be the catalyst that reverses the long period of underperformance by foreign markets, relative to the U.S. We continue to expect stronger relative performance from foreign markets as compared to the U.S. This follows a protracted period of underperformance by the Developed International Markets (EAFE), which can be largely explained by the strength of the U.S. dollar and the extended weakness of the Japanese market. Even with the market changes so far this year, EAFE remains very attractively valued relative to the U.S. Additionally, we believe the factors that have led to the weak- - -------------------------------------------------------------------------------- 2 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ---------------------- LETTER TO SHAREHOLDERS ---------------------- ness in the dollar this year (large U.S. current account deficit and purchasing power of goods, to name a few) will remain in place and will likely maintain the trend of a weaker dollar versus the euro, in particular. For years, another one of the major drivers of the U.S. equity markets has been investors' belief that the U.S. markets are simply "better" -- with more profitable companies, higher quality corporate governance, and more rigorous accounting standards. The current crisis has led investors to question that belief. The impact of the loss of confidence in the U.S. is perhaps most visible in the U.S. dollar, with the dollar declining nearly 7% against a weighted basket of currencies since February 2002. Market Outlook We continue to believe that investment opportunities look more attractive outside the U.S. Not only are foreign markets generally priced more cheaply than the U.S., as measured by a variety of financial metrics, but in Europe in particular, corporate profitability, as measured by return on equity, now rivals that of the U.S. As a result, the Fund remains modestly overweighted in Europe and underweighted in the U.S. Research has played a key role in the Fund's relative strength during the period under review. Our research continues to indicate that strongest value opportunities are in selected cyclical industries, such as autos, and financial services. On a company-by-company basis, however, we have made some shifts within the portfolio as our research uncovers changes in the relative attractiveness of individual holdings. In the auto industry, we still see growth outpacing consensus forecast. In the financial sector, the Fund's focus is still on large consumer banks with strong franchises. We continue to selectively add to positions in telecommunications, slowly reducing our underweight in this sector, as continuing price drops open up more select value opportunities. We are also finding certain pharmaceutical companies to be attractive investment opportunities at their current valuations and given their potential growth in revenue. We are moving into this area slowly, but anticipate it may become a bigger part of our portfolio over the course of the year. Thank you for your interest and investment in AllianceBernstein Global Value Fund. We look forward to re- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 3 - ---------------------- LETTER TO SHAREHOLDERS - ---------------------- porting to you on market activity and the Fund's investment results in the future. Sincerely, /s/ John D. Carifa John D. Carifa Chairman and President /s/ Andrew S. Adelson Andrew S. Adelson Senior Vice President /s/ Kevin F. Simms Kevin F. Simms Senior Vice President /s/ Seth J. Masters Seth J. Masters Senior Vice President [PHOTO] John D. Carifa [PHOTO] Andrew S. Adelson [PHOTO] Kevin F. Simms [PHOTO] Seth J. Masters Portfolio Managers, Andrew S. Adelson, Kevin F. Simms and Seth J. Masters, have over 52 years combined investment experience. - -------------------------------------------------------------------------------- 4 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ------------------ PERFORMANCE UPDATE ------------------ PERFORMANCE UPDATE ALLIANCEBERNSTEIN GLOBAL VALUE FUND GROWTH OF A $10,000 INVESTMENT 3/31/01* TO 5/31/02 [THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.] AllianceBernstein Global Value Fund MSCI World Index - ------------------------------------------------------------------------- 3/31/01 $9,579 $10,000 5/31/01 $9,828 $10,608 5/31/02 $9,588 $ 9,310 This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein Global Value Fund Class A shares (from 3/31/01 to 5/31/02) as compared to the performance of an appropriate broad-based index. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains. Performance for Class B, Class C and Advisor Class shares will vary from the results shown above due to differences in expenses charged to these classes. Past performance is not indicative of future results, and is not representative of future gain or loss in capital value or dividend income. The unmanaged Morgan Stanley Capital International (MSCI) World Index is a market capitalization-weighted index that measures stock performance in 23 developed countries. When comparing AllianceBernstein Global Value Fund to the index shown above, you should note that no charges or expenses are reflected in the performance of the index. An investor cannot invest directly in an index, and its results are not indicative of any specific investment, including AllianceBernstein Global Value Fund. * Closest month-end to Fund's Class A share inception date of 3/29/01. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 5 - ------------------ PERFORMANCE UPDATE - ------------------ PERFORMANCE UPDATE ALLIANCEBERNSTEIN GLOBAL VALUE FUND HISTORY OF RETURNS YEARLY PERIODS ENDED 5/31 AllianceBernstein Global Value Fund MSCI World Index [BAR CHART OMITTED] AllianceBernstein Global Value Fund-Yearly Periods Ended 5/31 - -------------------------------------------------------------------------------- AllianceBernstein MSCI Global Value Fund World Index - -------------------------------------------------------------------------------- 5/31/01* 2.60% 6.08% 5/31/02 -2.44% -12.24% Past performance is no guarantee of future results. The Fund's investment results represent total returns for Class A shares and are based on the net asset value (NAV). Returns for Class B, Class C and Advisor Class shares will vary due to different expenses associated with these classes. 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 the Fund include the reinvestment of any distributions paid during each period. The unmanaged Morgan Stanley Capital International (MSCI) World Index is a market capitalization-weighted index that measures the performance of stock markets in 23 developed countries. An investor cannot invest directly in an index, and its results are not indicative of any specific investment, including AllianceBernstein Global Value Fund. * The Fund's return for the period ended 5/31/01 is from the Fund's inception date of 3/29/01 through 5/31/01. The benchmark's return for the period ended 5/31/01 is from 3/31/01 through 5/31/01. - -------------------------------------------------------------------------------- 6 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ----------------- PORTFOLIO SUMMARY ----------------- PORTFOLIO SUMMARY May 31, 2002 INCEPTION DATES PORTFOLIO STATISTICS Class A Shares Net Assets ($mil): $94.4 3/29/01 Average Market Capitalization ($mil): $33,716 Class B Shares 3/29/01 Class C Shares 3/29/01 COUNTRY BREAKDOWN 48.2% United States 10.1% United Kingdom 5.9% France 5.8% Japan 4.8% Canada [PIE CHART OMITTED] 3.2% Australia 3.0% Netherlands 2.6% Italy 2.6% Germany 9.1% Other 4.7% Short-Term SECTOR BREAKDOWN 28.4% Financial 11.5% Utilities 9.5% Industrial Commodities 8.8% Consumer Cyclicals 7.3% Consumer Growth 6.9% Technology [PIE CHART OMITTED] 5.1% Consumer Staples 5.0% Capital Equipment 4.8% Energy 3.9% Construction & Housing 4.1% Other 4.7% Short-Term All data as of May 31, 2002. The Fund's country and sector breakdowns are expressed as a percentage of total investments and may vary over time. "Other" country weightings represent less than 2% weightings in Switzerland, Sweden, Spain, Ireland, Finland, Belgium, Hong Kong, Taiwan and Portugal. "Other" sector weightings represent less than 2% weightings in medical, services, non-financial, transportation and telecommunications. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 7 - ------------------ INVESTMENT RESULTS - ------------------ INVESTMENT RESULTS AVERAGE ANNUAL TOTAL RETURNS AS OF MAY 31, 2002 Class A Shares - -------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year -2.44% -6.62% Since Inception* 0.09% -3.52% Class B Shares - -------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year -3.13% -7.00% Since Inception* -0.68% -3.23% Class C Shares - -------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year -3.03% -4.00% Since Inception* -0.60% -0.60% SEC AVERAGE ANNUAL TOTAL RETURNS (WITH SALES CHARGES) AS OF THE MOST RECENT QUARTER-END (JUNE 30, 2002) Class A Class B Class C Shares Shares Shares - -------------------------------------------------------------------------------- 1 Year -10.97% -11.41% -8.55% Since Inception* -7.94% -7.73% -5.38% The Fund's investment results represent average annual 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 vary due to different expenses associated with this class. A substantial amount of the Fund's assets may be invested 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. Investment in the Fund includes risks not associated with funds that invest exclusively in U.S. issues. Because the Fund will invest in foreign currency denominated securities, these fluctuations may be magnified by changes in foreign exchange rates. 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: 3/29/01 for all share classes. - -------------------------------------------------------------------------------- 8 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND -------------------- TEN LARGEST HOLDINGS -------------------- TEN LARGEST HOLDINGS May 31, 2002 (unaudited) Percent of Company U.S. $ Value Net Assets - -------------------------------------------------------------------------------- Bank of America Corp. $ 4,431,094 4.7% - -------------------------------------------------------------------------------- Washington Mutual, Inc. 3,373,916 3.6 - -------------------------------------------------------------------------------- Pfizer, Inc. 2,172,880 2.3 - -------------------------------------------------------------------------------- Honda Motor Co., Ltd. 2,087,976 2.2 - -------------------------------------------------------------------------------- Merck & Co., Inc. 2,044,180 2.2 - -------------------------------------------------------------------------------- Philip Morris Cos., Inc. 2,018,062 2.1 - -------------------------------------------------------------------------------- Schering-Plough Corp. 1,748,345 1.8 - -------------------------------------------------------------------------------- DSM NV 1,684,839 1.8 - -------------------------------------------------------------------------------- Canon, Inc. 1,617,402 1.7 - -------------------------------------------------------------------------------- PSA Peugeot Citroen 1,601,072 1.7 - -------------------------------------------------------------------------------- $ 22,779,766 24.1% MAJOR PORTFOLIO CHANGES Six Months Ended May 31, 2002 (unaudited) -------------------------------- Shares -------------------------------- Purchases Bought Holdings 5/31/02 - -------------------------------------------------------------------------------- Bank of America Corp. 54,900 58,450 - -------------------------------------------------------------------------------- Honda Motor Co., Ltd. 46,000 48,900 - -------------------------------------------------------------------------------- Merck & Co., Inc. 35,800 35,800 - -------------------------------------------------------------------------------- Pfizer, Inc. 61,600 62,800 - -------------------------------------------------------------------------------- Philip Morris Cos., Inc. 33,900 35,250 - -------------------------------------------------------------------------------- Qwest Communications International, Inc. 236,100 236,100 - -------------------------------------------------------------------------------- Schering-Plough Corp. 64,125 66,100 - -------------------------------------------------------------------------------- Verizon Communications, Inc. 36,600 36,600 - -------------------------------------------------------------------------------- Washington Mutual, Inc. 81,400 86,800 - -------------------------------------------------------------------------------- WorldCom, Inc. - WorldCom Group 365,300 377,100 - -------------------------------------------------------------------------------- Sales Sold Holdings 5/31/02 - -------------------------------------------------------------------------------- Bank One Corp. 1,675 -0- - -------------------------------------------------------------------------------- Conagra Foods, Inc. 3,700 -0- - -------------------------------------------------------------------------------- Consolidated Edison, Inc. 2,400 -0- - -------------------------------------------------------------------------------- Federal Home Loan Mortgage Association 950 -0- - -------------------------------------------------------------------------------- Federated Department Stores, Inc. 1,850 -0- - -------------------------------------------------------------------------------- Fuji Heavy Industries, Ltd. 19,000 -0- - -------------------------------------------------------------------------------- Genuine Parts Co. 3,350 -0- - -------------------------------------------------------------------------------- Georgia-Pacific Group 4,200 -0- - -------------------------------------------------------------------------------- Sears, Roebuck & Co. 1,200 1,700 - -------------------------------------------------------------------------------- V.F. Corp. 1,900 -0- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 9 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ PORTFOLIO OF INVESTMENTS May 31, 2002 (unaudited) Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-93.7% United States Investments-47.4% Financial-13.7% Life Insurance-0.1% Torchmark Corp. ............................ 1,900 $ 76,684 ----------- Major Regional Banks-6.6% Bank of America Corp. ...................... 58,450 4,431,094 FleetBoston Financial Corp. ................ 12,250 431,690 National City Corp. ........................ 2,750 91,520 Wachovia Corp. ............................. 33,500 1,285,395 ----------- 6,239,699 ----------- Multi-Line Insurance-1.4% Aetna, Inc. ................................ 12,750 610,088 CIGNA Corp. ................................ 600 63,630 Health Net, Inc.(a) ........................ 23,200 671,640 ----------- 1,345,358 ----------- Property/Casualty Insurance-0.4% Chubb Corp. ................................ 5,400 405,864 ----------- Savings & Loan-4.1% Federal National Mortgage Association ...... 5,100 408,051 Golden West Financial Corp. ................ 1,375 96,195 Washington Mutual, Inc. .................... 86,800 3,373,916 ----------- 3,878,162 ----------- Miscellaneous-1.1% Lehman Brothers Holdings, Inc. ............. 10,500 640,500 Morgan Stanley Dean Witter & Co. ........... 7,500 340,950 ----------- 981,450 ----------- 12,927,217 ----------- Utilities-9.2% Electric Companies-3.3% Ameren Corp. ............................... 19,800 865,656 American Electric Power Co., Inc. .......... 28,550 1,219,942 PPL Corp. .................................. 18,200 644,098 Reliant Resources, Inc.(a) ................. 39,500 373,275 ----------- 3,102,971 ----------- Telephone-5.9% BellSouth Corp. ............................ 22,900 762,112 Qwest Communications International, Inc. ... 236,100 1,218,276 SBC Communications, Inc. ................... 42,300 1,450,467 Verizon Communications, Inc. ............... 36,600 1,573,800 WorldCom, Inc.-WorldCom Group .............. 377,100 625,986 ----------- 5,630,641 ----------- 8,733,612 ----------- - -------------------------------------------------------------------------------- 10 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- Consumer Growth-7.2% Drugs-6.9% Bristol-Myers Squibb Co. ................... 18,000 $ 560,160 Merck & Co., Inc. .......................... 35,800 2,044,180 Pfizer, Inc. ............................... 62,800 2,172,880 Schering-Plough Corp. ...................... 66,100 1,748,345 ----------- 6,525,565 ----------- Publishing - Newspapers-0.3% New York Times Co. Cl.A .................... 5,000 251,350 ----------- 6,776,915 ----------- Technology-3.8% Communication - Equipment Manufacturers-1.4% Corning, Inc. .............................. 114,500 549,600 Tellabs, Inc.(a) ........................... 79,100 764,106 ----------- 1,313,706 ----------- Computers-1.1% Hewlett-Packard Co. ........................ 54,200 1,034,678 ----------- Computer Services/Software-0.2% Oracle Corp.(a) ............................ 27,800 220,176 ----------- Miscellaneous Industrial Technology-0.8% Arrow Electronics, Inc.(a) ................. 15,000 375,300 Avnet, Inc. ................................ 11,125 257,321 Ingram Micro, Inc. Cl.A(a) ................. 2,675 38,520 Solectron Corp.(a) ......................... 3,830 30,946 Tech Data Corp.(a) ......................... 625 25,169 ----------- 727,256 ----------- Semi-Conductors-0.3% Intel Corp. ................................ 12,200 336,964 ----------- 3,632,780 ----------- Industrial Commodities-3.6% Chemicals-1.6% Cabot Corp. ................................ 1,400 34,482 Dow Chemical Co. ........................... 29,900 996,866 Eastman Chemical Co. ....................... 9,300 430,125 PPG Industries, Inc. ....................... 1,100 62,898 ----------- 1,524,371 ----------- Containers - Metal/Glass/Paper-0.0% Owens-Illinois, Inc.(a) .................... 650 11,375 ----------- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 11 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- Paper-2.0% International Paper Co. .................... 21,700 $ 935,270 MeadWestvaco Corp. ......................... 25,649 809,483 Smurfit-Stone Container Corp.(a) ........... 5,900 96,170 Temple-Inland, Inc. ........................ 375 20,880 ----------- 1,861,803 ----------- 3,397,549 ----------- Consumer Staples-3.1% Retail Stores - Food-0.9% Safeway, Inc.(a) ........................... 20,400 829,260 SUPERVALU, Inc. ............................ 1,225 36,971 ----------- 866,231 ----------- Tobacco-2.2% Philip Morris Cos., Inc. ................... 35,250 2,018,062 ----------- 2,884,293 ----------- Consumer Cyclicals-2.5% Autos & Auto Parts-0.5% Dana Corp. ................................. 1,550 33,046 Lear Corp.(a) .............................. 9,700 448,334 ----------- 481,380 ----------- Home Furnishings-0.0% Leggett & Platt, Inc. ...................... 1,400 36,848 ----------- Household - Appliances/Durables-1.3% Whirlpool Corp. ............................ 16,850 1,203,090 ----------- Retailers-0.6% May Department Stores Co. .................. 14,900 524,182 Sears, Roebuck & Co. ....................... 1,700 100,385 ----------- 624,567 ----------- Textiles/Shoes - Apparel Manufacturing-0.1% Liz Claiborne, Inc. ........................ 2,000 61,260 ----------- 2,407,145 ----------- Energy-1.6% Oils - Integrated Domestic-1.5% Amerada Hess Corp. ......................... 1,300 106,925 Occidental Petroleum Corp. ................. 19,250 574,805 Phillips Petroleum Co. ..................... 12,775 735,201 ----------- 1,416,931 ----------- Oils - Integrated International-0.1% Conoco, Inc. ............................... 2,400 64,512 ----------- 1,481,443 ----------- Services-1.0% Railroads-1.0% Burlington Northern Santa Fe Corp. ......... 16,600 469,780 Norfolk Southern Corp. ..................... 21,800 461,506 ----------- 931,286 ----------- - -------------------------------------------------------------------------------- 12 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- Capital Equipment-0.9% Electrical Equipment-0.9% Cooper Industries, Ltd. Cl.A ............... 19,600 $ 850,052 Thomas & Betts Corp. ....................... 550 12,001 ----------- 862,053 ----------- Non-Financial-0.8% Home Building-0.7% Pulte Homes, Inc. .......................... 12,600 683,298 ----------- Miscellaneous Building-0.1% Sherwin-Williams Co. ....................... 1,200 37,920 ----------- 721,218 ----------- Total United States Investments (cost $47,826,096) ...................... 44,755,511 ----------- Foreign Investments-46.3% Australia-3.2% Australia and New Zealand Banking Group, Ltd. ..................... 71,300 786,730 BHP Billiton, Ltd. ......................... 121,300 741,286 CSR, Ltd. .................................. 179,000 666,469 National Australia Bank, Ltd. .............. 34,000 696,063 Westpac Banking Corp., Ltd. ................ 10,800 101,140 ----------- 2,991,688 ----------- Belgium-0.8% Delhaize Le Lion, SA ....................... 14,100 727,609 ----------- Canada-4.8% Abitibi-Consolidated, Inc. ................. 8,200 71,349 Bank of Montreal ........................... 4,732 117,727 Bank of Nova Scotia ........................ 42,200 1,515,984 BCE, Inc. .................................. 32,500 603,018 Canadian National Railway Co. .............. 1,450 72,405 Canadian Natural Resources, Ltd. ........... 2,800 92,026 CP Railway, Ltd. ........................... 6,000 136,506 Magna International, Inc. Cl.A ............. 12,100 864,128 Nortel Networks Corp. ...................... 80,300 170,862 Quebecor World ............................. 10,500 311,755 Talisman Energy, Inc. ...................... 12,200 542,586 ----------- 4,498,346 ----------- Finland-1.3% Fortum Oyj ................................. 80,000 448,320 Stora Enso Oyj ............................. 47,600 693,551 UPM-Kymmene Oyj ............................ 1,600 62,466 ----------- 1,204,337 ----------- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 13 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- France-5.8% Accor, SA .................................. 1,600 $ 65,156 Arcelor(a) ................................. 52,600 747,243 Assurances Generales de France (AGF) ....... 1,025 49,782 Aventis, SA ................................ 950 66,104 BNP Paribas, SA ............................ 16,700 939,767 Compagnie de Saint-Gobain .................. 6,110 1,084,280 PSA Peugeot Citroen ........................ 30,340 1,601,072 Societe Generale ........................... 12,450 845,959 Total Fina Elf, SA ......................... 450 70,148 ----------- 5,469,511 ----------- Germany-2.5% AMB Generali Holding AG .................... 9,575 1,006,093 BASF AG .................................... 1,400 65,118 DePfa Bank Plc ............................. 150 11,145 E.On AG .................................... 1,100 57,308 Hannover Rueckversicherungs AG ............. 350 26,838 Heidelberger Zement AG ..................... 200 8,425 Merck KGaA ................................. 10,400 294,225 Siemens AG ................................. 13,800 850,687 Volkswagen AG .............................. 1,050 55,410 ----------- 2,375,249 ----------- Hong Kong-0.0% Wharf (Holdings), Ltd. ..................... 13,000 30,667 ----------- Ireland-1.6% Allied Irish Banks Plc ..................... 24,000 330,636 Bank of Ireland ............................ 90,400 1,148,297 ----------- 1,478,933 ----------- Italy-2.6% Banca Nazionale del Lavoro ................. 8,000 16,401 ENI SpA .................................... 98,950 1,506,434 IntesaBci SpA .............................. 250,000 740,195 Parmalat Finanziaria SpA ................... 34,000 104,795 Riunione Adriatica di Sicurta SpA .......... 2,000 24,844 UniCredito Italiano SpA .................... 13,000 58,039 ----------- 2,450,708 ----------- Japan-5.7% Canon, Inc. ................................ 42,000 1,617,402 Daiwa House Industry Co., Ltd. ............. 13,000 91,118 Hitachi Maxell, Ltd. ....................... 1,000 16,032 Honda Motor Co., Ltd. ...................... 48,900 2,087,976 Mitsubishi Electric Corp. .................. 4,000 19,432 Mitsui Chemicals, Inc. ..................... 6,000 33,209 Mitsui O.S.K. Lines, Ltd. .................. 28,000 64,516 Nichicon Corp. ............................. 1,000 13,317 Nichirei Corp. ............................. 22,000 76,036 OJI Paper Co., Ltd. ........................ 6,000 31,033 Promise Co., Ltd. .......................... 3,500 193,998 - -------------------------------------------------------------------------------- 14 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- Takefuji Corp. ............................. 14,600 $ 996,270 Tohoku Electric Power Co., Inc. ............ 4,000 52,076 Tokyo Style Co., Ltd. ...................... 1,000 8,951 Toppan Printing Co., Ltd. .................. 2,000 22,300 UNY Co., Ltd. .............................. 4,000 47,855 ----------- 5,371,521 ----------- Netherlands-2.9% ABN AMRO Holding NV ........................ 5,111 98,767 DSM NV ..................................... 35,440 1,684,839 Hagemeyer NV ............................... 35,354 696,735 ING Groep NV ............................... 4,980 131,679 Royal Dutch Petroleum Co. .................. 2,150 120,285 Wolters Kluwer NV .......................... 1,945 40,293 ----------- 2,772,598 ----------- Portugal-0.0% Banco Espirito Santo, SA ................... 1,600 17,335 ----------- Spain-1.7% Arcelor(a) ................................. 933 13,376 Banco Santander Central Hispano, SA ........ 11,700 108,076 Grupo Dragados, SA ......................... 39,800 706,291 Iberdrola, SA .............................. 50,700 705,571 Telefonica, SA(a) .......................... 6,866 72,658 ----------- 1,605,972 ----------- Sweden-1.7% Electrolux AB .............................. 4,100 74,888 Holmen AB .................................. 1,600 42,278 Nordea AB .................................. 74,200 426,384 Svenska Cellulosa AB ....................... 31,000 1,078,377 ----------- 1,621,927 ----------- Switzerland-1.8% Givaudan SA ................................ 850 332,090 Novartis AG ................................ 29,750 1,276,083 Swiss Reinsurance .......................... 1,005 102,326 ----------- 1,710,499 ----------- Taiwan-0.0% Compal Electronics, Inc. ................... 3,725 22,530 ----------- United Kingdom-9.9% Astrazeneca Plc ............................ 2,400 105,511 AWG Plc(a) ................................. 3,000 24,131 BHP Billiton Plc ........................... 15,200 86,697 British American Tobacco Plc ............... 102,400 1,226,534 BT Group Plc ............................... 5,600 22,952 CGNU Plc ................................... 7,200 67,287 Electrocomponents Plc ...................... 22,000 136,744 Lattice Group Plc .......................... 20,100 53,354 Lloyds TSB Group Plc ....................... 9,900 107,143 - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 15 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ Shares or Principal Amount Company (000) U.S. $ Value - -------------------------------------------------------------------------------- Rexam Plc .................................. 5,800 $ 40,292 Royal & Sun Alliance Insurance Group Plc ... 351,600 1,506,649 Royal Bank of Scotland Group Plc ........... 43,750 1,273,288 Safeway Plc ................................ 346,859 1,545,939 Shell Transport & Trading Co. Plc .......... 87,400 677,459 Six Continents Plc ......................... 118,000 1,316,747 Taylor Woodrow Plc ......................... 9,600 28,080 Unilever Plc ............................... 9,000 82,660 Vodafone Group Plc ......................... 13,000 19,630 Wolseley Plc ............................... 97,000 1,032,759 ----------- 9,353,856 ----------- Total Foreign Investments (cost $40,938,268) ...................... 43,703,286 ----------- Total Common Stocks (cost $88,764,364) ...................... 88,458,797 ----------- SHORT-TERM INVESTMENT-4.6% Time Deposit-4.6% State Street Euro Dollar 1.25%, 6/03/02 (cost $4,402,000) ....................... $ 4,402 4,402,000 ----------- Total Investments-98.3% (cost $93,166,364) ...................... 92,860,797 Other assets less liabilities-1.7% ......... 1,560,333 ----------- Net Assets-100% ............................ $94,421,130 =========== (a) Non-income producing security. See notes to financial statements. - -------------------------------------------------------------------------------- 16 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND --------------------------------- STATEMENT OF ASSETS & LIABILITIES --------------------------------- STATEMENT OF ASSETS & LIABILITIES May 31, 2002 (unaudited) Assets Investments in securities, at value (cost $93,166,364) . $ 92,860,797 Cash .................................................... 444 Foreign cash, at value (cost $1,349,709) ................ 1,387,577 Receivable for investment securities sold ............... 802,827 Receivable for shares of beneficial interest sold ....... 232,357 Dividends and interest receivable ....................... 200,336 Receivable for variation margin on futures contracts .... 28,029 Foreign taxes receivable ................................ 9,008 ------------ Total assets ............................................ 95,521,375 ------------ Liabilities Payable for investment securities purchased ............. 802,816 Unrealized depreciation of forward exchange currency contracts ................................... 213,336 Advisory fee payable .................................... 38,825 Distribution fee payable ................................ 6,751 Accrued expenses and other liabilities .................. 38,517 ------------ Total liabilities ....................................... 1,100,245 ------------ Net Assets .............................................. $ 94,421,130 ============ Composition of Net Assets Paid-in capital ......................................... $ 94,922,345 Undistributed net investment income ..................... 228,564 Accumulated net realized gain on investments, futures contracts and foreign currency transactions .. 18,497 Net unrealized depreciation of investments, futures contracts and foreign currency denominated assets and liabilities ................... (748,276) ------------ $ 94,421,130 ============ Calculation of Maximum Offering Price Class A Shares Net asset value and redemption price per share ($8,262,660 / 825,513 shares of beneficial interest issued and outstanding) .............................. $10.01 Sales charge--4.25% of public offering price ............ .44 ------ Maximum offering price .................................. $10.45 ====== Class B Shares Net asset value and offering price per share ($3,172,267 / 319,779 shares of beneficial interest issued and outstanding) .............................. $ 9.92 ====== Class C Shares Net asset value and offering price per share ($1,917,753 / 193,130 shares of beneficial interest issued and outstanding) .............................. $ 9.93 ====== Advisor Class Shares Net asset value, redemption, and offering price per share ($81,068,450 / 8,088,997 shares of beneficial interest issued and outstanding) .............................. $10.02 ====== See notes to financial statements. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 17 - ----------------------- STATEMENT OF OPERATIONS - ----------------------- STATEMENT OF OPERATIONS Six Months Ended May 31, 2002 (unaudited) Investment Income Dividends (net of foreign taxes withheld of $32,034) .................. $ 519,649 Interest ................................. 40,129 $ 559,778 --------- Expenses Advisory fee ............................. 215,890 Distribution fee - Class A ............... 10,111 Distribution fee - Class B ............... 13,115 Distribution fee - Class C ............... 6,360 Custodian ................................ 77,921 Administrative ........................... 69,000 Amortization of offering expenses ........ 39,334 Registration ............................. 23,447 Printing ................................. 21,677 Audit and legal .......................... 19,979 Transfer agency .......................... 19,448 Trustees' fees ........................... 9,752 Miscellaneous ............................ 825 --------- Total expenses ........................... 526,859 Less: expenses waived and reimbursed by the Adviser (see Note B) ........... (198,321) --------- Net expenses ............................. 328,538 --------- Net investment income .................... 231,240 --------- Realized and Unrealized Gain (Loss) on Investment, Futures Contracts and Foreign Currency Transactions Net realized loss on investment transactions .......................... (38,393) Net realized gain on futures contracts ... 39,948 Net realized gain on foreign currency transactions .......................... 20,898 Net change in unrealized appreciation/depreciation of: Investments ........................... 84,325 Futures contracts ..................... (275,135) Foreign currency denominated assets and liabilities ............. (179,569) --------- Net loss on investments, futures contracts and foreign currency transactions ..... (347,926) --------- Net Decrease in Net Assets from Operations ....................... $(116,686) ========= See notes to financial statements. - -------------------------------------------------------------------------------- 18 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ---------------------------------- STATEMENT OF CHANGES IN NET ASSETS ---------------------------------- STATEMENT OF CHANGES IN NET ASSETS Six Months March 29, Ended 2001(a) May 31, 2002 to November 30, (unaudited) 2001 ============ ============== Increase (Decrease) in Net Assets from Operations Net investment income (loss) ............ $ 231,240 $ (20,465) Net realized gain on investments, futures contracts and foreign currency transactions ......................... 22,453 2,558 Net change in unrealized appreciation/depreciation of investments, futures contracts and foreign currency denominated assets and liabilities ............... (370,379) (377,897) ------------ ------------ Net decrease in net assets from operations ........................... (116,686) (395,804) Transactions in Shares of Beneficial Interest Net increase ............................ 83,909,597 10,999,023 ------------ ------------ Total increase .......................... 83,792,911 10,603,219 Net Assets Beginning of period ..................... 10,628,219 25,000 ------------ ------------ End of period ........................... $ 94,421,130 $ 10,628,219 ============ ============ (a) Commencement of operations. See notes to financial statements. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 19 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - ----------------------------- NOTES TO FINANCIAL STATEMENTS May 31, 2002 (unaudited) 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 Global 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 - -------------------------------------------------------------------------------- 20 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ----------------------------- 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 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 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 and reimbursed by the Adviser. Offering expenses of $120,685 have been fully 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 securities are purchased or sold. The Fund accretes - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 21 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - ----------------------------- discounts as adjustments to interest income. Investment gains and losses are determined on the identified cost basis. 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. 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 1% 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. Effective March 21, 2002, the Adviser agreed to waive its fees and bear certain expenses to the extent necessary to limit total fund operating expenses on an annual basis to 1.50% of average daily net assets for Class A shares, 2.20% of average daily net assets for Class B shares and Class C shares and 1.20% of average daily net assets for Advisor Class shares. For the six months ended May 31, 2002, such reimbursement amounted to $89,987 of which $39,334 is subject to repayment - -------------------------------------------------------------------------------- 22 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ----------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- in subsequent periods, but no later than March 27, 2004. Pursuant to the advisory agreement, the Adviser provides certain legal and accounting services for the Fund. For the six months ended May 31, 2002, the Adviser agreed to waive its fees. Such waiver amounted to $69,000. The Fund compensates Alliance Global Investor Services, Inc. (AGIS), 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. For the six months ended May 31, 2002, such fees amounted to $10,630. For the six months ended March 31, 2002, the Fund's expenses were reduced by $6,182 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 $1,304 from the sale of Class A shares and $1,231 and $1,347 in contingent deferred sales charges imposed upon redemptions by shareholders of Class B and Class C shares for the six months ended May 31, 2002. Brokerage commissions paid on investment transactions for the six months ended May 31, 2002 amounted to $128,058, of which $55,946 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 Fund's average daily net assets attributable to Class A shares and 1% of the average daily net assets attributable to both Class B and Class C shares. 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 $282,887 and $171,225 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 $80,003,239 and $2,098,769, respectively, for the six - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 23 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - ----------------------------- months ended May 31, 2002. There were purchases of $351,851 and sales of $63,515 of U.S. government and government agency obligations for the six months ended May 31, 2002. At May 31, 2002, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation of investments was $5,055,061 and gross unrealized depreciation of investments was $5,360,628, resulting in net unrealized depreciation of $305,567, excluding futures contracts and foreign currency transactions. At November 30, 2001, the Fund had a capital loss carryforward for federal income tax purposes of $1,254, which expires in the year 2009. 1. Financial Futures Contracts The Fund may buy or sell financial futures contracts for the purpose of hedging its portfolio against adverse affects of anticipated movements in the market. The Fund bears the market risk that arises from changes in the value of these financial instruments. At the time the Fund enters into a future contract, the Fund deposits and maintains as collateral an initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed. At May 31, 2002, the Fund had outstanding futures contracts as follows:
Value at Unrealized Number of Expiration Original May 31, Appreciation/ Type Contracts Position Month Value 2002 (Depreciation) =================== ========= ======== ===== ===== ==== ============== British Pound FT-SE 100 Index 8 Long June 2002 $ 632,453 $ 592,454 $ (39,999) EURO STOXX 50 39 Long June 2002 1,387,354 1,246,091 (141,263) Japanese TSE Topix 14 Long June 2002 1,214,471 1,260,423 45,952 S&P 500 Index 8 Long June 2002 2,268,800 2,135,000 (133,800)
A portion of the foreign cash included in the statement of assets and liabilities has been segregated as collateral for the futures transactions outstanding at May 31, 2002. 2. 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 sale commitments denominated in foreign currencies. A forward exchange currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract is included in net realized - -------------------------------------------------------------------------------- 24 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND ----------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- gain or loss 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 or other liquid assets in a separate account of the Fund having a value at least 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 May 31, 2002, the Fund had outstanding forward exchange currency contracts, as follows: U.S. $ Contract Value on U.S. $ Amount Origination Current Unrealized (000) Date Value Depreciation ---------------------------------------------------- Forward Exchange Currency Sale Contracts Japanese Yen, settling 6/20/02 451,000 $3,420,098 $3,633,434 $(213,336) 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 ----------------------------------- ------------------------------------ Six Months Ended March 29, 2001(a) Six Months Ended March 29, 2001(a) May 31, 2002 to November 30, May 31, 2002 to November 30, (unaudited) 2001 (unaudited) 2001 - -------------------------------------------------------------------------------------------- Class A Shares sold 278,823 731,647 $ 2,764,300 $ 7,348,549 - -------------------------------------------------------------------------------------------- Shares converted from Class B 12 -0- 119 -0- - -------------------------------------------------------------------------------------------- Shares redeemed (67,816) (119,633) (671,345) (1,210,362) - -------------------------------------------------------------------------------------------- Net increase 211,019 612,014 $ 2,093,074 $ 6,138,187 ============================================================================================
(a) Commencement of operations. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 25 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - -----------------------------
----------------------------------- ------------------------------------ Shares Amount ----------------------------------- ------------------------------------ Six Months Ended March 29, 2001(a) Six Months Ended March 29, 2001(a) May 31, 2002 to November 30, May 31, 2002 to November 30, (unaudited) 2001 (unaudited) 2001 - -------------------------------------------------------------------------------------------- Class B Shares sold 153,464 209,045 $ 1,496,484 $ 2,072,899 - -------------------------------------------------------------------------------------------- Shares converted to Class A (12) -0- (119) -0- - -------------------------------------------------------------------------------------------- Shares redeemed (33,481) (9,247) (329,477) (92,149) - -------------------------------------------------------------------------------------------- Net increase 119,971 199,798 $ 1,166,888 $ 1,980,750 ============================================================================================ Class C Shares sold 119,248 119,347 $ 1,187,719 $ 1,193,303 - -------------------------------------------------------------------------------------------- Shares redeemed (29,956) (15,519) (290,531) (148,737) - -------------------------------------------------------------------------------------------- Net increase 89,292 103,828 $ 897,188 $ 1,044,566 ============================================================================================ Advisor Class Shares sold 8,325,724 224,494 $ 84,009,717 $ 2,206,400 - -------------------------------------------------------------------------------------------- Shares redeemed (422,290) (38,931) (4,257,270) (370,880) - -------------------------------------------------------------------------------------------- Net increase 7,903,434 185,565 $ 79,752,447 $ 1,835,520 ============================================================================================
NOTE F Concentration of Risk Investing in securities of foreign companies involves special risks which include revaluation of currencies 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 United States companies. NOTE G 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 May 31, 2002. (a) Commencement of operations. - -------------------------------------------------------------------------------- 26 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND -------------------- FINANCIAL HIGHLIGHTS -------------------- FINANCIAL HIGHLIGHTS Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
---------------------------- Class A ---------------------------- Six Months Ended March 29, May 31, 2001(a) to 2002 November 30, (unaudited) 2001 ---------------------------- Net asset value, beginning of period ..................... $ 9.64 $ 10.00 ---------------------------- Income From Investment Operations Net investment income (loss)(b)(c) ....................... .01 (.02) Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions ... .36 (.34) ---------------------------- Net increase (decrease) in net asset value from operations .37 (.36) ---------------------------- Net asset value, end of period ........................... $ 10.01 $ 9.64 ============================ Total Return Total investment return based on net asset value(d) ...... 3.84% (3.60)% Ratios/Supplemental Data Net assets, end of period (000's omitted) ................ $ 8,263 $ 5,923 Ratio to average net assets of: Expenses, net of waivers/reimbursements(e) ............ 2.06% 2.44% Expenses, before waivers/reimbursements(e) ............ 3.26% 8.10% Net investment income (loss)(c)(e) .................... .15% (.27)% Portfolio turnover rate .................................. 5% 14%
See footnote summary on page 30. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 27 - -------------------- FINANCIAL HIGHLIGHTS - -------------------- Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
---------------------------- Class B ---------------------------- Six Months Ended March 29, May 31, 2001(a) to 2002 November 30, (unaudited) 2001 ---------------------------- Net asset value, beginning of period ..................... $ 9.59 $ 10.00 ---------------------------- Income From Investment Operations Net investment loss(b)(c) ................................ (.02) (.06) Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions ... .35 (.35) ---------------------------- Net increase (decrease) in net asset value from operations .33 (.41) ---------------------------- Net asset value, end of period ........................... $ 9.92 $ 9.59 ============================ Total Return Total investment return based on net asset value(d) ...... 3.44% (4.10)% Ratios/Supplemental Data Net assets, end of period (000's omitted) ................ $ 3,172 $ 1,916 Ratio to average net assets of: Expenses, net of waivers/reimbursements(e) ............ 2.74% 3.14% Expenses, before waivers/reimbursements(e) ............ 3.94% 11.12% Net investment loss(c)(e) ............................. (.48)% (.91)% Portfolio turnover rate .................................. 5% 14%
See footnote summary on page 30. - -------------------------------------------------------------------------------- 28 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND -------------------- FINANCIAL HIGHLIGHTS -------------------- Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
---------------------------- Class C ---------------------------- Six Months Ended March 29, May 31, 2001(a) to 2002 November 30, (unaudited) 2001 ---------------------------- Net asset value, beginning of period ..................... $ 9.61 $ 10.00 ---------------------------- Income From Investment Operations Net investment loss(b)(c) ................................ (.02) (.06) Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions ... .34 (.33) ---------------------------- Net increase (decrease) in net asset value from operations .32 (.39) ---------------------------- Net asset value, end of period ........................... $ 9.93 $ 9.61 ============================ Total Return Total investment return based on net asset value(d) ...... 3.33% (3.90)% Ratios/Supplemental Data Net assets, end of period (000's omitted) ................ $ 1,918 $ 997 Ratio to average net assets of: Expenses, net of waivers/reimbursements(e) ............ 2.67% 3.15% Expenses, before waivers/reimbursements(e) ............ 3.81% 12.33% Net investment loss(c)(e) ............................. (.34)% (.89)% Portfolio turnover rate .................................. 5% 14%
See footnote summary on page 30. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 29 - -------------------- FINANCIAL HIGHLIGHTS - -------------------- Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
---------------------------- Advisor Class ---------------------------- Six Months Ended March 29, May 31, 2001(a) to 2002 November 30, (unaudited) 2001 ---------------------------- Net asset value, beginning of period ..................... $ 9.65 $ 10.00 ---------------------------- Income From Investment Operations Net investment income (loss)(b)(c) ....................... .07 (.01) Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions ... .30 (.34) ---------------------------- Net decrease in net asset value from operations .......... .37 (.35) ---------------------------- Net asset value, end of period ........................... $ 10.02 $ 9.65 ============================ Total Return Total investment return based on net asset value(d) ...... 3.83% (3.50)% Ratios/Supplemental Data Net assets, end of period (000's omitted) ................ $ 81,068 $ 1,791 Ratio to average net assets of: Expenses, net of waivers/reimbursements(e) ............ 1.27% 2.10% Expenses, before waivers/reimbursements(e) ............ 2.10% 9.39% Net investment income (loss)(c)(e) .................... 1.44% (.13)% Portfolio turnover rate .................................. 5% 14%
(a) Commencement of operations. (b) Based on average shares outstanding. (c) Net of expenses waived/reimbursed 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 charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total investment return calculated for a period of less than one year is not annualized. (e) Annualized. - -------------------------------------------------------------------------------- 30 o ALLIANCEBERNSTEIN GLOBAL 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. earnings Revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Earnings are often the most important determinant of a company's stock price. 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 (NAV) 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. sector A group of securities that are similar with respect to maturity, type, rating, industry and/or coupon. Refers to a distinct part of the economy, for example, the technology sector. valuation The process of determining the value of an asset or company. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 31 - ---------------- ALLIANCE CAPITAL - ---------------- ALLIANCE CAPITAL The Investment Professional's Choice Alliance Capital is a leading global investment management firm with approximately $412 billion in assets under management. In recognition of our far-reaching investment capabilities, Alliance Capital has been selected by employee benefit plans for 43 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 over 600 investment professionals in 37 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 6/30/02. - -------------------------------------------------------------------------------- 32 o ALLIANCEBERNSTEIN GLOBAL 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 7:00 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 Web Site 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 GLOBAL VALUE FUND o 33 - ----------------- 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 Andrew S. Adelson, Senior Vice President Kevin F. Simms, Senior Vice President Seth Masters, Senior Vice President Edmund P. Bergen, Jr., Secretary Mark D. Gersten, Treasurer & 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 Transfer Agent Alliance Global Investor Services, Inc. P.O. Box 1520 Secaucus, NJ 07096-1520 Toll-free (800) 221-5672 Independent Auditors Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Ropes & Gray One International Place Boston, MA 02118 (1) Member of the Audit Committee. - -------------------------------------------------------------------------------- 34 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND -------------------------------- ALLIANCE CAPITAL FAMILY OF FUNDS -------------------------------- ALLIANCE CAPITAL FAMILY OF FUNDS U.S. Stock Funds Growth & Income Fund Growth Fund Health Care Fund Mid-Cap Growth Fund* Premier Growth Fund Quasar Fund Technology Fund Global & International Stock 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 Taxable Bond 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 Tax-Exempt Bond Funds National Intermediate Diversified Insured National Arizona California Intermediate California Insured California Florida Massachusetts Michigan Minnesota New Jersey New York Intermediate New York Ohio Pennsylvania Virginia Closed-End Funds All-Market Advantage Fund ACM Income Fund ACM Government Opportunity Fund ACM Managed Dollar Income Fund ACM Managed Income Fund ACM Municipal Securities Income Fund California Municipal Income Fund National Municipal Income Fund New York Municipal 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 changed its name to Alliance Mid-Cap Growth Fund on February 1, 2002. ** Alliance North American Government Income Trust changed its name to Alliance Americas Government Income Trust on March 1, 2002. *** Alliance Global Dollar Government Fund changed its name to Alliance Emerging Market Debt Fund on March 1, 2002. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL VALUE FUND o 35 NOTES - -------------------------------------------------------------------------------- 36 o ALLIANCEBERNSTEIN GLOBAL VALUE FUND AllianceBernstein Global 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. ACBVIGVFSR0502 -----END PRIVACY-ENHANCED MESSAGE-----