N-CSR 1 dncsr.htm ALLIANCEBERNSTEIN BLENDED STYLE SERIES, INC. AllianceBernstein Blended Style Series, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-21081

 

 

 

ALLIANCEBERNSTEIN BLENDED STYLE SERIES, INC.

(Exact name of registrant as specified in charter)

 

1345 Avenue of the Americas,

New York, New York

   10105
(Address of principal executive offices)   (Zip code)

 

 

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (800) 221-5672

 

Date of fiscal year end: August 31, 2007

 

Date of reporting period: August 31, 2007

ITEM 1. REPORTS TO STOCKHOLDERS.

ANNUAL REPORT

 

AllianceBernstein Retirement Strategies

2000 Retirement Strategy

2005 Retirement Strategy

2010 Retirement Strategy

2015 Retirement Strategy

2020 Retirement Strategy

2025 Retirement Strategy

2030 Retirement Strategy

2035 Retirement Strategy

2040 Retirement Strategy

2045 Retirement Strategy

2050 Retirement Strategy

2055 Retirement Strategy

 

LOGO

 

August 31, 2007

 

Annual Report

 

 

Investment Products Offered

  •  

Are Not FDIC Insured

  •  

May Lose Value

  •  

Are Not Bank Guaranteed

The investment return and principal value of an investment in the Fund will fluctuate as the prices of the individual securities in which it invests fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For a free copy of the Fund’s prospectus, which contains this and other information, visit our web site at www.alliancebernstein.com or call your financial advisor or AllianceBernstein® at (800) 227-4618. Please read the prospectus carefully before you invest.

You may obtain performance information current to the most recent month-end by visiting www.alliancebernstein.com.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AllianceBernstein’s web site at www.alliancebernstein.com, or go to the Securities and Exchange Commission’s (the “Commission”) web site at www.sec.gov, or call AllianceBernstein at (800) 227-4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s web site at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. AllianceBernstein publishes full portfolio holdings for the Fund monthly at www.alliancebernstein.com.

AllianceBernstein Investments, Inc. is an affiliate of AllianceBernstein L.P., the manager of the AllianceBernstein funds, and is a member of FINRA.

AllianceBernstein® and the AB Logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.

October 24, 2007

 

Annual Report

This report provides management’s discussion of fund performance for the AllianceBernstein Retirement Strategies (collectively, the “Strategies”) for the annual reporting period ended August 31, 2007.

Investment Objective and Policies

The investment objective of each Strategy is to seek the highest total return over time consistent with its asset mix. Total return includes capital growth and income. Each Strategy will seek to achieve its objective by investing in a combination of portfolios of the AllianceBernstein Pooling Portfolios representing a variety of asset classes and investment styles (the “Underlying Portfolios”). Each Strategy is managed to the specific year of planned retirement included in its name (the “retirement year”). The Strategies’ asset mixes will become more conservative each year until reaching the year approximately fifteen years after the retirement year (the “target year”) at which time the asset allocation mix will become more static. This reflects the objective of pursuing the maximum amount of capital growth, consistent with a reasonable amount of risk, during the investor’s pre-retirement and early retirement years. After the retirement date of a Strategy, that Strategy’s asset mix seeks to minimize the likelihood that an investor in that Strategy experiences a significant loss of capital at a more advanced age. The asset mix will continue to change with an increasing exposure to investments in fixed-income securities and short-term bonds until fifteen years after a Strategy’s retirement date. Thereafter, the

target allocation for that Strategy will generally be fixed. The static allocation of a Strategy’s asset mix will be 27.5% short-duration bonds, 37.5% fixed-income securities and 35% equities. The Adviser will allow the relative weightings of a Strategy’s asset classes to vary in response to the markets, but ordinarily only by +/- 5%. Beyond those ranges, the Adviser will generally rebalance the portfolio toward the target allocation for the Strategy. However, there may be occasions when those ranges will expand to 10% of the Strategy’s portfolio due to, among other things, appreciation of one of the asset classes.

Investment Results

The tables on pages 6–29 show each individual Retirement Strategy’s (RS) performance compared to its composite benchmark. Additional performance can be found on pages 31–54. Each Strategy’s composite benchmark is derived by applying the Strategies’ target allocations over time to the results of specific benchmarks as outlined in the “Benchmark Disclosures” section of Historical Performance on pages 4-5. The Blend Investment Policy Team (the “Team”) feels that a composite benchmark is a better benchmark for the measurement of the Adviser’s active management performance within the underlying asset classes than a broad-market benchmark. The composite benchmark matches each Strategy’s allocations directly, so that each benchmark reflects its respective Strategy at any point in time, providing a more accurate measure of each Strategy’s active management performance. Performance for each of


ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   1

 

the Underlying Portfolios compared to its benchmark may be found on page 30. Additional performance for the Underlying Portfolios may be found on pages 55–58.

Performance was mixed for the Strategies for the six- and 12-month periods ended August 31, 2007. All of the Strategies’ Class A shares without sales charges modestly underperformed their composite benchmarks for the 12-month period under review. Nearly all of the Strategies’ Class A shares without sales charges outperformed their respective benchmarks for the six-month period ended August 31, 2007, including 2000 RS, 2015 RS, 2025 RS, 2030 RS, as well as all of the Strategies designed for younger investors (those investors furthest away from retirement): 2035 RS, 2040 RS and 2045 RS. The two newest Strategies, 2050 RS and 2055 RS, outperformed their benchmarks for the period since their inception on June 29, 2007.

The Retirement Strategies’ approach of seeking returns in both the United States and the international equity markets contributed to overall performance, as international stocks outperformed U.S. stocks during the 12-month review period. International stocks, as represented by the Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index, returned 18.71% for the 12-month reporting period, while U.S. stocks, as represented by the Standard and Poor’s (S&P) 500 Stock Index, returned 15.13% for the same time period. Holdings in the Value

Underlying Portfolios all outperformed for the 12-month reporting period, while the Growth Underlying Portfolios typically underperformed for the same time period. One exception was the Small-Mid Cap Growth Underlying Portfolio, which outperformed for both the six- and 12-month periods ended August 31, 2007. The U.S. Large Cap Growth Underlying Portfolio also outperformed for the six-month period, illustrating the benefits of diversification.

The Strategies’ exposure to Global Real Estate Investment Trusts (REITs) contributed positively to performance, as the Global REIT Underlying Portfolio modestly outperformed for the 12-month period. The fixed-income allocations modestly underperformed the broad market, most notably the Short Duration Bond Underlying Portfolio, which underperformed for both the six- and 12-month periods ended August 31, 2007.

The Strategies designed for younger investors, RS 2035 through RS 2055, have target allocations of 90% in equities and 10% in Global REITs. As such, these Strategies benefited from the performance of global equity markets, as stocks continued to provide returns above historic averages. The Global REIT exposure of these Strategies, while enduring a weak July 2007, rebounded in August, and outperformed for the 12-month review period.

The Strategies designed for mid-life savers, RS 2020, RS 2025 and RS 2030,


2   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

continued to benefit from the low-correlating nature of stocks and bonds, as positive performance in the Value Underlying Portfolios helped to offset the modest underperformance of the Fixed-Income Underlying Portfolios. RS 2010 and RS 2015, the other two Strategies designed for mid-life savers, vary slightly, in that they also include inflation protected securities. These inflation protected securities performed in-line with the Lehman Brothers 1-10 Year TIPS Index for the six- and 12-month periods ended August 31, 2007.

Finally, the Strategies intended for early retirees, RS 2000 and RS 2005, have larger target allocations to bonds, between 35% and 45%, and target allocations to equities and Global REITs that comprise between 55% and 65% of these Strategies’ holdings. This larger equity allocation helped to offset the relative underperformance by the Short Duration Bond Underlying Portfolio for both the six- and 12-month reporting periods.

Market Review and Investment Strategy

The six- and 12-month periods ended August 31, 2007, were strong for global capital markets. Stocks con-

tinued to provide returns above historic averages. Several factors fueled the equity markets around the world, including solid economic growth, robust corporate earnings and booming merger and acquisition (M&A) activity.

Small and mid-cap stocks generally outperformed large-cap stocks, and the Strategies’ holdings in international stocks also contributed positively to relative performance. The performance of the Strategies’ growth holdings generally trailed the market, with the notable exception of small and mid-cap growth stocks—the best performers overall. This reinforces the Team’s belief that diversification within the portfolio aids the Strategies’ performance. Overall, fixed-income returns modestly underperformed the market.

As always, the Team remained focused on its strategy of combining low correlation asset classes, blending growth and value investment styles, globalizing the Strategies’ portfolios and ensuring that each portfolio is aligned with its strategic asset allocation targets over time through a disciplined rebalancing process.


ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   3

 

HISTORICAL PERFORMANCE

An Important Note About the Value of Historical Performance

The performance shown on the following pages represents past performance and does not guarantee future results. Retirement Strategy 2050 and Retirement Strategy 2055 are relatively new and have been in existence for less than two years. The returns reflected may not be illustrative of long-term performance. Current performance for all of the Strategies may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting our website at www.alliancebernstein.com.

The investment return and principal value of an investment in the Strategies will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, charges and expenses of the Strategies carefully before investing. For a free copy of the Strategies’ prospectus, visit our website at www.alliancebernstein.com or call your financial advisor or AllianceBernstein Investments at 800.227.4618. You should read the prospectus carefully before you invest.

All fees and expenses related to the operation of the Strategies have been deducted. Strategy returns are at net asset value (NAV), without the imposition of sales charges that would apply if shares were purchased outside of a group retirement plan. NAV returns do not reflect sales charges; if sales charges were reflected, the Strategy’s quoted performance would be lower. SEC returns reflect the 4.25% maximum front-end sales charge for Class A shares. Performance assumes reinvestment of distributions and does not account for taxes. For shareholders who have purchased their shares through certain group retirement plans, which are eligible to purchase Class A, Class B, Class C, Advisor Class, Class R, Class K or Class I shares at NAV without the imposition of an initial sales charge, the following fees and charges apply: Class A shares carry no front-end sales charge or CDSC, but are subject to a 0.30% Rule 12b-1 distribution fee and Class A shares may be subject to a 1% redemption fee if a non-AllianceBernstein sponsored group retirement plan terminates a Strategy as an investment option within one year of initiation; Class R shares carry no front-end sales charges or CDSC but are subject to a 0.50% Rule 12b-1 distribution fee; Class K shares carry no front-end sales charge or CDSC but are subject to a 0.25% Rule 12b-1 distribution fee; Class I shares carry no front-end sales charges or CDSC.

Benchmark Disclosures

The composite benchmark is derived by applying the Strategies’ target allocations over time to the results of the following benchmarks: for U.S. stocks, Russell 3000 Index; for non-U.S. stocks, Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index; for real estate investment trusts (REITs), FTSE EPRA/NAREIT Global Real Estate Index; for intermediate bonds, Lehman Brothers (LB) U.S. Aggregate Index; for short-term bonds, Merrill Lynch (ML) 1-3 Year Treasury Index; for Inflation Protected Securities, LB 1-10 Year TIPS Index; for high yield bonds, LB High Yield (2% constrained) Index.

The MSCI EAFE Index values are calculated using net returns. Net returns approximate the minimum possible dividend reinvestment—the dividend is reinvested after deduction of withholding tax, applying the highest rate applicable to non-resident institutional individuals who do not benefit from double taxation treaties.

(Historical Performance continued on next page)

4   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

HISTORICAL PERFORMANCE

(continued from previous page)

None of the indices reflect fees and expenses associated with the active management of a mutual fund portfolio. The unmanaged S&P 500 Stock Index measures 500 U.S. stocks and is a common measure of the performance of the overall U.S. stock market. The unmanaged Russell 3000 Index is composed of 3,000 of the largest capitalized companies that are traded in the United States. The unmanaged MSCI EAFE Index is a market capitalization-weighted index that measures stock performance in 21 countries in Europe, Australasia and the Far East. The Financial Times Stock Exchange (FTSE) European Public Real Estate Association (EPRA)/National Association of Real Estate Investment Trusts (NAREIT) Global Real Estate Index is a free-floating, market-capitalization weighted index structured in such a way that it can be considered to represent general trends in all eligible real estate stocks world-wide. The index is designed to reflect the stock performance of companies engaged in specific aspects of the North American, European and Asian real estate markets. The unmanaged LB U.S. Aggregate Index covers the U.S. investment-grade fixed-rate bond market, including government and credit securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The ML 1-3 Year Treasury Index is an unmanaged index composed of U.S. government securities, including agency securities, with remaining maturities, at month end, of one to three years. The LB 1-10 Year TIPS Index is the 1-10 year maturity component of the unmanaged U.S. Treasury Inflation Notes Index and consists of Inflation-Protection securities issued by the U.S. Treasury. The LB High Yield (2% constrained) Index covers the universe of fixed-rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zeroes, step-up coupon structures, and 144-As are also included. An investor cannot invest directly in an index, and its results are not indicative of the performance of any specific investment, including the Strategies.

A Word About Risk

All the Retirement Strategies allocate their investments among multiple asset classes, which will include U.S. and foreign securities, as well as equity and fixed-income securities. Within each of these, the Strategies will also allocate their investments to different types of securities, such as growth and value stocks, real estate investment trusts and corporate and U.S. government bonds. International investing involves risks not associated with U.S. investments, including currency fluctuations and political and economic changes. The Strategies may at times use certain types of investment derivatives such as options, futures, forwards and swaps. The use of derivatives involves specific risks and is not suitable for all investors. The Strategies systematically rebalance their allocations in these asset classes to maintain their target weightings. Systematic rebalancing does involve transactional trading costs to the portfolios. While diversification and shifting to a more conservative investment mix over time helps to manage risk, it does not guarantee earnings growth. There is the potential to lose money in any investment program. You do not have the ability to actively manage the investments within a Retirement Strategy. The portfolio managers control security selection and asset allocation. The risks associated with an investment in the Strategies are more fully described in the Strategies’ prospectus.

 

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   5

 

Historical Performance

2000 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED AUGUST 31, 2007		   Returns    
  6 Months      12 Months     

AllianceBernstein 2000 Retirement Strategy

         

Class A

   2.45%      10.32%  
 

Class B

   2.02%      9.45%  
 

Class C

   2.02%      9.45%  
 

Advisor Class*

   2.52%      10.52%  
 

Class R*

   2.21%      9.85%  
 

Class K*

   2.39%      10.31%  
 

Class I*

   2.38%      10.43%  
 

Composite Benchmark**

   2.43%      10.67%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

6   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2000 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2000 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   7

 

Historical Performance

2005 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2005 Retirement Strategy

         

Class A

   2.35%      10.69%  
 

Class B

   2.10%      10.01%  
 

Class C

   2.02%      9.92%  
 

Advisor Class*

   2.52%      10.94%  
 

Class R*

   2.27%      10.46%  
 

Class K*

   2.35%      10.85%  
 

Class I*

   2.52%      10.94%  
 

Composite Benchmark**

   2.55%      11.75%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

 

**  For a description of the composite benchmark, please see page 4.

        

 

 

 

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

8   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2005 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY 9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2005 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   9

 

Historical Performance

2010 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED AUGUST 31, 2007		   Returns    
  6 Months      12 Months     

AllianceBernstein 2010 Retirement Strategy

         

Class A

   2.65%      11.64%  
 

Class B

   2.33%      10.86%  
 

Class C

   2.32%      10.95%  
 

Advisor Class*

   2.90%      12.12%  
 

Class R*

   2.57%      11.47%  
 

Class K*

   2.74%      11.80%  
 

Class I*

   2.90%      12.04%  
 

Composite Benchmark**

   2.68%      12.63%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

10   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2010 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2010 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   11

 

Historical Performance

2015 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED AUGUST 31, 2007		   Returns    
  6 Months      12 Months     

AllianceBernstein 2015 Retirement Strategy

         

Class A

   2.86%      12.75%  
 

Class B

   2.45%      11.96%  
 

Class C

   2.53%      11.96%  
 

Advisor Class*

   3.01%      13.11%  
 

Class R*

   2.78%      12.56%  
 

Class K*

   2.85%      12.77%  
 

Class I*

   3.10%      13.09%  
 

Composite Benchmark**

   2.85%      13.44%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

 

12   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2015 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2015 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   13

 

Historical Performance

2020 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2020 Retirement Strategy

         

Class A

   2.90%      13.20%  
 

Class B

   2.50%      12.42%  
 

Class C

   2.50%      12.42%  
 

Advisor Class*

   3.14%      13.66%  
 

Class R*

   2.83%      13.05%  
 

Class K*

   2.90%      13.36%  
 

Class I*

   3.14%      13.61%  
 

Composite Benchmark**

   3.01%      14.23%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

 

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

14   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2020 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY 9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2020 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   15

 

Historical Performance

2025 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2025 Retirement Strategy

         

Class A

   3.47%      14.22%  
 

Class B

   3.01%      13.36%  
 

Class C

   3.09%      13.44%  
 

Advisor Class*

   3.62%      14.55%  
 

Class R*

   3.39%      14.07%  
 

Class K*

   3.47%      14.22%  
 

Class I*

   3.70%      14.60%  
 

Composite Benchmark**

   3.25%      14.97%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

 

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

16   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2025 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY 9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2025 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   17

 

Historical Performance

2030 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2030 Retirement Strategy

         

Class A

   3.76%      15.08%  
 

Class B

   3.46%      14.35%  
 

Class C

   3.54%      14.42%  
 

Advisor Class*

   3.99%      15.53%  
 

Class R*

   3.76%      14.88%  
 

Class K*

   3.84%      15.24%  
 

Class I*

   4.00%      15.54%  
 

Composite Benchmark**

   3.61%      15.67%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

18   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2030 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY 9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2030 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   19

 

Historical Performance

2035 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2035 Retirement Strategy

         

Class A

   3.99%      15.09%  
 

Class B

   3.60%      14.27%  
 

Class C

   3.69%      14.37%  
 

Advisor Class*

   4.22%      15.54%  
 

Class R*

   3.92%      14.86%  
 

Class K*

   3.99%      15.16%  
 

Class I*

   4.23%      15.56%  
 

Composite Benchmark**

   3.78%      15.95%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

20   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2035 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2035 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   21

 

Historical Performance

2040 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2040 Retirement Strategy

         

Class A

   3.87%      15.32%  
 

Class B

   3.48%      14.48%  
 

Class C

   3.48%      14.48%  
 

Advisor Class*

   4.02%      15.56%  
 

Class R*

   3.80%      15.08%  
 

Class K*

   3.95%      15.40%  
 

Class I*

   4.11%      15.67%  
 

Composite Benchmark**

   3.78%      15.95%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

22   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2040 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY 9/1/05* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 9/1/05.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2040 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   23

 

Historical Performance

2045 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein 2045 Retirement Strategy

         

Class A

   4.20%      14.85%  
 

Class B

   3.82%      13.96%  
 

Class C

   3.82%      13.96%  
 

Advisor Class*

   4.35%      15.08%  
 

Class R*

   4.05%      14.50%  
 

Class K*

   4.21%      14.76%  
 

Class I*

   4.28%      15.08%  
 

Composite Benchmark**

   3.78%      15.95%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

        

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

24   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2045 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

9/1/05* TO 8/31/07

LOGO

*Since inception of the Strategy’s Class A shares on 9/1/05.

**For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2045 Retirement Strategy Class A shares (from 9/1/05 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   25

 

Historical Performance

2050 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

      
THE STRATEGY VS. ITS BENCHMARK
PERIOD ENDED AUGUST 31, 2007		   Returns       
  Since Inception†        

AllianceBernstein 2050 Retirement Strategy

       

Class A

   -1.40%     
 

Class B

   -1.50%     
 

Class C

   -1.50%     
 

Advisor Class*

   -1.30%     
 

Class R*

   -1.40%     
 

Class K*

   -1.40%     
 

Class I*

   -1.30%     
 

Composite Benchmark**

   -2.29%     
 

S&P 500 Stock Index

   -1.65%     
 

Lehman Brothers U.S. Aggregate Index

   2.07%     
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

†    Since inception for all of the Strategy’s share classes is 6/29/07.

      

This strategy is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

26   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2050 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

6/29/07* TO 8/31/07

LOGO

*Since inception of the Strategy’s Class A shares on 6/29/07.

**For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2050 Retirement Strategy Class A shares (from 6/29/07 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

This strategy is relatively new and has been in existence for less than two years. The values shown may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   27

 

Historical Performance

2055 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

      

THE STRATEGY VS. ITS BENCHMARK

PERIOD ENDED AUGUST 31, 2007

   Returns       
  Since Inception†        

AllianceBernstein 2055 Retirement Strategy

       

Class A

   -1.50%     
 

Class B

   -1.60%     
 

Class C

   -1.60%     
 

Advisor Class*

   -1.40%     
 

Class R*

   -1.50%     
 

Class K*

   -1.50%     
 

Class I*

   -1.40%     
 

Composite Benchmark**

   -2.29%     
 

S&P 500 Stock Index

   -1.65%     
 

Lehman Brothers U.S. Aggregate Index

   2.07%     
 

*    Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

**  For a description of the composite benchmark, please see page 4.

†    Since inception for all of the Strategy’s share classes is 6/29/07.

      

This strategy is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

28   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2055 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

GROWTH OF A $10,000 INVESTMENT IN THE STRATEGY

6/29/07* TO 8/31/07

LOGO

 

* Since inception of the Strategy’s Class A shares on 6/29/07.

 

** For a description of the composite benchmark, please see page 4.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein 2055 Retirement Strategy Class A shares (from 6/29/07 to 8/31/07) as compared to the performance of its composite benchmark**, along with the individual components of the benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Strategy and assumes the reinvestment of dividends and capital gains distributions.

This strategy is relatively new and has been in existence for less than two years. The values shown may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   29

 

Historical Performance

 

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

EACH UNDERLYING PORTFOLIO*† VS. ITS
BENCHMARK

PERIODS ENDED AUGUST 31, 2007

        
  Returns    
  6 Months      12 Months     

AllianceBernstein Global Real Estate Investment Portfolio

   -7.58%      14.33%  

FTSE EPRA/NAREIT Global RE Index

   -7.34%      14.06%  
 

AllianceBernstein Global Research Growth Portfolio

   5.10%      15.35%  

MSCI World Index

   5.98%      16.97%  
 

AllianceBernstein Global Value Portfolio

   5.73%      18.19%  

MSCI World Index

   5.98%      16.97%  
 

AllianceBernstein High Yield Portfolio

   -1.53%      6.22%  

Lehman Brothers High Yield Index (2% constrained)

   -1.71%      6.46%  
 

AllianceBernstein Inflation Protected Securities Portfolio

   3.10%      4.44%  

Lehman Brothers 1-10 Year TIPS Index

   3.09%      4.46%  
 

AllianceBernstein Intermediate Duration Bond Portfolio

   1.36%      5.03%  

Lehman Brothers U.S. Aggregate Index

   1.55%      5.26%  
 

AllianceBernstein International Growth Portfolio

   7.68%      18.09%  

MSCI EAFE Growth Index

   8.23%      19.59%  
 

AllianceBernstein International Value Portfolio

   6.11%      20.64%  

MSCI EAFE Value Index

   3.46%      17.74%  
 

AllianceBernstein Short Duration Bond Portfolio

   1.61%      4.51%  

Merrill Lynch 1-3 Year Treasury Index

   3.06%      5.60%  
 

AllianceBernstein Small-Mid Cap Growth Portfolio

   12.15%      27.50%  

Russell 2500 Growth Index

   4.98%      18.86%  
 

AllianceBernstein Small-Mid Cap Value Portfolio

   3.26%      18.64%  

Russell 2500 Value Index

   -3.28%      8.76%  
 

AllianceBernstein U.S. Large Cap Growth Portfolio

   8.16%      15.23%  

Russell 1000 Growth Index

   7.46%      17.70%  
 

AllianceBernstein U.S. Value Portfolio

   3.34%      13.55%  

Russell 1000 Value Index

   2.76%      12.85%  
 

*  Please note, shares of the Underlying Portfolios are offered exclusively to mutual funds advised by, and certain institutional clients of, AllianceBernstein that seek a blend of asset classes for investment, like the Strategies. These share classes are not currently offered for direct investment from the general public.

 

†  The Underlying Portfolios do not contain sales charges or management fees.

        

(Historical Performance continued on next page)

30   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2000 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    10.32 %      5.66 %

Since Inception*

    9.57 %      7.23 %
       
Class B Shares        

1 Year

    9.45 %      5.45 %

Since Inception*

    8.78 %      7.39 %
       
Class C Shares        

1 Year

    9.45 %      8.45 %

Since Inception*

    8.78 %      8.78 %
       
Advisor Class Shares†        

1 Year

    10.52 %      10.52 %

Since Inception*

    9.87 %      9.87 %
       
Class R Shares†        

1 Year

    9.85 %      9.85 %

Since Inception*

    9.29 %      9.29 %
       
Class K Shares†        

1 Year

    10.31 %      10.31 %

Since Inception*

    9.61 %      9.61 %
       
Class I Shares†        

1 Year

    10.43 %      10.43 %

Since Inception*

    9.83 %      9.83 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 105.01%, 169.82%, 172.12%, 189.36%, 180.34%, 167.54% and 180.57% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 0.86%, 1.56%, 1.56%, 0.56%, 1.06%, 0.81% and 0.56% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   31

 

Historical Performance

2000 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
Class A Shares        

1 Year

         7.49 %

Since Inception*

         8.42 %
       
Class B Shares        

1 Year

         7.52 %

Since Inception*

         9.07 %
       
Class C Shares        

1 Year

         10.52 %

Since Inception*

         9.94 %
       
Advisor Class Shares†        

1 Year

         12.57 %

Since Inception*

         11.02 %
       
Class R Shares†        

1 Year

         11.95 %

Since Inception*

         10.43 %
       
Class K Shares†        

1 Year

         12.32 %

Since Inception*

         10.75 %
       
Class I Shares†        

1 Year

         12.53 %

Since Inception*

         11.00 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

 

32   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2005 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    10.69 %      6.03 %

Since Inception*

    9.96 %      7.61 %
       
Class B Shares        

1 Year

    10.01 %      6.01 %

Since Inception*

    9.21 %      7.83 %
       
Class C Shares        

1 Year

    9.92 %      8.92 %

Since Inception*

    9.12 %      9.12 %
       
Advisor Class Shares†        

1 Year

    10.94 %      10.94 %

Since Inception*

    10.23 %      10.23 %
       
Class R Shares†        

1 Year

    10.46 %      10.46 %

Since Inception*

    9.69 %      9.69 %
       
Class K Shares†        

1 Year

    10.85 %      10.85 %

Since Inception*

    9.98 %      9.98 %
       
Class I Shares†        

1 Year

    10.94 %      10.94 %

Since Inception*

    10.23 %      10.23 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 13.79%, 19.17%, 22.60%, 46.01%, 34.72%, 16.08% and 45.14% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 0.92%, 1.62%, 1.62%, 0.62%, 1.12%, 0.87% and 0.62% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   33

 

Historical Performance

2005 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares        

1 Year

         8.30 %

Since Inception*

         9.04 %
       
Class B Shares        

1 Year

         8.35 %

Since Inception*

         9.66 %
       
Class C Shares        

1 Year

         11.36 %

Since Inception*

         10.48 %
       
Advisor Class Shares†        

1 Year

         13.44 %

Since Inception*

         11.63 %
       
Class R Shares†        

1 Year

         12.89 %

Since Inception*

         11.03 %
       
Class K Shares†        

1 Year

         13.27 %

Since Inception*

         11.35 %
       
Class I Shares†        

1 Year

         13.45 %

Since Inception*

         11.63 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

34   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2010 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    11.64 %      6.88 %

Since Inception*

    10.83 %      8.47 %
       
Class B Shares        

1 Year

    10.86 %      6.86 %

Since Inception*

    10.04 %      8.67 %
       
Class C Shares        

1 Year

    10.95 %      9.95 %

Since Inception*

    10.09 %      10.09 %
       
Advisor Class Shares†        

1 Year

    12.12 %      12.12 %

Since Inception*

    11.17 %      11.17 %
       
Class R Shares†        

1 Year

    11.47 %      11.47 %

Since Inception*

    10.65 %      10.65 %
       
Class K Shares†        

1 Year

    11.80 %      11.80 %

Since Inception*

    10.91 %      10.91 %
       
Class I Shares†        

1 Year

    12.04 %      12.04 %

Since Inception*

    11.18 %      11.18 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 8.25%, 9.42%, 8.46%, 9.24%, 11.94%, 8.06% and 13.47% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 0.94%, 1.64%, 1.64%, 0.64%, 1.14%, 0.89% and 0.64% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark Disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   35

 

Historical Performance

2010 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares        

1 Year

         9.82 %

Since Inception*

         10.14 %
       
Class B Shares        

1 Year

         9.80 %

Since Inception*

         10.79 %
       
Class C Shares        

1 Year

         12.89 %

Since Inception*

         11.69 %
       
Advisor Class Shares†        

1 Year

         15.03 %

Since Inception*

         12.76 %
       
Class R Shares†        

1 Year

         14.39 %

Since Inception*

         12.22 %
       
Class K Shares†        

1 Year

         14.71 %

Since Inception*

         12.52 %
       
Class I Shares†        

1 Year

         14.95 %

Since Inception*

         12.78 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

36   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2015 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    12.75 %      7.98 %

Since Inception*

    11.84 %      9.45 %
       
Class B Shares        

1 Year

    11.96 %      7.96 %

Since Inception*

    11.10 %      9.73 %
       
Class C Shares        

1 Year

    11.96 %      10.96 %

Since Inception*

    11.10 %      11.10 %
       
Advisor Class Shares†        

1 Year

    13.11 %      13.11 %

Since Inception*

    12.22 %      12.22 %
       
Class R Shares†        

1 Year

    12.56 %      12.56 %

Since Inception*

    11.64 %      11.64 %
       
Class K Shares†        

1 Year

    12.77 %      12.77 %

Since Inception*

    11.90 %      11.90 %
       
Class I Shares†        

1 Year

    13.09 %      13.09 %

Since Inception*

    12.21 %      12.21 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 9.00%, 10.08%, 10.97%, 25.00%, 9.37%, 8.62% and 11.94% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 0.98%, 1.68%, 1.68%, 0.68%, 1.18%, 0.93% and 0.68% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   37

 

Historical Performance

2015 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares  

1 Year

         10.85 %

Since Inception*

         11.18 %
       
Class B Shares        

1 Year

         11.02 %

Since Inception*

         11.91 %
       
Class C Shares        

1 Year

         13.93 %

Since Inception*

         12.72 %
       
Advisor Class Shares†        

1 Year

         16.13 %

Since Inception*

         13.87 %
       
Class R Shares†        

1 Year

         15.61 %

Since Inception*

         13.28 %
       
Class K Shares†        

1 Year

         15.90 %

Since Inception*

         13.56 %
       
Class I Shares†        

1 Year

         16.31 %

Since Inception*

         13.90 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

 

38   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2020 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    13.20 %      8.35 %

Since Inception*

    12.51 %      10.11 %
       
Class B Shares        

1 Year

    12.42 %      8.42 %

Since Inception*

    11.73 %      10.37 %
       
Class C Shares        

1 Year

    12.42 %      11.42 %

Since Inception*

    11.73 %      11.73 %
       
Advisor Class Shares†        

1 Year

    13.66 %      13.66 %

Since Inception*

    12.89 %      12.89 %
       
Class R Shares†        

1 Year

    13.05 %      13.05 %

Since Inception*

    12.34 %      12.34 %
       
Class K Shares†        

1 Year

    13.36 %      13.36 %

Since Inception*

    12.59 %      12.59 %
       
Class I Shares†        

1 Year

    13.61 %      13.61 %

Since Inception*

    12.87 %      12.87 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 8.59%, 9.66%, 9.90%, 29.39%, 9.80%, 7.71% and 8.74% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.02%, 1.72%, 1.72%, 0.72%, 1.22%, 0.97% and 0.72% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   39

 

Historical Performance

2020 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares        

1 Year

         11.63 %

Since Inception*

         11.97 %
       
Class B Shares        

1 Year

         11.81 %

Since Inception*

         12.68 %
       
Class C Shares        

1 Year

         14.81 %

Since Inception*

         13.52 %
       
Advisor Class Shares†        

1 Year

         16.90 %

Since Inception*

         14.67 %
       
Class R Shares†        

1 Year

         16.33 %

Since Inception*

         14.10 %
       
Class K Shares†        

1 Year

         16.61 %

Since Inception*

         14.38 %
       
Class I Shares†        

1 Year

         16.97 %

Since Inception*

         14.65 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

40   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2025 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    14.22 %      9.34 %

Since Inception*

    14.33 %      11.89 %
       
Class B Shares        

1 Year

    13.36 %      9.36 %

Since Inception*

    13.45 %      12.12 %
       
Class C Shares        

1 Year

    13.44 %      12.44 %

Since Inception*

    13.54 %      13.54 %
       
Advisor Class Shares†        

1 Year

    14.55 %      14.55 %

Since Inception*

    14.65 %      14.65 %
       
Class R Shares†        

1 Year

    14.07 %      14.07 %

Since Inception*

    14.11 %      14.11 %
       
Class K Shares†        

1 Year

    14.22 %      14.22 %

Since Inception*

    14.33 %      14.33 %
       
Class I Shares†        

1 Year

    14.60 %      14.60 %

Since Inception*

    14.67 %      14.67 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 8.80%, 10.17%, 9.54%, 9.49%, 7.80%, 6.74% and 7.69% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.04%, 1.74%, 1.74%, 0.74%, 1.24%, 0.99% and 0.74% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   41

 

Historical Performance

2025 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares        

1 Year

         12.86 %

Since Inception*

         13.83 %
       
Class B Shares        

1 Year

         13.00 %

Since Inception*

         14.51 %
       
Class C Shares        

1 Year

         15.89 %

Since Inception*

         15.38 %
       
Advisor Class Shares†        

1 Year

         18.15 %

Since Inception*

         16.51 %
       
Class R Shares†        

1 Year

         17.67 %

Since Inception*

         16.00 %
       
Class K Shares†        

1 Year

         17.83 %

Since Inception*

         16.21 %
       
Class I Shares†        

1 Year

         18.20 %

Since Inception*

         16.53 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

42   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2030 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
Class A Shares        

1 Year

    15.08 %      10.18 %

Since Inception*

    13.75 %      11.32 %
       
Class B Shares        

1 Year

    14.35 %      10.35 %

Since Inception*

    12.88 %      11.54 %
       
Class C Shares        

1 Year

    14.42 %      13.42 %

Since Inception*

    12.97 %      12.97 %
       
Advisor Class Shares†        

1 Year

    15.53 %      15.53 %

Since Inception*

    14.08 %      14.08 %
       
Class R Shares†        

1 Year

    14.88 %      14.88 %

Since Inception*

    13.65 %      13.65 %
       
Class K Shares†        

1 Year

    15.24 %      15.24 %

Since Inception*

    13.83 %      13.83 %
       
Class I Shares†        

1 Year

    15.54 %      15.54 %

Since Inception*

    14.08 %      14.08 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 13.18%, 16.15%, 15.23%, 22.57%, 13.32%, 11.01% and 14.49% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.06%, 1.76%, 1.76%, 0.76%, 1.26%, 1.01% and 0.76% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   43

 

Historical Performance

2030 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES) AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)   
            SEC Returns  
       
Class A Shares        

1 Year

         13.91 %

Since Inception*

         13.42 %
       
Class B Shares        

1 Year

         14.22 %

Since Inception*

         14.06 %
       
Class C Shares        

1 Year

         17.20 %

Since Inception*

         14.93 %
       
Advisor Class Shares†        

1 Year

         19.35 %

Since Inception*

         16.10 %
       
Class R Shares†        

1 Year

         18.82 %

Since Inception*

         15.66 %
       
Class K Shares†        

1 Year

         19.08 %

Since Inception*

         15.83 %
       
Class I Shares†        

1 Year

         19.46 %

Since Inception*

         16.11 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

 

44   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2035 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    15.09 %      10.22 %

Since Inception*

    14.06 %      11.63 %
       
Class B Shares        

1 Year

    14.27 %      10.27 %

Since Inception*

    13.25 %      11.91 %
       
Class C Shares        

1 Year

    14.37 %      13.37 %

Since Inception*

    13.25 %      13.25 %
       
Advisor Class Shares†        

1 Year

    15.54 %      15.54 %

Since Inception*

    14.38 %      14.38 %
       
Class R Shares†        

1 Year

    14.86 %      14.86 %

Since Inception*

    13.75 %      13.75 %
       
Class K Shares†        

1 Year

    15.16 %      15.16 %

Since Inception*

    14.10 %      14.10 %
       
Class I Shares†        

1 Year

    15.56 %      15.56 %

Since Inception*

    14.40 %      14.40 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 17.85%, 20.30%, 19.69%, 19.91%, 17.95%, 19.02% and 16.72% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.06%, 1.76%, 1.76%, 0.76%, 1.26%, 1.01% and 0.76% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   45

 

Historical Performance

2035 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES) AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)   
            SEC Returns  
       
Class A Shares        

1 Year

         14.01 %

Since Inception*

         13.75 %
       
Class B Shares        

1 Year

         14.20 %

Since Inception*

         14.45 %
       
Class C Shares        

1 Year

         17.29 %

Since Inception*

         15.32 %
       
Advisor Class Shares†        

1 Year

         19.41 %

Since Inception*

         16.43 %
       
Class R Shares†        

1 Year

         18.86 %

Since Inception*

         15.83 %
       
Class K Shares†        

1 Year

         19.15 %

Since Inception*

         16.16 %
       
Class I Shares†        

1 Year

         19.44 %

Since Inception*

         16.44 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

46   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2040 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    15.32 %      10.38 %

Since Inception*

    14.58 %      12.14 %
       
Class B Shares        

1 Year

    14.48 %      10.48 %

Since Inception*

    13.81 %      12.48 %
       
Class C Shares        

1 Year

    14.48 %      13.48 %

Since Inception*

    13.81 %      13.81 %
       
Advisor Class Shares†        

1 Year

    15.56 %      15.56 %

Since Inception*

    14.90 %      14.90 %
       
Class R Shares†        

1 Year

    15.08 %      15.08 %

Since Inception*

    14.41 %      14.41 %
       
Class K Shares†        

1 Year

    15.40 %      15.40 %

Since Inception*

    14.72 %      14.72 %
       
Class I Shares†        

1 Year

    15.67 %      15.67 %

Since Inception*

    14.95 %      14.95 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 32.75%, 35.17%, 42.88%, 55.25%, 36.15%, 33.35%, 29.52% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.06%, 1.76%, 1.76%, 0.76%, 1.26%, 1.01% and 0.76% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   47

 

Historical Performance

2040 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES) AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)   
            SEC Returns  
       
Class A Shares        

1 Year

         14.22 %

Since Inception*

         14.26 %
       
Class B Shares        

1 Year

         14.45 %

Since Inception*

         15.05 %
       
Class C Shares        

1 Year

         17.45 %

Since Inception*

         15.88 %
       
Advisor Class Shares†        

1 Year

         19.58 %

Since Inception*

         16.99 %
       
Class R Shares†        

1 Year

         19.05 %

Since Inception*

         16.45 %
       
Class K Shares†        

1 Year

         19.45 %

Since Inception*

         16.79 %
       
Class I Shares†        

1 Year

         19.62 %

Since Inception*

         17.01 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

48   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2045 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    14.85 %      9.94 %

Since Inception*

    14.54 %      12.10 %
       
Class B Shares        

1 Year

    13.96 %      9.96 %

Since Inception*

    13.70 %      12.37 %
       
Class C Shares        

1 Year

    13.96 %      12.96 %

Since Inception*

    13.70 %      13.70 %
       
Advisor Class Shares†        

1 Year

    15.08 %      15.08 %

Since Inception*

    14.81 %      14.81 %
       
Class R Shares†        

1 Year

    14.50 %      14.50 %

Since Inception*

    14.27 %      14.27 %
       
Class K Shares†        

1 Year

    14.76 %      14.76 %

Since Inception*

    14.55 %      14.55 %
       
Class I Shares†        

1 Year

    15.08 %      15.08 %

Since Inception*

    14.81 %      14.81 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 44.87%, 54.61%, 66.96%, 52.25%, 45.97%, 44.61% and 52.71% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.06%, 1.76%, 1.76%, 0.76%, 1.26%, 1.01% and 0.76% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 9/1/05 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   49

 

Historical Performance

2045 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES) AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)   
            SEC Returns  
       
Class A Shares        

1 Year

         13.60 %

Since Inception*

         14.14 %
       
Class B Shares        

1 Year

         13.83 %

Since Inception*

         14.91 %
       
Class C Shares        

1 Year

         16.74 %

Since Inception*

         15.69 %
       
Advisor Class Shares†        

1 Year

         19.00 %

Since Inception*

         16.86 %
       
Class R Shares†        

1 Year

         18.37 %

Since Inception*

         16.28 %
       
Class K Shares†        

1 Year

         18.61 %

Since Inception*

         16.59 %
       
Class I Shares†        

1 Year

         18.93 %

Since Inception*

         16.83 %

 

* Inception Date: 9/1/05 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

50   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2050 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

CUMULATIVE RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

Since Inception*

    -1.40 %      -5.56 %
       
Class B Shares        

Since Inception*

    -1.50 %      -5.44 %
       
Class C Shares        

Since Inception*

    -1.50 %      -2.49 %
       
Advisor Class Shares†        

Since Inception*

    -1.30 %      -1.30 %
       
Class R Shares†        

Since Inception*

    -1.40 %      -1.40 %
       
Class K Shares†        

Since Inception*

    -1.40 %      -1.40 %
       
Class I Shares†        

Since Inception*

    -1.30 %      -1.30 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 1.29%, 1.99%, 1.99%, 0.99%, 1.73%, 1.42% and 1.09% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.06%, 1.76%, 1.76%, 0.76%, 1.26%, 1.01% and 0.76% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 6/29/07 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

This strategy is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   51

 

Historical Performance

2050 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC CUMULATIVE RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares        

Since Inception*

         0.77 %
       
Class B Shares        

Since Inception*

         1.10 %
       
Class C Shares        

Since Inception*

         4.10 %
       
Advisor Class Shares†        

Since Inception*

         5.30 %
       
Class R Shares†        

Since Inception*

         5.20 %
       
Class K Shares†        

Since Inception*

         5.30 %
       
Class I Shares†        

Since Inception*

         5.30 %

 

* Inception Date: 6/29/07 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

This strategy is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

52   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

2055 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

CUMULATIVE RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

Since Inception*

    -1.50 %      -5.65 %
       
Class B Shares        

Since Inception*

    -1.60 %      -5.54 %
       
Class C Shares        

Since Inception*

    -1.60 %      -2.58 %
       
Advisor Class Shares†        

Since Inception*

    -1.40 %      -1.40 %
       
Class R Shares†        

Since Inception*

    -1.50 %      -1.50 %
       
Class K Shares†        

Since Inception*

    -1.50 %      -1.50 %
       
Class I Shares†        

Since Inception*

    -1.40 %      -1.40 %
       

Per the Strategy’s current prospectus, the Strategy’s total annual operating expense ratios are 1.29%, 1.99%, 1.99%, 0.99%, 1.73%, 1.42% and 1.09% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Strategy’s annual operating expense ratios to 1.06%, 1.76%, 1.76%, 0.76%, 1.26%, 1.01% and 0.76% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. These waivers/reimbursements extend through the Strategy’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The net and gross expenses shown include the total operating expenses of the Strategy and the indirect expenses of the Strategy’s Underlying Portfolios, as based upon the allocation of the Strategy’s assets among the Underlying Portfolios, and may be higher or lower than those shown.

 

* Inception Date: 6/29/07 for all share classes.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

This strategy is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   53

 

Historical Performance

2055 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC CUMULATIVE RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
       
Class A Shares        

Since Inception*

         0.57 %
       
Class B Shares        

Since Inception*

         0.90 %
       
Class C Shares        

Since Inception*

         3.90 %
       
Advisor Class Shares†        

Since Inception*

         5.20 %
       
Class R Shares†        

Since Inception*

         5.00 %
       
Class K Shares†        

Since Inception*

         5.10 %
       
Class I Shares†        

Since Inception*

         5.20 %

 

* Inception Date: 6/29/07 for all share classes.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes is listed above.

This strategy is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

See Historical Performance and Benchmark disclosures on pages 4-5.

(Historical Performance continued on next page)

54   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTOFLIOS^~ AS OF AUGUST 31, 2007   
     NAV/SEC Returns†  
AllianceBernstein Global Real Estate Investment Portfolio   

1 Year

    14.33 %

Since Inception*

    21.77 %
  
AllianceBernstein Global Research Growth Portfolio   

1 Year

    15.35 %

Since Inception*

    12.02 %
  
AllianceBernstein Global Value Portfolio   

1 Year

    18.19 %

Since Inception*

    16.51 %
  
AllianceBernstein High-Yield Portfolio   

1 Year

    6.22 %

Since Inception*

    6.47 %
  
AllianceBernstein Inflation Protected Securities Portfolio   

1 Year

    4.44 %

Since Inception*

    3.27 %
  
AllianceBernstein Intermediate Duration Bond Portfolio   

1 Year

    5.03 %

Since Inception*

    4.00 %
  
AllianceBernstein International Growth Portfolio   

1 Year

    18.09 %

Since Inception*

    19.86 %
  
AllianceBernstein International Value Portfolio   

1 Year

    20.64 %

Since Inception*

    27.76 %
  
AllianceBernstein Short Duration Bond Portfolio   

1 Year

    4.51 %

Since Inception*

    3.82 %
  
AllianceBernstein Small-Mid Cap Growth Portfolio   

1 Year

    27.50 %

Since Inception*

    19.94 %
  

 

* Inception dates: 5/20/05 for all Portfolios, except Global Research Growth Portfolio and Global Value Portfolio; their inception date is 6/1/06.

 

† These Portfolios are offered at net asset value (NAV) and their SEC returns are the same as their NAV returns. The Underlying Portfolios can be purchased at the relevant net asset value (NAV) without a sales charge or other fee. However, there are sales charges in connection to purchases of other AllianceBernstein share classes invested in these Underlying Portfolios.

 

^

Please note, shares of the Underlying Portfolios are offered exclusively to mutual funds advised by, and certain institutional clients of, AllianceBernstein that seek a blend of asset classes for investment, like the Strategies. These share classes are not currently offered for direct investment from the general public.

 

~

The Underlying Portfolios do not contain sales charges or management fees.

Global Research Growth Portfolio and Global Value Portfolio are relatively new and have been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   55

 

Historical Performance

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

      NAV/SEC Returns†  
AllianceBernstein Small-Mid Cap Value Portfolio   

1 Year

    18.64 %

Since Inception*

    13.40 %
  
AllianceBernstein U.S. Large Cap Growth Portfolio   

1 Year

    15.23 %

Since Inception*

    11.73 %
  
AllianceBernstein U.S. Value Portfolio   

1 Year

    13.55 %

Since Inception*

    13.54 %

 

* Inception dates: 5/20/05 for all Portfolios, except Global Research Growth Portfolio and Global Value Portfolio; their inception date is 6/1/06.

 

† These Portfolios are offered at net asset value (NAV) and their SEC returns are the same as their NAV returns. The Underlying Portfolios can be purchased at the relevant net asset value (NAV) without a sales charge or other fee. However, there are sales charges in connection to purchases of other AllianceBernstein share classes invested in these Underlying Portfolios.

 

^

Please note, shares of the Underlying Portfolios are offered exclusively to mutual funds advised by, and certain institutional clients of, AllianceBernstein that seek a blend of asset classes for investment, like the Strategies. These share classes are not currently offered for direct investment from the general public.

 

~

The Underlying Portfolios do not contain sales charges or management fees.

(Historical Performance continued on next page)

56   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTFOLIOS^~

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

     NAV/SEC Returns†  
AllianceBernstein Global Real Estate Investment Portfolio   

1 Year

    18.85 %

Since Inception*

    23.97 %
  
AllianceBernstein Global Research Growth Portfolio   

1 Year

    23.35 %

Since Inception*

    17.11 %
  
AllianceBernstein Global Value Portfolio   

1 Year

    21.67 %

Since Inception*

    19.05 %
  
AllianceBernstein High-Yield Portfolio   

1 Year

    7.54 %

Since Inception*

    7.44 %
  
AllianceBernstein Inflation Protected Securities Portfolio   

1 Year

    5.38 %

Since Inception*

    3.64 %
  
AllianceBernstein Intermediate Duration Bond Portfolio   

1 Year

    4.83 %

Since Inception*

    4.11 %
  
AllianceBernstein International Growth Portfolio   

1 Year

    29.46 %

Since Inception*

    23.24 %
  
AllianceBernstein International Value Portfolio   

1 Year

    25.53 %

Since Inception*

    29.42 %
  
AllianceBernstein Short Duration Bond Portfolio   

1 Year

    4.57 %

Since Inception*

    3.96 %
  
AllianceBernstein Small-Mid Cap Growth Portfolio   

1 Year

    32.45 %

Since Inception*

    21.60 %
  

 

* Inception dates: 5/20/05 for all Portfolios, except Global Research Growth Portfolio and Global Value Portfolio; their inception date is 6/1/06.

 

† These Portfolios are offered at net asset value (NAV) and their SEC returns are the same as their NAV returns. The Underlying Portfolios can be purchased at the relevant net asset value (NAV) without a sales charge or other fee. However, there are sales charges in connection to purchases of other AllianceBernstein share classes invested in these Underlying Portfolios.

 

^

Please note, shares of the Underlying Portfolios are offered exclusively to mutual funds advised by, and certain institutional clients of, AllianceBernstein that seek a blend of asset classes for investment, like the Strategies. These share classes are not currently offered for direct investment from the general public.

 

~

The Underlying Portfolios do not contain sales charges or management fees.

Global Research Growth Portfolio and Global Value Portfolio are relatively new and have been in existence for less than two years. The returns reflected may not be illustrative of long-term performance.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   57

 

Historical Performance

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

      NAV/SEC Returns†  
AllianceBernstein Small-Mid-Cap Value Portfolio   

1 Year

    18.00 %

Since Inception*

    13.49 %
  
AllianceBernstein U.S. Large Cap Growth Portfolio   

1 Year

    19.03 %

Since Inception*

    13.98 %
  
AllianceBernstein U.S. Value Portfolio   

1 Year

    13.95 %

Since Inception*

    14.36 %

 

 

* Inception dates: 5/20/05 for all Portfolios, except Global Research Growth Portfolio and Global Value Portfolio; their inception date is 6/1/06.

 

† These Portfolios are offered at net asset value (NAV) and their SEC returns are the same as their NAV returns. The Underlying Portfolios can be purchased at the relevant net asset value (NAV) without a sales charge or other fee. However, there are sales charges in connection to purchases of other AllianceBernstein share classes invested in these Underlying Portfolios.

 

^

Please note, shares of the Underlying Portfolios are offered exclusively to mutual funds advised by, and certain institutional clients of, AllianceBernstein that seek a blend of asset classes for investment, like the Strategies. These share classes are not currently offered for direct investment from the general public.

 

~

The Underlying Portfolios do not contain sales charges or management fees.

58   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

FUND EXPENSES

As a shareholder of the Strategy, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Strategy expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Strategy and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. Each Strategy will indirectly bear its pro rata share of the expenses incurred by the Underlying Portfolios in which the Strategies invest. These expenses are not included in the table below.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Strategy’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Strategy’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Strategy and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Each Strategy will indirectly bear its pro rata share of the expenses incurred by the Underlying Portfolios in which the Strategies invest. These expenses are not included in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   59

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2000 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 1,024.45   $ 4.69   0.92 %

Class A – Hypothetical**

   $ 1,000   $ 1,020.57   $ 4.69   0.92 %

Class B – Actual

   $ 1,000   $ 1,020.23   $ 8.10   1.59 %

Class B – Hypothetical**

   $ 1,000   $ 1,017.19   $ 8.08   1.59 %

Class C – Actual

   $ 1,000   $ 1,020.23   $ 8.15   1.60 %

Class C – Hypothetical**

   $ 1,000   $ 1,017.14   $ 8.13   1.60 %

Advisor Class – Actual

   $ 1,000   $ 1,025.24   $ 3.32   0.65 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.93   $ 3.31   0.65 %

Class R – Actual

   $ 1,000   $ 1,022.14   $ 5.40   1.06 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.86   $ 5.40   1.06 %

Class K – Actual

   $ 1,000   $ 1,023.93   $ 4.23   0.83 %

Class K – Hypothetical**

   $ 1,000   $ 1,021.02   $ 4.23   0.83 %

Class I – Actual

   $ 1,000   $ 1,023.83   $ 2.81   0.55 %

Class I – Hypothetical**

   $   1,000   $   1,022.43   $   2.80   0.55 %

2005 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 1,023.46   $ 4.85   0.95 %

Class A – Hypothetical**

   $ 1,000   $ 1,020.42   $ 4.84   0.95 %

Class B – Actual

   $ 1,000   $ 1,021.02   $ 8.46   1.66 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.84   $ 8.44   1.66 %

Class C – Actual

   $ 1,000   $ 1,020.15   $ 8.30   1.63 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.99   $ 8.29   1.63 %

Advisor Class – Actual

   $ 1,000   $ 1,025.15   $ 3.11   0.61 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,022.13   $ 3.11   0.61 %

Class R – Actual

   $ 1,000   $ 1,022.69   $ 5.56   1.09 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.71   $ 5.55   1.09 %

Class K – Actual

   $ 1,000   $ 1,023.52   $ 4.44   0.87 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.82   $ 4.43   0.87 %

Class I – Actual

   $ 1,000   $ 1,025.22   $ 2.96   0.58 %

Class I – Hypothetical**

   $   1,000   $   1,022.28   $   2.96   0.58 %
60   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2010 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 1,026.52   $ 5.06   0.99 %

Class A – Hypothetical**

   $ 1,000   $ 1,020.21   $ 5.04   0.99 %

Class B – Actual

   $ 1,000   $ 1,023.26   $ 8.72   1.71 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.59   $ 8.69   1.71 %

Class C – Actual

   $ 1,000   $ 1,023.24   $ 8.62   1.69 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.69   $ 8.59   1.69 %

Advisor Class – Actual

   $ 1,000   $ 1,029.01   $ 3.53   0.69 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.73   $ 3.52   0.69 %

Class R – Actual

   $ 1,000   $ 1,025.68   $ 5.87   1.15 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.41   $ 5.85   1.15 %

Class K – Actual

   $ 1,000   $ 1,027.37   $ 4.75   0.93 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.52   $ 4.74   0.93 %

Class I – Actual

   $ 1,000   $ 1,029.03   $ 3.27   0.64 %

Class I – Hypothetical**

   $   1,000   $   1,021.98   $   3.26   0.64 %

2015 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 1,028.55   $ 5.22   1.02 %

Class A – Hypothetical**

   $ 1,000   $ 1,020.06   $ 5.19   1.02 %

Class B – Actual

   $ 1,000   $ 1,024.47   $ 8.78   1.72 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.53   $ 8.74   1.72 %

Class C – Actual

   $ 1,000   $ 1,025.33   $ 8.68   1.70 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.64   $ 8.64   1.70 %

Advisor Class – Actual

   $ 1,000   $ 1,030.10   $ 3.53   0.69 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.73   $ 3.52   0.69 %

Class R – Actual

   $ 1,000   $ 1,027.75   $ 6.03   1.18 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.26   $ 6.01   1.18 %

Class K – Actual

   $ 1,000   $ 1,028.53   $ 4.86   0.95 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.42   $ 4.84   0.95 %

Class I – Actual

   $ 1,000   $ 1,030.99   $ 3.38   0.66 %

Class I – Hypothetical**

   $   1,000   $   1,021.88   $   3.36   0.66 %
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   61

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2020 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $   1,000   $   1,029.02   $   5.42   1.06 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.86   $ 5.40   1.06 %

Class B – Actual

   $ 1,000   $ 1,025.02   $ 8.98   1.76 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.33   $ 8.94   1.76 %

Class C – Actual

   $ 1,000   $ 1,025.02   $ 8.88   1.74 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.43   $ 8.84   1.74 %

Advisor Class – Actual

   $ 1,000   $ 1,031.41   $ 3.64   0.71 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.63   $ 3.62   0.71 %

Class R – Actual

   $ 1,000   $ 1,028.27   $ 6.19   1.21 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.11   $ 6.16   1.21 %

Class K – Actual

   $ 1,000   $ 1,028.97   $ 5.06   0.99 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.21   $ 5.04   0.99 %

Class I – Actual

   $ 1,000   $ 1,031.43   $ 3.58   0.70 %

Class I – Hypothetical**

   $ 1,000   $ 1,021.68   $ 3.57   0.70 %

2025 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $   1,000   $   1,034.70   $   5.54   1.08 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.76   $ 5.50   1.08 %

Class B – Actual

   $ 1,000   $ 1,030.08   $ 9.11   1.78 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.23   $ 9.05   1.78 %

Class C – Actual

   $ 1,000   $ 1,030.87   $ 9.01   1.76 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.33   $ 8.94   1.76 %

Advisor Class – Actual

   $ 1,000   $ 1,036.21   $ 3.95   0.77 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.32   $ 3.92   0.77 %

Class R – Actual

   $ 1,000   $ 1,033.90   $ 6.31   1.23 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.00   $ 6.26   1.23 %

Class K – Actual

   $ 1,000   $ 1,034.68   $ 5.18   1.01 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.11   $ 5.14   1.01 %

Class I – Actual

   $ 1,000   $ 1,037.03   $ 3.70   0.72 %

Class I – Hypothetical**

   $ 1,000   $ 1,021.58   $ 3.67   0.72 %
62   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2030 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $   1,000   $   1,037.58   $   5.60   1.09 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.71   $ 5.55   1.09 %

Class B – Actual

   $ 1,000   $ 1,034.59   $ 9.13   1.78 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.23   $ 9.05   1.78 %

Class C – Actual

   $ 1,000   $ 1,035.40   $ 9.03   1.76 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.33   $ 8.94   1.76 %

Advisor Class – Actual

   $ 1,000   $ 1,039.94   $ 4.11   0.80 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.17   $ 4.08   0.80 %

Class R – Actual

   $ 1,000   $ 1,037.61   $ 6.47   1.26 %

Class R – Hypothetical**

   $ 1,000   $ 1,018.85   $ 6.41   1.26 %

Class K – Actual

   $ 1,000   $ 1,038.39   $ 5.24   1.02 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.06   $ 5.19   1.02 %

Class I – Actual

   $ 1,000   $ 1,039.97   $ 3.86   0.75 %

Class I – Hypothetical**

   $ 1,000   $ 1,021.42   $ 3.82   0.75 %

2035 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $   1,000   $   1,039.87   $   5.60   1.09 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.71   $ 5.55   1.09 %

Class B – Actual

   $ 1,000   $ 1,036.04   $ 9.13   1.78 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.23   $ 9.05   1.78 %

Class C – Actual

   $ 1,000   $ 1,036.88   $ 9.14   1.78 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.23   $ 9.05   1.78 %

Advisor Class – Actual

   $ 1,000   $ 1,042.21   $ 4.02   0.78 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.27   $ 3.97   0.78 %

Class R – Actual

   $ 1,000   $ 1,039.21   $ 6.53   1.27 %

Class R – Hypothetical**

   $ 1,000   $ 1,018.80   $ 6.46   1.27 %

Class K – Actual

   $ 1,000   $ 1,039.87   $ 5.24   1.02 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.06   $ 5.19   1.02 %

Class I – Actual

   $ 1,000   $ 1,042.25   $ 3.81   0.74 %

Class I – Hypothetical**

   $ 1,000   $ 1,021.48   $ 3.77   0.74 %
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   63

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2040 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 1,038.68   $ 5.65   1.10 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.66   $ 5.60   1.10 %

Class B – Actual

   $ 1,000   $ 1,034.82   $ 9.33   1.82 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.03   $ 9.25   1.82 %

Class C – Actual

   $ 1,000   $ 1,034.82   $ 9.23   1.80 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.13   $ 9.15   1.80 %

Advisor Class – Actual

   $ 1,000   $ 1,040.16   $ 4.17   0.81 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.12   $ 4.13   0.81 %

Class R – Actual

   $ 1,000   $ 1,038.00   $ 6.47   1.26 %

Class R – Hypothetical**

   $ 1,000   $ 1,018.85   $ 6.41   1.26 %

Class K – Actual

   $ 1,000   $ 1,039.54   $ 5.29   1.03 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.01   $ 5.24   1.03 %

Class I – Actual

   $ 1,000   $ 1,041.09   $ 3.91   0.76 %

Class I – Hypothetical**

   $   1,000   $   1,021.37   $   3.87   0.76 %

2045 Retirement Strategy

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 1,042.00   $ 5.71   1.11 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.61   $ 5.65   1.11 %

Class B – Actual

   $ 1,000   $ 1,038.24   $ 9.30   1.81 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.08   $ 9.20   1.81 %

Class C – Actual

   $ 1,000   $ 1,038.24   $ 9.30   1.81 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.08   $ 9.20   1.81 %

Advisor Class – Actual

   $ 1,000   $ 1,043.51   $ 4.12   0.80 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.17   $ 4.08   0.80 %

Class R – Actual

   $ 1,000   $ 1,040.52   $ 6.53   1.27 %

Class R – Hypothetical**

   $ 1,000   $ 1,018.80   $ 6.46   1.27 %

Class K – Actual

   $ 1,000   $ 1,042.07   $ 5.35   1.04 %

Class K – Hypothetical**

   $ 1,000   $ 1,019.96   $ 5.30   1.04 %

Class I – Actual

   $ 1,000   $ 1,042.77   $ 3.86   0.75 %

Class I – Hypothetical**

   $   1,000   $   1,021.42   $   3.82   0.75 %
64   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2050 Retirement Strategy†

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 986.00   $ 1.87   1.09 %

Class A – Hypothetical**

   $ 1,000   $ 1,019.71   $ 5.55   1.09 %

Class B – Actual

   $ 1,000   $ 985.00   $ 3.07   1.79 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.18   $ 9.10   1.79 %

Class C – Actual

   $ 1,000   $ 985.00   $ 3.07   1.79 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.18   $ 9.10   1.79 %

Advisor Class – Actual

   $ 1,000   $ 987.00   $ 1.35   0.79 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.22   $ 4.02   0.79 %

Class R – Actual

   $ 1,000   $ 986.00   $ 2.21   1.29 %

Class R – Hypothetical**

   $ 1,000   $ 1,018.70   $ 6.56   1.29 %

Class K – Actual

   $ 1,000   $ 986.00   $ 1.78   1.04 %

Class K – Hypothetical**

   $ 1,000   $ 1,019.96   $ 5.30   1.04 %

Class I – Actual

   $ 1,000   $ 987.00   $ 1.35   0.79 %

Class I – Hypothetical**

   $   1,000   $   1,021.22   $   4.02   0.79 %

2055 Retirement Strategy†

 

    Beginning
Account Value
March 1, 2007		   Ending
Account Value
August 31, 2007		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A – Actual

   $ 1,000   $ 985.00   $ 1.76   1.03 %

Class A – Hypothetical**

   $ 1,000   $ 1,020.01   $ 5.24   1.03 %

Class B – Actual

   $ 1,000   $ 984.00   $ 2.96   1.73 %

Class B – Hypothetical**

   $ 1,000   $ 1,016.48   $ 8.79   1.73 %

Class C – Actual

   $ 1,000   $ 984.00   $ 2.96   1.73 %

Class C – Hypothetical**

   $ 1,000   $ 1,016.48   $ 8.79   1.73 %

Advisor Class – Actual

   $ 1,000   $ 986.00   $ 1.25   0.73 %

Advisor Class – Hypothetical**

   $ 1,000   $ 1,021.53   $ 3.72   0.73 %

Class R – Actual

   $ 1,000   $ 985.00   $ 2.11   1.23 %

Class R – Hypothetical**

   $ 1,000   $ 1,019.00   $ 6.26   1.23 %

Class K – Actual

   $ 1,000   $ 985.00   $ 1.68   0.98 %

Class K – Hypothetical**

   $ 1,000   $ 1,020.27   $ 4.99   0.98 %

Class I – Actual

   $ 1,000   $ 986.00   $ 1.25   0.73 %

Class I – Hypothetical**

   $   1,000   $   1,021.53   $   3.72   0.73 %
* With the exception of 2050 Retirement Strategy and 2055 Retirement Strategy, expenses are equal to each Class’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses of the underlying portfolios in which the Strategies invest are not included herein.

 

** Assumes 5% return before expenses.

 

† For 2050 Retirement Strategy and 2055 Retirement Strategy, the “Actual” and “Hypothetical” expenses paid are based on the period from June 29, 2007 commencement of operations) to August 31, 2007 and the six month period, respectively. Actual expenses are equal to each class’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 64/365 (to reflect the since inception period). Hypothetical expenses are equal to each class’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   65

 

Fund Expenses

2000 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $12,187

LOGO

 

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 1.44%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

66   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

2005 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $28,494

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 0.65%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   67

 

Portfolio Summary

2010 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $104,842

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 0.19%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

68   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

2015 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $172,933

LOGO

 

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 0.16%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   69

 

Portfolio Summary

2020 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $192,148

LOGO

 

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 0.12%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

70   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

2025 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $172,617

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 0.07%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   71

 

Portfolio Summary

2030 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $116,524

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

Through its investments in the Underlying Portfolios, the Strategy currently has exposure to investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Strategy’s total exposure to subprime investments was 0.01%. These investments are valued in accordance with the Underlying Portfolios’ Valuation Policies.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

72   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

2035 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $78,564

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   73

 

Portfolio Summary

2040 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $48,673

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

74   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

2045 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $34,260

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   75

 

Portfolio Summary

2050 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $69

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

76   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

2055 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($thousand): $72

LOGO

 

* All data are as of August 31, 2007. The Strategy’s holdings breakdown is expressed as a percentage of total investments and may vary over time.

The Strategy invests in the Underlying Portfolios. For more details regarding the Strategy’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 262-347. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 30.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   77

 

Portfolio Summary

STATEMENT OF NET ASSETS

August 31, 2007

 

     2000 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein Intermediate Duration Bond (shares of 216,298)

    $ 2,134,862

AllianceBernstein Inflation Protected Securities (shares of 180,518)

      1,803,374

AllianceBernstein Short Duration Bond (shares of 164,480)

      1,623,413

AllianceBernstein U.S. Large Cap Growth (shares of 113,871)

      1,419,970

AllianceBernstein U.S. Value (shares of 113,867)

      1,416,506

AllianceBernstein Global Real Estate Investment (shares of 88,214)

      1,226,174

AllianceBernstein International Growth (shares of 52,805)

      738,216

AllianceBernstein International Value (shares of 49,547)

      737,266

AllianceBernstein High Yield (shares of 45,721)

      452,180

AllianceBernstein Small-Mid Cap Value (shares of 22,746)

      290,918

AllianceBernstein Small-Mid Cap Growth (shares of 19,643)

      290,526
      

Total Investments (cost $11,980,153)

      12,133,405

Receivable for capital stock sold

      265,457

Receivable due from Adviser

      68,082
      

Total assets

      12,466,944
      
Liabilities   

Payable for investments purchased

      245,326

Distribution fee payable

      2,772

Transfer Agent fee payable

      1,930

Payable for capital stock redeemed

      1,538

Accrued expenses and other liabilities

      28,791
      

Total liabilities

      280,357
      

Net Assets

    $ 12,186,587
      
Composition of Net Assets   

Capital stock, at par

    $ 1,048

Additional paid-in capital

      11,925,930

Undistributed net investment income

      71,818

Accumulated net realized gain on investment transactions

      34,539

Net unrealized appreciation of investments

      153,252
      
   $     12,186,587
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   5,461,891      465,826      $   11.73 *
   
B   $ 184,130      15,873      $ 11.60  
   
C   $ 424,589      36,608      $ 11.60  
   
Advisor   $ 12,510      1,062      $ 11.78  
   
R   $ 380,926      32,996      $ 11.54  
   
K   $ 5,041,094      436,633      $ 11.55  
   
I   $ 681,447      58,724      $ 11.60  
   

 

* The maximum offering price per share for Class A shares was $12.25 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
78   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2005 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein Intermediate Duration Bond (shares of 427,377)

    $ 4,218,206

AllianceBernstein Inflation Protected Securities (shares of 407,748)

      4,073,400

AllianceBernstein U.S. Large Cap Growth (shares of 326,333)

      4,069,370

AllianceBernstein U.S. Value (shares of 326,261)

      4,058,688

AllianceBernstein Global Real Estate Investment (shares of 206,367)

      2,868,496

AllianceBernstein International Growth (shares of 154,461)

      2,159,371

AllianceBernstein International Value (shares of 144,901)

      2,156,123

AllianceBernstein High Yield (shares of 170,964)

      1,690,835

AllianceBernstein Short Duration Bond (shares of 128,214)

      1,265,468

AllianceBernstein Small-Mid Cap Value (shares of 72,642)

      929,090

AllianceBernstein Small-Mid Cap Growth (shares of 62,735)

      927,846
      

Total investments (cost $28,165,159)

      28,416,893

Receivable for investments sold

      1,064,224

Receivable for capital stock sold

      92,916

Receivable due from Adviser

      48,443
      

Total assets

      29,622,476
      
Liabilities   

Payable for capital stock redeemed

      1,092,994

Distribution fee payable

      7,627

Transfer Agent fee payable

      2,273

Accrued expenses and other liabilities

      25,978
      

Total liabilities

      1,128,872
      

Net Assets

    $ 28,493,604
      
Composition of Net Assets   

Capital stock, at par

    $ 2,424

Additional paid-in capital

      27,596,315

Undistributed net investment income

      104,308

Accumulated net realized gain on investment transactions

      538,823

Net unrealized appreciation of investments

      251,734
      
   $     28,493,604
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   13,774,885      1,169,377      $   11.78 *
   
B   $ 604,079      51,830      $ 11.66  
   
C   $ 2,227,766      191,354      $ 11.64  
   
Advisor   $ 161,933      13,698      $ 11.82  
   
R   $ 3,592,416      306,591      $ 11.72  
   
K   $ 6,734,338      572,905      $ 11.75  
   
I   $ 1,398,187      118,557      $ 11.79  
   

 

* The maximum offering price per share for Class A shares was $12.30 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   79

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2010 Retirement
Strategy
Assets   

AllianceBernstein U.S. Large Cap Growth (shares of 1,369,630)

    $ 17,079,287

AllianceBernstein U.S. Value (shares of 1,370,082)

      17,043,824

AllianceBernstein Intermediate Duration Bond (shares of 1,367,621)

      13,498,423

AllianceBernstein Inflation Protected Securities (shares of 1,194,315)

      11,931,205

AllianceBernstein Global Real Estate Investment (shares of 758,824)

      10,547,655

AllianceBernstein International Growth (shares of 662,097)

      9,256,116

AllianceBernstein International Value (shares of 621,345)

      9,245,615

AllianceBernstein High Yield (shares of 736,146)

      7,280,484

AllianceBernstein Small-Mid Cap Value (shares of 349,566)

      4,470,947

AllianceBernstein Small-Mid Cap Growth (shares of 301,955)

      4,465,909
      

Total investments (cost $103,165,859)

      104,819,465

Receivable for capital stock sold

      20,708,310

Receivable due from Adviser

      39,453
      

Total assets

      125,567,228
      
Liabilities   

Payable for investments purchased

      18,772,557

Payable for capital stock redeemed

      1,897,273

Distribution fee payable

      20,202

Transfer Agent fee payable

      4,401

Accrued expenses and other liabilities

      30,446
      

Total liabilities

      20,724,879
      

Net Assets

    $ 104,842,349
      
Composition of Net Assets   

Capital stock, at par

    $ 8,732

Additional paid-in capital

      101,400,240

Undistributed net investment income

      353,040

Accumulated net realized gain on investment transactions

      1,426,731

Net unrealized appreciation of investments

      1,653,606
      
   $     104,842,349
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   47,200,996      3,932,261      $   12.00 *
   
B   $ 1,043,377      87,793      $ 11.88  
   
C   $ 2,246,766      188,956      $ 11.89  
   
Advisor   $ 710,563      58,940      $ 12.06  
   
R   $ 5,428,344      453,153      $ 11.98  
   
K   $ 37,058,766      3,085,052      $ 12.01  
   
I   $ 11,153,537      925,895      $ 12.05  
   

 

* The maximum offering price per share for Class A shares was $12.53 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

80   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2015 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 2,464,254)

    $ 30,729,243

AllianceBernstein U.S. Value (shares of 2,464,848)

      30,662,713

AllianceBernstein Intermediate Duration Bond (shares of 1,906,260)

      18,814,785

AllianceBernstein Global Real Estate Investment (shares of 1,250,770)

      17,385,699

AllianceBernstein International Growth (shares of 1,232,446)

      17,229,602

AllianceBernstein International Value (shares of 1,156,523)

      17,209,060

AllianceBernstein High Yield (shares of 1,212,721)

      11,993,808

AllianceBernstein Inflation Protected Securities (shares of 1,111,950)

      11,108,383

AllianceBernstein Small-Mid Cap Value (shares of 695,415)

      8,894,357

AllianceBernstein Small-Mid Cap Growth (shares of 600,687)

      8,884,156
      

Total Investments (cost $169,744,579)

      172,911,806

Receivable for capital stock sold

      28,862,276

Receivable due from Adviser

      25,202
      

Total assets

      201,799,284
      
Liabilities   

Payable for investments purchased

      25,263,264

Payable for capital stock redeemed

      3,530,057

Distribution fee payable

      32,147

Transfer Agent fee payable

      7,914

Accrued expenses and other liabilities

      32,840
      

Total liabilities

      28,866,222
      

Net Assets

    $     172,933,062
      
Composition of Net Assets   

Capital stock, at par

    $ 14,105

Additional paid-in capital

      167,840,028

Undistributed net investment income

      594,773

Accumulated net realized gain on investment transactions

      1,316,929

Net unrealized appreciation of investments

      3,167,227
      
   $ 172,933,062
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   66,920,471      5,461,934      $   12.25 *
   
B   $ 3,487,006      287,149      $ 12.14  
   
C   $ 2,356,267      194,088      $ 12.14  
   
Advisor   $ 726,252      58,947      $ 12.32  
   
R   $ 9,928,195      812,539      $ 12.22  
   
K   $ 63,055,733      5,142,057      $ 12.26  
   
I   $ 26,459,138      2,148,726      $ 12.31  
   

 

* The maximum offering price per share for Class A shares was $12.79 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   81

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2020 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 3,010,887)

    $ 37,545,761

AllianceBernstein U.S. Value (shares of 3,011,802)

      37,466,822

AllianceBernstein International Growth (shares of 1,524,922)

      21,318,408

AllianceBernstein International Value (shares of 1,431,014)

      21,293,485

AllianceBernstein Global Real Estate Investment (shares of 1,390,130)

      19,322,812

AllianceBernstein Intermediate Duration Bond (shares of 1,637,954)

      16,166,605

AllianceBernstein High Yield (shares of 1,348,440)

      13,336,072

AllianceBernstein Small-Mid Cap Value (shares of 866,385)

      11,081,062

AllianceBernstein Small-Mid Cap Growth (shares of 748,384)

      11,068,595

AllianceBernstein Inflation Protected Securities (shares of 380,458)

      3,800,774
      

Total investments (cost $189,192,489)

      192,400,396

Receivable for capital stock sold

      35,892,180

Receivable due from Adviser

      12,930
      

Total assets

      228,305,506
      
Liabilities   

Payable for investments purchased

      33,124,228

Payable for capital stock redeemed

      2,958,813

Distribution fee payable

      34,853

Transfer Agent fee payable

      6,483

Accrued expenses and other liabilities

      33,151
      

Total liabilities

      36,157,528
      

Net Assets

    $ 192,147,978
      
Composition of Net Assets   

Capital stock, at par

    $ 15,469

Additional paid-in capital

      186,372,469

Undistributed net investment income

      639,126

Accumulated net realized gain on investment transactions

      1,913,007

Net unrealized appreciation of investments

      3,207,907
      
   $     192,147,978
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   70,857,902      5,707,707      $   12.41 *
   
B   $ 3,029,012      246,414      $ 12.29  
   
C   $ 2,484,445      202,118      $ 12.29  
   
Advisor   $ 1,768,932      141,791      $ 12.48  
   
R   $ 15,551,404      1,257,660      $ 12.37  
   
K   $ 69,379,698      5,580,812      $ 12.43  
   
I   $ 29,076,585      2,332,587      $ 12.47  
   

 

* The maximum offering price per share for Class A shares was $12.96 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
82   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2025 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 2,959,196)

    $ 36,901,179

AllianceBernstein U.S. Value (shares of 2,959,599)

      36,817,415

AllianceBernstein International Growth (shares of 1,492,610)

      20,866,685

AllianceBernstein International Value (shares of 1,400,593)

      20,840,824

AllianceBernstein Global Real Estate Investment (shares of 1,247,012)

      17,333,471

AllianceBernstein Small-Mid Cap Value (shares of 862,171)

      11,027,173

AllianceBernstein Small-Mid Cap Growth (shares of 744,700)

      11,014,108

AllianceBernstein High Yield (shares of 1,035,779)

      10,243,854

AllianceBernstein Intermediate Duration Bond (shares of 777,001)

      7,669,000
      

Total investments (cost $168,408,252)

      172,713,709

Receivable for capital stock sold

      23,580,304

Receivable due from Adviser

      16,485
      

Total assets

      196,310,498
      
Liabilities   

Payable for investments purchased

      19,631,782

Payable for capital stock redeemed

      3,990,382

Distribution fee payable

      33,107

Transfer Agent fee payable

      8,879

Accrued expenses and other liabilities

      29,473
      

Total liabilities

      23,693,623
      

Net Assets

    $ 172,616,875
      
Composition of Net Assets   

Capital stock, at par

    $ 13,456

Additional paid-in capital

      166,158,732

Undistributed net investment income

      484,077

Accumulated net realized gain on investment
transactions

      1,655,153

Net unrealized appreciation of investments

      4,305,457
      
   $     172,616,875
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   78,181,507      6,098,559      $   12.82 *
   
B   $ 1,596,231      125,936      $ 12.67  
   
C   $ 1,821,225      143,534      $ 12.69  
   
Advisor   $ 684,360      53,151      $ 12.88  
   
R   $ 10,811,412      843,896      $ 12.81  
   
K   $ 60,216,210      4,692,139      $ 12.83  
   
I   $ 19,305,930      1,498,959      $ 12.88  
   

 

* The maximum offering price per share for Class A shares was $13.39 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   83

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2030 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 2,156,755)

    $ 26,894,739

AllianceBernstein U.S. Value (shares of 2,157,320)

      26,837,062

AllianceBernstein International Growth (shares of 1,089,121)

      15,225,906

AllianceBernstein International Value (shares of 1,022,009)

      15,207,494

AllianceBernstein Global Real Estate Investment (shares of 840,019)

      11,676,268

AllianceBernstein Small-Mid Cap Value (shares of 649,125)

      8,302,309

AllianceBernstein Small-Mid Cap Growth (shares of 560,683)

      8,292,505

AllianceBernstein High Yield (shares of 290,847)

      2,876,477

AllianceBernstein Intermediate Duration Bond (shares of 116,373)

      1,148,596
      

Total investments (cost $113,512,351)

      116,461,356

Receivable for capital stock sold

      18,153,621

Receivable due from Adviser

      31,544
      

Total assets

      134,646,521
      
Liabilities   

Payable for investments purchased

      16,472,605

Payable for capital stock redeemed

      1,590,014

Distribution fee payable

      22,260

Transfer Agent fee payable

      7,210

Accrued expenses and other liabilities

      30,004
      

Total liabilities

      18,122,093
      

Net Assets

    $ 116,524,428
      
Composition of Net Assets   

Capital stock, at par

    $ 9,170

Additional paid-in capital

      112,661,305

Undistributed net investment income

      165,561

Accumulated net realized gain on investment transactions

      739,387

Net unrealized appreciation of investments

      2,949,005
      
   $     116,524,428
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   47,575,370      3,744,793      $   12.70 *
   
B   $ 1,580,537      125,794      $ 12.56  
   
C   $ 2,217,157      176,312      $ 12.58  
   
Advisor   $ 479,948      37,611      $ 12.76  
   
R   $ 9,025,545      711,271      $ 12.69  
   
K   $ 42,433,364      3,338,412      $ 12.71  
   
I   $ 13,212,507      1,036,148      $ 12.75  
   

 

* The maximum offering price per share for Class A shares was $13.26 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

84   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2035 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 1,509,623)

    $ 18,825,005

AllianceBernstein U.S. Value (shares of 1,509,951)

      18,783,795

AllianceBernstein International Growth (shares of 762,597)

      10,661,107

AllianceBernstein International Value (shares of 715,669)

      10,649,149

AllianceBernstein Global Real Estate Investment (shares of 566,427)

      7,873,332

AllianceBernstein Small-Mid Cap Value (shares of 460,415)

      5,888,709

AllianceBernstein Small-Mid Cap Growth (shares of 397,686)

      5,881,770
      

Total investments (cost $76,172,829)

      78,562,867

Receivable for capital stock sold

      14,826,984

Receivable due from Adviser

      44,489
      

Total assets

      93,434,340
      
Liabilities   

Payable for investments purchased

      10,716,391

Payable for capital stock redeemed

      4,105,055

Distribution fee payable

      14,582

Transfer Agent fee payable

      5,327

Accrued expenses and other liabilities

      28,793
      

Total liabilities

      14,870,148
      

Net Assets

    $ 78,564,192
      
Composition of Net Assets   

Capital stock, at par

    $ 6,148

Additional paid-in capital

      75,524,113

Undistributed net investment income

      67,411

Accumulated net realized gain on investment
transactions

      576,482

Net unrealized appreciation of investments

      2,390,038
      
   $     78,564,192
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   34,491,246      2,699,322      $   12.78 *
   
B   $ 1,050,642      83,069      $ 12.65  
   
C   $ 1,195,685      94,503      $ 12.65  
   
Advisor   $ 942,105      73,389      $ 12.84  
   
R   $ 4,446,076      349,518      $ 12.72  
   
K   $ 27,908,213      2,183,364      $ 12.78  
   
I   $ 8,530,225      665,042      $ 12.83  
   

 

* The maximum offering price per share for Class A shares was $13.35 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   85

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2040 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 933,943)

    $ 11,646,265

AllianceBernstein U.S. Value (shares of 934,292)

      11,622,590

AllianceBernstein International Growth (shares of 471,652)

      6,593,702

AllianceBernstein International Value (shares of 442,602)

      6,585,918

AllianceBernstein Global Real Estate Investment (shares of 350,347)

      4,869,824

AllianceBernstein Small-Mid Cap Value (shares of 284,820)

      3,642,851

AllianceBernstein Small-Mid Cap Growth (shares of 246,029)

      3,638,775
      

Total investments (cost $47,648,956)

      48,599,925

Receivable for capital stock sold

      10,709,411

Receivable due from Adviser

      55,372
      

Total assets

      59,364,708
      
Liabilities   

Payable for investments purchased

      9,037,192

Payable for capital stock redeemed

      1,612,531

Distribution fee payable

      8,672

Transfer Agent fee payable

      4,709

Accrued expenses

      29,015
      

Total liabilities

      10,692,119
      

Net Assets

    $ 48,672,589
      
Composition of Net Assets   

Capital stock, at par

    $ 3,778

Additional paid-in capital

      47,421,228

Undistributed net investment income

      34,820

Accumulated net realized gain on investment
transactions

      261,794

Net unrealized appreciation of investments

      950,969
      
   $     48,672,589
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   19,339,430      1,499,914      $   12.89 *
   
B   $ 925,296      72,391      $ 12.78  
   
C   $ 563,305      44,066      $ 12.78  
   
Advisor   $ 242,378      18,715      $ 12.95  
   
R   $ 5,334,492      415,543      $ 12.84  
   
K   $ 16,180,580      1,256,598      $ 12.88  
   
I   $ 6,087,108      471,091      $ 12.92  
   

 

* The maximum offering price per share for Class A shares was $13.46 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

86   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2045 Retirement
Strategy
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 656,722)

    $ 8,189,323

AllianceBernstein U.S. Value (shares of 656,734)

      8,169,770

AllianceBernstein International Growth (shares of 331,957)

      4,640,754

AllianceBernstein International Value (shares of 311,475)

      4,634,742

AllianceBernstein Global Real Estate Investment (shares of 246,482)

      3,426,096

AllianceBernstein Small-Mid Cap Value (shares of 200,305)

      2,561,897

AllianceBernstein Small-Mid Cap Growth (shares of 172,997)

      2,558,628
      

Total investments (cost $33,140,991)

      34,181,210

Receivable for capital stock sold

      5,259,811

Receivable due from Adviser

      53,717
      

Total assets

      39,494,738
      
Liabilities   

Payable for capital stock redeemed

      3,012,797

Payable for investments purchased

      2,185,155

Distribution fee payable

      6,748

Transfer Agent fee payable

      2,991

Accrued expenses and other liabilities

      27,011
      

Total liabilities

      5,234,702
      

Net Assets

    $ 34,260,036
      
Composition of Net Assets   

Capital stock, at par

    $ 2,658

Additional paid-in capital

      32,761,925

Undistributed net investment income

      25,519

Accumulated net realized gain on investment
transactions.

      429,715

Net unrealized appreciation of investments

      1,040,219
      
   $     34,260,036
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   18,710,447      1,450,804      $   12.90 *
   
B   $ 318,875      24,985      $ 12.76  
   
C   $ 344,099      26,973      $ 12.76  
   
Advisor   $ 595,869      46,008      $ 12.95  
   
R   $ 2,619,467      204,049      $ 12.84  
   
K   $ 9,458,334      734,183      $ 12.88  
   
I   $ 2,212,945      171,277      $ 12.92  
   

 

* The maximum offering price per share for Class A shares was $13.47 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   87

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2050 Retirement
Strategy		  
Assets   

AllianceBernstein U.S. Large Cap Growth (shares of 1,833)

    $ 22,854  

AllianceBernstein U.S. Value (shares of 1,824)

      22,690  

AllianceBernstein International Growth (shares of 922)

      12,889  

AllianceBernstein International Value (shares of 866)

      12,883  

AllianceBernstein Global Real Estate Investment (shares of 686)

      9,537  

AllianceBernstein Small-Mid Cap Value (shares of 557)

      7,125  

AllianceBernstein Small-Mid Cap Growth (shares of 480)

      7,105  
        

Total investments (cost $95,946)

      95,083  

Receivable due from Adviser

      34,734  
        

Total assets

      129,817  
        
Liabilities   

Audit fee payable

      29,234  

Registration fee payable

      12,215  

Custody fee payable

      9,830  

Transfer Agent fee payable

      3,198  

Distribution fee payable

      25  

Accrued expenses and other liabilities

      6,293  
        

Total liabilities

      60,795  
        

Net Assets

    $ 69,022  
        
Composition of Net Assets   

Capital stock, at par

    $ 7  

Additional paid-in capital

      70,000  

Accumulated net realized loss on investment transactions

      (122 )

Net unrealized depreciation of investments

      (863 )
        
   $     69,022  
        

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net
Assets		      Shares
Outstanding		      Net Asset
Value		  
A   $   9,855      1,000      $   9.86 *
   
B   $ 9,849      1,000      $ 9.85  
   
C   $ 9,849      1,000      $ 9.85  
   
Advisor   $ 9,865      1,000      $ 9.87  
   
R   $ 9,857      1,000      $ 9.86  
   
K   $ 9,861      1,000      $ 9.86  
   
I   $ 9,886      1,002      $ 9.87  
   

 

* The maximum offering price per share for Class A shares was $10.30 which reflects a sales charge of 4.25%.

 

  See notes to financial statements.
88   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

August 31, 2007

 

     2055 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 1,881)

    $ 23,461  

AllianceBernstein U.S. Value (shares of 1,872)

      23,292  

AllianceBernstein International Growth (shares of 946)

      13,231  

AllianceBernstein International Value (shares of 889)

      13,225  

AllianceBernstein Global Real Estate Investment (shares of 704)

      9,790  

AllianceBernstein Small-Mid Cap Value (shares of 572)

      7,314  

AllianceBernstein Small-Mid Cap Growth (shares of 493)

      7,294  
        

Total investments (cost $98,480)

      97,607  

Receivable due from Adviser

      34,733  
        

Total assets

        132,340  
        
Liabilities   

Audit fee payable

      29,234  

Registration fee payable

      12,192  

Custody fee payable

      9,830  

Transfer Agent fee payable

      3,198  

Distribution fee payable

      26  

Accrued expenses and other liabilities

      6,292  
        

Total liabilities

      60,772  
        

Net Assets

    $ 71,568  
        
Composition of Net Assets   

Capital stock, at par

    $ 7  

Additional paid-in capital

      72,541  

Accumulated net realized loss on investment transactions

      (107 )

Net unrealized depreciation of investments

      (873 )
        
   $ 71,568  
        

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net
Assets		      Shares
Outstanding		      Net Asset
Value		  
A   $   12,340      1,253      $   9.85 *
   
B   $ 9,839      1,000      $ 9.84  
   
C   $ 9,839      1,000      $ 9.84  
   
Advisor   $ 9,977      1,012      $ 9.86  
   
R   $ 9,847      1,000      $ 9.85  
   
K   $ 9,851      1,000      $ 9.85  
   
I   $ 9,875      1,002      $ 9.86  
   

 

* The maximum offering price per share for Class A shares was $10.29 which reflects a sales charge of 4.25%.

 

  See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   89

 

Statement of Net Assets

STATEMENT OF OPERATIONS

Year Ended August 31, 2007

 

     2000
Retirement
Strategy		     2005
Retirement
Strategy		     2010
Retirement
Strategy		  
Investment Income       

Income distributions from
Underlying Portfolios

    $     172,518     $     434,119     $     1,426,912  
                        
Expenses       

Advisory fee (see Note B)

      30,106       79,047       283,281  

Distribution fee—Class A

      7,261       28,336       87,331  

Distribution fee—Class B

      931       5,080       9,004  

Distribution fee—Class C

      955       4,199       15,963  

Distribution fee—Class R

      283       3,285       9,770  

Distribution fee—Class K

      6,803       7,425       26,058  

Transfer agency—Class A

      24,258       24,663       27,296  

Transfer agency—Class B

      661       1,421       1,003  

Transfer agency—Class C

      1,030       1,106       1,549  

Transfer agency—Advisor Class

      133       34       437  

Transfer agency—Class R

      119       1,653       5,049  

Transfer agency—Class K

      5,662       6,055       21,069  

Transfer agency—Class I

      28       236       3,160  

Registration fees

      99,913       100,061       100,974  

Custodian

      68,000       68,000       68,000  

Administrative fee

      37,012       37,012       37,012  

Audit

      34,627       34,627       34,627  

Printing

      19,393       12,512       27,475  

Legal

      17,365       17,537       17,537  

Directors’ fees

      3,224       3,224       3,296  

Miscellaneous

      3,237       4,684       5,666  
                        

Total expenses

      361,001       440,197       785,557  

Less: expenses waived and reimbursed by the Adviser
(see Note B)

      (312,129 )     (298,608 )     (312,481 )

Less: expense offset arrangement
(see Note B)

      (677 )     (1,154 )     (2,052 )
                        

Net expenses

      48,195       140,435       471,024  
                        

Net investment income

      124,323       293,684       955,888  
                        
Realized and Unrealized
Gain on Investment Transactions		       

Net realized gain on:

       

Sale of Underlying Portfolios shares

      17,401       461,518       1,037,429  

Net realized gain distributions from Underlying Portfolios

      28,043       116,448       431,603  

Net change in unrealized
appreciation/depreciation of investments

      126,439       25,079       1,211,323  
                        

Net gain on investment transactions

      171,883       603,045       2,680,355  
                        

Net Increase in Net Assets from Operations

    $ 296,206     $     896,729     $ 3,636,243  
                        

See notes to financial statements.

90   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2015
Retirement
Strategy		     2020
Retirement
Strategy		     2025
Retirement
Strategy		  
Investment Income      

Income distributions from Underlying Portfolios

   $     2,157,345     $     2,354,330     $     2,277,017  
                       
Expenses      

Advisory fee (see Note B)

     456,816       554,109       543,220  

Distribution fee—Class A

     121,818       140,932       143,780  

Distribution fee—Class B

     26,203       21,394       11,583  

Distribution fee—Class C

     12,206       13,238       9,728  

Distribution fee—Class R

     14,237       17,412       13,443  

Distribution fee—Class K

     54,539       53,270       60,664  

Transfer agency—Class A

     32,182       32,724       42,832  

Transfer agency—Class B

     2,142       1,531       1,023  

Transfer agency—Class C

     839       783       780  

Transfer agency—Advisor Class

     235       429       345  

Transfer agency—Class R

     7,494       9,138       6,861  

Transfer agency—Class K

     43,119       42,175       48,306  

Transfer agency—Class I

     6,975       10,028       5,983  

Registration fees

     102,542       102,374       101,696  

Custodian

     68,000       68,000       68,000  

Printing

     37,401       37,196       26,900  

Administrative fee

    37,012       37,012       37,012  

Audit

     34,628       34,628       34,628  

Legal

     17,538       17,630       17,720  

Directors’ fees

     3,224       3,224       3,224  

Miscellaneous

     6,352       6,381       6,453  
                       

Total expenses

     1,085,502       1,203,608       1,184,181  

Less: expenses waived and reimbursed by the Adviser
(see Note B)

     (316,066 )     (315,534 )     (300,342 )

Less: expense offset arrangement
(see Note B)

     (3,086 )     (3,767 )     (3,706 )
                       

Net expenses

     766,350       884,307       880,133  
                       

Net investment income

     1,390,995       1,470,023       1,396,884  
                       
Realized and Unrealized
Gain on Investment Transactions		      

Net realized gain on:

      

Sale of Underlying Portfolios shares

     753,362       1,195,706       748,694  

Net realized gain distributions from Underlying Portfolios

     648,415       761,490       940,304  

Net change in unrealized
appreciation/depreciation of investments

     2,730,943       2,773,925       3,969,602  
                       

Net gain on investment transactions

     4,132,720       4,731,121       5,658,600  
                       

Net Increase in Net Assets from Operations

   $ 5,523,715     $ 6,201,144     $ 7,055,484  
                       

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   91

 

Statement of Operations

 

    2030
Retirement
Strategy		     2035
Retirement
Strategy		     2040
Retirement
Strategy		  
Investment Income      

Income distributions from Underlying Portfolios

   $ 1,173,614     $ 839,489     $ 394,022  
                       
Expenses      

Advisory fee (see Note B)

     323,693       238,814       119,232  

Distribution fee—Class A

     80,722       65,310       30,908  

Distribution fee—Class B

     9,871       7,240       7,289  

Distribution fee—Class C

     8,715       7,965       2,908  

Distribution fee—Class R

     10,913       7,446       5,022  

Distribution fee—Class K

     35,358       19,227       8,341  

Transfer agency—Class A

     37,949       40,710       34,233  

Transfer agency—Class B

     1,424       1,316       2,793  

Transfer agency—Class C

     1,011       1,416       998  

Transfer agency—Advisor Class

     527       996       604  

Transfer agency—Class R

     5,505       3,821       2,745  

Transfer agency—Class K

     28,868       15,897       7,181  

Transfer agency—Class I

     4,834       3,380       2,921  

Registration fees

     100,716       100,873       100,067  

Custodian

     68,000       68,000       68,000  

Administrative fee

     37,012       37,012       37,012  

Audit

     34,627       34,627       34,627  

Printing

     23,810       21,317       21,260  

Legal

     17,540       17,449       17,445  

Directors’ fees

     3,224       3,224       3,224  

Miscellaneous

     5,602       4,687       4,029  
                       

Total expenses

     839,921       700,727       510,839  

Less: expenses waived and reimbursed by the Adviser
(see Note B)

     (304,454 )     (303,997 )     (311,976 )

Less: expense offset arrangement
(see Note B)

     (3,443 )     (3,487 )     (3,146 )
                       

Net expenses

     532,024       393,243       195,717  
                       

Net investment income

     641,590       446,246       198,305  
                       
Realized and Unrealized
Gain on Investment Transactions		      

Net realized gain on:

      

Sale of Underlying Portfolios shares

     248,343       171,078       103,651  

Net realized gain distributions from Underlying Portfolios

     525,701       443,069       187,067  

Net change in unrealized appreciation/depreciation of investments

     2,688,882       2,209,210       870,406  
                       

Net gain on investment transactions

     3,462,926       2,823,357       1,161,124  
                       

Net Increase in Net Assets from Operations

   $     4,104,516     $     3,269,603     $     1,359,429  
                       

See notes to financial statements.

92   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2045
Retirement
Strategy		    

2050

Retirement
Strategy

    

2055

Retirement
Strategy

  
Investment Income      

Income distributions from
Underlying Portfolios

   $ 405,490     $ – 0 –   $ -0-  
                       
Expenses      

Advisory fee (see Note B)

     111,343       75       76  

Distribution fee—Class A

     34,215       5       5  

Distribution fee—Class B

     2,612       16       17  

Distribution fee—Class C

     2,391       17       17  

Distribution fee—Class R

     4,376       8       8  

Distribution fee—Class K

     6,009       4       4  

Transfer agency—Class A

     35,269       877       947  

Transfer agency—Class B

     874       877       850  

Transfer agency—Class C

     792       877       850  

Transfer agency—Advisor Class

     1,219       877       858  

Transfer agency—Class R

     2,370       1       – 0 –

Transfer agency—Class K

     5,214       1       – 0 –

Transfer agency—Class I

     1,014       1       – 0 –

Registration fees

     99,996       16,186       16,186  

Custodian .

     68,000            11,330       11,330  

Administrative fee

     37,012       5,613       5,613  

Audit

     34,628       29,234            29,234  

Legal

     17,329       2,952       2,952  

Printing

     16,192       2,624       2,624  

Directors’ fees

     3,224       708       708  

Miscellaneous

     4,046       187       186  
                       

Total expenses

     488,125       72,470       72,465  

Less: expenses waived and reimbursed by the Adviser
(see Note B)

     (301,694 )     (72,328 )     (72,328 )

Less: expense offset arrangement
(see Note B)

     (3,118 )     (8 )     (2 )
                       

Net expenses

     183,313       134       135  
                       

Net investment income (loss)

     222,177       (134 )     (135 )
                       
Realized and Unrealized
Gain (Loss) on Investment Transactions		      

Net realized gain on:

      

Sale of Underlying Portfolios shares

     205,051       – 0 –     13  

Net realized gain distributions from Underlying Portfolios

     243,913       – 0 –     – 0 –

Net change in unrealized
appreciation/depreciation of investments

     972,977       (863 )     (873 )
                       

Net gain (loss) on investment transactions

     1,421,941       (863 )     (860 )
                       

Net Increase (Decrease) in Net Assets from Operations

   $     1,644,118     $ (997 )   $ (995 )
                       

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   93

 

Statement of Operations

STATEMENT OF CHANGES IN NET ASSETS

 

     2000 Retirement Strategy  
    

Year Ended

August 31,
2007

     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 124,323     $ 5,615  

Net realized gain (loss) on sale of
Underlying Portfolios

      17,401       (4,937 )

Net realized gain distributions
from Underlying Portfolios

      28,043       279  

Net change in unrealized appreciation/depreciation
of investments

      126,439       26,813  
                

Net increase in net assets
from operations

      296,206       27,770  
Dividends and Distributions
to Shareholders from 		    

Net investment income

     

Class A

      (34,838 )     – 0 –

Class B

      (875 )     – 0 –

Class C

      (1,271 )     – 0 –

Advisor Class

      (248 )     – 0 –

Class R

      (439 )     – 0 –

Class K

      (20,172 )     – 0 –

Class I

      (412 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (4,336 )     – 0 –

Class B

      (131 )     – 0 –

Class C

      (190 )     – 0 –

Advisor Class

      (29 )     – 0 –

Class R

      (36 )     – 0 –

Class K

      (1,409 )     – 0 –

Class I

      (29 )     – 0 –
Capital Stock Transactions     

Net increase

      10,900,946       1,026,080  
                

Total increase

      11,132,737       1,053,850  
Net Assets     

Beginning of period

      1,053,850       – 0 –
                

End of period, (including undistributed
net investment income of $71,818 and
$5,825, respectively)

    $     12,186,587     $     1,053,850  
                

See notes to financial statements.

94   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2005 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 293,684     $ 38,547  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      461,518       (19,055 )

Net realized gain distributions
from Underlying Portfolios

      116,448       5,164  

Net change in unrealized
appreciation/depreciation
of investments

      25,079       226,655  
                

Net increase in net assets
from operations

      896,729       251,311  
Dividends and Distributions
to Shareholders from 		    

Net investment income

     

Class A

      (197,038 )     – 0 –

Class B

      (10,075 )     – 0 –

Class C

      (3,550 )     – 0 –

Advisor Class

      (286 )     – 0 –

Class R

      (850 )     – 0 –

Class K

      (16,627 )     – 0 –

Class I

      (481 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (21,401 )     – 0 –

Class B

      (1,287 )     – 0 –

Class C

      (454 )     – 0 –

Advisor Class

      (29 )     – 0 –

Class R

      (92 )     – 0 –

Class K

      (1,602 )     – 0 –

Class I

      (44 )     – 0 –
Capital Stock Transactions     

Net increase

      23,213,639       4,385,741  
                

Total increase

      23,856,552       4,637,052  
Net Assets     

Beginning of period

      4,637,052       – 0 –
                

End of period, (including undistributed
net investment income of $104,308 and
$41,238, respectively)

    $     28,493,604     $     4,637,052  
                

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   95

 

Statement of Changes in Net Assets

 

     2010 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 955,888     $ 68,521  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      1,037,429       (11,879 )

Net realized gain distributions
from Underlying Portfolios

      431,603       12,150  

Net change in unrealized appreciation/depreciation
of investments

      1,211,323       442,283  
                

Net increase in net assets
from operations

      3,636,243       511,075  
Dividends and Distributions
to Shareholders from 		    

Net investment income

     

Class A

      (502,242 )     – 0 –

Class B

      (14,242 )     – 0 –

Class C

      (20,611 )     – 0 –

Advisor Class

      (7,684 )     – 0 –

Class R

      (4,055 )     – 0 –

Class K

      (111,506 )     – 0 –

Class I

      (12,045 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (31,762 )     – 0 –

Class B

      (1,128 )     – 0 –

Class C

      (1,633 )     – 0 –

Advisor Class

      (461 )     – 0 –

Class R

      (278 )     – 0 –

Class K

      (6,862 )     – 0 –

Class I

      (691 )     – 0 –
Capital Stock Transactions     

Net increase

      88,637,656           12,772,575  
                

Total increase

      91,558,699       13,283,650  
Net Assets     

Beginning of period

          13,283,650       – 0 –
                

End of period, (including undistributed
net investment income of $353,040 and
$73,976, respectively)

    $ 104,842,349     $ 13,283,650  
                

See notes to financial statements.

96   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2015 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 1,390,995     $ 47,304  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      753,362       (42,654 )

Net realized gain distributions
from Underlying Portfolios

      648,415       3,336  

Net change in unrealized appreciation/depreciation
of investments

      2,730,943       436,284  
                

Net increase in net assets
from operations

      5,523,715       444,270  
Dividends and Distributions     
to Shareholders from     

Net investment income

     

Class A

      (612,760 )     – 0 –

Class B

      (32,173 )     – 0 –

Class C

      (10,195 )     – 0 –

Advisor Class

      (3,919 )     – 0 –

Class R

      (17,773 )     – 0 –

Class K

      (158,489 )     – 0 –

Class I

      (9,629 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (31,832 )     – 0 –

Class B

      (2,157 )     – 0 –

Class C

      (683 )     – 0 –

Advisor Class

      (192 )     – 0 –

Class R

      (978 )     – 0 –

Class K

      (8,128 )     – 0 –

Class I

      (458 )     – 0 –
Capital Stock Transactions     

Net increase

      153,252,616       14,601,827  
                

Total increase

      157,886,965       15,046,097  
Net Assets     

Beginning of period

      15,046,097       – 0 –
                

End of period, (including undistributed
net investment income of $594,773 and
$48,965, respectively)

    $     172,933,062     $     15,046,097  
                

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   97

 

Statement of Changes in Net Assets

 

     2020 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 1,470,023     $ 45,361  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      1,195,706       (9,462 )

Net realized gain distributions
from Underlying Portfolios

      761,490       3,832  

Net change in unrealized
appreciation/depreciation
of investments

      2,773,925       433,982  
                

Net increase in net assets
from operations

      6,201,144       473,713  
Dividends and Distributions
to Shareholders from		     

Net investment income

     

Class A

      (657,355 )     – 0 –

Class B

      (24,023 )     – 0 –

Class C

      (10,834 )     – 0 –

Advisor Class

      (7,155 )     – 0 –

Class R

      (20,159 )     – 0 –

Class K

      (129,404 )     – 0 –

Class I

      (26,871 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (29,216 )     – 0 –

Class B

      (1,397 )     – 0 –

Class C

      (630 )     – 0 –

Advisor Class

      (299 )     – 0 –

Class R

      (892 )     – 0 –

Class K

      (5,803 )     – 0 –

Class I

      (1,101 )     – 0 –
Capital Stock Transactions     

Net increase

      169,748,958       16,639,302  
                

Total increase

      175,034,963       17,113,015  
Net Assets     

Beginning of period

      17,113,015       – 0 –
                

End of period, (including undistributed
net investment income of $639,126 and
$47,180, respectively)

    $     192,147,978     $     17,113,015  
                

See notes to financial statements.

98   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2025 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  

Increase (Decrease) in Net Assets

from Operations

     

Net investment income

    $ 1,396,884     $ 48,810  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      748,694       (10,243 )

Net realized gain distributions
from Underlying Portfolios

      940,304       2,840  

Net change in unrealized
appreciation/depreciation
of investments

      3,969,602       335,855  
                

Net increase in net assets
from operations

      7,055,484       377,262  

Dividends and Distributions

to Shareholders from

     

Net investment income

     

Class A

      (714,899 )     – 0 –

Class B

      (13,948 )     – 0 –

Class C

      (9,307 )     – 0 –

Advisor Class

      (5,776 )     – 0 –

Class R

      (9,334 )     – 0 –

Class K

      (187,573 )     – 0 –

Class I

      (17,630 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (21,949 )     – 0 –

Class B

      (539 )     – 0 –

Class C

      (360 )     – 0 –

Advisor Class

      (169 )     – 0 –

Class R

      (346 )     – 0 –

Class K

      (5,995 )     – 0 –

Class I

      (506 )     – 0 –
Capital Stock Transactions     

Net increase

      149,972,896       16,199,564  
                

Total increase

      156,040,049       16,576,826  
Net Assets     

Beginning of period

      16,576,826       – 0 –
                

End of period, (including undistributed
net investment income of $484,077 and
$50,238 respectively)

    $     172,616,875     $     16,576,826  
                

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   99

 

Statement of Changes in Net Assets

 

     2030 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 641,590     $ 12,184  

Net realized gain (loss) on investment transactions

      248,343       (5,811 )

Net realized gain distributions
from Underlying Portfolios

      525,701       4,328  

Net change in unrealized
appreciation/depreciation
of investments

      2,688,882       260,123  
                

Net increase in net assets
from operations

      4,104,516       270,824  
Dividends and Distributions
to Shareholders from		     

Net investment income

     

Class A

      (337,619 )     – 0 –

Class B

      (9,380 )     – 0 –

Class C

      (3,734 )     – 0 –

Advisor Class

      (5,633 )     – 0 –

Class R

      (12,693 )     – 0 –

Class K

      (97,721 )     – 0 –

Class I

      (19,861 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (24,348 )     – 0 –

Class B

      (908 )     – 0 –

Class C

      (361 )     – 0 –

Advisor Class

      (382 )     – 0 –

Class R

      (966 )     – 0 –

Class K

      (6,786 )     – 0 –

Class I

      (1,290 )     – 0 –
Capital Stock Transactions     

Net increase

      103,875,240       8,795,530  
                

Total increase

      107,458,074       9,066,354  
Net Assets     

Beginning of period

      9,066,354       – 0 –
                

End of period, (including undistributed
net investment income of $165,561 and
$14,131 respectively)

    $     116,524,428     $     9,066,354  
                

See notes to financial statements.

100   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2035 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income

    $ 446,246     $ 5,071  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      171,078       (17,666 )

Net realized gain distributions
from Underlying Portfolios

      443,069       1,909  

Net change in unrealized
appreciation/depreciation
of investments

      2,209,210       180,828  
                

Net increase in net assets
from operations

      3,269,603       170,142  
Dividends and Distributions
to Shareholders from		     

Net investment income

     

Class A

      (296,414 )     – 0 –

Class B

      (6,625 )     – 0 –

Class C

      (7,110 )     – 0 –

Advisor Class

      (6,663 )     – 0 –

Class R

      (12,025 )     – 0 –

Class K

      (42,075 )     – 0 –

Class I

      (12,144 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (17,609 )     – 0 –

Class B

      (527 )     – 0 –

Class C

      (565 )     – 0 –

Advisor Class

      (374 )     – 0 –

Class R

      (755 )     – 0 –

Class K

      (2,415 )     – 0 –

Class I

      (645 )     – 0 –
Capital Stock Transactions     

Net increase

      68,797,986       6,732,407  
                

Total increase

      71,661,643       6,902,549  
Net Assets     

Beginning of period

      6,902,549       – 0 –
                

End of period, (including undistributed
net investment income of $67,411 and
$5,948 respectively)

    $     78,564,192     $     6,902,549  
                

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   101

 

Statement of Changes in Net Assets

 

     2040 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  

Increase (Decrease) in Net Assets

from Operations

     

Net investment income

    $ 198,305     $ 2,092  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      103,651       (18,419 )

Net realized gain distributions
from Underlying Portfolios

      187,067       1,090  

Net change in unrealized
appreciation/depreciation
of investments

      870,406       80,563  
                

Net increase in net assets
from operations

      1,359,429       65,326  

Dividends and Distributions

to Shareholders from

     

Net investment income

     

Class A

      (114,491 )     – 0 –

Class B

      (7,189 )     – 0 –

Class C

      (2,352 )     – 0 –

Advisor Class

      (3,386 )     – 0 –

Class R

      (4,493 )     – 0 –

Class K

      (24,338 )     – 0 –

Class I

      (8,354 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (8,892 )     – 0 –

Class B

      (799 )     – 0 –

Class C

      (261 )     – 0 –

Advisor Class

      (249 )     – 0 –

Class R

      (333 )     – 0 –

Class K

      (1,589 )     – 0 –

Class I

      (518 )     – 0 –
Capital Stock Transactions     

Net increase

      44,017,149       3,407,929  
                

Total increase

      45,199,334       3,473,255  
Net Assets     

Beginning of period

      3,473,255       – 0 –
                

End of period, Including (undistributed
net investment income of $34,820 and
$2,602, respectively)

    $     48,672,589     $     3,473,255  
                

See notes to financial statements.

102   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2045 Retirement Strategy  
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		  

Increase (Decrease) in Net Assets

from Operations

     

Net investment income

    $ 222,177     $ 2,864  

Net realized gain (loss) on sale of
Underlying Portfolio shares

      205,051       (7,700 )

Net realized gain distributions
from Underlying Portfolios

      243,913       872  

Net change in unrealized
appreciation/depreciation
of investments

      972,977       67,242  
                

Net increase in net assets
from operations

      1,644,118       63,278  
Dividends and Distributions
to Shareholders from		     

Net investment income

     

Class A

      (159,167 )    
 – 0
 –

Class B

      (2,727 )     – 0 –

Class C

      (2,297 )     – 0 –

Advisor Class

      (4,568 )     – 0 –

Class R

      (5,068 )     – 0 –

Class K

      (18,983 )     – 0 –

Class I

      (4,716 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (11,728 )     – 0 –

Class B

      (271 )     – 0 –

Class C

      (228 )     – 0 –

Advisor Class

      (320 )     – 0 –

Class R

      (378 )     – 0 –

Class K

      (1,260 )     – 0 –

Class I

      (289 )     – 0 –
Capital Stock Transactions     

Net increase

      30,466,026       2,298,614  
                

Total increase

      31,898,144       2,361,892  
Net Assets     

Beginning of period

      2,361,892       – 0 –
                

End of period, (including undistributed
net investment income of $25,519 and
$3,290 respectively)

    $     34,260,036     $     2,361,892  
                

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   103

 

Statement of Changes in Net Assets

 

     2050
Retirement
Strategy		  
     June 29, 2007(a)
to August 31,
2007		  
Decrease in Net Assets
from Operations		   

Net investment loss

    $ (134 )

Net change in unrealized
appreciation/depreciation
of investments

      (863 )
        

Net decrease in net assets
from operations

      (997 )
Capital Stock Transactions   

Net increase

      70,019  
        

Total increase

      69,022  
Net Assets   

Beginning of period

      – 0 –
        

End of period, (including
undistributed net investment
income of $0)

    $     69,022  
        

 

(a)

Commencement of operations.

See notes to financial statements.

104   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2055
Retirement
Strategy		  
     June 29, 2007(a)
to August 31,
2007		  
Increase (Decrease) in Net Assets
from Operations		   

Net investment loss

    $ (135 )

Net realized gain on sale of
Underlying Portfolio shares

      13  

Net change in unrealized
appreciation/depreciation
of investments

      (873 )
        

Net decrease in net assets
from operations

      (995 )
Capital Stock Transactions   

Net increase

      72,563  
        

Total increase

      71,568  
Net Assets   

Beginning of period

      – 0 –
        

End of period, (including undistributed
net investment income of $0)

    $     71,568  
        

 

(a)

Commencement of operations.

See notes to financial statements.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   105

 

Statement of Changes in Net Assets

NOTES TO FINANCIAL STATEMENTS

August 31, 2007

 

NOTE A

Significant Accounting Policies

The AllianceBernstein Retirement Strategies Portfolios (the “Strategies”) commenced operations on September 1, 2005 and each is a portfolio of the AllianceBernstein Blended Style Series, Inc. (the “Company”). The Company was organized as a Maryland corporation on April 24, 2002 and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Company operates as a series company currently comprised of 14 portfolios, which are the twelve Strategies, the AllianceBernstein Blended Style Series U.S. Large Cap Portfolio and the AllianceBernstein Blended Style Series Global Blend Portfolio. Each fund is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AllianceBernstein 2000 Retirement Strategy, AllianceBernstein 2005 Retirement Strategy, AllianceBernstein 2010 Retirement Strategy, AllianceBernstein 2015 Retirement Strategy, AllianceBernstein 2020 Retirement Strategy, AllianceBernstein 2025 Retirement Strategy, AllianceBernstein 2030 Retirement Strategy, AllianceBernstein 2035 Retirement Strategy, AllianceBernstein 2040 Retirement Strategy, the AllianceBernstein 2045 Retirement Strategy, the AllianceBernstein 2050 Retirement Strategy and the AllianceBernstein 2055 Retirement Strategy (each a “Strategy” together, the “Strategies”). The AllianceBernstein 2050 Retirement Strategy and the AllianceBernstein 2055 Retirement Strategy commenced operations on June 29, 2007. The Strategies offer Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares. Class A shares are sold with a front-end sales charge of 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 held for a period ending eight years after the calendar month of purchase will convert to Class A shares. Class C shares are subject to a deferred sales charge of 1% on redemptions made within the first year after purchase. Class R and Class K shares are sold without an initial or contingent sales charge. Advisor Class and Class I shares are sold without an initial or contingent sales charge and are not subject to on going distribution expenses. All seven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The Strategies invest primarily in a combination of portfolios of the AllianceBernstein Pooling Portfolios (the “Underlying Portfolios”) representing a variety of asset classes and investment styles that are managed by AllianceBernstein L.P. (the “Adviser”). The financial statements have been prepared in conformity with U.S. generally accepted accounting principles which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting

106   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Strategies.

1. Security Valuation

Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00pm Eastern time. Investments in the Underlying Portfolios are valued at their net asset value each business day.

2. Taxes

It is each Strategy’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

3. Investment Income and Investment Transactions

Income and capital gain distributions from the Underlying Portfolios, if any, are recorded on the ex-dividend date. Transactions in shares of the Underlying Portfolios are accounted for on the trade date. Investment gains and losses are determined on the identified cost basis.

4. Class Allocations

All income and expenses incurred by the Strategies are borne on a pro-rata basis by each outstanding class of shares, based in the proportionate interest in each Strategy represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged to each Strategy in proportion to net assets. Expenses included in the accompanying statements of operations do not include any expenses of the Underlying Portfolios. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

5. Dividends and Distributions

Dividends and distributions to shareholders, if any, 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 U.S. generally accepted accounting principles. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   107

 

Notes to Financial Statements

 

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Strategies currently pay the Adviser at the annual rates as follows:

 

     Average Daily Net Assets  

Strategy

   

First

$2.5 Billion

    

Next

$2.5 Billion

    

In Excess of

$5 Billion

  

2000 and 2005

    0.55 %   0.45 %   0.40 %

2010 and 2015

    0.60 %   0.50 %   0.45 %

2020, 2025, 2030, 2035, 2040, 2045, 2050 and 2055

    0.65 %   0.55 %   0.50 %

Such fees are accrued daily and paid monthly.

The Strategies compensate AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Strategies. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services.

For the year ended August 31, 2007, such compensation retained by ABIS was as follows:

 

Strategy   Amount   Strategy   Amount
2000   $     19,395   2030   $     27,408
2005     19,856   2035     23,115
2010     24,709   2040     20,509
2015     32,525   2045     19,726
2020     33,728   2050     –
2025     33,278   2055     –

For the year ended August 31, 2007, the Strategies’ expenses were reduced under an expense offset arrangement with ABIS as follows:

 

Strategy   Reduction   Strategy   Reduction
2000   $ 677   2030   $     3,443
2005         1,154   2035     3,487
2010     2,052   2040     3,146
2015     3,086   2045     3,118
2020     3,767   2050     8
2025     3,706   2055     2

 

108   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses on an annual basis as follows:

 

    Prior to March 1, 2007  

Strategy

   Class A     Class B     Class C     Advisor
Class		     Class R     Class K     Class I  

2000

   1.10 %   1.80 %   1.80 %   0.80 %   1.30 %   1.05 %   0.80 %

2005

   1.10 %   1.80 %   1.80 %   0.80 %   1.30 %   1.05 %   0.80 %

2010

   1.20 %   1.90 %   1.90 %   0.90 %   1.40 %   1.15 %   0.90 %

2015

   1.20 %   1.90 %   1.90 %   0.90 %   1.40 %   1.15 %   0.90 %

2020

   1.25 %   1.95 %   1.95 %   0.95 %   1.45 %   1.20 %   0.95 %

2025

   1.25 %   1.95 %   1.95 %   0.95 %   1.45 %   1.20 %   0.95 %

2030

   1.25 %   1.95 %   1.95 %   0.95 %   1.45 %   1.20 %   0.95 %

2035

   1.25 %   1.95 %   1.95 %   0.95 %   1.45 %   1.20 %   0.95 %

2040

   1.25 %   1.95 %   1.95 %   0.95 %   1.45 %   1.20 %   0.95 %

2045

   1.25 %   1.95 %   1.95 %   0.95 %   1.45 %   1.20 %   0.95 %

 

    Effective March 1, 2007  

Strategy

   Class A     Class B     Class C     Advisor
Class		     Class R     Class K     Class I  

2000

   0.86 %   1.56 %   1.56 %   0.56 %   1.06 %   0.81 %   0.56 %

2005

   0.92 %   1.62 %   1.62 %   0.62 %   1.12 %   0.87 %   0.62 %

2010

   0.94 %   1.64 %   1.64 %   0.64 %   1.14 %   0.89 %   0.64 %

2015

   0.98 %   1.68 %   1.68 %   0.68 %   1.18 %   0.93 %   0.68 %

2020

   1.02 %   1.72 %   1.72 %   0.72 %   1.22 %   0.97 %   0.72 %

2025

   1.04 %   1.74 %   1.74 %   0.74 %   1.24 %   0.99 %   0.74 %

2030

   1.06 %   1.76 %   1.76 %   0.76 %   1.26 %   1.01 %   0.76 %

2035

   1.06 %   1.76 %   1.76 %   0.76 %   1.26 %   1.01 %   0.76 %

2040

   1.06 %   1.76 %   1.76 %   0.76 %   1.26 %   1.01 %   0.76 %

2045

   1.06 %   1.76 %   1.76 %   0.76 %   1.26 %   1.01 %   0.76 %

 

    Effective June 29, 2007(a)  

Strategy

   Class A     Class B     Class C     Advisor
Class		     Class R     Class K     Class I  

2050

   1.06 %   1.76 %   1.76 %   0.76 %   1.26 %   1.01 %   0.76 %

2055

   1.06 %   1.76 %   1.76 %   0.76 %   1.26 %   1.01 %   0.76 %

 

(a)

Commencement of operations.

For the year ended August 31, 2007, such waivers amounted to:

 

Strategy   Waivers   Strategy   Waivers
2000   $     275,117   2030   $     267,442
2005     261,596   2035     266,985
2010     275,469   2040     274,964
2015     279,054   2045     264,682
2020     278,522   2050     66,715
2025     263,330   2055     66,715

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   109

 

Notes to Financial Statements

 

Pursuant to the advisory agreement, the Adviser provides certain legal and accounting services for the Strategies. For the year ended August 31, 2007, the Adviser voluntarily agreed to waive its fees. Such waiver amounted to:

 

Strategy   Administrative
Fees 		  Strategy   Administrative
Fees
2000   $     37,012   2030   $     37,012
2005     37,012   2035     37,012
2010     37,012   2040     37,012
2015     37,012   2045     37,012
2020     37,012   2050     5,613
2025     37,012   2055     5,613

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Strategies’ shares. The Distributor has advised the Strategies that it has retained front-end sales charges from the sales of Class A shares and received contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares for each Strategy for the year ended August 31, 2007 as follows:

 

    

Front End
Sales Charges

    Contingent Deferred
Sales Charges

Strategy

    Class A    Class A    Class B    Class C

2000

    $ 319    $ -0-    $ 3    $ 11

2005

          2,794      678      748      1

2010

      7,680      117      985      32

2015

      7,745          1,507          1,153      61

2020

      5,906      1,066      1,503          147

2025

      7,051      2,300      2,260      23

2030

      3,152      295      364      209

2035

      3,358      520      432      335

2040

      1,345      324      787      145

2045

      2,572      186      4      34

2050

      –0–      –0–      –0–      –0–

2055

      5      –0–      –0–      –0–

NOTE C

Distribution Services Agreement

The Strategies have adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, each Strategy 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, 1% of the average daily net assets attributable to both Class B and Class C shares, .50% of the average daily net assets attributable to Class R shares and .25% of the average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class and Class I shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Distributor has incurred

110   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

expenses in excess of the distribution costs reimbursed by the Strategies for Class B, Class C, Class R and Class K shares as follows:

 

Strategy

    Class B    Class C    Class R    Class K

2000

    $ 54,725    $ 74,580    $ 57,354    $ 437,756

2005

      87,731      100,239      114,388      194,895

2010

      74,731      95,483      147,472      320,060

2015

          148,908      77,891      142,327      428,412

2020

      143,570      81,449      139,382      450,068

2025

      88,056      69,433      147,315      521,060

2030

      97,434      80,749      134,261      404,376

2035

      95,199      80,942      117,381      367,063

2040

      128,957      68,043      131,770      277,034

2045

      80,075      66,906      164,406      279,645

2050

      383      83      –      –

2055

      –      –      –      –

While such costs may be recovered from the Strategies in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. 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 Strategies’ shares.

NOTE D

Investment Transactions

Purchases and sales of investments in the Underlying Portfolios for the year end August 31, 2007 were as follows:

 

Strategy

   Purchases    Sales

2000

    $ 16,443,416    $ 5,562,623

2005

      29,704,079      6,377,605

2010

          101,208,170          11,875,299

2015

      164,385,569      9,849,785

2020

      184,923,465      13,683,634

2025

      160,940,132      9,344,626

2030

      107,437,752      2,919,393

2035

      71,264,594      1,926,070

2040

      45,404,812      1,299,882

2045

      32,860,441      2,271,750

2050

      101,928      5,982

2055

      104,471      6,005

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   111

 

Notes to Financial Statements

 

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

 

    

Cost

    Gross Unrealized    

Net
Unrealized

Appreciation/

(Depreciation)

  

Strategy

      

Appreciation

   

(Depreciation)

    

2000

    $ 12,041,190    $ 115,389    $ (23,174 )   $ 92,215  

2005

      28,208,297      340,910      (132,314 )     208,596  

2010

      103,209,686      1,908,382      (298,603 )         1,609,779  

2015

          169,812,367          3,573,561      (474,121 )     3,099,440  

2020

      189,231,868      3,765,094      (596,566 )     3,168,528  

2025

      168,464,594      4,641,023      (391,907 )     4,249,116  

2030

      113,526,733      3,085,775      (151,151 )     2,934,624  

2035

      76,193,516      2,426,979      (57,628 )     2,369,351  

2040

      47,671,199      998,610      (69,884 )     928,726  

2045

      33,155,436      1,074,398      (48,624 )     1,025,774  

2050

      96,068      121      (1,106 )     (985 )

2055

      98,587      140      (1,120 )     (980 )

NOTE E

Capital Stock

Class A, Class B, Class C, Advisor Class and Class R shares consist of 6,000,000,000 authorized shares and Class K and Class I shares consist of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2000 Retirement Strategy             
Class A             

Shares sold

    804,684     86,224       $ 9,403,480     $ 917,397    
     

Shares issued in reinvestment of dividends and distributions

    3,281     – 0 –       36,939       – 0 –  
     

Shares redeemed

    (428,328 )   (35 )       (5,011,907 )     (382 )  
     

Net increase

    379,637     86,189       $ 4,428,512     $ 917,015    
     
            
Class B             

Shares sold

    13,494     2,705       $ 155,314     $ 27,992    
     

Shares issued in reinvestment of dividends and distributions

    79     – 0 –       880       – 0 –  
     

Shares redeemed

    (405 )   – 0 –       (4,658 )     – 0 –  
     

Net increase

    13,168     2,705       $ 151,536     $ 27,992    
     
112   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2000 Retirement Strategy             
Class C             

Shares sold

    34,541     3,136       $ 393,749     $ 32,000    
     

Shares issued in reinvestment of dividends and distributions

    130     – 0 –       1,461       – 0 –  
     

Shares redeemed

    (1,198 )   (1 )       (13,757 )     (10 )  
     

Net increase

    33,473     3,135       $ 381,453     $ 31,990    
     
            
Advisor Class             

Shares sold

    44     1,000       $ 522     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    25     – 0 –       277       – 0 –  
                                    

Shares redeemed

    (7 )   – 0 –       (75 )     – 0 –  
     

Net increase

    62     1,000       $ 724     $ 10,000    
     
            
Class R             

Shares sold

    32,246     1,093       $ 372,238     $ 10,984    
     

Shares issued in reinvestment of dividends and distributions

    43     – 0 –       474       – 0 –  
     

Shares redeemed

    (386 )   – 0  –(a)       (4,481 )     (2 )  
     

Net increase

    31,903     1,093       $ 368,231     $ 10,982    
     
            
Class K             

Shares sold

    501,985     1,772       $ 5,684,221     $ 18,185    
     

Shares issued in reinvestment of dividends and distributions

    1,946     – 0 –       21,582       – 0 –  
     

Shares redeemed

    (69,062 )   (8 )       (795,509 )     (84 )  
     

Net increase

    434,869     1,764       $ 4,910,294     $ 18,101    
     
            
Class I             

Shares sold

    57,977     1,000       $ 663,107     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    39     – 0 –       441       – 0 –  
     

Shares redeemed

    (292 )   – 0 –       (3,352 )     – 0 –  
     

Net increase

    57,724     1,000       $ 660,196     $ 10,000    
     
            

 

(a)

Amount is less than one share.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   113

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2005 Retirement Strategy             
Class A             

Shares sold

    1,275,223     430,914       $ 14,710,972     $ 4,469,379    
     

Shares issued in reinvestment of dividends and distributions

    19,172     – 0 –       217,220       – 0 –  
     

Shares redeemed

    (481,977 )   (73,955 )       (5,596,264 )     (796,373 )  
     

Net increase

    812,418     356,959       $ 9,331,928     $ 3,673,006    
     
            
Class B             

Shares sold

    25,956     33,304       $ 296,634     $ 349,627    
     

Shares issued in reinvestment of dividends and distributions

    971     – 0 –       10,938       – 0 –  
     

Shares redeemed

    (7,996 )   (405 )       (91,581 )     (4,303 )  
     

Net increase

    18,931     32,899       $ 215,991     $ 345,324    
     
            
Class C             

Shares sold

    175,864     15,428       $ 2,015,276     $ 163,958    
     

Shares issued in reinvestment of dividends and distributions

    278     – 0 –       3,134       – 0 –  
     

Shares redeemed

    (215 )   (1 )       (2,506 )     (11 )  
     

Net increase

    175,927     15,427       $ 2,015,904     $ 163,947    
     
            
Advisor Class             

Shares sold

    12,677     1,000       $ 150,856     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    28     – 0 –       315       – 0 –  
                                    

Shares redeemed

    (7 )   – 0 –       (75 )     – 0 –  
     

Net increase

    12,698     1,000       $ 151,096     $ 10,000    
     
            
Class R             

Shares sold

    318,825     2,726       $ 3,792,764     $ 28,539    
     

Shares issued in reinvestment of dividends and distributions

    84     – 0 –       942       – 0 –  
     

Shares redeemed

    (14,897 )   (147 )       (175,295 )     (1,565 )  
     

Net increase

    304,012     2,579       $ 3,618,411     $ 26,974    
     
            
114   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2005 Retirement Strategy             
Class K             

Shares sold

    621,722     17,436       $ 7,229,835     $ 180,917    
     

Shares issued in reinvestment of dividends and distributions

    1,613     – 0 –       18,229       – 0 –  
     

Shares redeemed

    (65,475 )   (2,391 )       (760,647 )     (25,720 )  
     

Net increase

    557,860     15,045       $ 6,487,417     $ 155,197    
     
            
Class I             

Shares sold

    225,675     1,137       $ 2,662,360     $ 11,475    
     

Shares issued in reinvestment of dividends and distributions

    46     – 0 –       524       – 0 –  
     

Shares redeemed

    (108,284 )   (17 )       (1,269,992 )     (182 )  
     

Net increase

    117,437     1,120       $ 1,392,892     $ 11,293    
     
            

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2010 Retirement Strategy             
Class A             

Shares sold

    4,452,176     851,402       $ 52,461,744     $ 8,978,122    
     

Shares issued in reinvestment of dividends and distributions

    46,213     – 0 –       532,377       – 0 –  
     

Shares redeemed

    (1,400,997 )   (16,533 )       (16,554,465 )     (178,468 )  
     

Net increase

    3,097,392     834,869       $ 36,439,656     $ 8,799,654    
     
            
Class B             

Shares sold

    51,361     67,375       $ 594,388     $ 713,941    
     

Shares issued in reinvestment of dividends and distributions

    1,189     – 0 –       13,622       – 0 –  
     

Shares redeemed

    (21,701 )   (10,431 )       (253,272 )     (109,161 )  
     

Net increase

    30,849     56,944       $ 354,738     $ 604,780    
     
            
            
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   115

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2010 Retirement Strategy             
Class C             

Shares sold

    127,954     85,846       $ 1,498,131     $ 920,118    
     

Shares issued in reinvestment of dividends and distributions

    1,686     – 0 –       19,317       – 0 –  
     

Shares redeemed

    (23,034 )   (3,496 )       (272,948 )     (37,785 )  
     

Net increase

    106,606     82,350       $ 1,244,500     $ 882,333    
     
            
Advisor Class             

Shares sold

    33,567     26,507       $ 397,846     $ 272,473    
     

Shares issued in reinvestment of dividends and distributions

    706     – 0 –       8,144       – 0 –  
     

Shares redeemed

    (13 )   (1,827 )       (154 )     (19,433 )  
     

Net increase

    34,260     24,680       $ 405,836     $ 253,040    
     
            
Class R             

Shares sold

    697,513     15,177       $ 8,242,613     $ 163,227    
     

Shares issued in reinvestment of dividends and distributions

    369     – 0 –       4,244       – 0 –  
     

Shares redeemed

    (257,615 )   (2,291 )       (3,058,780 )     (24,576 )  
     

Net increase

    440,267     12,886       $ 5,188,077     $ 138,651    
     
            
Class K             

Shares sold

    3,207,870     181,755       $ 37,884,851     $ 1,931,020    
     

Shares issued in reinvestment of dividends and distributions

    10,275     – 0 –       118,368       – 0 –  
     

Shares redeemed

    (313,774 )   (1,074 )       (3,728,930 )     (11,161 )  
     

Net increase

    2,904,371     180,681       $ 34,274,289     $ 1,919,859    
     
            
Class I             

Shares sold

    1,082,017     20,721       $ 12,808,488     $ 220,257    
     

Shares issued in reinvestment of dividends and distributions

    1,104     – 0 –       12,736       – 0 –  
     

Shares redeemed

    (173,661 )   (4,286 )       (2,090,664 )     (45,999 )  
     

Net increase

    909,460     16,435       $ 10,730,560     $ 174,258    
     
            
116   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2015 Retirement Strategy             
Class A             

Shares sold

    6,503,660     828,098       $ 77,791,201     $ 8,896,388    
     

Shares issued in reinvestment of dividends and distributions

    54,806     – 0 –       642,878       – 0 –  
     

Shares redeemed

    (1,842,819 )   (81,811 )       (22,186,287 )     (873,097 )  
     

Net increase

    4,715,647     746,287       $ 56,247,792     $ 8,023,291    
     
            
Class B             

Shares sold

    198,803     126,018       $ 2,345,143     $ 1,351,982    
     

Shares issued in reinvestment of dividends and distributions

    2,764     – 0 –       32,282       – 0 –  
     

Shares redeemed

    (23,944 )   (16,492 )       (292,329 )     (178,975 )  
     

Net increase

    177,623     109,526       $ 2,085,096     $ 1,173,007    
     
            
Class C             

Shares sold

    161,693     36,364       $ 1,948,163     $ 388,432    
     

Shares issued in reinvestment of dividends and distributions

    837     – 0 –       9,781       – 0 –  
     

Shares redeemed

    (2,760 )   (2,046 )       (34,318 )     (22,271 )  
     

Net increase

    159,770     34,318       $ 1,923,626     $ 366,161    
     
            
Advisor Class             

Shares sold

    111,942     11,170       $ 1,366,453     $ 122,343    
     

Shares issued in reinvestment of dividends and distributions

    350     – 0 –       4,111       – 0 –  
     

Shares redeemed

    (64,515 )   – 0 –       (781,588 )     – 0 –  
     

Net increase

    47,777     11,170       $ 588,976     $ 122,343    
     
            
Class R             

Shares sold

    909,077     38,431       $ 11,128,698     $ 418,841    
     

Shares issued in reinvestment of dividends and distributions

    1,600     – 0 –       18,740       – 0 –  
     

Shares redeemed

    (135,191 )   (1,378 )       (1,647,918 )     (15,168 )  
     

Net increase

    775,486     37,053       $ 9,499,520     $ 403,673    
     
            
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   117

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2015 Retirement Strategy             
Class K             

Shares sold

    4,880,579     397,800       $ 58,808,606     $ 4,281,245    
     

Shares issued in reinvestment of dividends and distributions

    14,192     – 0 –       166,617       – 0 –  
     

Shares redeemed

    (143,959 )   (6,555 )       (1,761,901 )     (69,262 )  
     

Net increase

    4,750,812     391,245       $ 57,213,322     $ 4,211,983    
     
            
Class I             

Shares sold

    2,541,938     27,661       $ 30,916,792     $ 301,369    
     

Shares issued in reinvestment of dividends and distributions

    858     – 0 –       10,088       – 0 –  
     

Shares redeemed

    (421,731 )   – 0 –       (5,232,596 )     – 0 –  
     

Net increase

    2,121,065     27,661       $ 25,694,284     $ 301,369    
     
            

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2020 Retirement Strategy             
Class A             

Shares sold

    6,839,997     876,214       $ 82,785,883     $ 9,553,040    
     

Shares issued in reinvestment of dividends and distributions

    57,727     – 0 –       686,376       – 0 –  
     

Shares redeemed

    (2,046,485 )   (19,746 )       (25,368,348 )     (217,006 )  
     

Net increase

    4,851,239     856,468       $ 58,103,911     $ 9,336,034    
     
            
Class B             

Shares sold

    179,466     103,124       $ 2,156,747     $ 1,118,436    
     

Shares issued in reinvestment of dividends and distributions

    1,903     – 0 –       22,505       – 0 –  
     

Shares redeemed

    (23,437 )   (14,642 )       (284,026 )     (157,899 )  
     

Net increase

    157,932     88,482       $ 1,895,226     $ 960,537    
     
            
118   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2020 Retirement Strategy             
Class C             

Shares sold

    153,103     53,868       $ 1,886,661     $ 574,582    
     

Shares issued in reinvestment of dividends and distributions

    875     – 0 –       10,360       – 0 –  
     

Shares redeemed

    (4,561 )   (1,167 )       (55,499 )     (12,971 )  
     

Net increase

    149,417     52,701       $ 1,841,522     $ 561,611    
     
            
Advisor Class             

Shares sold

    151,521     3,655       $ 1,830,101     $ 39,493    
     

Shares issued in reinvestment of dividends and distributions

    625     – 0 –       7,455       – 0 –  
     

Shares redeemed

    (14,010 )   – 0 –       (176,649 )     – 0 –  
     

Net increase

    138,136     3,655       $ 1,660,907     $ 39,493    
     
            
Class R             

Shares sold

    1,296,211     48,079       $ 16,290,739     $ 514,272    
     

Shares issued in reinvestment of dividends and distributions

    970     – 0 –       11,505       – 0 –  
     

Shares redeemed

    (84,517 )   (3,083 )       (1,052,943 )     (34,650 )  
     

Net increase

    1,212,664     44,996       $ 15,249,301     $ 479,622    
     
            
Class K             

Shares sold

    5,750,180     387,313       $ 70,255,018     $ 4,204,764    
     

Shares issued in reinvestment of dividends and distributions

    11,362     – 0 –       135,207       – 0 –  
     

Shares redeemed

    (565,508 )   (2,535 )       (6,985,313 )     (27,341 )  
     

Net increase

    5,196,034     384,778       $ 63,404,912     $ 4,177,423    
     
            
Class I             

Shares sold

    2,600,720     111,467       $ 32,189,825     $ 1,206,552    
     

Shares issued in reinvestment of dividends and distributions

    2,349     – 0 –       27,972       – 0 –  
     

Shares redeemed

    (371,065 )   (10,884 )       (4,624,618 )     (121,970 )  
     

Net increase

    2,232,004     100,583       $ 27,593,179     $ 1,084,582    
     
            
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   119

 

Notes to Financial Statements

 

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2025 Retirement Strategy             
Class A             

Shares sold

    7,105,940     669,367       $ 88,058,514     $ 7,442,405    
     

Shares issued in reinvestment of dividends and distributions

    60,071     – 0 –       734,062       – 0 –  
     

Shares redeemed

    (1,708,505 )   (28,314 )       (21,636,196 )     (315,740 )  
     

Net increase

    5,457,506     641,053       $ 67,156,380     $ 7,126,665    
     
            
Class B             

Shares sold

    93,869     49,345       $ 1,156,589     $ 547,794    
     

Shares issued in reinvestment of dividends and distributions

    1,135     – 0 –       13,774       – 0 –  
     

Shares redeemed

    (15,296 )   (3,117 )       (192,916 )     (34,809 )  
     

Net increase

    79,708     46,228       $ 977,447     $ 512,985    
     
            
Class C             

Shares sold

    112,596     38,481       $ 1,423,092     $ 429,088    
     

Shares issued in reinvestment of dividends and distributions

    649     – 0 –       7,885       – 0 –  
     

Shares redeemed

    (3,674 )   (4,518 )       (47,159 )     (49,819 )  
     

Net increase

    109,571     33,963       $ 1,383,818     $ 379,269    
     
            
Advisor Class             

Shares sold

    41,661     20,620       $ 523,457     $ 229,649    
     

Shares issued in reinvestment of dividends and distributions

    383     – 0 –       4,692       – 0 –  
     

Shares redeemed

    (9,513 )   – 0 –       (120,132 )     – 0 –  
     

Net increase

    32,531     20,620       $ 408,017     $ 229,649    
     
            
Class R             

Shares sold

    924,490     51,171       $ 12,037,155     $ 571,488    
     

Shares issued in reinvestment of dividends and distributions

    791     – 0 –       9,671       – 0 –  
     

Shares redeemed

    (123,248 )   (9,308 )       (1,575,289 )     (105,027 )  
     

Net increase

    802,033     41,863       $ 10,471,537     $ 466,461    
     
            
120   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2025 Retirement Strategy             
Class K             

Shares sold

    4,349,239     617,742       $ 54,685,779     $ 6,941,864    
     

Shares issued in reinvestment of dividends and distributions

    15,827     – 0 –       193,568       – 0 –  
     

Shares redeemed

    (283,175 )   (7,494 )       (3,613,731 )     (83,145 )  
     

Net increase

    4,081,891     610,248       $ 51,265,616     $ 6,858,719    
     
            
Class I             

Shares sold

    1,813,241     58,384       $ 23,093,232     $ 655,970    
     

Shares issued in reinvestment of dividends and distributions

    1,482     – 0 –       18,136       – 0 –  
     

Shares redeemed

    (371,440 )   (2,708 )       (4,801,287 )     (30,154 )  
     

Net increase

    1,443,283     55,676       $ 18,310,081     $ 625,816    
     
            

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2030 Retirement Strategy             
Class A             

Shares sold

    4,346,425     399,289       $ 53,663,450     $ 4,367,720    
     

Shares issued in reinvestment of dividends and distributions

    30,008     – 0 –       361,898       – 0 –  
     

Shares redeemed

    (1,008,921 )   (22,008 )       (12,704,044 )     (240,670 )  
     

Net increase

    3,367,512     377,281       $ 41,321,304     $ 4,127,050    
     
            
Class B             

Shares sold

    96,323     39,768       $ 1,189,778     $ 421,523    
     

Shares issued in reinvestment of dividends and distributions

    861     – 0 –       10,288       – 0 –  
     

Shares redeemed

    (4,957 )   (6,201 )       (62,805 )     (68,395 )  
     

Net increase

    92,227     33,567       $ 1,137,261     $ 353,128    
     
            
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   121

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2030 Retirement Strategy             
Class C             

Shares sold

    159,264     21,707       $ 2,027,052     $ 237,619    
     

Shares issued in reinvestment of dividends and distributions

    336     – 0 –       4,026       – 0 –  
     

Shares redeemed

    (3,918 )   (1,077 )       (49,475 )     (12,094 )  
     

Net increase

    155,682     20,630       $ 1,981,603     $ 225,525    
     
            
Advisor Class             

Shares sold

    40,145     2,791       $ 479,929     $ 28,734    
     

Shares issued in reinvestment of dividends and distributions

    390     – 0 –       4,724       – 0 –  
     

Shares redeemed

    (5,715 )   – 0 –       (70,460 )     – 0 –  
     

Net increase

    34,820     2,791       $ 414,193     $ 28,734    
     
            
Class R             

Shares sold

    708,888     57,032       $ 9,089,870     $ 614,453    
     

Shares issued in reinvestment of dividends and distributions

    1,065     – 0 –       12,851       – 0 –  
     

Shares redeemed

    (55,246 )   (468 )       (699,880 )     (5,304 )  
     

Net increase

    654,707     56,564       $ 8,402,841     $ 609,149    
     
            
Class K             

Shares sold

    3,232,036     255,240       $ 40,247,705     $ 2,825,148    
     

Shares issued in reinvestment of dividends and distributions

    8,666     – 0 –       104,507       – 0 –  
     

Shares redeemed

    (151,312 )   (6,218 )       (1,917,159 )     (70,432 )  
     

Net increase

    3,089,390     249,022       $ 38,435,053     $ 2,754,716    
     
            
Class I             

Shares sold

    1,153,807     68,125       $ 14,552,118     $ 708,289    
     

Shares issued in reinvestment of dividends and distributions

    1,751     – 0 –       21,151       – 0 –  
     

Shares redeemed

    (186,487 )   (1,048 )       (2,390,284 )     (11,061 )  
     

Net increase

    969,071     67,077       $ 12,182,985     $ 697,228    
     
            
122   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2035 Retirement Strategy             
Class A             

Shares sold

    2,948,986     308,760       $ 36,148,685     $ 3,408,020    
     

Shares issued in reinvestment of dividends and distributions

    25,854     – 0 –       313,352       – 0 –  
     

Shares redeemed

    (566,778 )   (17,500 )       (7,155,616 )     (193,268 )  
     

Net increase

    2,408,062     291,260       $ 29,306,421     $ 3,214,752    
     
            
Class B             

Shares sold

    61,624     31,193       $ 761,140     $ 346,351    
     

Shares issued in reinvestment of dividends and distributions

    568     – 0 –       6,855       – 0 –  
     

Shares redeemed

    (10,276 )   (40 )       (131,692 )     (444 )  
     

Net increase

    51,916     31,153       $ 636,303     $ 345,907    
     
            
Class C             

Shares sold

    63,348     36,743       $ 781,925     $ 406,488    
     

Shares issued in reinvestment of dividends and distributions

    575     – 0 –       6,927       – 0 –  
     

Shares redeemed

    (4,917 )   (1,246 )       (61,596 )     (14,088 )  
     

Net increase

    59,006     35,497       $ 727,256     $ 392,400    
     
            
Advisor Class             

Shares sold

    59,643     20,143       $ 740,871     $ 223,694    
     

Shares issued in reinvestment of dividends and distributions

    579     – 0 –       7,036       – 0 –  
     

Shares redeemed

    (6,976 )   – 0 –       (91,496 )     – 0 –  
     

Net increase

    53,246     20,143       $ 656,411     $ 223,694    
     
            
Class R             

Shares sold

    318,882     53,862       $ 4,146,193     $ 576,720    
     

Shares issued in reinvestment of dividends and distributions

    1,056     – 0 –       12,774       – 0 –  
     

Shares redeemed

    (22,583 )   (1,699 )       (289,278 )     (18,853 )  
     

Net increase

    297,355     52,163       $ 3,869,689     $ 557,867    
     
            
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   123

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2035 Retirement Strategy             
Class K             

Shares sold

    2,181,084     140,333       $ 27,421,467     $ 1,534,905    
     

Shares issued in reinvestment of dividends and distributions

    3,671     – 0 –       44,490       – 0 –  
     

Shares redeemed

    (135,093 )   (6,631 )       (1,692,885 )     (72,938 )  
     

Net increase

    2,049,662     133,702       $ 25,773,072     $ 1,461,967    
     
            
Class I             

Shares sold

    1,004,195     48,678       $ 12,790,081     $ 548,289    
     

Shares issued in reinvestment of dividends and distributions

    1,054     – 0 –       12,789       – 0 –  
     

Shares redeemed

    (387,791 )   (1,094 )       (4,974,036 )     (12,469 )  
     

Net increase

    617,458     47,584       $ 7,828,834     $ 535,820    
     
            

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2040 Retirement Strategy             
Class A             

Shares sold

    1,639,465     167,717       $ 20,615,878     $ 1,878,527    
     

Shares issued in reinvestment of dividends and distributions

    10,068     – 0 –       123,339       – 0 –  
     

Shares redeemed

    (304,552 )   (12,784 )       (3,895,292 )     (144,722 )  
     

Net increase

    1,344,981     154,933       $ 16,843,925     $ 1,733,805    
     
            
Class B             

Shares sold

    30,347     47,901       $ 381,201     $ 532,563    
     

Shares issued in reinvestment of dividends and distributions

    648     – 0 –       7,900       – 0 –  
     

Shares redeemed

    (5,478 )   (1,027 )       (71,623 )     (11,720 )  
     

Net increase

    25,517     46,874       $ 317,478     $ 520,843    
     
            
124   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2040 Retirement Strategy             
Class C             

Shares sold

    34,420     14,842       $ 445,264     $ 165,927    
     

Shares issued in reinvestment of dividends and distributions

    191     – 0 –       2,336       – 0 –  
     

Shares redeemed

    (4,304 )   (1,083 )       (54,678 )     (11,534 )  
     

Net increase

    30,307     13,759       $ 392,922     $ 154,393    
     
            
Advisor Class             

Shares sold

    22,746     6,449       $ 282,432     $ 65,520    
     

Shares issued in reinvestment of dividends and distributions

    296     – 0 –       3,635       – 0 –  
     

Shares redeemed

    (10,776 )   – 0 –       (133,568 )     – 0 –  
     

Net increase

    12,266     6,449       $ 152,499     $ 65,520    
     
            
Class R             

Shares sold

    439,740     16,675       $ 5,731,471     $ 182,803    
     

Shares issued in reinvestment of dividends and distributions

    395     – 0 –       4,826       – 0 –  
     

Shares redeemed

    (40,142 )   (1,125 )       (513,562 )     (12,707 )  
     

Net increase

    399,993     15,550       $ 5,222,735     $ 170,096    
     
            
Class K             

Shares sold

    1,278,218     49,947       $ 16,205,069     $ 558,054    
     

Shares issued in reinvestment of dividends and distributions

    2,122     – 0 –       25,928       – 0 –  
     

Shares redeemed

    (67,674 )   (6,015 )       (866,693 )     (65,350 )  
     

Net increase

    1,212,666     43,932       $ 15,364,304     $ 492,704    
     
            
Class I             

Shares sold

    692,459     31,738       $ 8,882,663     $ 359,852    
     

Shares issued in reinvestment of dividends and distributions

    725     – 0 –       8,872       – 0 –  
     

Shares redeemed

    (245,965 )   (7,866 )       (3,168,249 )     (89,284 )  
     

Net increase

    447,219     23,872       $ 5,723,286     $ 270,568    
     
 
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   125

 

Notes to Financial Statements

 

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2045 Retirement Strategy             
Class A             

Shares sold

    1,809,614     99,628       $ 22,386,006     $ 1,114,468    
     

Shares issued in reinvestment of dividends and distributions

    13,979     – 0 –       170,829       – 0 –  
     

Shares redeemed

    (465,269 )   (7,148 )       (5,929,992 )     (81,323 )  
     

Net increase

    1,358,324     92,480       $ 16,626,843     $ 1,033,145    
     
            
Class B             

Shares sold

    15,994     13,264       $ 197,966     $ 146,673    
     

Shares issued in reinvestment of dividends and distributions

    234     – 0 –       2,839       – 0 –  
     

Shares redeemed

    (3,625 )   (882 )       (45,628 )     (9,434 )  
     

Net increase

    12,603     12,382       $ 155,177     $ 137,239    
     
            
Class C             

Shares sold

    17,696     12,445       $ 221,653     $ 134,536    
     

Shares issued in reinvestment of dividends and distributions

    180     – 0 –       2,195       – 0 –  
     

Shares redeemed

    (2,318 )   (1,030 )       (29,458 )     (11,808 )  
     

Net increase

    15,558     11,415       $ 194,390     $ 122,728    
     
            
Advisor Class             

Shares sold

    31,949     22,424       $ 415,119     $ 243,918    
     

Shares issued in reinvestment of dividends and distributions

    399     – 0 –       4,888       – 0 –  
     

Shares redeemed

    (7,764 )   (1,000 )       (102,292 )     (11,250 )  
     

Net increase

    24,584     21,424       $ 317,715     $ 232,668    
     
            
Class R             

Shares sold

    216,531     20,508         2,798,571     $ 232,116    
     

Shares issued in reinvestment of dividends and distributions

    447     – 0 –       5,440       – 0 –  
     

Shares redeemed

    (31,325 )   (2,112 )       (402,054 )     (24,584 )  
     

Net increase

    185,653     18,396         2,401,957     $ 207,532    
     
            
126   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
     
2045 Retirement Strategy             
Class K             

Shares sold

    718,214     43,958       $ 9,095,067     $ 488,376    
     

Shares issued in
reinvestment of
dividends and
distributions

    1,658     – 0 –       20,242       – 0 –  
     

Shares redeemed

    (27,997 )   (1,650 )       (362,232 )     (18,561 )  
     

Net increase

    691,875     42,308       $ 8,753,077     $ 469,815    
     
            
Class I             

Shares sold

    426,728     11,119       $ 5,429,774     $ 124,872    
     

Shares issued in
reinvestment of
dividends and
distributions

    410     – 0 –       5,005       – 0 –  
     

Shares redeemed

    (264,324 )   (2,656 )       (3,417,912 )     (29,385 )  
     

Net increase

    162,814     8,463       $ 2,016,867     $ 95,487    
     
            

 

            
     Shares             Amount          
     June 29,
2007(a) to
August 31,
2007		            

June 29,

2007(a) to
August 31,

2007

          
   

2050 Retirement

            
Strategy
             
Class A             

Shares sold

    1,000         $ 10,002      
   

Shares redeemed

    – 0  –(b)         (2 )    
   

Net increase

    1,000         $ 10,000      
   
            
Class B             

Shares sold

    1,000         $ 10,000      
   

Net increase

    1,000         $ 10,000      
   
            
Class C             

Shares sold

    1,000         $ 10,001      
   

Shares redeemed

    – 0  –(b)         (1 )    
   

Net increase

    1,000         $ 10,000      
   
            
Advisor Class             

Shares sold

    1,000         $ 10,000      
   

Net increase

    1,000         $ 10,000      
   
            

 

(a)

Commencement of operations.

 

(b)

Amount is less than one share.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   127

 

Notes to Financial Statements

 

     Shares             Amount          
     June 29,
2007(a) to
August 31,
2007		            

June 29,

2007(a) to
August 31,

2007

          
   

2050 Retirement

            
Strategy
             
Class R             

Shares sold

    1,000         $ 10,001      
   

Shares redeemed

    – 0  –(b)         (1 )    
   

Net increase

    1,000         $ 10,000      
   
2050 Retirement             
Strategy             
Class K             

Shares sold

    1,000         $ 10,000      
   

Net increase

    1,000         $ 10,000      
   
            
Class I             

Shares sold

    1,002         $ 10,019      
   

Net increase

    1,002         $ 10,019      
   
            

 

            
     Shares             Amount          
    

June 29,
2007(a) to
August 31,

2007

            

June 29,

2007(a) to
August 31,

2007

          
   
2055 Retirement             
Strategy             
Class A             

Shares sold

    1,253         $ 12,421      
   

Shares redeemed

    – 0  –(b)         (2 )    
   

Net increase

    1,253         $ 12,419      
   
            
Class B             

Shares sold

    1,000         $ 10,000      
   

Net increase

    1,000         $ 10,000      
   
            
Class C             

Shares sold

    1,000         $ 10,001      
   

Shares redeemed

    – 0  –(b)         (1 )    
   

Net increase

    1,000         $ 10,000      
   
            
Advisor Class             

Shares sold

    1,012         $ 10,125      
   

Net increase

    1,012         $ 10,125      
   
            
Class R             

Shares sold

    1,000         $ 10,001      
   

Shares redeemed

    – 0  –(b)         (1 )    
   

Net increase

    1,000         $ 10,000      
   
            
Class K             

Shares sold

    1,000         $ 10,000      
   

Net increase

    1,000         $ 10,000      
   
            
Class I             

Shares sold

    1,002         $ 10,019      
   

Net increase

    1,002         $ 10,019      
   
            

 

(a)

Commencement of operations.

 

(b)

Amount is less than one share.

128   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

NOTE F

Risks Involved in Investing in the Strategies

Interest Rate Risk and Credit Risk — Interest rate risk is the risk that changes in interest rates will affect the value of an Underlying Portfolio’s investments in fixed-income debt securities such as bonds or notes. Increases in interest rates may cause the value of the Portfolio’s investments to decline. Credit risk is the risk that the issuer or guarantor of a debt security, or the counterparty to a derivative contract, will be unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. The degree of risk for a particular security may be reflected in its credit risk rating. Credit risk is greater for medium quality and lower-rated securities. Lower-rated debt securities and similar unrated securities (commonly known as “junk bonds”) have speculative elements or are predominantly speculative risks.

Foreign Securities Risk — An Underlying Portfolio’s investments in securities of foreign companies or foreign governments involves special risks which include changes in foreign exchange rates and the possibility of the future political and economic developments which could adversely affect the value of such securities. Moreover, securities of many foreign companies or foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies or of the U.S. government.

Indemnification Risk — In the ordinary course of business, the Strategies enter into contracts that contain a variety of indemnifications. The Strategies’ maximum exposure under these arrangements is unknown. However, the Strategies have not had prior claims or losses pursuant to these indemnification provisions and expect the risk of loss there under to be remote.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Strategies, participate in a $250 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 Strategies did not utilize the Facility during the year ended August 31, 2007.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   129

 

Notes to Financial Statements

 

NOTE H

Distributions to Shareholders

The tax character of distributions paid for the fiscal year ending August 31, 2007 and 2006 were as follows:

 

2000 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 59,742    $                 –

Long-term capital gain

      4,673      –
             

Total distributions paid

    $ 64,415    $ –
             

2005 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 243,509    $ –

Long-term capital gain

      10,307      –
             

Total distributions paid

    $ 253,816    $ –
             

2010 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 685,765    $ –

Long-term capital gain

      29,435      –
             

Total distributions paid

    $     715,200    $ –
             

2015 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 844,938    $ –

Long-term capital gain

      44,428      –
             

Total distributions paid

    $ 889,366    $ –
             

2020 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 883,669    $ –

Long-term capital gain

      31,470      –
             

Total distributions paid

    $ 915,139    $ –
             

2025 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 967,000    $ –

Long-term capital gain

      21,331      –
             

Total distributions paid

    $ 988,331    $ –
             

2030 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 493,649    $ –

Long-term capital gain

      28,033      –
             

Total distributions paid

    $ 521,682    $ –
             
130   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

2035 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 386,871    $ –

Long-term capital gain

      19,075      –
             

Total distributions paid

    $ 405,946    $ –
             

2040 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 166,973    $ –

Long-term capital gain

      10,271      –
             

Total distributions paid

    $ 177,244    $ –
             

2045 Strategy

    2007    2006

Distributions paid from :

      

Ordinary Income

    $ 200,630    $ –

Long-term capital gain

      11,370      –
             

Total distributions paid

    $     212,000    $                 –
             

2050 Strategy

    2007     

Distributions paid from :

      

Ordinary Income

    $ –   

Long-term capital gain

      –   
         

Total distributions paid

    $ –   
         

2055 Strategy

    2007     

Distributions paid from :

      

Ordinary Income

    $     –   

Long-term capital gain

      –   
         

Total distributions paid

    $ –   
         

As of August 31, 2007 the components of accumulated earnings/(deficit) on a tax basis were as follows:

 

Strategy   Undistributed
Ordinary
Income		   Undistributed
Long-Term
Gains		   Accumulated
Capital and
Other Gains
(Losses)		   Unrealized
Appreciation/
(Depreciation)(a)		     Total
Accumulated
Earnings/
(Deficit)		  

2000

   $ 79,101   $ 88,292   $     –   $ 92,216     $ 259,609  

2005

         104,308     581,953     –     208,604       894,865  

2010

     353,040         1,470,558     –         1,609,779           3,433,377  

2015

     594,773     1,384,713     –     3,099,443       5,078,929  

2020

     639,126     1,952,386     –     3,168,528       5,760,040  

2025

     484,077     1,711,493     –     4,249,117       6,444,687  

2030

     165,561     753,769     –     2,934,623       3,853,953  

2035

     67,411     597,169     –     2,369,351       3,033,931  

2040

     34,820     284,033     –     928,730       1,247,583  

2045

     25,516     444,163     –     1,025,774       1,495,453  

2050

     –     –     –     (985 )     (985 )

2055

     –     –     –     (980 )     (980 )

 

(a)

The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   131

 

Notes to Financial Statements

 

Elements of realized gains and net investment income may be recorded in different accounting periods for financial reporting (book) and federal income tax purposes, (temporary differences). To the extent that such distributions required for tax purposes exceed income and gains recorded for book purposes as a result of such temporary differences, “excess distributions” are reflected in the accompanying financial statements. Certain other differences -permanent differences arise because treatment of elements of income and gains is different between book and tax accounting. Permanent differences are reclassified in the year they arise.

Permanent differences have no effect on net assets. The effect of such permanent differences on each strategy, due to reclassification of dividends, disallowance of net operating loss, and prior period adjustments is reflected as an adjustment to the components of capital as of August 31, 2007 as follows:

 

Strategy    Increase (Decrease)
to Additional
Paid in Capital		     Increase (Decrease)
to Undistributed
Net Investment
Income (Loss)		     Increase (Decrease)
to Accumulated Net
Realized Gain (Loss)
on Investments		  

2000

    $ 75     $ (75 )   $ –  

2005

          395       (1,707 )         1,312  

2010

      265       (4,439 )     4,174  

2015

      265       (265 )     –  

2020

      245       (2,276 )     2,031  

2025

      230       (4,578 )     4,348  

2030

      258       (3,519 )     3,261  

2035

      131       (1,727 )     1,596  

2040

      87       (1,484 )     1,397  

2045

      88       (2,421 )     2,333  

2050

      (12 )     134       (122 )

2055

      (15 )     135       (120 )

NOTE I

Legal Proceedings

On October 2, 2003, a purported class action complaint entitled Hindo, et al. v. AllianceBernstein Growth & Income Fund, et al. (“Hindo Complaint”) was filed against the Adviser, Alliance Capital Management Holding L.P. (“Alliance Holding”), Alliance Capital Management Corporation, AXA Financial, Inc., the AllianceBernstein Funds, certain officers of the Adviser (“AllianceBernstein defendants”), and certain other unaffiliated defendants, as well as unnamed Doe defendants. The Hindo Complaint was filed in the United States District Court for the Southern District of New York by alleged shareholders of two of the AllianceBernstein Funds. The Hindo Complaint alleges that certain of the AllianceBernstein defendants failed to disclose that they improperly allowed certain hedge funds and other unidentified parties to engage in “late trading” and “market timing” of AllianceBernstein Fund securities, violating Sections 11 and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act and Sections 206 and 215 of the Advisers Act. Plaintiffs seek an unspecified amount of

132   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

compensatory damages and rescission of their contracts with the Adviser, including recovery of all fees paid to the Adviser pursuant to such contracts.

Following October 2, 2003, 43 additional lawsuits making factual allegations generally similar to those in the Hindo Complaint were filed in various federal and state courts against the Adviser and certain other defendants. All state court actions against the Adviser either were voluntarily dismissed or removed to federal court. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred all federal actions to the United States District Court for the District of Maryland (the “Mutual Fund MDL”). On September 29, 2004, plaintiffs filed consolidated amended complaints with respect to four claim types: mutual fund shareholder claims; mutual fund derivative claims; derivative claims brought on behalf of Alliance Holding; and claims brought under ERISA by participants in the Profit Sharing Plan for Employees of the Adviser. All four complaints include substantially identical factual allegations, which appear to be based in large part on the Order of the SEC dated December 18, 2003 as amended and restated January 15, 2004 (“SEC Order”) and the New York State Attorney General Assurance of Discontinuance dated September 1, 2004 (“NYAG Order”)

On April 21, 2006, the Adviser and attorneys for the plaintiffs in the mutual fund shareholder claims, mutual fund derivative claims, and ERISA claims entered into a confidential memorandum of understanding (“MOU”) containing their agreement to settle these claims. The agreement will be documented by a stipulation of settlement and will be submitted for court approval at a later date. The settlement amount ($30 million), which the Adviser previously accrued and disclosed, has been disbursed. The derivative claims brought on behalf of Alliance Holding, in which plaintiffs seek an unspecified amount of damages, remain pending.

On April 11, 2005, a complaint entitled The Attorney General of the State of West Virginia v. AIM Advisors, Inc., et al. (“WVAG Complaint”) was filed against the Adviser, Alliance Holding, and various unaffiliated defendants. The WVAG Complaint was filed in the Circuit Court of Marshall County, West Virginia by the Attorney General of the State of West Virginia. The WVAG Complaint makes factual allegations generally similar to those in the Hindo Complaint. On October 19, 2005, the WVAG Complaint was transferred to the Mutual Fund MDL. On August 30, 2005, the West Virginia Securities Commissioner signed a Summary Order to Cease and Desist, and Notice of Right to Hearing addressed to the Adviser and Alliance Holding. The Summary Order claims that the Adviser and Alliance Holding violated the West Virginia Uniform Securities Act, and makes factual allegations generally similar to those in the Commission Order and the NYAG Order. On January 25, 2006, the Adviser and Alliance Holding moved to vacate the Summary Order. In early September 2006, the court denied this motion, and the Supreme Court of Appeals in West Virginia denied the defendants’ petition for appeal. On September 22, 2006, the Adviser and Alliance Holding filed an answer and motion to dismiss the Summary Order with the West Virginia Securities Commissioner.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   133

 

Notes to Financial Statements

 

It is possible that these matters and/or other developments resulting from these matters could result in increased redemptions of the AllianceBernstein Mutual Funds’ shares or other adverse consequences to the AllianceBernstein Mutual Funds. This may require the AllianceBernstein Mutual Funds to sell investments held by those funds to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the AllianceBernstein Mutual Funds. However, the Adviser believes that these matters are not likely to have a material adverse effect on its ability to perform advisory services relating to the AllianceBernstein Mutual Funds.

NOTE J

Recent Accounting Pronouncements

On July 13, 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded in the current period. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. On December 22, 2006, the Securities and Exchange Commission notified the industry that the implementation of FIN 48 by registered investment companies could be delayed until the last business day of the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.

On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 157 and its impact on the financial statements has not yet been determined.

 

134   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.88     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .31     .15  

Net realized and unrealized gain on investment transactions

   .80     .73  
     

Net increase in net asset value from operations

   1.11     .88  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.26 )   – 0 –
     

Net asset value, end of period

   $  11.73     $  10.88  
     
Total Return    

Total investment return based on net asset value(c)

   10.32  %   8.80 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $5,462     $938  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .92  %   1.05 %

Expenses, before waivers/reimbursements(d)(e)

   8.86  %   104.94 %

Net investment income(b)

   2.82  %   1.73 %

Portfolio turnover rate

   99  %   51 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   135

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class B  
    Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  10.81     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .20     .14  

Net realized and unrealized gain on investment transactions

   .81     .67  
     

Net increase in net asset value from operations

   1.01     .81  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.60     $  10.81  
     
Total Return    

Total investment return based on net asset value(c)

   9.45  %   8.10 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $184     $29  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.59  %   1.75 %

Expenses, before waivers/reimbursements(d)(e)

   7.63  %   169.75 %

Net investment income(b)

   1.74  %   1.40 %

Portfolio turnover rate

   99  %   51 %

See footnote summary on page 219.

 

136   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class C  
    Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  10.81     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .19     .11  

Net realized and unrealized gain on investment transactions

   .82     .70  
     

Net increase in net asset value from operations

   1.01     .81  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.60     $  10.81  
     
Total Return    

Total investment return based on net asset value(c)

   9.45  %   8.10 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $425     $34  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.60  %   1.75 %

Expenses, before waivers/reimbursements(d)(e)

   9.09  %   172.05 %

Net investment income(b)

   1.86  %   1.10 %

Portfolio turnover rate

   99  %   51 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   137

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.92     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .38     .27  

Net realized and unrealized gain on investment transactions

   .76     .65  
     

Net increase in net asset value from operations

   1.14     .92  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.28 )   – 0 –
     

Net asset value, end of period

   $  11.78     $  10.92  
     
Total Return    

Total investment return based on net asset value(c)

   10.52  %   9.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $13     $11  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .65  %   .75 %

Expenses, before waivers/reimbursements(d)(e)

   9.96  %   189.29 %

Net investment income(b)

   3.32  %   2.61 %

Portfolio turnover rate

   99  %   51 %

See footnote summary on page 219.

138   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.87     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .17     .22  

Net realized and unrealized gain on investment transactions

   .89     .65  
     

Net increase in net asset value from operations

   1.06     .87  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.36 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.39 )   – 0 –
     

Net asset value, end of period

   $  11.54     $  10.87  
     
Total Return    

Total investment return based on net asset value(c)

   9.85  %   8.70 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $381     $12  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.06  %   1.25 %

Expenses, before waivers/reimbursements(d)(e)

   6.87  %   180.27 %

Net investment income(b)

   1.85  %   2.10 %

Portfolio turnover rate

   99  %   51 %

 

See footnote summary on page 219.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   139

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.89     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .20     .23  

Net realized and unrealized gain on investment transactions

   .91     .66  
     

Net increase in net asset value from operations

   1.11     .89  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.42 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.45 )   – 0 –
     

Net asset value, end of period

   $  11.55     $  10.89  
     
Total Return    

Total investment return based on net asset value(c)

   10.31  %   8.90 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $5,041     $19  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .83  %   1.00 %

Expenses, before waivers/reimbursements(d)(e)

   4.40  %   167.47 %

Net investment income(b)

   1.83  %   2.27 %

Portfolio turnover rate

   99  %   51 %

 

See footnote summary on page 219.

140   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.92     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .22     .27  

Net realized and unrealized gain on investment transactions

   .90     .65  
     

Net increase in net asset value from operations

   1.12     .92  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.41 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.44 )   – 0 –
     

Net asset value, end of period

   $  11.60     $  10.92  
     
Total Return    

Total investment return based on net asset value(c)

   10.43  %   9.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $681     $11  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .55  %   .75 %

Expenses, before waivers/reimbursements(d)(e)

   7.92  %   180.50 %

Net investment income(b)

   2.09  %   2.61 %

Portfolio turnover rate

   99  %   51 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   141

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.92     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .29     .13  

Net realized and unrealized gain on investment transactions

   .87     .79  
     

Net increase in net asset value from operations

   1.16     .92  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.30 )   – 0 –
     

Net asset value, end of period

   $  11.78     $  10.92  
     
Total Return    

Total investment return based on net asset value(c)

   10.69  %   9.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $13,775     $3,898  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .95  %(f)   1.03 %

Expenses, before waivers/reimbursements(d)

   3.16  %(f)   13.72 %

Net investment income(b)

   2.45  %(f)   1.36 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

 

142   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.84     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .23     .05  

Net realized and unrealized gain on investment transactions

   .85     .79  
     

Net increase in net asset value from operations

   1.08     .84  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.26 )   – 0 –
     

Net asset value, end of period

   $  11.66     $  10.84  
     
Total Return    

Total investment return based on net asset value(c)

   10.01  %   8.40 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $604     $357  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.66  %   1.73 %

Expenses, before waivers/reimbursements(d)

   4.03  %   19.10 %

Net investment income(b)

   2.01  %   .49 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   143

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.83     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .10     .07  

Net realized and unrealized gain on investment transactions

   .97     .76  
     

Net increase in net asset value from operations

   1.07     .83  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.26 )   – 0 –
     

Net asset value, end of period

   $  11.64     $  10.83  
     
Total Return    

Total investment return based on net asset value(c)

   9.92  %   8.30 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,228     $167  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.63  %   1.73 %

Expenses, before waivers/reimbursements(d)

   3.83  %   22.53 %

Net investment income(b)

   1.01  %   .73 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

 

144   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.95     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .15     .20  

Net realized and unrealized gain on investment transactions

   1.04     .75  
     

Net increase in net asset value from operations

   1.19     .95  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.29 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.32 )   – 0 –
     

Net asset value, end of period

   $  11.82     $  10.95  
     
Total Return    

Total investment return based on net asset value(c)

   10.94  %   9.50 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $162     $11  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .61  %(f)   .73 %

Expenses, before waivers/reimbursements(d)

   2.47  %(f)   45.94 %

Net investment income(b)

   1.49  %(f)   1.87 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   145

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.89     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .08     .13  

Net realized and unrealized gain on investment transactions

   1.05     .76  
     

Net increase in net asset value from operations

   1.13     .89  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.30 )   – 0 –
     

Net asset value, end of period

   $  11.72     $  10.89  
     
Total Return    

Total investment return based on net asset value(c)

   10.46  %   8.90 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $3,593     $28  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.09  %   1.23 %

Expenses, before waivers/reimbursements(d)

   3.24  %   34.65 %

Net investment income(b)

   .63  %   1.26 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

146   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.91     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .14     .18  

Net realized and unrealized gain on investment transactions

   1.03     .73  
     

Net increase in net asset value from operations

   1.17     .91  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.30 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.33 )   – 0 –
     

Net asset value, end of period

   $  11.75     $  10.91  
     
Total Return    

Total investment return based on net asset value(c)

   10.85  %   9.10 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $6,734     $164  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .87  %(f)   .98 %

Expenses, before waivers/reimbursements(d)

   2.45  %(f)   16.01 %

Net investment income(b)

   1.27  %(f)   1.80 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   147

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.95     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .22     .19  

Net realized and unrealized gain on investment transactions

   .97     .76  
     

Net increase in net asset value from operations

   1.19     .95  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.32 )   – 0 –

Distributions from net realized gain on investment transactions

   (.03 )   – 0 –
     

Total dividends and distributions

   (.35 )   – 0 –
     

Net asset value, end of period

   $  11.79     $  10.95  
     
Total Return    

Total investment return based on net asset value(c)

   10.94  %   9.50 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,398     $12  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .58  %   .73 %

Expenses, before waivers/reimbursements(d)

   2.84  %   45.07 %

Net investment income(b)

   1.48  %   1.86 %

Portfolio turnover rate

   45  %   44 %

 

See footnote summary on page 219.

 

148   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.00     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .27     .13  

Net realized and unrealized gain on investment transactions

   1.00     .87  
     

Net increase in net asset value from operations

   1.27     1.00  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.27 )   – 0 –
     

Net asset value, end of period

   $  12.00     $  11.00  
     
Total Return    

Total investment return based on net asset value(c)

   11.64  %   10.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $47,201     $9,180  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .99  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.65  %   8.18 %

Net investment income(b)

   2.28  %   1.39 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   149

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.92     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .19     .05  

Net realized and unrealized gain on investment transactions

   .99     .87  
     

Net increase in net asset value from operations

   1.18     .92  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.88     $  10.92  
     
Total Return    

Total investment return based on net asset value(c)

   10.86  %   9.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,043     $622  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.71  %   1.83 %

Expenses, before waivers/reimbursements(d)

   2.42  %   9.35 %

Net investment income(b)

   1.58  %   .47 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

150   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.92     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .18     .03  

Net realized and unrealized gain on investment transactions

   1.01     .89  
     

Net increase in net asset value from operations

   1.19     .92  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.89     $  10.92  
     
Total Return    

Total investment return based on net asset value(c)

   10.95  %   9.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,247     $899  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.69  %   1.83 %

Expenses, before waivers/reimbursements(d)

   2.35  %   8.39 %

Net investment income(b)

   1.50  %   .28 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   151

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.02     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .29     .19  

Net realized and unrealized gain on investment transactions

   1.04     .83  
     

Net increase in net asset value from operations

   1.33     1.02  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.29 )   – 0 –
     

Net asset value, end of period

   $  12.06     $  11.02  
     
Total Return    

Total investment return based on net asset value(c)

   12.12  %   10.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $710     $272  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .69  %   .83 %

Expenses, before waivers/reimbursements(d)

   1.36  %   9.17 %

Net investment income(b)

   2.44  %   1.93 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

 

152   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  10.98     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .11     .09  

Net realized and unrealized gain on investment transactions

   1.14     .89  
     

Net increase in net asset value from operations

   1.25     .98  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.25 )   – 0 –
     

Net asset value, end of period

   $  11.98     $  10.98  
     
Total Return    

Total investment return based on net asset value(c)

   11.47  %   9.80 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $5,428     $142  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.15  %   1.33 %

Expenses, before waivers/reimbursements(d)

   1.87  %   11.87 %

Net investment income(b)

   .90  %   1.01 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   153

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.00     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .18     .13  

Net realized and unrealized gain on investment transactions

   1.11     .87  
     

Net increase in net asset value from operations

   1.29     1.00  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.26 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.28 )   – 0 –
     

Net asset value, end of period

   $  12.01     $  11.00  
     
Total Return    

Total investment return based on net asset value(c)

   11.80  %   10.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $37,059     $1,988  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .93  %   1.08 %

Expenses, before waivers/reimbursements(d)

   1.59  %   7.99 %

Net investment income(b)

   1.75  %   1.28 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

154   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.03     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .18     .11  

Net realized and unrealized gain on investment transactions

   1.14     .92  
     

Net increase in net asset value from operations

   1.32     1.03  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.28 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.30 )   – 0 –
     

Net asset value, end of period

   $  12.05     $  11.03  
     
Total Return    

Total investment return based on net asset value(c)

   12.04  %   10.30 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $11,154     $181  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .64  %   .83 %

Expenses, before waivers/reimbursements(d)

   1.29  %   13.40 %

Net investment income(b)

   1.56  %   1.21 %

Portfolio turnover rate

   25  %   7 %

 

See footnote summary on page 219.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   155

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.09     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .26     .11  

Net realized and unrealized gain on investment transactions

   1.14     .98  
     

Net increase in net asset value from operations

   1.40     1.09  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.25     $  11.09  
     
Total Return    

Total investment return based on net asset value(c)

   12.75  %   10.90 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $66,921     $8,277  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.02  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.42  %   8.93 %

Net investment income(b)

   2.12  %   1.12 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

156   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.02     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .18     .05  

Net realized and unrealized gain on investment transactions

   1.13     .97  
     

Net increase in net asset value from operations

   1.31     1.02  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.19 )   – 0 –
     

Net asset value, end of period

   $  12.14     $  11.02  
     
Total Return    

Total investment return based on net asset value(c)

   11.96  %   10.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $3,487     $1,207  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.72  %   1.83 %

Expenses, before waivers/reimbursements(d)

   2.12  %   10.01 %

Net investment income(b)

   1.49  %   .48 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   157

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.02     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .13     .07  

Net realized and unrealized gain on investment transactions

   1.18     .95  
     

Net increase in net asset value from operations

   1.31     1.02  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.19 )   – 0 –
     

Net asset value, end of period

   $  12.14     $  11.02  
     
Total Return    

Total investment return based on net asset value(c)

   11.96  %   10.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,356     $378  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.70  %   1.83 %

Expenses, before waivers/reimbursements(d)

   2.05  %   10.90 %

Net investment income(b)

   1.06  %   .68 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

158   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.13     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .28     .07  

Net realized and unrealized gain on investment transactions

   1.17     1.06  
     

Net increase in net asset value from operations

   1.45     1.13  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.26 )   – 0 –
     

Net asset value, end of period

   $  12.32     $  11.13  
     
Total Return    

Total investment return based on net asset value(c)

   13.11  %   11.30 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $726     $124  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .69  %   .83 %

Expenses, before waivers/reimbursements(d)

   .99  %   24.93 %

Net investment income(b)

   2.15  %   .90 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   159

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.07     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .14     .10  

Net realized and unrealized gain on investment transactions

   1.24     .97  
     

Net increase in net asset value from operations

   1.38     1.07  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.23 )   – 0 –
     

Net asset value, end of period

   $  12.22     $  11.07  
     
Total Return    

Total investment return based on net asset value(c)

   12.56  %   10.70 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $9,928     $410  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.18  %   1.33 %

Expenses, before waivers/reimbursements(d)

   1.76  %   9.30 %

Net investment income(b)

   1.21  %   .98 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

160   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.10     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .17     .09  

Net realized and unrealized gain on investment transactions

   1.23     1.01  
     

Net increase in net asset value from operations

   1.40     1.10  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.26     $  11.10  
     
Total Return    

Total investment return based on net asset value(c)

   12.77  %   11.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $63,056     $4,342  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .95  %   1.08 %

Expenses, before waivers/reimbursements(d)

   1.38  %   8.55 %

Net investment income(b)

   1.55  %   .96 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   161

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.13     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .18     .10  

Net realized and unrealized gain on investment transactions

   1.26     1.03  
     

Net increase in net asset value from operations

   1.44     1.13  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.26 )   – 0 –
     

Net asset value, end of period

   $  12.31     $  11.13  
     
Total Return    

Total investment return based on net asset value(c)

   13.09  %   11.30 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $26,459     $308  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .66  %   .83 %

Expenses, before waivers/reimbursements(d)

   1.07  %   11.87 %

Net investment income(b)

   1.46  %   1.10 %

Portfolio turnover rate

   13  %   12 %

 

See footnote summary on page 219.

162   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.18     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .26     .09  

Net realized and unrealized gain on investment transactions

   1.21     1.09  
     

Net increase in net asset value from operations

   1.47     1.18  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.41     $  11.18  
     
Total Return    

Total investment return based on net asset value(c)

   13.20  %   11.80 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $70,858     $9,573  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.06  %   1.18 %

Expenses, before waivers/reimbursements(d)

   1.41  %   8.52 %

Net investment income(b)

   2.02  %   .93 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   163

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.10     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .16     .04  

Net realized and unrealized gain on investment transactions

   1.21     1.06  
     

Net increase in net asset value from operations

   1.37     1.10  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.17 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.18 )   – 0 –
     

Net asset value, end of period

   $  12.29     $  11.10  
     
Total Return    

Total investment return based on net asset value(c)

   12.42  %   11.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $3,029     $982  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.76  %   1.88 %

Expenses, before waivers/reimbursements(d)

   2.10  %   9.59 %

Net investment income(b)

   1.31  %   .41 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

164   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.10     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .13     .03  

Net realized and unrealized gain on investment transactions

   1.24     1.07  
     

Net increase in net asset value from operations

   1.37     1.10  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.17 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.18 )   – 0 –
     

Net asset value, end of period

   $  12.29     $  11.10  
     
Total Return    

Total investment return based on net asset value(c)

   12.42  %   11.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,484     $585  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.74  %   1.88 %

Expenses, before waivers/reimbursements(d)

   2.07  %   9.83 %

Net investment income(b)

   1.09  %   .32 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   165

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.21     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .25     .10  

Net realized and unrealized gain on investment transactions

   1.27     1.11  
     

Net increase in net asset value from operations

   1.52     1.21  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.25 )   – 0 –
     

Net asset value, end of period

   $  12.48     $  11.21  
     
Total Return    

Total investment return based on net asset value(c)

   13.66  %   12.10 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,769     $41  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .71  %   .88 %

Expenses, before waivers/reimbursements(d)

   .98  %   29.32 %

Net investment income(b)

   1.94  %   1.14 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

166   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.16     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .08     .03  

Net realized and unrealized gain on investment transactions

   1.37     1.13  
     

Net increase in net asset value from operations

   1.45     1.16  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.37     $  11.16  
     
Total Return    

Total investment return based on net asset value(c)

   13.05  %   11.60 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $15,551     $502  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.21  %   1.38 %

Expenses, before waivers/reimbursements(d)

   1.77  %   9.73 %

Net investment income(b)

   .69  %   .28 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   167

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.18     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .15     .09  

Net realized and unrealized gain on investment transactions

   1.33     1.09  
     

Net increase in net asset value from operations

   1.48     1.18  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.23 )   – 0 –
     

Net asset value, end of period

   $  12.43     $  11.18  
     
Total Return    

Total investment return based on net asset value(c)

   13.36  %   11.80 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $69,380     $4,303  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .99  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.40  %   7.64 %

Net investment income(b)

   1.41  %   .96 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

 

168   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.21     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .19     .09  

Net realized and unrealized gain on investment transactions

   1.32     1.12  
     

Net increase in net asset value from operations

   1.51     1.21  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.25 )   – 0 –
     

Net asset value, end of period

   $  12.47     $  11.21  
     
Total Return    

Total investment return based on net asset value(c)

   13.61  %   12.10 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $29,077     $1,127  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .70  %   .88 %

Expenses, before waivers/reimbursements(d)

   1.08  %   8.67 %

Net investment income(b)

   1.46  %   .98 %

Portfolio turnover rate

   16  %   5 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   169

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.44     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .25     .08  

Net realized and unrealized gain on investment transactions

   1.37     1.36  
     

Net increase in net asset value from operations

   1.62     1.44  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.82     $  11.44  
     
Total Return    

Total investment return based on net asset value(c)

   14.22  %   14.40 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $78,182     $7,332  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.08  %   1.18 %

Expenses, before waivers/reimbursements(d)

   1.41  %   8.73 %

Net investment income(b)

   1.92  %   .79 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

170   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.35     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .15     .01  

Net realized and unrealized gain on investment transactions

   1.36     1.34  
     

Net increase in net asset value from operations

   1.51     1.35  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.19 )   – 0 –
     

Net asset value, end of period

   $  12.67     $  11.35  
     
Total Return    

Total investment return based on net asset value(c)

   13.36  %   13.50 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,596     $525  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.78  %   1.88 %

Expenses, before waivers/reimbursements(d)

   2.10  %   10.10 %

Net investment income(b)

   1.17  %   .06 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   171

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.36     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .12     .00 (f)

Net realized and unrealized gain on investment transactions

   1.40     1.36  
     

Net increase in net asset value from operations

   1.52     1.36  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.19 )   – 0 –
     

Net asset value, end of period

   $  12.69     $  11.36  
     
Total Return    

Total investment return based on net asset value(c)

   13.44  %   13.60 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,821     $386  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.76  %   1.88 %

Expenses, before waivers/reimbursements(d)

   2.09  %   9.47 %

Net investment income(b)

   .95  %   .04 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

172   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.47     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .27     .12  

Net realized and unrealized gain on investment transactions

   1.39     1.35  
     

Net increase in net asset value from operations

   1.66     1.47  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.25 )   – 0 –
     

Net asset value, end of period

   $  12.88     $  11.47  
     
Total Return    

Total investment return based on net asset value(c)

   14.55  %   14.70 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $684     $236  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .77  %   .88 %

Expenses, before waivers/reimbursements(d)

   1.09  %   9.42 %

Net investment income(b)

   2.12  %   1.09 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   173

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.41     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .07     .07  

Net realized and unrealized gain on investment transactions

   1.53     1.34  
     

Net increase in net asset value from operations

   1.60     1.41  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.20 )   – 0 –
     

Net asset value, end of period

   $  12.81     $  11.41  
     
Total Return    

Total investment return based on net asset value(c)

   14.07  %   14.10 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $10,812     $478  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.23  %   1.38 %

Expenses, before waivers/reimbursements(d)

   1.76  %   7.73 %

Net investment income(b)

   .57  %   .69 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

174   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.44     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .17     .10  

Net realized and unrealized gain on investment transactions

   1.45     1.34  
     

Net increase in net asset value from operations

   1.62     1.44  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.23 )   – 0 –
     

Net asset value, end of period

   $  12.83     $  11.44  
     
Total Return    

Total investment return based on net asset value(c)

   14.22  %   14.40 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $60,216     $6,981  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.01  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.41  %   6.67 %

Net investment income(b)

   1.44  %   .96 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   175

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.47     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .17     .07  

Net realized and unrealized gain on investment transactions

   1.49     1.40  
     

Net increase in net asset value from operations

   1.66     1.47  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.25 )   – 0 –
     

Net asset value, end of period

   $  12.88     $  11.47  
     
Total Return    

Total investment return based on net asset value(c)

   14.60  %   14.70 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $19,306     $639  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .72  %   .88 %

Expenses, before waivers/reimbursements(d)

   1.08  %   7.62 %

Net investment income(b)

   1.27  %   .79 %

Portfolio turnover rate

   11  %   6 %

 

See footnote summary on page 219.

176   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.24     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .19     .03  

Net realized and unrealized gain on investment transactions

   1.50     1.21  
     

Net increase in net asset value from operations

   1.69     1.24  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.23 )   – 0 –
     

Net asset value, end of period

   $  12.70     $  11.24  
     
Total Return    

Total investment return based on net asset value(c)

   15.08  %   12.40 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $47,575     $4,240  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.09  %   1.19 %(e)

Expenses, before waivers/reimbursements(d)

   1.72  %   13.11 %(e)

Net investment income(b)

   1.54  %   .35 %

Portfolio turnover rate

   6  %   7 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   177

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.14     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .11     (.01 )

Net realized and unrealized gain on investment transactions

   1.49     1.15  
     

Net increase in net asset value from operations

   1.60     1.14  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.16 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.18 )   – 0 –
     

Net asset value, end of period

   $  12.56     $  11.14  
     
Total Return    

Total investment return based on net asset value(c)

   14.35  %   11.40  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,580     $374  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.78  %   1.89  %(e)

Expenses, before waivers/reimbursements(d)

   2.38  %   16.08  %(e)

Net investment income (loss)(b)

   .89  %   (.14 )%

Portfolio turnover rate

   6  %   7  %

 

See footnote summary on page 219.

178   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.15     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .03
  
   (.03 )

Net realized and unrealized gain on investment transactions

   1.58     1.18  
     

Net increase in net asset value from operations

   1.61     1.15  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.16 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.18 )   – 0 –
     

Net asset value, end of period

   $  12.58     $  11.15  
     
Total Return    

Total investment return based on net asset value(c)

   14.42  %   11.50  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,217     $230  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.76  %   1.89  %(e)

Expenses, before waivers/reimbursements(d)

   2.26  %   15.16  %(e)

Net investment income (loss)(b)

   .26  %   (.26 )%

Portfolio turnover rate

   6  %   7  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   179

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.26     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .27     .09  

Net realized and unrealized gain on investment transactions

   1.47     1.17  
     

Net increase in net asset value from operations

   1.74     1.26  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.76     $  11.26  
     
Total Return    

Total investment return based on net asset value(c)

   15.53  %   12.60 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $480     $31  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .80  %   .89 %(e)

Expenses, before waivers/reimbursements(d)

   1.48  %   22.50 %(e)

Net investment income(b)

   2.06  %   .88 %

Portfolio turnover rate

   6  %   7 %

 

See footnote summary on page 219.

180   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.24     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .06     (.01 )

Net realized and unrealized gain on investment transactions

   1.61     1.25  
     

Net increase in net asset value from operations

   1.67     1.24  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  12.69     $  11.24  
     
Total Return    

Total investment return based on net asset value(c)

   14.88  %   12.40  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $9,026     $636  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.26  %   1.39  %(e)

Expenses, before waivers/reimbursements(d)

   2.00  %   13.25  %(e)

Net investment income (loss)(b)

   .54  %   (.10 )%

Portfolio turnover rate

   6  %   7  %

 

See footnote summary on page 219.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   181

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.24     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .12     .04  

Net realized and unrealized gain on investment transactions

   1.59     1.20  
     

Net increase in net asset value from operations

   1.71     1.24  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.71     $  11.24  
     
Total Return    

Total investment return based on net asset value(c)

   15.24  %   12.40 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $42,433     $2,800  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.02  %   1.14 %(e)

Expenses, before waivers/reimbursements(d)

   1.60  %   10.94 %(e)

Net investment income(b)

   1.07  %   .43 %

Portfolio turnover rate

   6  %   7 %

 

See footnote summary on page 219.

182   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.26     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .14     .09  

Net realized and unrealized gain on investment transactions

   1.60     1.17  
     

Net increase in net asset value from operations

   1.74     1.26  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.25 )   – 0 –
     

Net asset value, end of period

   $  12.75     $  11.26  
     
Total Return    

Total investment return based on net asset value(c)

   15.54  %   12.60 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $13,213     $755  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .75  %   .89 %(e)

Expenses, before waivers/reimbursements(d)

   1.26  %   14.42 %(e)

Net investment income(b)

   1.08  %   .88 %

Portfolio turnover rate

   6  %   7 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   183

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.30     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .19     .03  

Net realized and unrealized gain on investment transactions

   1.50     1.27  
     

Net increase in net asset value from operations

   1.69     1.30  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.21 )   – 0 –
     

Net asset value, end of period

   $  12.78     $  11.30  
     
Total Return    

Total investment return based on net asset value(c)

   15.09  %   13.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $34,491     $3,290  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.09  %   1.20 %(e)

Expenses, before waivers/reimbursements(d)

   1.96  %   17.78 %(e)

Net investment income(b)

   1.48  %   .35 %

Portfolio turnover rate

   5  %   10 %

 

See footnote summary on page 219.

184   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.22     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .10     (.05 )

Net realized and unrealized gain on investment transactions

   1.49     1.27  
     

Net increase in net asset value from operations

   1.59     1.22  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.15 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.16 )   – 0 –
     

Net asset value, end of period

   $  12.65     $  11.22  
     
Total Return    

Total investment return based on net asset value(c)

   14.27  %   12.20  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,051     $350  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.78  %   1.90  %(e)

Expenses, before waivers/reimbursements(d)

   2.65  %   20.23  %(e)

Net investment income (loss)(b)

   .79  %   (.47 )%

Portfolio turnover rate

   5  %   10  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   185

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.21     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .08     (.04 )

Net realized and unrealized gain on investment transactions

   1.52     1.25  
     

Net increase in net asset value from operations

   1.60     1.21  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.15 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.16 )   – 0 –
     

Net asset value, end of period

   $  12.65     $  11.21  
     
Total Return    

Total investment return based on net asset value(c)

   14.37  %   12.10  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $1,196     $398  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.78  %   1.90  %(e)

Expenses, before waivers/reimbursements(d)

   2.63  %   19.62  %(e)

Net investment income (loss)(b)

   .61  %   (.38 )%

Portfolio turnover rate

   5  %   10  %

 

See footnote summary on page 219.

186   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.32     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .22     .05  

Net realized and unrealized gain on investment transactions

   1.52     1.27  
     

Net increase in net asset value from operations

   1.74     1.32  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  12.84     $  11.32  
     
Total Return    

Total investment return based on net asset value(c)

   15.54  %   13.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $942     $228  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .78  %   .90 %(e)

Expenses, before waivers/reimbursements(d)

   1.63  %   19.84 %(e)

Net investment income(b)

   1.68  %   .54 %

Portfolio turnover rate

   5  %   10 %

 

See footnote summary on page 219

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   187

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.26     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .07     (.02 )

Net realized and unrealized gain on investment transactions

   1.59     1.28  
     

Net increase in net asset value from operations

   1.66     1.26  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.20 )   – 0 –
     

Net asset value, end of period

   $  12.72     $  11.26  
     
Total Return    

Total investment return based on net asset value(c)

   14.86  %   12.60  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $4,446     $587  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.27  %   1.40  %(e)

Expenses, before waivers/reimbursements(d)

   2.27  %   17.88  %(e)

Net investment income (loss)(b)

   .56  %   (.25 )%

Portfolio turnover rate

   5  %   10  %

 

See footnote summary on page 219.

188   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.30     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .09     .03  

Net realized and unrealized gain on investment transactions

   1.61     1.27  
     

Net increase in net asset value from operations

   1.70     1.30  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  12.78     $  11.30  
     
Total Return    

Total investment return based on net asset value(c)

   15.16  %   13.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $27,908     $1,511  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   1.02  %   1.15 %(e)

Expenses, before waivers/reimbursements(d)

   1.75  %   18.95 %(e)

Net investment income(b)

   .86  %   .28 %

Portfolio turnover rate

   5  %   10 %

 

See footnote summary on page 219.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   189

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.32     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .11     .05  

Net realized and unrealized gain on investment transactions

   1.64     1.27  
     

Net increase in net asset value from operations

   1.75     1.32  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.83     $  11.32  
     
Total Return    

Total investment return based on net asset value(c)

   15.56  %   13.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $8,530     $539  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)

   .74  %   .90 %(e)

Expenses, before waivers/reimbursements(d)

   1.43  %   16.65 %(e)

Net investment income(b)

   .81  %   .54 %

Portfolio turnover rate

   5  %   10 %

 

See footnote summary on page 219.

 

190   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.38     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .17     .02  

Net realized and unrealized gain on investment transactions

   1.57     1.36  
     

Net increase in net asset value from operations

   1.74     1.38  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.23 )   – 0 –
     

Net asset value, end of period

   $  12.89     $  11.38  
     
Total Return    

Total investment return based on net asset value(c)

   15.32  %   13.80 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $19,340     $1,764  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.10  %   1.21 %

Expenses, before waivers/reimbursements(d)(e)

   2.94  %   32.68 %

Net investment income(b)

   1.32  %   .20 %

Portfolio turnover rate

   7  %   20 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   191

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.31     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .11     (.05 )

Net realized and unrealized gain on investment transactions

   1.52     1.36  
     

Net increase in net asset value from operations

   1.63     1.31  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.16 )   – 0 –
     

Net asset value, end of period

   $  12.78     $  11.31  
     
Total Return    

Total investment return based on net asset value(c)

   14.48  %   13.10  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $925     $530  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.82  %   1.91  %

Expenses, before waivers/reimbursements(d)(e)

   4.15  %   35.10  %

Net investment income (loss)(b)

   .91  %   (.50 )%

Portfolio turnover rate

   7  %   20  %

See footnote summary on page 219.

192   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.31     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .08     (.03 )

Net realized and unrealized gain on investment transactions

   1.55     1.34  
     

Net increase in net asset value from operations

   1.63     1.31  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.16 )   – 0 –
     

Net asset value, end of period

   $  12.78     $  11.31  
     
Total Return    

Total investment return based on net asset value(c)

   14.48  %   13.10  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $563     $155  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.80  %   1.91  %

Expenses, before waivers/reimbursements(d)(e)

   3.94  %   42.81  %

Net investment income (loss)(b)

   .63  %   (.32 )%

Portfolio turnover rate

   7  %   20  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   193

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.42     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .31     .10  

Net realized and unrealized gain on investment transactions

   1.46     1.32  
     

Net increase in net asset value from operations

   1.77     1.42  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.95     $  11.42  
     
Total Return    

Total investment return based on net asset value(c)

   15.56  %   14.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $242     $74  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .81  %   .91 %

Expenses, before waivers/reimbursements(d)(e)

   3.06  %   55.18 %

Net investment income(b)

   2.37  %   .97 %

Portfolio turnover rate

   7  %   20 %

 

See footnote summary on page 219.

194   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.37     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .00 (f)   .01  

Net realized and unrealized gain on investment transactions

   1.71     1.36  
     

Net increase in net asset value from operations

   1.71     1.37  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.84     $  11.37  
     
Total Return    

Total investment return based on net asset value(c)

   15.08  %   13.70 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $5,335     $177  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.26  %   1.41 %

Expenses, before waivers/reimbursements(d)(e)

   3.07  %   36.08 %

Net investment income(b)

   .01  %   .06 %

Portfolio turnover rate

   7  %   20 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   195

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.40     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .09     .05  

Net realized and unrealized gain on investment transactions

   1.66     1.35  
     

Net increase in net asset value from operations

   1.75     1.40  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.27 )   – 0 –
     

Net asset value, end of period

   $  12.88     $  11.40  
     
Total Return    

Total investment return based on net asset value(c)

   15.40  %   14.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $16,181     $501  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.03  %   1.16 %

Expenses, before waivers/reimbursements(d)(e)

   2.46  %   33.28 %

Net investment income(b)

   .85  %   .53 %

Portfolio turnover rate

   7  %   20 %

 

See footnote summary on page 219.

196   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.42     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .11     .05  

Net realized and unrealized gain on investment transactions

   1.67     1.37  
     

Net increase in net asset value from operations

   1.78     1.42  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.26 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   – 0 –
     

Total dividends and distributions

   (.28 )   – 0 –
     

Net asset value, end of period

   $  12.92     $  11.42  
     
Total Return    

Total investment return based on net asset value(c)

   15.67  %   14.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $6,087     $272  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .76  %   .91 %

Expenses, before waivers/reimbursements(d)(e)

   1.92  %   29.45 %

Net investment income(b)

   .86  %   .48 %

Portfolio turnover rate

   7  %   20 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   197

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class A  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.42     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .19     .04  

Net realized and unrealized gain on investment transactions

   1.49     1.38  
     

Net increase in net asset value from operations

   1.68     1.42  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.20 )   – 0 –
     

Net asset value, end of period

   $  12.90     $  11.42  
     
Total Return    

Total investment return based on net asset value(c)

   14.85  %   14.20 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $18,710     $1,057  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.11  %   1.23 %

Expenses, before waivers/reimbursements(d)(e)

   2.91  %   44.80 %

Net investment income(b)

   1.49  %   .44 %

Portfolio turnover rate

   13  %   13 %

 

See footnote summary on page 219.

198   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class B  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.34     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .10     (.03 )

Net realized and unrealized gain on investment transactions

   1.47     1.37  
     

Net increase in net asset value from operations

   1.57     1.34  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.15 )   – 0 –
     

Net asset value, end of period

   $  12.76     $  11.34  
     
Total Return    

Total investment return based on net asset value(c)

   13.96  %   13.40  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $319     $140  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.81  %   1.93  %

Expenses, before waivers/reimbursements(d)(e)

   3.97  %   54.54  %

Net investment income (loss)(b)

   .77  %   (.28 )%

Portfolio turnover rate

   13  %   13  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   199

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class C  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.34     $  10.00  
     
Income From Investment Operations    

Net investment income (loss)(a)(b)

   .11     (.07 )

Net realized and unrealized gain on investment transactions

   1.46     1.41  
     

Net increase in net asset value from operations

   1.57     1.34  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.15 )   – 0 –
     

Net asset value, end of period

   $  12.76     $  11.34  
     
Total Return    

Total investment return based on net asset value(c)

   13.96  %   13.40  %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $344     $129  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.81  %   1.93  %

Expenses, before waivers/reimbursements(d)(e)

   4.04  %   66.89  %

Net investment income (loss)(b)

   .91  %   (.73 )%

Portfolio turnover rate

   13  %   13  %

 

See footnote summary on page 219.

200   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Advisor Class  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.45     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .24     .09  

Net realized and unrealized gain on investment transactions

   1.47     1.36  
     

Net increase in net asset value from operations

   1.71     1.45  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.21 )   – 0 –
     

Net asset value, end of period

   $  12.95     $  11.45  
     
Total Return    

Total investment return based on net asset value(c)

   15.08  %   14.50 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $596     $245  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .80  %   .93 %

Expenses, before waivers/reimbursements(d)(e)

   3.13  %   52.18 %

Net investment income(b)

   1.85  %   .85 %

Portfolio turnover rate

   13  %   13 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   201

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class R  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.40     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .05     .02  

Net realized and unrealized gain on investment transactions

   1.59     1.38  
     

Net increase in net asset value from operations

   1.64     1.40  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.20 )   – 0 –
     

Net asset value, end of period

   $  12.84     $  11.40  
     
Total Return    

Total investment return based on net asset value(c)

   14.50  %   14.00 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,620     $210  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.27  %   1.43 %

Expenses, before waivers/reimbursements(d)(e)

   3.18  %   45.90 %

Net investment income(b)

   .40  %   .17 %

Portfolio turnover rate

   13  %   13 %

 

See footnote summary on page 219.

202   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class K  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.43     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .11     .04  

Net realized and unrealized gain on investment transactions

   1.56     1.39  
     

Net increase in net asset value from operations

   1.67     1.43  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.22 )   – 0 –
     

Net asset value, end of period

   $  12.88     $  11.43  
     
Total Return    

Total investment return based on net asset value(c)

   14.76  %   14.30 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $9,458     $484  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.04  %   1.18 %

Expenses, before waivers/reimbursements(d)(e)

   2.62  %   44.54 %

Net investment income(b)

   1.04  %   .43 %

Portfolio turnover rate

   13  %   13 %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   203

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class I  
    Year Ended August 31,  
        2007         2006  
     

Net asset value, beginning of period

   $  11.45     $  10.00  
     
Income From Investment Operations    

Net investment income(a)(b)

   .12     .04  

Net realized and unrealized gain on investment transactions

   1.59     1.41  
     

Net increase in net asset value from operations

   1.71     1.45  
     
Less: Dividends and Distributions    

Dividends from net investment income

   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   – 0 –
     

Net asset value, end of period

   $  12.92     $  11.45  
     
Total Return    

Total investment return based on net asset value(c)

   15.08  %   14.50 %
Ratios/Supplemental Data    

Net assets, end of period (000’s omitted)

   $2,213     $97  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .75  %   .93 %

Expenses, before waivers/reimbursements(d)(e)

   2.13  %   52.64 %

Net investment income(b)

   .78  %   .39 %

Portfolio turnover rate

   13  %   13 %

 

See footnote summary on page 219.

204   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

    2050 Retirement
Strategy		  
    Class A  
   

June 29,

2007(g) to
August 31,

2007

  

Net asset value beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.02 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.14 )
     

Net asset value, end of period

   $    9.86  
     
Total Return  

Total investment return based on net asset value(c)

   (1.40 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.09  %

Expenses, before waivers/reimbursements(d)(e)(h)

   649.75  %

Net investment loss(b)(h)

   (1.02 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   205

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2050 Retirement
Strategy		  
    Class B  
   

June 29,

2007(g) to
August 31,

2007

  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.03 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.15 )
     

Net asset value, end of period

   $    9.85  
     
Total Return  

Total investment return based on net asset value(c)

   (1.50 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.79  %

Expenses, before waivers/reimbursements(d)(e)(h)

   649.78  %

Net investment loss(b)(h)

   (1.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

206   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2050 Retirement
Strategy		  
    Class C  
   

June 29,

2007(g) to
August 31,

2007

  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.03 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.15 )
     

Net asset value, end of period

   $    9.85  
     
Total Return  

Total investment return based on net asset value(c)

   (1.50 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.79  %

Expenses, before waivers/reimbursements(d)(e)(h)

   649.72  %

Net investment loss(b)(h)

   (1.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   207

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2050 Retirement
Strategy		  
    Advisor Class  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.01 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.13 )
     

Net asset value, end of period

   $    9.87  
     
Total Return  

Total investment return based on net asset value(c)

   (1.30 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   .79  %

Expenses, before waivers/reimbursements(d)(e)(h)

   648.81  %

Net investment loss(b)(h)

   (.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

208   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2050 Retirement
Strategy		  
    Class R  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.02 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.14 )
     

Net asset value, end of period

   $    9.86  
     
Total Return  

Total investment return based on net asset value(c)

   (1.40 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.29  %

Expenses, before waivers/reimbursements(d)(e)(h)

   596.22  %

Net investment loss(b)(h)

   (1.22 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   209

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

   

2050 Retirement
Strategy

  
   

Class K

  
   

June 29,
2007(g) to
August 31,
2007

  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.02 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.14 )
     

Net asset value, end of period

   $    9.86  
     
Total Return  

Total investment return based on net asset value(c)

   (1.40 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.04  %

Expenses, before waivers/reimbursements(d)(e)(h)

   595.99  %

Net investment loss(b)(h)

   (.97 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

210   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2050 Retirement
Strategy		  
    Class I  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.01 )

Net realized and unrealized loss on investment transactions

   (.12 )
     

Net decrease in net asset value from operations

   (.13 )
     

Net asset value, end of period

   $    9.87  
     
Total Return  

Total investment return based on net asset value(c)

   (1.30 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   .79  %

Expenses, before waivers/reimbursements(d)(e)(h)

   595.86  %

Net investment loss(b)(h)

   (.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   211

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Class A  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.02 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.15 )
     

Net asset value, end of period

   $    9.85  
     
Total Return  

Total investment return based on net asset value(c)

   (1.50 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $12  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.03  %

Expenses, before waivers/reimbursements(d)(e)(h)

   643.42  %

Net investment loss(b)(h)

   (1.02 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

212   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Class B  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.03 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.16 )
     

Net asset value, end of period

   $    9.84  
     
Total Return  

Total investment return based on net asset value(c)

   (1.60 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.73  %

Expenses, before waivers/reimbursements(d)(e)(h)

   638.66  %

Net investment loss(b)(h)

   (1.72 )%

Portfolio turnover rate.

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   213

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Class C  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.03 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.16 )
     

Net asset value, end of period

   $    9.84  
     
Total Return  

Total investment return based on net asset value(c)

   (1.60 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.73  %

Expenses, before waivers/reimbursements(d)(e)(h)

   638.66  %

Net investment loss(b)(h)

   (1.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

214   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Advisor Class  
   

June 29,

2007(g) to
August 31,

2007

  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.01 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.14 )
     

Net asset value, end of period

   $    9.86  
     
Total Return  

Total investment return based on net asset value(c)

   (1.40 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   .73  %

Expenses, before waivers/reimbursements(d)(e)(h)

   637.93  %

Net investment loss(b)(h)

   (.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   215

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Class R  
   

June 29,

2007(g) to
August 31,

2007

  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.02 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.15 )
     

Net asset value, end of period

   $    9.85  
     
Total Return  

Total investment return based on net asset value(c)

   (1.50 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   1.23  %

Expenses, before waivers/reimbursements(d)(e)(h)

   586.71  %

Net investment loss(b)(h)

   (1.22 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

216   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Class K  
    June 29,
2007(g) to
August 31,
2007		  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.02 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.15 )
     

Net asset value, end of period

   $    9.85  
     
Total Return  

Total investment return based on net asset value(c)

   (1.50 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   .98  %

Expenses, before waivers/reimbursements(d)(e)(h)

   586.41  %

Net investment loss(b)(h)

   (.97 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   217

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout The Period

 

    2055 Retirement
Strategy		  
    Class I  
   

June 29,

2007(g) to
August 31,

2007

  

Net asset value, beginning of period

   $  10.00  
     
Income From Investment Operations  

Net investment loss(a)(b)

   (.01 )

Net realized and unrealized loss on investment transactions

   (.13 )
     

Net decrease in net asset value from operations

   (.14 )
     

Net asset value, end of period

   $    9.86  
     
Total Return  

Total investment return based on net asset value(c)

   (1.40 )%
Ratios/Supplemental Data  

Net assets, end of period (000’s omitted)

   $10  

Ratio to average net assets of:

  

Expenses, net of waivers/reimbursements(d)(e)(h)

   .73  %

Expenses, before waivers/reimbursements(d)(e)(h)

   586.25  %

Net investment loss(b)(h)

   (.72 )%

Portfolio turnover rate

   8  %

 

See footnote summary on page 219.

218   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

(a) Based on average shares outstanding.

 

(b) Net of expenses waived and reimbursed by the Adviser.

 

(c) 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 return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Total investment return calculated for a period less than one year is not annualized.

 

(d) Expense ratios do not include expenses of the Underlying Portfolios in which the Strategy invests. For the years ended August 31, 2007 and August 31, 2006, the estimated annualized blended expense ratios were .04% and .07%, respectively, for each of the Strategies.

 

(e) Ratios reflect expenses grossed up for expense offset arrangement with the Transfer Agent. For the periods shown below, the net expense ratios were as follows:

 

     Year Ended August 31, 2007  
     2000
Retirement
Strategy		     2040
Retirement
Strategy		     2045
Retirement
Strategy		     2050
Retirement
Strategy		     2055
Retirement
Strategy		  

Class A

    .90 %   1.08 %   1.09 %   1.02 %   1.02 %

Class B

    1.57 %   1.80 %   1.79 %   1.72 %   1.72 %

Class C

    1.59 %   1.78 %   1.79 %   1.72 %   1.72 %

Advisor Class

    .63 %   .79 %   .79 %   .72 %   .72 %

Class R

    1.05 %   1.24 %   1.25 %   1.22 %   1.22 %

Class K

    .82 %   1.02 %   1.02 %   .97 %   .97 %

Class I

    .54 %   .74 %   .73 %   .72 %   .72 %
     Year Ended August 31, 2006  
    

2000

Retirement

Strategy

    

2030

Retirement

Strategy

    

2035

Retirement

Strategy

    

2040

Retirement

Strategy

    

2045

Retirement

Strategy

  

Class A

    1.03 %   1.18 %   1.18 %   1.18 %   1.18 %

Class B

    1.73 %   1.88 %   1.88 %   1.88 %   1.88 %

Class C

    1.73 %   1.88 %   1.88 %   1.88 %   1.88 %

Advisor Class

    .73 %   .88 %   .88 %   .88 %   .88 %

Class R

    1.23 %   1.38 %   1.38 %   1.38 %   1.38 %

Class K

    .98 %   1.13 %   1.13 %   1.13 %   1.13 %

Class I

    .73 %   .88 %   .88 %   .88 %   .88 %

 

(f) Amount is less than $.005.

 

(g) Commencement of operations.

 

(h) Annualized.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   219

 

Financial Highlights

 

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders

AllianceBernstein Blended Style Series, Inc.

We have audited the accompanying statements of net assets of each of AllianceBernstein 2000 Retirement Strategy, AllianceBernstein 2005 Retirement Strategy, AllianceBernstein 2010 Retirement Strategy, AllianceBernstein 2015 Retirement Strategy, AllianceBernstein 2020 Retirement Strategy, AllianceBernstein 2025 Retirement Strategy, AllianceBernstein 2030 Retirement Strategy, AllianceBernstein 2035 Retirement Strategy, AllianceBernstein 2040 Retirement Strategy, AllianceBernstein 2045 Retirement Strategy, AllianceBernstein 2050 Retirement Strategy, and AllianceBernstein 2055 Retirement Strategy (constituting series of the AllianceBernstein Blended Style Series, Inc. hereafter referred to as the “Funds”) as of August 31, 2007, and the related statements of operations for the year then ended, statements of changes in net assets and the financial highlights for each of the years in the two-year period then ended, except for AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy, the related statements of operations, statement of changes in net assets and the financial highlights for the period from June 29, 2007 (commencement of operations) to August 31, 2007. 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 audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. Our procedures included confirmation of securities owned as of August 31, 2007, by correspondence with the transfer agent or by other appropriate auditing procedures. 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 audits provide 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 2000 Retirement Strategy, AllianceBernstein 2005 Retirement Strategy, AllianceBernstein 2010 Retirement Strategy, AllianceBernstein 2015 Retirement Strategy, AllianceBernstein 2020 Retirement Strategy, AllianceBernstein 2025 Retirement Strategy, AllianceBernstein 2030 Retirement Strategy, AllianceBernstein 2035 Retirement Strategy, AllianceBernstein 2040 Retirement Strategy, AllianceBernstein 2045 Retirement Strategy, AllianceBernstein 2050 Retirement Strategy, and AllianceBernstein 2055 Retirement Strategy as of August 31, 2007, and the results of their operations, changes in their net assets and their financial highlights for the periods indicated above, in conformity with U.S. generally accepted accounting principles.

LOGO

New York, New York

October 22, 2007

220   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Report of Independent Registered Public Accounting Firm

 

TAX INFORMATION (unaudited)

For the fiscal year ended August 31, 2007, in order to meet certain requirements of the Internal Revenue Code, we are advising you that certain distributions from the following funds will be designated as:

 

Portfolio   Long-Term
Capital Gain		   Qualified
Dividend
Income		   (for corporate
shareholders)
Dividends
Received
Deduction		   (for foreign
shareholders)
Qualified
Short-Term
Capital Gain		   (for foreign
shareholders)
Qualified
Interest
Income

2000

   $ 4,673   $ 15,443   $ 7,320   $ 1,487   $ 104,088

2005

     10,307     89,424     44,471     13,290     229,973

2010

         29,435         314,223         149,430         13,380     627,757

2015

     44,428     446,504     205,661     16     846,662

2020

     31,470     540,429     248,656     7,868     779,853

2025

     21,332     696,390     317,730     4,185     525,688

2030

     28,033     493,649     224,361     7,008     110,938

2035

     19,075     386,871     193,807     2,219     11,972

2040

     10,271     166,973     89,570     2,370     5,673

2045

     11,371     200,630     91,593     3,101     5,741

2050

     –     –     –     –     –

2055

     –     –     –     –     –

Long Term Capital Gain distributions made during the fiscal year ended August 31, 2007 will be subject to maximum tax rate of 15%.

In addition, Qualified Dividend Income will also be subject to a maximum tax rate of 15%.

The above should not be used to calculate your income tax returns.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   221

 

Tax Information

 

BOARD OF DIRECTORS

William H. Foulk, Jr.(1), Chairman

Marc O. Mayer, President and Chief Executive Officer

David H. Dievler(1)

John H. Dobkin(1)

Michael J. Downey(1)

D. James Guzy(1)

Nancy P. Jacklin(1)

Marshall C. Turner, Jr.(1)

Earl D. Weiner(1)

OFFICERS(2)

Philip L. Kirstein, Senior Vice President and Independent Compliance Officer

Seth J. Masters, Senior Vice President

Thomas J. Fontaine, Vice President

Mark A. Hamilton, Vice President

Joshua B. Lisser, Vice President

Christopher H. Nikolich, Vice President

Emilie D. Wrapp, Secretary

Joseph J. Mantineo, Treasurer and Chief Financial Officer

Vincent S. Noto, Controller

 

Custodian

State Street Bank & Trust Company
One Lincoln Street
Boston, MA 02111

 

Principal Underwriter

AllianceBernstein Investments, Inc.
1345 Avenue of the Americas
New York, NY 10105

 

Legal Counsel

Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004

  

Transfer Agent

AllianceBernstein Investor
Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672

 

Independent Registered Public Accounting Firm

KPMG LLP
345 Park Avenue
New York, NY 10154

 

(1) Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

 

(2) The day-to-day management of and investment decisions for each of the Fund’s portfolios are made by the Blend Investment Policy Team, comprised of senior Blend portfolio managers. While all members of the team work jointly to determine the majority of the investment strategy, Messrs. Seth Masters, Thomas Fontaine, Mark Hamilton, Joshua Lisser and Christopher Nikolich, members of the Blend Investment Policy Team are primarily responsible for the day-to-day management of the Fund’s portfolios.

 

222   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Board of Directors

MANAGEMENT OF THE FUND

 

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

 

NAME, ADDRESS*,
AND AGE
(YEAR ELECTED**)		   PRINCIPAL
OCCUPATION(S)
DURING PAST 5 YEARS		   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
INTERESTED DIRECTOR      
Marc O. Mayer,***
1345 Avenue of the Americas New York, NY 10105
50
(2003)		   Executive Vice President of AllianceBernstein L.P. (“AllianceBernstein”) since 2001 and Executive Managing Director of AllianceBernstein Investments, Inc. (“ABI”) since 2003; prior thereto he was head of AllianceBernstein Institutional Investments, a unit of AllianceBernstein from 2001- 2003. Prior thereto, Chief Executive Officer of Sanford C. Bernstein & Co., LLC (institutional research and brokerage arm of Bernstein & Co., LLC) (“SCB & Co.”) and its predecessor since prior to 2002.   108   SCB Partners Inc. and SCB, Inc.
     
DISINTERESTED DIRECTORS    
William H. Foulk, Jr., #, ##
75
(2002)
Chairman of the Board		   Investment Adviser and Independent Consultant. He was formerly Senior Manager of Barrett Associates, Inc., a registered investment adviser, with which he had been associated since prior to 2002. He was formerly Deputy Comptroller and Chief Investment Officer of the State of New York and, prior thereto, Chief Investment Officer of the New York Bank for Savings.   110   None
     
David H. Dievler, #
78
(2002)		   Independent Consultant. Until December 1994, he was Senior Vice President of AllianceBernstein Corporation (“AB Corp.”) (formerly Alliance Capital Management Corporation) responsible for mutual fund administration. Prior to joining AB Corp. in 1984, he was Chief Financial Officer of Eberstadt Asset Management since 1968. Prior to that, he was a Senior Manager at Price Waterhouse & Co. Member of the American Institute of Certified Public Accountants since 1953.   109   None
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   223

 

Management of the Fund

NAME, ADDRESS*,
AND AGE
(YEAR ELECTED**)		   PRINCIPAL
OCCUPATION(S)
DURING PAST 5 YEARS		   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
DISINTERESTED DIRECTORS
(continued)		    
John H. Dobkin, #
65
(2002)		   Consultant. Formerly, President of Save Venice, Inc. (preservation organization) from 2001-2002, Senior Advisor from June 1999- June 2000 and President of Historic Hudson Valley (historic preservation) from December 1989-May 1999. Previously, Director of the National Academy of Design and during 1988-1992, Director and Chairman of the Audit Committee of AB Corp.   108   None
     
Michael J. Downey, #
63
(2005)		   Consultant since January 2004. Formerly, managing partner of Lexington Capital, LLC (investment advisory firm) from December 1997 until December 2003. Prior thereto, Chairman and CEO of Prudential Mutual Fund Management from 1987 to 1993.   108   Asia Pacific Fund, Inc. and The Merger Fund
     
D. James Guzy, #
71
(2005)		   Chairman of the Board of PLX Technology (semi-conductors) and of SRC Computers Inc., with which he has been associated since prior to 2002. He is also President of the Arbor Company (private family investments).   108   Intel Corporation (semi-conductors) and Cirrus Logic Corporation (semi-conductors)
     
Nancy P. Jacklin, #
59
(2006)		   Formerly, U.S. Executive Director of the International Monetary Fund (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations.   108   None
224   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Management of the Fund

 

NAME, ADDRESS*,
AND AGE
(YEAR ELECTED**)		   PRINCIPAL
OCCUPATION(S)
DURING PAST 5 YEARS		   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
     
DISINTERESTED DIRECTORS
(continued)		    
Marshall C. Turner, Jr., #
66
(2005)		   Consultant. Formerly, President and CEO, Toppan Photomasks, Inc., (semi-conductor manufacturing services), 2005-2006, and Chairman and CEO from 2003 until 2005, when the company was acquired and renamed from Dupont Photomasks, Inc. Principal, Turner Venture Associates (venture capital and consulting) 1993-2003.   108  

Xilinx, Inc. (semi-conductors) and MEMC Electronic Materials, Inc. (semi-conductor substrates)

     

Earl D. Weiner, #

68

(2007)

   Of Counsel, and Partner from 1976-2006, of the law firm Sullivan & Cromwell LLP, specializing in investment management, corporate and securities law; member of ABA Federal Regulation of Securities Committee Task Force on Fund Director’s Guidebook.   108   None

 

* The address for each of the Fund’s disinterested Directors is AllianceBernstein L.P., c/o Philip L. Kirstein, 1345 Avenue of the Americas, New York, NY 10105.

 

** There is no stated term of office for the Fund’s Directors.

 

*** Mr. Mayer is an “interested person”, as defined in the Investment Company Act of 1940, due to his position as Executive Vice President of AllianceBernstein.

 

# Member of the Audit Committee, Governance and Nominating Committee and Independent Directors Committee.

 

## Member of the Fair Value Pricing Committee.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   225

 

Management of the Fund

 

Officer Information

Certain information concerning the Fund’s Officers is listed below.

 

NAME, ADDRESS*
AND AGE		    POSITION(S)
HELD WITH FUND		    PRINCIPAL OCCUPATION
DURING PAST 5 YEARS
Marc O. Mayer
50		    President and Chief Executive Officer    See biography above.
     
Philip L. Kirstein
62		    Senior Vice President and Independent Compliance Officer    Senior Vice President and Independent Compliance Officer of the AllianceBernstein Funds with which he has been associated since October 2004. Prior thereto, he was Of Counsel to Kirkpatrick & Lockhart, LLP from October 2003 to October 2004, and General Counsel of Merrill Lynch Investment Managers, L.P. since prior to 2002 until March 2003.
     
Seth J. Masters
48		    Senior Vice President    Executive Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Thomas J. Fontaine
42		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Mark A. Hamilton
42		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Joshua B. Lisser
40		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Christopher H. Nikolich
38		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Emilie D. Wrapp
51		    Secretary    Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI,** with which she has been associated since prior to 2002.
     
Joseph J. Mantineo
48		    Treasurer and Chief Financial Officer    Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”),** with which he has been associated since prior to 2002.
     
Vincent S. Noto
42		    Controller    Vice President of ABIS,** with which he has been associated since prior to 2002.

 

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

 

** AllianceBernstein, ABI, ABIS and SCB & Co. are affiliates of the Fund. The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AllianceBernstein at 1-800-227-4618 for a free prospectus or SAI.
226   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Management of the Fund

 

Information Regarding the Review and Approval of the Advisory Agreement in Respect of Each Strategy

The disinterested directors (the “directors”) of AllianceBernstein Blended Style Series, Inc. (the “Company”) unanimously approved the Company’s Advisory Agreement with the Adviser (i) in respect of each of AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy (the “2050 and 2055 Strategies”) at a meeting held on May 1-3, 2007 (for an initial period ending May 30, 2009), and (ii) in respect of each of AllianceBernstein 2000 Retirement Strategy, AllianceBernstein 2005 Retirement Strategy, AllianceBernstein 2010 Retirement Strategy, AllianceBernstein 2015 Retirement Strategy, AllianceBernstein 2020 Retirement Strategy, AllianceBernstein 2025 Retirement Strategy, AllianceBernstein 2030 Retirement Strategy, AllianceBernstein 2035 Retirement Strategy, AllianceBernstein 2040 Retirement Strategy, and AllianceBernstein 2045 Retirement Strategy (the “2000 to 2045 Strategies”) at meetings held on June 13, 2007 (for a “stub period” ending August 31, 2007) and July 31-August 2, 2007 (for an annual period). Each Retirement Strategy is referred to individually as a “Strategy” and collectively as the “Strategies”).

Prior to approval of the Advisory Agreement in respect of a Strategy (initial or continuance) the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed approvals of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser who advised on the relevant legal standards. The directors also reviewed independent evaluations prepared by the Company’s Senior Officer (who is also the Company’s Independent Compliance Officer) of the reasonableness of the advisory fees in the Advisory Agreement wherein the Senior Officer concluded that the contractual fees for the Strategies were reasonable. The directors also discussed the proposed approvals in private sessions with counsel and the Company’s Senior Officer.

The directors noted that each Strategy is or will be managed to the specific year of planned retirement included in its name. The directors also noted that instead of investing directly in portfolio securities, each Strategy pursues or will pursue its investment objective by investing in a combination of the portfolios of The AllianceBernstein Pooling Portfolios (“Pooling”), each of which represents one of a variety of asset classes and investment styles. The directors further noted that the portfolios of Pooling do not pay advisory fees to the Adviser.

The directors considered their knowledge of the nature and quality of the services provided or to be provided by the Adviser to the Strategies gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   227

 

past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AllianceBernstein Funds. The directors noted that they have four regular meetings each year, at each of which they receive presentations from the Adviser on the investment results of the Strategies and review extensive materials and information presented by the Adviser.

The directors also considered all other factors they believed relevant, including the specific matters discussed below. In their deliberations, the directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage each Strategy and the overall arrangements between each Strategy and the Adviser, as provided in the Advisory Agreement, including the advisory fees, were fair and reasonable in light of the services performed or to be performed, expenses incurred or to be incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided or to be provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the 2000 to 2045 Strategies and the AllianceBernstein Funds. They also noted the professional experience and qualifications of each Strategy’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Strategies will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services provided at the Strategies’ request by employees of the Adviser or its affiliates. Requests for these reimbursements are approved by the directors on a quarterly basis and (to the extent requested and paid) result in a higher rate of total compensation from each Strategy to the Adviser than the fee rates stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Company’s Senior Officer. The directors noted that in the case of the 2000 to 2045 Strategies, the Adviser had waived reimbursement payments from each Strategy since the Strategy’s inception. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of each Strategy’s other service providers, also were considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided or to be provided to the Strategies under the Advisory Agreement.

 

228   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Costs of Services Provided and Profitability

In the case of the 2050 and 2055 Strategies, the directors did not consider historical information about the profitability of either Strategy to the Adviser since neither Strategy had yet commenced operations. However, the Adviser agreed to provide the directors with profitability information in connection with future proposed continuances of the Advisory Agreement in respect of the 2050 and 2055 Strategies. They also considered the costs to be borne by the Adviser in providing services to each Strategy (including indirect costs of providing services to the portfolios of Pooling) and that the 2050 and 2055 Strategies were unlikely to be profitable to the Adviser unless they achieve material levels of net assets.

In the case of the 2000 to 2045 Strategies, the directors reviewed a schedule of the revenues, expenses and related notes indicating the profitability of each Strategy to the Adviser for calendar years 2005 and 2006 that had been prepared with an updated expense allocation methodology arrived at in consultation with an independent consultant retained by the Company’s Senior Officer. The directors reviewed the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and noted that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationships with the Strategies and the relevant portfolios of Pooling, including those relating to its subsidiaries which provide transfer agency, distribution and brokerage services to the Strategies and such portfolios of Pooling. The directors recognized that it is difficult to make comparisons of profitability from fund advisory contracts because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationships with the Strategies before taxes and distribution expenses. The directors noted that the 2000 to 2045 Strategies were not profitable to it in 2005 and 2006. The directors noted that the 2000 to 2045 Strategies were relatively small (as of June 30, 2007, the largest of the 2000 to 2045 Strategies, 2020, had net assets of approximately $126 million) and that the Adviser had waived reimbursement of administrative expenses from these Strategies since inception.

Fall-Out Benefits

The directors considered the benefits to the Adviser and its affiliates from their relationships or proposed relationships with the Strategies (and the portfolios of Pooling in which the Strategies invest) other than the fees and expense reimbursements payable under the Advisory Agreement, including but not limited to benefits relating to soft dollar arrangements (whereby the Adviser receives brokerage and research services from many of the brokers and dealers that execute purchases and sales of securities on behalf of its clients (and the portfolios of Pooling in which the Strategies invest) on an agency basis), 12b-1 fees and sales charges received by the Company’s principal underwriter (which is

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   229

 

a wholly owned subsidiary of the Adviser) in respect of certain classes of the Strategies’ shares, transfer agency fees paid or to be paid by the Strategies to a wholly owned subsidiary of the Adviser, and brokerage commissions paid by portfolios of Pooling in which the Strategies invest or will invest to brokers affiliated with the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Strategies.

Investment Results

In addition to the information reviewed by the directors in connection with the meetings, the directors receive detailed comparative performance information for each Strategy that had commenced operations at each regular Board meeting during the year. In the case of the 2000 to 2045 Strategies, at the meetings, the directors reviewed information prepared by Lipper showing the comparative performance of the Class A Shares of each Strategy as compared to a group of funds selected by Lipper (the “Performance Group”) and as compared to a broader array of funds selected by Lipper (the “Performance Universe”), and information prepared by the Adviser showing performance of the Class A Shares as compared to a composite index (the “Index”) in each case for periods ended April 30, 2007 over the 1-year period and (in the case of the Index) the since inception period (September 2005 inception). The Index for a Strategy consisted of some or all of the following underlying benchmarks: the Russell 3000 Index, the Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net), the Financial Times Stock Exchange (FTSE) EPRA/National Association of Real Estate Investment Trusts Global Real Estate Index, the Lehman Brothers (LB) U.S. Aggregate Index, the Merrill Lynch (ML) 1-3 Year Treasury Index, the LB 1-10 Year TIPS Index and the LB High Yield (2% constrained) Index. The directors noted that the weighting of the Index differed for the various Strategies, depending on the extent to which the Strategy invested in equity securities. In the case of the 2050 and 2055 Strategies, since neither Strategy had yet commenced operations when the directors reviewed approval of the Advisory Agreement in respect of such Strategies, no performance or other historical information for the 2050 and 2055 Strategies was available. However, since initially each of the 2050 and 2055 Strategies would be investing in the portfolios of Pooling in the same proportion as AllianceBernstein 2045 Retirement Strategy, and since the approval of the Advisory Agreement in respect of such Strategies was considered at their May 1-3, 2007 meetings, the directors reviewed comparative performance information for that Strategy for periods ended December 31, 2006 as indicated below. The directors relied on such review, which is discussed below, in approving the advisory arrangements for each of the 2050 and 2055 Strategies. The directors also considered the Adviser’s extensive experience in managing blended asset portfolios such as those proposed for each of the 2050 and 2055 Strategies, noting that they were directors or trustees of a number of other funds advised by the

230   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Adviser that pursue blended asset strategies and were satisfied with the Adviser’s ability to provide advisory services of this type.

AllianceBernstein 2000 Retirement Strategy

The directors noted that AllianceBernstein 2000 Retirement Strategy was in the 3rd quintile of the Performance Group and 2nd quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. Based on their review, the directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2005 Retirement Strategy

The directors noted that AllianceBernstein 2005 Retirement Strategy was in the 2nd quintile of the Performance Group and 1st quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. Based on their review, the directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2010 Retirement Strategy

The directors noted that AllianceBernstein 2010 Retirement Strategy was in the 2nd quintile of the Performance Group and 1st quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2015 Retirement Strategy

The directors noted that AllianceBernstein 2015 Retirement Strategy was in the 2nd quintile of the Performance Group and 1st quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2020 Retirement Strategy

The directors noted that AllianceBernstein 2020 Retirement Strategy was in the 2nd quintile of the Performance Group and 1st quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2025 Retirement Strategy

The directors noted that AllianceBernstein 2025 Retirement Strategy was in the 2nd quintile of the Performance Group and Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. Based on their review, the directors concluded that the Strategy’s relative performance over time had been satisfactory.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   231

 

AllianceBernstein 2030 Retirement Strategy

The directors noted that AllianceBernstein 2030 Retirement Strategy was in the 2nd quintile of the Performance Group and 1st quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2035 Retirement Strategy

The directors noted that AllianceBernstein 2035 Retirement Strategy was in the 4th quintile of the Performance Group and 2nd quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2040 Retirement Strategy

The directors noted that AllianceBernstein 2040 Retirement Strategy was in the 4th quintile of the Performance Group and 1st quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2045 Retirement Strategy

The directors noted that AllianceBernstein 2045 Retirement Strategy was in the 5th quintile of the Performance Group and 3rd quintile of the Performance Universe in the 1-year period and that it underperformed the Index in both periods reviewed. The directors concluded that the Strategy’s relative performance over time had been satisfactory.

AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy

The directors reviewed information at their May 1-3, 2007 meeting showing the comparative performance of the Class A Shares of AllianceBernstein 2045 Retirement Strategy as compared to a Performance Group and a Performance Universe, and as compared to a composite index (the “Index”), in each case for periods ended December 31, 2006 over the 1-year period and (in the case of the Index) the since inception period (September 2005 inception). The directors noted that AllianceBernstein 2045 Retirement Strategy was in the 1st quintile in the Performance Group and Performance Universe comparisons, and that it underperformed the Index in both periods reviewed. Based on their review, the directors concluded that AllianceBernstein 2045 Retirement Strategy’s relative performance over time had been satisfactory and that they had confidence in the Adviser’s ability to provide quality portfolio management services to each of AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy.

 

232   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Advisory Fees and Other Expenses

The directors considered the advisory fee rate paid by each Strategy to the Adviser and information prepared by Lipper concerning fee rates paid by other funds in the same Lipper category as the Strategy at a common asset level (at hypothetical common assets of $100 million in the case of each of the 2050 and 2055 Strategies). The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds.

The directors also considered the fees the Adviser charges other clients with a substantially similar investment style as the Strategies. For this purpose, they reviewed information in the Adviser’s Form ADV and the evaluation from the Company’s Senior Officer disclosing the institutional fee schedules for institutional products managed by the Adviser that have a substantially similar investment style as the Strategies. The directors noted that the institutional fee schedules for clients with a substantially similar investment style as the Strategies had breakpoints at lower asset levels than those in the fee schedules applicable to the Strategies although the institutional fee schedules provided for a higher fee rate on the first $25 million of assets and that the application of the institutional fee schedules to the level of assets of the Strategies would result in a fee rate that would be lower than that in the Strategies’ Advisory Agreement (except in the case of AllianceBernstein 2000 Retirement Strategy, AllianceBernstein 2005 Retirement Strategy, AllianceBernstein 2010 Retirement Strategy, AllianceBernstein 2035 Retirement Strategy, AllianceBernstein 2040 Retirement Strategy and AllianceBernstein 2045 Retirement Strategy which each had relatively low net assets). The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Strategies relative to institutional clients. The Adviser also noted that since mutual funds are constantly issuing and redeeming shares, they are more difficult to manage than an institutional account, where the assets are relatively stable. In light of these facts, the directors did not place significant weight on these fee comparisons.

The directors also considered the total expense ratio of the Class A shares of each Strategy in comparison to the fees and expenses of funds within a comparison group created by Lipper: an Expense Group. Lipper described an Expense Group as a representative sample of funds comparable to a Strategy. The Class A expense ratio of each Strategy was based on the Strategy’s latest fiscal year expense ratio. The expense ratio of each Strategy reflected fee waivers and/or expense reimbursements as a result of applicable expense limitation undertakings or voluntary action taken by the Adviser. The directors noted that the Adviser had recently reduced the expense caps for the 2000 to 2045 Strategies and that

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   233

 

the Lipper information for those Strategies included pro forma expense ratios provided by the Adviser assuming the reduced expense caps effective March 1, 2007 had been in effect throughout each Strategy’s fiscal year ended August 31, 2006. All references to the expense ratios of the 2000 to 2045 Strategies are to the pro forma expense ratios. The directors recognized that the expense ratio information for the Strategies potentially reflected on the Adviser’s provision of services, as the Adviser is responsible for coordinating services provided to the Strategies by others. The directors noted that it was likely that the expense ratios of some funds in each Strategies Lipper category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases were voluntary and perhaps temporary.

AllianceBernstein 2000 Retirement Strategy

The directors noted that AllianceBernstein 2000 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 55 basis points was the same as the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 2,345 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2005 Retirement Strategy

The directors noted that AllianceBernstein 2005 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 55 basis points was the same as the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 260 basis points had been waived by the Adviser. The directors also noted that the 2005 Retirement Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2010 Retirement Strategy

The directors noted that AllianceBernstein 2010 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 60 basis points was higher than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 140 basis points had been waived by the Adviser. The directors also noted that the 2010 Retirement Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2015 Retirement Strategy

The directors noted that AllianceBernstein 2015 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 60 basis points was

234   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

lower than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 154 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2020 Retirement Strategy

The directors noted that AllianceBernstein 2020 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 65 basis points was slightly higher than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 142 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2025 Retirement Strategy

The directors noted that AllianceBernstein 2025 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 65 basis points was lower than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 127 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2030 Retirement Strategy

The directors noted that AllianceBernstein 2030 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 65 basis points was lower than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 223 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2035 Retirement Strategy

The directors noted that AllianceBernstein 2035 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 65 basis points was lower than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 330 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   235

 

AllianceBernstein 2040 Retirement Strategy

The directors noted that AllianceBernstein 2040 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 65 basis points was lower than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 640 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2045 Retirement Strategy

The directors noted that AllianceBernstein 2045 Retirement Strategy’s at approximate current size contractual effective advisory fee rate of 65 basis points was lower than the Expense Group median and that in the Strategy’s latest fiscal year, the administrative expense reimbursement of 900 basis points had been waived by the Adviser. The directors also noted that the Strategy’s pro forma total expense ratio, which had been capped by the Adviser, was lower than the Expense Group median. The directors concluded that the Strategy’s pro forma expense ratio was satisfactory.

AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy

The directors noted that the proposed advisory fees for the AllianceBernstein 2050 and 2055 Retirement Strategies were lower than the Expense Group median. The directors recognized that the Adviser’s total compensation from each Strategy pursuant to the Advisory Agreement would be increased by amounts paid pursuant to the expense reimbursement provision in the Advisory Agreement, and that the impact of such expense reimbursement would depend on the size of each Strategy and the extent to which the Adviser requests reimbursements pursuant to this provision. The Lipper analysis reflected the Adviser’s agreement to cap each Strategy’s expense ratio pursuant to an undertaking that extends until August 31, 2009 and automatically extends for additional one-year terms unless terminated by the Adviser upon notice to the Company at least 60 days prior to the termination date of the undertaking. The directors noted that the estimated expense ratios were lower than the Expense Group median. The directors concluded that the anticipated expense ratios were acceptable.

Economies of Scale

The directors noted that the advisory fee schedules for the Strategies contain breakpoints that reduce the fee rates on assets above specified levels. The directors also considered presentations by an independent consultant discussing economies of scale in the mutual fund industry and for the AllianceBernstein Funds as well as a presentation by the Adviser concerning certain of its views on economies of scale. The directors believe that economies of scale may be realized

236   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

(if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for establishing breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Strategies, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Strategies’ breakpoint arrangements would result in a sharing of economies of scale in the event the Strategies’ net assets exceed a breakpoint in the future.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   237

 

THE FOLLOWING IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

SUMMARY OF SENIOR OFFICER’S EVALUATION OF INVESTMENT ADVISORY AGREEMENT1

The following is a summary of the evaluation of the Investment Advisory Agreement between AllianceBernstein L.P. (the “Adviser”) and AllianceBernstein Blended Style Series, Inc. (the “Fund”), in respect of the following AllianceBernstein Retirement Strategies (each a “Strategy” and collectively, the “Strategies”):2

AllianceBernstein 2000 Retirement Strategy

AllianceBernstein 2005 Retirement Strategy

AllianceBernstein 2010 Retirement Strategy

AllianceBernstein 2015 Retirement Strategy

AllianceBernstein 2020 Retirement Strategy

AllianceBernstein 2025 Retirement Strategy

AllianceBernstein 2030 Retirement Strategy

AllianceBernstein 2035 Retirement Strategy

AllianceBernstein 2040 Retirement Strategy

AllianceBernstein 2045 Retirement Strategy

The evaluation of the Investment Advisory Agreement was prepared by Philip L. Kirstein, the Senior Officer of the Fund, for the Directors of the Fund, as required by an August 2004 agreement between the Adviser and the New York State Attorney General (the “NYAG”). The investment objective of each Strategy is to seek the highest total return over time consistent with its asset mix. Total return includes capital growth and income. Each Strategy is managed to the specific year of planned retirement included in its name. The Strategies’ asset mixes will become more conservative until reaching the year approaching 15 years after the retirement year at which time the asset allocation will become static. Each Strategy will pursue its investment objectives through investing in a

combination of The AllianceBernstein Pooling Portfolios (the “Pooling Portfolios”),3 which represent a variety of asset classes and investment styles. As a

 

1 It should be noted that the information in the fee evaluation was completed on July 17, 2007 and presented to the Board of Directors on July 31-August 2, 2007, in accordance with the September 1, 2004 Assurance of Discontinuance between the NYAG and the Adviser. The other Retirement Strategies that are not discussed in this evaluation are 2050 Retirement Strategy and 2055 Retirement Strategy. The Board of Directors approved the initial investment agreement between the Adviser and 2050 Retirement Strategy and 2055 Retirement Strategy at the May 3, 2007 meeting.

 

2 Future references to the Strategies do not include “AllianceBernstein.”

 

3 The AllianceBernstein Pooling Portfolios include U.S. Value Portfolio, U.S. Large Cap Growth Portfolio, Global Real Estate Investment Portfolio, International Value Portfolio, International Growth Portfolio, Small-Mid Cap Value Portfolio, Small-Mid Cap Growth Portfolio, Global Research Growth Portfolio, Global Value Portfolio, Short Duration Bond Portfolio, Intermediate Duration Bond Portfolio, Inflation Protected Securities Portfolio and High Yield Portfolio.
238   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

result, certain expenses will be minimal, such as custodian charges, or non-existent, such as brokerage commissions, except as incurred indirectly through the Pooling Portfolios.

The Senior Officer’s evaluation of the Investment Advisory Agreement is not meant to diminish the responsibility or authority of the Boards of Directors of the Fund to perform its duties pursuant to Section 15 of the Investment Company Act of 1940 (the “40 Act”) and applicable state law. The purpose of the summary is to provide shareholders with a synopsis of the independent evaluation of the reasonableness of the advisory fees proposed to be paid by the Strategies which was provided to the Directors in connection with their review of the proposed approval of the continuance of the Investment Advisory Agreement. The Senior Officer’s evaluation considered the following factors:

 

  1. Advisory fees charged to institutional and other clients of the Adviser for like services;

 

  2. Advisory fees charged by other mutual fund companies for like services;

 

  3. Costs to the Adviser and its affiliates of supplying services pursuant to the advisory agreement, excluding any intra-corporate profit;

 

  4. Profit margins of the Adviser and its affiliates from supplying such services;

 

  5. Possible economies of scale as the Strategies grow larger; and

 

  6. Nature and quality of the Adviser’s services including the performance of the Strategies.

INVESTMENT ADVISORY FEES, NET ASSETS, EXPENSE CAPS & RATIOS

The Adviser proposed that each Strategy pay the advisory fee set forth in the table below for receiving the services to be provided pursuant to the Investment Advisory Agreement. The fee charged to each Strategy is dependent on the percentage of equity investments and the level of net assets held by each Strategy:

 

% Invested in Equity Investments4    Advisory Fee
Equal to or less than 60%    0.55%
  
Greater than 60% and less than 80%    0.60%
  
Equal to or greater than 80%    0.65%
  
Net Asset Level    Discount
Assets equal to or less than $2.5 billion    n/a
  
Assets greater than $2.5 billion and less than $5 billion    10 basis points
  
Assets greater than $5 billion    15 basis points

 

4 For purposes of determining the percent of the portfolio that consists of equity investments, 50% of the assets invested in the Global Real Estate Investment Portfolio will be considered to be invested in equity investments.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   239

 

Accordingly, under the terms of the Investment Advisory Agreement and based on the Strategies’ current percentages of investments held in equities, the Strategies will pay the Adviser at the following annual rates:

 

      Average Daily Net Assets  
Strategy    First
$2.5
billion		   Next
$2.5
billion		     In excess
of $5
billion		  
2020, 2025, 2030, 2035, 2040, 2045    0.65%   0.55 %   0.50 %
      
2010, 2015    0.60%   0.50 %   0.45 %
      
2000, 2005    0.55%   0.45 %   0.40 %

It should be noted that there are no management fees charged by the Adviser for managing the Pooling Portfolios, in which the Strategies invest, although there are other expenses at the Pooling Portfolio level of approximately 0.04% (estimated for the six month period ended February 28, 2007) on an ongoing basis.

The Strategies’ net assets on June 30, 2007 are set forth below:

 

Strategy   

06/30/07

Net Assets

($millions)

2000 Retirement Strategy

    $     10.0

2005 Retirement Strategy

    $     19.7

2010 Retirement Strategy

    $     69.5

2015 Retirement Strategy

    $     113.9

2020 Retirement Strategy

    $     125.7

2025 Retirement Strategy

    $     119.1

2030 Retirement Strategy

    $     75.6

2035 Retirement Strategy

    $     54.4

2040 Retirement Strategy

    $     29.4

2045 Retirement Strategy

    $     25.1

The Adviser is reimbursed as specified in the Investment Advisory Agreement for certain clerical, legal, accounting, administrative and other services provided to the Strategies. Indicated below are the reimbursement amounts, which the Adviser was entitled to receive (before expense caps), but waived from the Strategies during the Strategies’ most recently completed fiscal year in dollars and as a percentage of average daily net assets:

 

Strategy    Amount   

As a % of Average

Daily Net Assets

  

2000 Retirement Strategy

    $ 75,250    23.45 %

2005 Retirement Strategy

    $ 75,250    2.60 %

2010 Retirement Strategy

    $ 75,250    1.40 %

2015 Retirement Strategy

    $ 75,250    1.54 %

2020 Retirement Strategy

    $ 75,250    1.42 %
240   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Strategy    Amount   

As a % of Average

Daily Net Assets

  

2025 Retirement Strategy

    $ 75,250    1.27 %

2030 Retirement Strategy

    $ 75,250    2.23 %

2035 Retirement Strategy

    $ 75,250    3.30 %

2040 Retirement Strategy

    $ 75,250    6.40 %

2045 Retirement Strategy

    $ 75,250    9.00 %

The Adviser agreed to waive that portion of its management fees and/or reimburse the Strategies for that portion of the Strategies’ total operating expenses to the degree necessary to limit the Strategies’ expense ratios to the amounts set forth below for the Strategies’ current fiscal year. The waiver is terminable by the Adviser at the end of the Strategies’ fiscal year upon at least 60 days written notice. It should be noted that the Strategies expense caps were reduced effective March 1, 2007. Set forth below are the Strategies’ expense caps, before and after March 1, 2007, and gross expense ratios as of February 28, 2007:

 

     Expense Cap Pursuant to Expense
Limitation Undertaking		     Gross
Expense
Ratio
(02/28/07)5		    

Fiscal

Year

End

Strategy          Effective
03/01/07		     Prior to
03/01/07		      
2000 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    0.86

1.56


1.56


1.06


0.81


0.56


0.56

 %

%


%


%


%


%


%

   1.10

1.80


1.80


1.30


1.05


0.80


0.80

 %

%


%


%


%


%


%

   15.05

15.00


14.20


13.77


4.12


13.65


15.56

 %

%


%


%


%


%


%

   August 31
           
2005 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    0.92

1.62


1.62


1.12


0.87


0.62


0.62

 %

%


%


%


%


%


%

   1.10

1.80


1.80


1.30


1.05


0.80


0.80

 %

%


%


%


%


%


%

   4.26

5.09


4.44


3.34


2.35


3.60


4.29

 %

%


%


%


%


%


%

   August 31
           
2010 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    0.94

1.64


1.64


1.14


0.89


0.64


0.64

 %

%


%


%


%


%


%

   1.20

1.90


1.90


1.40


1.15


0.90


0.90

 %

%


%


%


%


%


%

   2.10

2.85


2.83


1.59


1.71


1.04


1.83

 %

%


%


%


%


%


%

   August 31
           
2015 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    0.98

1.68


1.68


1.18


0.93


0.68


0.68

 %

%


%


%


%


%


%

   1.20

1.90


1.90


1.40


1.15


0.90


0.90

 %

%


%


%


%


%


%

   1.76

2.46


2.38


1.87


1.50


0.85


1.38

 %

%


%


%


%


%


%

   August 31

 

5

Annualized.

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   241

Expense Cap Pursuant to Expense
Limitation Undertaking

Strategy          Effective
03/01/07		     Prior to
03/01/07		     Gross
Expense
Ratio
(02/28/07)5		    

Fiscal

Year

End

2020 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.02

1.72


1.72


1.22


0.97


0.72


0.72

 %

%


%


%


%


%


%

   1.25

1.95


1.95


1.45


1.20


0.95


0.95

 %

%


%


%


%


%


%

   1.72

2.42


2.43


1.78


1.48


1.10


1.36

 %

%


%


%


%


%


%

   August 31
           
2025 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.04

1.74


1.74


1.24


0.99


0.74


0.74

 %

%


%


%


%


%


%

   1.25

1.95


1.95


1.45


1.20


0.95


0.95

 %

%


%


%


%


%


%

   1.67

2.36


2.37


1.78


1.54


1.13


1.44

 %

%


%


%


%


%


%

   August 31
           
2030 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.06

1.76


1.76


1.26


1.01


0.76


0.76

 %

%


%


%


%


%


%

   1.25

1.95


1.95


1.45


1.20


0.95


0.95

 %

%


%


%


%


%


%

   2.26

2.91


2.66


2.32


1.79


1.41


1.98

 %

%


%


%


%


%


%

   August 31
           
2035 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.06

1.76


1.76


1.26


1.01


0.76


0.76

 %

%


%


%


%


%


%

   1.25

1.95


1.95


1.45


1.20


0.95


0.95

 %

%


%


%


%


%


%

   2.52

3.32


3.30


2.78


1.87


1.70


2.40

 %

%


%


%


%


%


%

   August 31
           
2040 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.06

1.76


1.76


1.26


1.01


0.76


0.76

 %

%


%


%


%


%


%

   1.25

1.95


1.95


1.45


1.20


0.95


0.95

 %

%


%


%


%


%


%

   4.53

5.85


5.79


4.84


2.94


1.97


4.32

 %

%


%


%


%


%


%

   August 31
           
2045 Retirement Strategy    Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.06

1.76


1.76


1.26


1.01


0.76


0.76

 %

%


%


%


%


%


%

   1.25

1.95


1.95


1.45


1.20


0.95


0.95

 %

%


%


%


%


%


%

   3.78

5.55


5.61


4.83


3.13


3.08


5.16

 %

%


%


%


%


%


%

   August 31

 

242   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

The expense limitation undertaking described includes the blended expense ratios of the Pooling Portfolios (i.e., the Strategies’ underlying expense ratios). For the six months ended February 28, 2007 and the fiscal year ended August 31, 2006, each of the 2000-2045 Strategies had an estimated blended expense ratio related to the Pooling Portfolios of 0.04% and 0.07%, respectively.

I. MANAGEMENT FEES CHARGED TO INSTITUTIONAL AND OTHER CLIENTS

The management fees charged to investment companies which the Adviser manages and sponsors are normally higher than those charged to similar sized institutional accounts, including pension plans and sub-advised investment companies. The fee differential reflects, among other things, different services provided to such clients and different liabilities assumed. Services that are provided by the Adviser to the Strategies that are not provided to non-investment company clients and sub-advised investment companies include providing office space and personnel to serve as Fund Officers, who among other responsibilities make the certifications required under the Sarbanes–Oxley Act of 2002, and coordinating with and monitoring the Strategies’ third party service providers such as Fund counsel, auditors, custodians, transfer agents and pricing services. The accounting, administrative, legal and compliance requirements for the Strategies are more costly than those for institutional accounts due to the greater complexities and time required for investment companies, although as previously noted, the Adviser is entitled to be reimbursed for a portion of their expenses by the Strategies. Also, retail mutual funds managed by the Adviser are widely held and accordingly, servicing the Strategies’ investors is more time consuming and labor intensive compared to servicing institutional clients since the Adviser needs to communicate with a more extensive network of financial intermediaries and shareholders. In addition, managing the cash flow of an open-end investment company may be more difficult than managing that of a stable pool of assets, such as an institutional account with little cash movement in either direction, particularly if a fund is in net redemption, and the Adviser is frequently forced to sell securities to raise cash for redemptions. However, managing a fund with positive cash flow may be easier at times than managing a stable pool of assets. In recent years, investment advisers have been sued by institutional clients and have suffered reputational damage both by the attendant publicity and outcomes other than complete victories. Accordingly, the legal and reputational risks associated with institutional accounts are greater than previously thought, although these risks are generally still not equal to those related to the mutual fund industry.

Notwithstanding the Adviser’s view that managing an investment company is not comparable to managing other institutional accounts because the services provided are different and the legal and reputational risks are greater, it is worth considering information regarding the advisory fees charged to institutional

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   243

 

accounts that have investment styles similar to those of the Strategies. In addition to the AllianceBernstein Institutional fee schedule, set forth below is a comparison of the advisory fees of the Strategies and what would have been the effective advisory fees of the Strategies had the AllianceBernstein Institutional fee schedule been applicable to the Strategies based on June 30, 2007 net assets:6

 

AB Institutional Fee
Schedule		   Strategy  

Net
Assets

06/30/07
($MM)

   AB Inst.
Fee (%)		     Advisory
Fee (%)7		  

Target Date—All Active

75 bp on 1st $25 million

60 bp on next $25 million

50 bp on next $50 million

40 bp on next $100 million

35 bp on the balance

+Other operating expenses (capped)

Minimum Account Size:

$100M or plan assets of $500M

  

2000 Retirement Strategy

2005 Retirement Strategy 2010 Retirement Strategy 2015 Retirement Strategy 2020 Retirement Strategy 2025 Retirement Strategy 2030 Retirement Strategy

2035 Retirement Strategy

2040 Retirement Strategy 2045 Retirement Strategy

   $

$


$


$


$


$


$



$


$


$

 10.0

19.7


69.5


113.9


125.7


119.1


75.6



54.4


29.4


25.1

   0.75

0.75


0.63


0.56


0.55


0.56


0.62



0.67


0.73


0.75

 %

%


%


%


%


%


%



%


%


%

   0.55

0.55


0.60


0.60


0.65


0.65


0.65



0.65


0.65


0.65

 %

%


%


%


%


%


%



%


%


%

 

6 The Adviser has indicated that with respect to institutional accounts with assets greater than $300 million, it will negotiate a fee schedule. Discounts that are negotiated vary based upon each client relationship.

 

7 Excludes expense reimbursements or advisory fee waivers made by the Adviser to the Strategies related to expense caps.
244   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

II. MANAGEMENT FEES CHARGED BY OTHER MUTUAL FUND COMPANIES FOR LIKE SERVICES.

Lipper, Inc. (“Lipper”), an analytical service that is not affiliated with the Adviser, compared the fees charged to the Strategies with fees charged to other

investment companies for similar services by other investment advisers. Lipper’s analysis included each Strategy’s ranking with respect to the proposed management fees relative to the median of each Strategy’s Lipper Expense Group (“EG”)8 at the approximate current asset level of the subject Strategy.9

Lipper describes an EG as a representative sample of comparable funds. Lipper’s standard methodology for screening funds to be included in an EG entails the consideration of several fund criteria, including fund type, investment classification/objective, similar 12b-1/non 12b-1 service fees, asset (size) comparability, expense components and attributes. An EG will typically consist of seven to twenty funds.

It should be noted that Lipper classifies the 2000, 2005 and 2010 Retirement Strategies as mixed asset target 2010 funds. As a result, the peer groups of those Strategies are almost identical. The same applies to the 2015 and 2020 Retirement Strategies, which are classified as mixed asset target 2020 funds, the 2025 and 2030 Retirement Strategies, which are classified as mixed asset target 2030 funds, and the 2035, 2040 and 2045 Retirement Strategies, which are classified as mixed asset target 2040 funds.

The original EGs for each Strategy had an insufficient number of peers in the view of the Senior Officer and the Adviser. Consequently, at the request of the Senior Officer and the Adviser, Lipper expanded the EGs of the Strategies to include no-load funds.10

 

8 Note that Lipper does not consider average account size when constructing EGs. Funds with relatively small average account sizes tend to have a higher transfer agent expense ratio than comparable sized funds that have relatively large average account sizes.

 

9 The management fee is calculated by Lipper using the Strategy’s management fee rate at a hypothetical asset level. The hypothetical asset level is based on the combined net assets of all classes of the Strategy, rounded up to the next $25 million. Lipper’s total expense ratio information is based on the most recent annual report except as otherwise noted. A ranking of “1” would mean that the Strategy had the lowest effective fee rate in the Lipper peer group.

 

10 The expanded EGs for 2025 Retirement Strategy and 2030 Retirement Strategy each has one peer that is no load; the expanded EGs for the remaining Retirement Strategies each has two peers that are no load.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   245

 

Strategy   

Management

Fee (%)11

   

Lipper Group

Median (%)

    Rank

2000 Retirement Strategy

    0.550    0.550    4/7

2005 Retirement Strategy

    0.550    0.550    4/7

2010 Retirement Strategy

    0.600    0.565    6/7

2015 Retirement Strategy

    0.600    0.618    3/8

2020 Retirement Strategy

    0.650    0.640    5/8

2025 Retirement Strategy

    0.650    0.684    2/8

2030 Retirement Strategy

    0.650    0.684    2/8

2035 Retirement Strategy

    0.650    0.702    3/8

2040 Retirement Strategy

    0.650    0.702    3/8

2045 Retirement Strategy

    0.650    0.702    3/8

Set forth below is a comparison of the Strategies’ total expense ratios (inclusive of the Strategies’ underlying expenses) and the medians of the Strategies’ EGs. The Strategies’ total expense ratio rankings are also shown. As previously mentioned, the Adviser reduced the Strategies’ expense cap on March 1, 2007. Accordingly, pro-forma data is also shown (in bold and italicized).12 It should be noted that Lipper intentionally omitted the Lipper Expense Universe “(EU)” due to the limited number of fund complexes that offer mixed-asset target maturity funds.

 

11 The management fee would not reflect any expense reimbursements made by the Strategies to the Adviser for certain clerical, legal, accounting, administrative and other services. In addition, the management fee does not reflect any advisory fee waiver or expense reimbursement for expense caps that would effectively reduce the actual management fee.

 

12 Note that the EG medians are the same for the non-pro-forma EG and the pro-forma EG. Lipper includes each Strategy twice (on a non-pro-forma basis and on a pro-forma basis) to calculate the EG median. Lipper does not include each Strategy twice when considering the total number of funds for ranking.
246   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Strategy  

Total
Expense

Ratio (%)13

  

Lipper

Group
Median (%)14

  

Lipper

Group

Rank

2000 Retirement Strategy   1.100   0.985   7/7

Pro-forma

   0.860   0.985   2/7
     
2005 Retirement Strategy   1.100   0.985   7/7

Pro-forma

   0.920   0.985   3/7
     
2010 Retirement Strategy   1.200   0.993   7/7

Pro-forma

   0.940   0.993   4/7
     
2015 Retirement Strategy   1.200   1.062   6/8

Pro-forma

   0.980   1.062   4/8
     
2020 Retirement Strategy   1.250   1.062   7/8

Pro-forma

   1.020   1.062   4/8
     
2025 Retirement Strategy   1.250   1.176   5/8

Pro-forma

   1.040   1.176   3/8
     
2030 Retirement Strategy   1.250   1.176   5/8

Pro-forma

   1.060   1.176   3/8
     
2035 Retirement Strategy   1.250   1.191   6/8

Pro-forma

   1.060   1.191   4/8
     
2040 Retirement Strategy   1.250   1.191   6/8

Pro-forma

   1.060   1.191   4/8
     
2045 Retirement Strategy   1.250   1.191   6/8

Pro-forma

   1.060   1.191   4/8

Based on the information provided, the Strategies’ pro-forma total expense ratios are lower than the medians of their EGs.

 

III. COSTS TO THE ADVISER AND ITS AFFILIATES OF SUPPLYING SERVICES PURSUANT TO THE MANAGEMENT FEE ARRANGEMENT, EXCLUDING ANY INTRA-CORPORATE PROFIT.

The Adviser utilizes two profitability reporting systems, which operate independently but are aligned with each other, to estimate the Adviser’s profitability in connection with investment advisory services provided to the Strategies. The Senior Officer has retained a consultant to provide independent advice regarding the alignment of the two profitability systems as well as the methodologies and allocations utilized by both profitability systems. See Section IV for additional discussion.

 

13 The total expense ratios (inclusive of the Strategies’ underlying expenses) shown are for the Strategies’ Class A shares.

 

14 Peer total expense ratios are also inclusive of their respective underlying expenses.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   247

 

IV. PROFIT MARGINS OF THE ADVISER AND ITS AFFILIATES FOR SUPPLYING SUCH SERVICES.

The Strategies’ profitability information, prepared by the Adviser for the Board of Directors, was reviewed by the Senior Officer and the consultant. The Adviser’s net revenues from providing investment advisory services to the Strategies were negative during calendar years 2006 and 2005.

In addition to the Adviser’s direct profits from managing the Strategies, certain of the Adviser’s affiliates have a business relationship with the Strategies and profit from providing such services to the Strategies. The courts have referred to this type of business opportunity as “fall-out benefits” to the Adviser and indicated that such benefits should be factored into the evaluation of the total relationship between the Strategies and the Adviser. Neither case law nor common business practice precludes the Adviser’s affiliates from earning a reasonable profit on this type of relationship provided the affiliates’ charges and services are competitive. These affiliates provide transfer agent, distribution, and brokerage related services to the Strategies and/or the Pooling Portfolios and receive transfer agent fees, Rule 12b-1 payments, front-end sales loads, contingent deferred sales charges (“CDSC”) and commissions for providing brokerage services. In addition, the Adviser benefits from soft dollar arrangements which offset expenses the Adviser would otherwise incur.

ABI retained the following front-end load sales charges from sales of Class A shares during the Strategies’ most recently completed fiscal year:

 

Strategy    Amount Received

2000 Retirement Strategy

    $ 405

2005 Retirement Strategy

    $ 2,372

2010 Retirement Strategy

    $ 3,059

2015 Retirement Strategy

    $ 4,243

2020 Retirement Strategy

    $ 3,831

2025 Retirement Strategy

    $ 5,621

2030 Retirement Strategy

    $ 2,372

2035 Retirement Strategy

    $ 971

2040 Retirement Strategy

    $ 418

2045 Retirement Strategy

    $ 347
248   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

ABI received the following Rule 12b-1 and CDSC fees from the Strategies during the Strategies’ most recently compensated fiscal year:

 

Strategy    12b-1 Fee Received      CDSC Received

2000 Retirement Strategy

    $ 1,191      $ 0

2005 Retirement Strategy

    $ 9,667      $ 159

2010 Retirement Strategy

    $ 18,821      $ 906

2015 Retirement Strategy

    $ 19,802      $ 711

2020 Retirement Strategy

    $ 19,447      $ 1,533

2025 Retirement Strategy

    $ 18,302      $ 907

2030 Retirement Strategy

    $ 10,633      $ 663

2035 Retirement Strategy

    $ 8,108      $ 110

2040 Retirement Strategy

    $ 4,754      $ 500

2045 Retirement Strategy

    $ 2,881      $ 405

The Adviser and AllianceBernstein Investments, Inc. (“ABI”), the Strategies’ distributor and an affiliate of the Adviser, have disclosed in the Strategies’ prospectus that they may make revenue sharing payments from their own resources, in addition to resources derived from sales loads and Rule 12b-1 fees, to firms that sell shares of the Strategies. In 2006, ABI paid approximately 0.044% of the average monthly assets of the AllianceBernstein Mutual Funds or approximately $20.4 million for distribution services and educational support (revenue sharing payments). For 2007, it is anticipated, ABI will pay around 0.04% of the average monthly assets of the AllianceBernstein Mutual Funds or approximately $20 million, as revenue sharing.15

Fees and reimbursements for out of the pocket expenses charged by AllianceBernstein Investor Services, Inc. (“ABIS”), the affiliated transfer agent for the Strategies, are charged on a per account basis, based on the level of service provided and the class of share held by the account. ABIS also receives a fee per shareholder sub-account for each account maintained by an intermediary on an omnibus basis. ABIS’ after-tax profitability decreased in 2006 in comparison to 2005.

The Adviser profits directly from any of the Pooling Portfolios that effect brokerage transactions through and pay commissions to the Adviser’s affiliate, Sanford C. Bernstein & Co., LLC and/or its U.K. affiliate, Sanford C. Bernstein Limited, collectively “SCB.” The Adviser has represented that SCB’s profitability from business conducted with the Pooling Portfolios is comparable to the profitability of SCB’s dealings with other comparable third-party clients. In the ordinary course of business, SCB receives liquidity rebates from electronic communications networks (“ECNs”) derived from trading for its clients, including the Pooling Portfolios. These credits and charges are not being passed on to any SCB client. The Adviser also receives certain soft dollar benefits from brokers

 

15 ABI currently inserts the “Advance,” the Adviser’s investment newsletter, in shareholder quarterly account statements and pays the incremental costs associated with the mailing. The incremental cost is less than what an “independent mailing” would cost.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   249

 

that execute agency trades for the Portfolio and other clients. These soft dollar benefits reduce the Adviser’s cost of doing business and increase its profitability.

 

V. POSSIBLE ECONOMIES OF SCALE

An independent consultant, retained by the Senior Officer, made a presentation to the Board of Directors regarding economies of scale and/or scope. Based on the independent consultant’s initial survey, there was a consensus that fund management companies benefited from economies of scale. However, due to the lack of cost data, researchers had to infer facts about the costs from the behavior of fund expenses; there was a lack of consensus among the surveyed researchers as to whether economies of scale were being passed on to mutual fund shareholders generally.

The independent consultant conducted further studies of the Adviser’s operations to determine the existence of economies of scale and/or scope within the Adviser. The independent consultant also analyzed patterns related to advisory fees at the industry level. In a recent presentation to the Board of Directors, the independent consultant noted the potential for economies of scale and/or scope through the use of “pooling portfolios” and blend products. The independent consultant also remarked that there may be diseconomies as assets grow in less liquid and active markets. It was also observed that various factors, including fund size, family size, asset class, and investment style, had an impact on advisory fees.

 

VI. NATURE AND QUALITY OF THE ADVISER’S SERVICES INCLUDING THE PERFORMANCE OF THE STRATEGIES.

With assets under management of approximately $793 billion as of June 30, 2007 the Adviser has the investment experience to manage the Strategies and to provide the non-investment services (described in Section I) to the Strategies.

The information prepared by Lipper shows the 1 year performance return16 and ranking of each Strategy relative to its Lipper Performance Group (“PG”)17 and Lipper Performance Universe (“PU”)18 for the periods ended April 30, 2007.19

 

16 The performance returns of the Strategies shown were provided by the Adviser. Lipper maintains its own database for performance of the Strategies. Rounding differences may cause the Adviser’s performance returns for the Strategies to be one or two basis points different from Lipper’s own returns. To maintain consistency, the Adviser’s returns for the Strategies are shown instead of Lipper’s.

 

17 Each Strategy’s PG is identical to the respective Strategy’s EG.

 

18 The PU for each Strategy includes the Strategy and all funds of the same Lipper classification/objective and load type as the Strategy. In contrast to the PG, the PU allows for the inclusion of multiple funds managed by the same investment adviser.

 

19 As previously mentioned, Lipper classifies the 2000, 2005 and 2010 Retirement Strategies as mixed asset target 2010 funds. As a result, the peer groups of those Strategies are almost identical. The same applies to the 2015 and 2020 Retirement Strategies, which are classified as mixed asset target 2020 funds, the 2025 and 2030 Retirement Strategies, which are classified as mixed asset target 2030 funds, and the 2035, 2040 and 2045 Retirement Strategies, which are classified as mixed asset target 2040 funds.
250   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Strategy    Strategy
Return		    PG
Median		    PU
Median		    PG
Rank		   

PU

Rank

2000 Retirement Strategy 1 year    11.11    10.09    9.30    3/7    4/18
2005 Retirement Strategy 1 year    11.44    10.09    9.30    2/7    3/18
2010 Retirement Strategy 1 year    12.06    10.09    9.30    2/7    1/18
2015 Retirement Strategy 1 year    12.74    11.59    10.42    3/8    5/27
2020 Retirement Strategy 1 year    12.95    11.59    10.42    2/8    4/27
2025 Retirement Strategy 1 year    13.30    12.19    12.07    2/8    5/20
2030 Retirement Strategy 1 year    13.63    12.19    12.07    2/8    3/20
2035 Retirement Strategy 1 year    13.07    13.34    12.75    5/8    9/25
2040 Retirement Strategy 1 year    13.48    13.55    12.75    5/8    4/25
2045 Retirement Strategy 1 year    12.48    13.19    12.75    7/8    15/25

The table below shows the 1 year and since inception performance returns of the Strategies (in bold) versus their composite benchmarks.20

 

     Periods Ending April 30, 2007
Annualized Performance (Net)
Strategy  

1 Year

(%)

   Since Inception
(%)21

2000 Retirement Strategy

   11.11   11.80

Composite Index

   13.10   12.33
   

2005 Retirement Strategy

   11.44   12.61

Composite Index

   14.32   13.91
   

2010 Retirement Strategy

   12.06   13.74

Composite Index

   15.22   15.13
   

2015 Retirement Strategy

   12.74   15.08

Composite Index

   15.93   16.24
   

2020 Retirement Strategy

   12.95   16.08

Composite Index

   16.62   17.32
   

2025 Retirement Strategy

   13.30   18.20

Composite Index

   17.20   18.32
   

 

20 The composite benchmark is derived by applying the Strategies’ target allocations over time to the results of the following benchmarks: for U.S. stocks, Russell 3000 Index; for non-U.S. stocks, Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net); for real estate investment trusts (REITs), FTSE EPRA/NAREIT Global Real Estate Index for intermediate bonds, Lehman Brothers (LB) U.S. Aggregate Index; for short-term bonds, Merrill Lynch (ML) 1-3 Year Treasury Index; for Inflation Protected Securities, LB 1-10 Year TIPS Index; for high yield bonds, LB High Yield (2% constrained) Index.

 

21 The Adviser provided Strategy and benchmark performance return information for periods through April 30, 2007. It should be noted that the “since inception” performance returns of the Strategy’s benchmark goes back only through the nearest month-end after inception date. In contrast, the Strategy’s since inception return goes back to the Strategy’s actual inception date.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   251

 

     Periods Ending April 30, 2007
Annualized Performance (Net)
Strategy  

1 Year

(%)

   Since Inception
(%)21

2030 Retirement Strategy

   13.63   17.48

Composite Index

   17.65   19.08
   

2035 Retirement Strategy

   13.07   17.81

Composite Index

   17.83   19.26
   

2040 Retirement Strategy

   13.48   18.56

Composite Index

   17.83   19.26
   

2045 Retirement Strategy

   12.48   18.29

Composite Index

   17.83   19.26

CONCLUSION:

Based on the factors discussed above the Senior Officer’s conclusion is that the proposed fee for each Strategy is reasonable and within the range of what would have been negotiated at arm’s-length in light of all the surrounding circumstances. This conclusion in respect of each Strategy is based on an evaluation of all of these factors and no single factor was dispositive.

Dated: August 22, 2007

252   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

THE FOLLOWING IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

SUMMARY OF SENIOR OFFICER’S EVALUATION OF INVESTMENT ADVISORY AGREEMENT1

The following is a summary of the evaluation of the Investment Advisory Agreement between AllianceBernstein, L.P., (the “Adviser”) and AllianceBernstein Blended Style Series, Inc. (the “Fund”) in respect of AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy (each a “Retirement Strategy” or “Strategy” and collectively the “Retirement Strategies” or “Strategies”).2 The evaluation of the Investment Advisory Agreement was prepared by Philip L. Kirstein, the Senior Officer of the Fund, for the Directors of the Fund, as required by an August 2004 agreement between the Adviser and the New York State Attorney General (the “NYAG”).

The investment objective of each Strategy is to seek the highest total return over time consistent with its asset mix. The asset mix of the Strategies will emphasize capital growth for periods further from retirement. Eventually each of these Strategies will have a static asset allocation mix fifteen years after the target retirement year, and will pursue its investment objectives through investing in a combination of The AllianceBernstein Pooling Portfolios (the “Pooling Portfolios”),3 which represent a variety of asset classes and investment styles.

The Senior Officer’s evaluation of the investment advisory agreement is not meant to diminish the responsibility or authority of the Boards of Directors of the Fund to perform its duties pursuant to Section 15 of the Investment Company Act of 1940 (the “40 Act”) and applicable state law. The purpose of the summary is to provide shareholders with a synopsis of the independent evaluation of the reasonableness of the advisory fees proposed to be paid by the Strategies which was provided to the Directors in connection with their review of the proposed approval of the continuance of the Investment Advisory Agreement. The Senior Officer’s evaluation considered the following factors:

 

  1. Advisory fees charged to institutional and other clients of the Adviser for like services;

 

1 It should be noted that the information in the fee summary was completed on April 23, 2007 and presented to Board of Directors on May 1-3, 2007.

 

2 Future references to the Fund or the Strategies do not include “AllianceBernstein.” The Strategies have not yet commenced operations.

 

3 The AllianceBernstein Pooling Portfolios include U.S. Value Portfolio, U.S. Large Cap Growth Portfolio, Global Real Estate Investment Portfolio, International Value Portfolio, International Growth Portfolio, Small-Mid Cap Value Portfolio, Small-Mid Cap Growth Portfolio, Global Research Growth Portfolio, Global Value Portfolio, Short Duration Bond Portfolio, Intermediate Duration Bond Portfolio, Inflation Protected Securities Portfolio and High Yield Portfolio.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   253

 

  2. Advisory fees charged by other mutual fund companies for like services;

 

  3. Costs to the Adviser and its affiliates of supplying services pursuant to the advisory agreement, excluding any intra-corporate profit;

 

  4. Profit margins of the Adviser and its affiliates from supplying such services;

 

  5. Possible economies of scale as the Strategies grow larger; and

 

  6. Nature and quality of the Adviser’s services including the performance of the Strategies.

INVESTMENT ADVISORY FEES, NET ASSETS, EXPENSE CAPS & RATIOS

The Adviser is proposing that each Strategy pay the advisory fee set forth in the table below for receiving the services to be provided pursuant to the Investment Advisory Agreement. The fee charged to each Strategy is dependent on the percentage of equity investments and the level of net assets held by each Strategy:

 

% Invested in Equity Investments4    Advisory Fee
Equal to or less than 60%    0.55%
  
Greater than 60% and less than 80%    0.60%
  
Equal to or greater than 80%    0.65%
  
Net Asset Level    Discount
Assets equal to or less than $2.5 billion    n/a
  
Assets greater than $2.5 billion and less than $5 billion    10 basis points
  
Assets greater than $5 billion    15 basis points

For example, a Strategy that invests greater than 80% of its net assets in equities will pay 0.65% for its first $2.5 billion in net assets, 0.55% for its net assets greater than $2.5 billion and equal to or less than $5 billion and 0.50% for its net assets in excess of $5 billion. It is anticipated that the Strategies will invest greater than 80% of their net assets in equities for a number of years. Accordingly, the advisory fee that each Strategy is initially expected to pay based on the Strategy’s first $2.5 billion in assets is as follows.

 

Strategy   

Advisory Fee Based on % of

Average Daily Net Assets

2050 Retirement Strategy    0.65%
  
2055 Retirement Strategy    0.65%

 

4 For purposes of determining the percent of the portfolio that consists of equity investments, 50% of the assets invested in the Global Real Estate Investment Portfolio will be considered to be invested in equity investments.

 

254   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

It should be noted that there are no management fees charged by the Adviser for managing the Pooling Portfolios in which the Strategies invest.

The Investment Advisory Agreement provides for the Adviser to be reimbursed for providing certain clerical, legal, accounting, administrative and other services to the Strategies.

The Adviser agreed to waive that portion of its management fees and/or reimburse the Strategies for that portion of the Strategies’ total operating expenses to the degree necessary to limit the Strategies’ expense ratios to the amounts set forth below for the Strategies’ current fiscal year. The waiver is terminable by the Adviser at the end of the Strategies’ fiscal year upon at least 60 days written notice.

 

Strategy      Expense Cap Pursuant to
Expense Limitation
Undertaking		        Fiscal Year End
2050 Retirement Strategy      Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.06

1.76


1.76


1.26


1.01


0.76


0.76

 %

%


%


%


%


%


%

      August 31
            
2055 Retirement Strategy      Class A

Class B


Class C


Class R


Class K


Class I


Advisor

    1.06

1.76


1.76


1.26


1.01


0.76


0.76

 %

%


%


%


%


%


%

      August 31

It should be noted that the expense limitation undertaking described above includes the blended expense ratios of the Pooling Portfolios (i.e., the Retirement Strategies’ underlying expense ratios).

I. MANAGEMENT FEES CHARGED TO INSTITUTIONAL AND OTHER CLIENTS OF THE ADVISER

The management fees charged to investment companies which the Adviser manages and sponsors may be higher than those charged to institutional accounts, including pension plans and sub-advised investment companies. The fee differential reflects, among other things, different services provided to such clients, and different liabilities assumed. Services provided by the Adviser to the Strategies that are not provided to non-investment company clients and sub-advised investment companies include providing office space and personnel to serve as Fund Officers, who among other responsibilities make the certifications required under the Sarbanes-Oxley Act of 2002, and coordinating with

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   255

 

and monitoring the Strategies’ third party service providers such as Fund counsel, auditors, custodians, transfer agents and pricing services. The accounting, administrative, legal and compliance requirements for the Strategies will be more costly than those for institutional accounts due to the greater complexities and time required for investment companies, although as previously noted, a portion of the expenses related to these services will be reimbursed by the Strategies to the Adviser. Also, retail mutual funds managed by the Adviser are widely held. Servicing the Portfolio’s investors is more time consuming and labor intensive compared to institutional clients since the Adviser needs to communicate with a more extensive network of financial intermediaries and shareholders. In addition, managing the cash flow of an investment company may be more difficult than managing that of a stable pool of assets, such as an institutional account with little cash movement in either direction, particularly, if a fund is in net redemption and the Adviser is frequently forced to sell securities to raise cash for redemptions. However, managing a fund with positive cash flow may be easier at times than managing a stable pool of assets. Finally, in recent years, investment advisers have been sued by institutional clients and have suffered reputational damage both by the attendant publicity and outcomes other than complete victories. Accordingly, the legal and reputational risks associated with institutional accounts are greater than previously thought, although still not equal to those related to the mutual fund industry.

Notwithstanding the Adviser’s view that managing an investment company is not comparable to managing other institutional accounts because the services provided are different and legal and reputational risks are greater, it is worth considering information regarding the advisory fees charged to institutional accounts with a similar investment style as the Portfolio. In addition to the AllianceBernstein Institutional fee schedule, set forth below is a comparison of the anticipated advisory fees for the Strategies and what would have been the effective advisory fees of the Strategies had the AllianceBernstein Institutional fee schedule been applicable to the Strategies based on an initial net asset base estimate of $100 million for each Strategy:5

 

5 The Adviser has indicated that with respect to institutional accounts with assets greater than $300 million, it will negotiate a fee schedule. Discounts that are negotiated vary based upon each client relationship.
256   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Strategy  

Net Assets

(Projected)

($MIL)

  

AllianceBernstein (“AB”)
Institutional (“Inst.”)

Fee Schedule

   Effective
AB Inst.
Adv. Fee		    

Strategy

Advisory
Fee6

  
2050 Retirement Strategy   $ 100.0   Target Date   0.588 %   0.650 %
       
2055 Retirement Strategy    

75 bp on 1st $25 million

60 bp on next $25 million

50 bp on next $50 million

40 bp on next $100 million

35 bp on the balance

+Other operating expenses (capped)

Minimum Account Size:

$100M or plan assets of $500M

    

 

II. MANAGEMENT FEES CHARGED BY OTHER MUTUAL FUND COMPANIES FOR LIKE SERVICES.

Lipper, Inc. (“Lipper”), an analytical service that is not affiliated with the Adviser, compared the fees proposed to be charged to the Strategies with fees charged to other investment companies for similar services by other investment advisers. Lipper’s analysis included each Strategy’s ranking with respect to the proposed management fees relative to the median of each Strategy’s Lipper Expense Group (“EG”)7 at the approximate current asset level of the subject Strategy.8

Lipper describes an EG as a representative sample of comparable funds. Lipper’s standard methodology for screening funds to be included in an EG entails the consideration of several fund criteria, including fund type, investment classification/objective, similar 12b-1/non 12b-1 service fees, asset (size) comparability, expense components and attributes. An EG will typically consist of seven to twenty funds.

 

6 Excludes reimbursements made by the Strategy to the Adviser for certain non-management expenses and any expense reimbursements or advisory fee waivers made by the Adviser to the Strategy related to expense caps.
7 It should be noted that Lipper does not consider average account size when constructing EGs. Funds with relatively small average account sizes tend to have a higher transfer agent expense ratio than comparable sized funds that have relatively large average account sizes.

 

8 The contractual management fee is calculated by Lipper using the Strategy’s contractual management fee rate at a hypothetical asset level. The hypothetical asset level is based on the combined net assets of all classes of the Strategy, rounded up to the next $25 million. Lipper’s total expense ratio information is based on the most recent annual report except as otherwise noted. A ranking of “1” would mean that the Strategy had the lowest effective fee rate in the Lipper peer group.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   257

 

It should be noted that each of original EGs of the Strategies had an insufficient number of peers in the view of the Senior Officer and the Adviser. Consequently, at the request of the Senior Officer and the Adviser, Lipper expanded the EGs of the Strategies to include no-load funds.9 Detailed information of those Strategies’ expanded EGs can be found in the footnotes below.

 

Strategy    Contractual
Management
Fee10		   

Lipper

Group

Median

    Rank

2050 Retirement Strategy11

    0.650    0.701    3/8

2055 Retirement Strategy11

    0.650    0.701    3/8

Set forth below is a comparison of the Strategies’ anticipated total expense ratios including the underlying expenses of the Pooling Portfolios and the medians of the Strategies’ EGs. The Strategies’ anticipated total expense ratio rankings are also shown. Supplemental information (in bold and italicized) showing total expense ratios excluding 12b-1/non 12b-1 service fees is also presented to account for certain peers of the Strategies that have no 12b-1/non 12b-1 service fees.

 

Strategy  

Expense

Ratio
(%)12

  

Lipper

Group
Median
(%)

  

Lipper

Group

Rank

2050 Retirement Strategy   1.060   1.111   4/8

(excluding 12b-1/non 12b-1 service fees)

   0.760   0.924   3/8
2055 Retirement Strategy   1.060   1.111   4/8

(excluding 12b-1/non 12b-1 service fees)

   0.760   0.924   3/8

Based on this analysis, the total expense ratios of the Strategies appear to be in line with their peers.

 

III. COSTS TO THE ADVISER AND ITS AFFILIATES OF SUPPLYING SERVICES PURSUANT TO THE ADVISORY AGREEMENT, EXCLUDING ANY INTRA-CORPORATE PROFIT.

See Section IV for discussion.

 

9 Lipper intentionally omitted the Lipper Expense Universe (EU) due to the limited number of fund complexes that offer mixed-asset target maturity funds.

 

10 The contractual management fee would not reflect any expense reimbursements made by the Strategies to the Adviser for certain clerical, legal, accounting, administrative and other services. In addition, the contractual management fee would not reflect any advisory fee waivers for expense caps that would effectively reduce the actual management fee.

 

11 Each Strategy’s EG includes 5 other front-end load mixed asset target 2030+ funds and 2 no-load mixed asset target 2030+ funds.

 

12 The anticipated total expense ratios shown are for the Strategies’ Class A shares.
258   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

IV. PROFIT MARGINS OF THE ADVISER AND ITS AFFILIATES FOR SUPPLYING SUCH SERVICES.

Because the Strategies have not yet commenced operations, the Adviser is unable to provide historic profitability information regarding the services it will provide for the Strategies.

In addition to the Adviser’s future direct profits from managing the Strategies, certain of the Adviser’s affiliates may have a business relationship with the Strategies and profit from providing such services to the Strategies. The courts have referred to this type of business opportunity as “fall-out benefits” to the Adviser and indicated that such benefits should be factored into the evaluation of the total relationship between the Strategies and the Adviser. Neither case law nor common business practice precludes the Adviser’s affiliates from earning a reasonable profit on this type of relationship provided the affiliates’ charges and services are competitive. These affiliates may provide transfer agent, distribution, and brokerage related services to the Strategies and/or the Pooling Portfolios and receive transfer agent fees, Rule 12b-1 payments, front-end sales loads, contingent deferred sales charges (“CDSC”) and commissions for providing brokerage services. In addition, the Adviser may benefit from soft dollar arrangements which offset expenses the Adviser would otherwise incur.

The Adviser and AllianceBernstein Investments, Inc. (“ABI”), the Strategies’ distributor and an affiliate of the Adviser, have disclosed in the Strategies’ prospectus that they may make revenue sharing payments from their own resources, in addition to resources derived from sales loads and Rule 12b-1 fees, to firms that sell shares of the Strategies. In 2006, ABI paid approximately 0.044% of the average monthly assets of the AllianceBernstein Mutual Funds or approximately $20.4 million for distribution services and educational support (revenue sharing payments). For 2007, it is anticipated, ABI will pay around 0.04% of the average monthly assets of the AllianceBernstein Mutual Funds or approximately $20 million.13

Fees and reimbursements for out of the pocket expenses charged by AllianceBernstein Investor Services, Inc. (“ABIS”), the affiliated transfer agent for the Strategies, are charged on a per account basis, based on the level of service provided and the class of share held by the account. ABIS also receives a fee per shareholder sub-account for each account maintained by an intermediary on an omnibus basis. ABIS’ after-tax profitability decreased in 2006 in comparison to 2005.

 

13 ABI currently inserts the “Advance,” the Adviser’s investment newsletter, in shareholder quarterly account statements and pays the incremental costs associated with the mailing. The incremental cost is less than what an “independent mailing” would cost.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   259

 

The Adviser profits directly from any of the Pooling Portfolios that effect brokerage transactions through and pay commissions to the Adviser’s affiliate, Sanford C. Bernstein & Co., LLC and/or its U.K. affiliate, Sanford C. Bernstein Limited, collectively “SCB.” The Adviser has represented that SCB’s profitability from business conducted with the Pooling Portfolios is comparable to the profitability of SCB’s dealings with other comparable third-party clients. In the ordinary course of business, SCB receives liquidity rebates from electronic communications networks (“ECNs”) derived from trading for its clients, including the Pooling Portfolios. These credits and charges are not being passed on to any SCB client. The Adviser also receives certain soft dollar benefits from brokers that execute agency trades for the Portfolio and other clients. These soft dollar benefits reduce the Adviser’s cost of doing business and increase its profitability.

 

V. POSSIBLE ECONOMIES OF SCALE

An independent consultant, retained by the Senior Officer, made a presentation to the Board of Directors regarding economies of scale and/or scope. Based on the independent consultant’s initial survey, there was a consensus that fund management companies benefited from economies of scale. However, due to the lack of cost data, researchers had to infer facts about the costs from the behavior of fund expenses; there was a lack of consensus among researchers as to whether economies of scale were being passed on to the shareholders.

The independent consultant conducted further studies of the Adviser’s operations to determine the existence of economies of scale and/or scope within the Adviser. The independent consultant also analyzed patterns related to advisory fees at the industry level. In a recent presentation to the Board of Directors, the independent consultant noted the potential for economies of scale and/or scope through the use of “pooling portfolios” and blend products. The independent consultant also remarked that there may be diseconomies as assets grow in less liquid and active markets. It was also observed that various factors, including fund size, family size, asset class, and investment style, had an impact on advisory fees.

 

VI. NATURE AND QUALITY OF THE ADVISER’S SERVICES INCLUDING PERFORMANCE OF THE STRATEGIES.

With assets under management of approximately $742 billion as of March 31, 2007 the Adviser has the investment experience to manage and provide non-investment services (described in Section I) to the Strategies.

260   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

As noted previously, the Strategies have not yet commenced operations. Accordingly, there is no historical performance information for the Strategies. However, since 2045 Retirement Strategy has the same Lipper investment classification/ objective as the Strategies, performance information for 2045 Retirement Strategy is shown instead. Set forth below is a comparison of 2045 Retirement Strategy’s 1 year performance return and the medians of 2045’s Retirement Strategy’s Lipper Performance Group (“PG”) and Lipper Performance Universe (“PU”) for the periods ended December 31, 2006. Performance rankings are also presented for 2045 Retirement Strategy.14

 

2045 Retirement

Strategy

   Strategy
Return		   PG Median   PU Median   PG Rank   PU Rank

1 year

   17.66   15.05   15.41   1/8   2/37

Set forth below are the 1 year and since inception performance returns of the 2045 Retirement Strategy versus its benchmark:

 

      Periods Ending December 31, 2006
Annualized Performance
      1 Year (%)    Since Inception (%)15

2045 Retirement Strategy

      

Composite Index16

    21.06    18.96

Inception Date: September 1, 2005

      

CONCLUSION:

Based on the factors discussed above the Senior Officer’s conclusion is that the proposed fee for each Strategy is reasonable and within the range of what would have been negotiated at arm’s-length in light of all the surrounding circumstances. This conclusion in respect of each Strategy is based on an evaluation of all of these factors and no single factor was dispositive.

Dated: June 4, 2007

 

14 Source: Lipper.

 

15 The Adviser provided Retirement Strategy and benchmark performance return information for periods through December 31, 2006. It should be noted that the “since inception” performance returns of the Strategy’s benchmark goes back only through the nearest month-end after inception date. In contrast, the Strategy’s since inception return goes back to the Strategy’s actual inception date.

 

16 The Composite Index is derived by applying the Strategy’s target allocation over time to the results of the following underlying benchmarks: for U.S. Stocks, Russell 3000 Index; for Non-U.S. Stocks, MSCI EAFE Index; for REITs, FTSE EPRA/NAREIT Global Real Estate Index; for Intermediate Bonds, Lehman Brothers (“LB”) Aggregate Bond Index; for Short Bonds, ML 1-3 Year Treasury Index; for Inflation Securities, LB 1-10 Year TIPS Index; for High-Yield Bonds, LB High Yield (2% Constrained) Index.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   261

 

Pages 262-347 represent the holdings of the Underlying Portfolios in which the Strategies may invest, including specific breakdowns within Underlying Portfolios. This holdings information has been derived from each fund’s August 31, 2007 financial statements, which have been audited by KPMG LLP, independent registered public accounting firm, whose report, along with each fund’s financial statements, is included in each fund’s annual report, which is available upon request.

PORTFOLIO SUMMARY

August 31, 2007

U.S. VALUE PORTFOLIO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector breakdown is expressed as a percentage of total investments and may vary over time.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.

 

262   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

PORTFOLIO SUMMARY

August 31, 2007

U.S. LARGE CAP GROWTH PORTFOLIO

LOGO

 

 

* All data are as of August 31, 2007. The Portfolio’s sector breakdown is expressed as a percentage of total investments and may vary over time.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   263

 

Portfolio Summary

PORTFOLIO SUMMARY

August 31, 2007

 

GLOBAL REAL ESTATE INVESTMENT PORTFOLIO

LOGO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time.

 

  Please Note: The sector classifications presented herein are based on the sector categorization methodology of the Adviser. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
264   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

PORTFOLIO SUMMARY

August 31, 2007

 

INTERNATIONAL VALUE PORTFOLIO

LOGO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. “Other” country weightings represent less than 1.0% in the following countries: Israel, Spain and Sweden.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   265

 

Portfolio Summary

PORTFOLIO SUMMARY

August 31, 2007

 

INTERNATIONAL GROWTH PORTFOLIO

LOGO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. ‘Other’ country weightings represent less than 2.2% in the following countries: China, Hong Kong, India, Indonesia, Israel, Mexico, Norway, Russia and Taiwan.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.

 

266   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

PORTFOLIO SUMMARY

August 31, 2007

SMALL-MID CAP VALUE PORTFOLIO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector breakdown is expressed as a percentage of total investments and may vary over time.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   267

 

Portfolio Summary

 

PORTFOLIO SUMMARY

August 31, 2007

SMALL-MID CAP GROWTH PORTFOLIO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector breakdown is expressed as a percentage of total investments and may vary over time.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
268   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

PORTFOLIO SUMMARY

August 31, 2007

 

SHORT DURATION BOND PORTFOLIO

LOGO

 

 

* All data are as of August 31, 2007. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   269

 

Portfolio Summary

 

PORTFOLIO SUMMARY

August 31, 2007

INTERMEDIATE DURATION BOND PORTFOLIO

LOGO

 

 

 

* All data are as of August 31, 2007. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.
270   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

PORTFOLIO SUMMARY

August 31, 2007

INFLATION PROTECTED SECURITIES PORTFOLIO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   271

 

Portfolio Summary

 

PORTFOLIO SUMMARY

August 31, 2007

HIGH-YIELD PORTFOLIO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.
272   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

U.S. VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 95.3%

     

Financials – 31.6%

     

Capital Markets – 3.6%

     

Deutsche Bank AG

    91,900   $ 11,395,600

The Goldman Sachs Group, Inc.

    25,000     4,400,250

Janus Capital Group, Inc.

    373,650     9,935,353

Merrill Lynch & Co., Inc.

    389,500     28,706,150

Morgan Stanley

    533,900     33,299,343

Waddell & Reed Financial, Inc. – Class A

    151,300     3,758,292
        
       91,494,988
        

Commercial Banks – 4.1%

     

Comerica, Inc.

    252,300     14,073,294

Fifth Third Bancorp

    430,500     15,364,545

Keycorp

    89,900     2,993,670

National City Corp.

    511,700     13,769,847

SunTrust Banks, Inc.

    79,800     6,284,250

U.S. Bancorp

    523,400     16,931,990

Wachovia Corp.

    395,000     19,347,100

Wells Fargo & Co.

    449,200     16,413,768
        
       105,178,464
        

Diversified Financial Services – 9.7%

     

Bank of America Corp.

    1,759,500     89,171,460

CIT Group, Inc.

    425,300     15,978,521

Citigroup, Inc.

    1,825,800     85,593,504

JPMorgan Chase & Co.

    1,299,100     57,835,932
        
       248,579,417
        

Insurance – 10.6%

     

ACE Ltd.

    310,100     17,911,376

Allstate Corp.

    257,800     14,114,550

AMBAC Financial Group, Inc.

    222,000     13,946,040

American International Group, Inc.

    888,800     58,660,800

Chubb Corp.

    296,800     15,175,384

Fidelity National Financial, Inc. – Class A

    522,500     9,504,275

Genworth Financial, Inc. – Class A

    543,500     15,750,630

Hartford Financial Services Group, Inc.

    215,600     19,168,996

MBIA, Inc.

    201,400     12,084,000

MetLife, Inc.

    316,300     20,259,015

Old Republic International Corp.

    625,200     11,372,388

Partnerre, Ltd.

    66,100     4,806,131

RenaissanceRe Holdings, Ltd.

    128,700     7,371,936

Torchmark Corp.

    101,400     6,242,184

The Travelers Cos, Inc.

    457,000     23,096,780

UnumProvident Corp.

    605,700     14,821,479

XL Capital Ltd. – Class A

    124,300     9,471,660
        
       273,757,624
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   273

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Thrifts & Mortgage Finance – 3.6%

     

Astoria Financial Corp.

    235,300   $ 6,134,271

Countrywide Financial Corp.

    259,000     5,141,150

Federal Home Loan Mortgage Corp.

    330,500     20,362,105

Federal National Mortgage Association

    543,000     35,626,230

MGIC Investment Corp.

    182,500     5,504,200

Washington Mutual, Inc.

    568,500     20,875,320
        
       93,643,276
        
       812,653,769
        

Energy – 13.3%

     

Oil, Gas & Consumable Fuels – 13.3%

     

BP PLC (ADR)

    170,700     11,498,352

Chevron Corp.

    878,500     77,097,160

ConocoPhillips

    715,600     58,600,484

Exxon Mobil Corp.

    1,630,800     139,808,484

Marathon Oil Corp.

    467,000     25,166,630

Occidental Petroleum Corp.

    71,200     4,036,328

Royal Dutch Shell PLC (ADR)

    171,300     13,250,055

Total SA (ADR)

    162,000     12,164,580
        
       341,622,073
        

Consumer Discretionary – 11.0%

     

Auto Components – 1.1%

     

Autoliv, Inc.

    162,800     9,339,836

BorgWarner, Inc.

    121,100     10,232,950

Magna International, Inc. – Class A

    109,000     9,750,050
        
       29,322,836
        

Automobiles – 0.2%

     

General Motors Corp.

    172,000     5,287,280
        

Hotels Restaurants & Leisure – 1.1%

     

McDonald’s Corp.

    556,700     27,417,475
        

Household Durables – 1.2%

     

Black & Decker Corp.

    123,600     10,722,300

Centex Corp.

    129,700     3,749,627

KB Home

    227,500     6,902,350

Newell Rubbermaid, Inc.

    90,900     2,344,311

Pulte Homes, Inc.

    356,700     5,935,488
        
       29,654,076
        

Leisure Equipment & Products – 0.4%

     

Mattel, Inc.

    455,500     9,852,465
        

Media – 3.7%

     

CBS Corp. – Class B

    617,300     19,451,123

Gannett Co., Inc.

    332,900     15,646,300

Idearc, Inc.

    404,200     13,795,346

Interpublic Group of Cos., Inc.(a)

    611,100     6,691,545

Time Warner, Inc.

    1,335,900     25,355,382
274   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

Viacom, Inc. – Class B(a)

    298,800   $ 11,790,648

The Walt Disney Co.

    98,900     3,323,040
        
       96,053,384
        

Multiline Retail – 1.0%

     

Family Dollar Stores, Inc.

    383,000     11,214,240

Macy’s, Inc.

    476,400     15,111,408
        
       26,325,648
        

Specialty Retail – 1.6%

     

The Gap, Inc.

    655,500     12,297,180

Home Depot, Inc.

    262,000     10,037,220

Ltd. Brands, Inc.

    282,000     6,531,120

Office Depot, Inc.(a)

    309,400     7,564,830

The Sherwin-Williams Co.

    72,900     5,030,829
        
       41,461,179
        

Textiles Apparel & Luxury Goods – 0.7%

     

Jones Apparel Group, Inc.

    256,400     4,920,316

VF Corp.

    150,500     12,017,425
        
       16,937,741
        
       282,312,084
        

Consumer Staples – 8.6%

     

Beverages – 1.0%

     

The Coca-Cola Co.

    101,400     5,453,292

Coca-Cola Enterprises, Inc.

    224,800     5,354,736

Molson Coors Brewing Co. – Class B

    154,000     13,776,840
        
       24,584,868
        

Food & Staples Retailing – 1.1%

     

The Kroger Co.

    398,300     10,586,814

Safeway, Inc.

    458,600     14,551,378

Wal-Mart Stores, Inc.

    100,000     4,363,000
        
       29,501,192
        

Food Products – 2.4%

     

ConAgra Foods, Inc.

    419,900     10,795,629

General Mills, Inc.

    198,500     11,092,180

Kellogg Co.

    210,100     11,540,793

Kraft Foods, Inc. – Class A

    440,877     14,134,517

Sara Lee Corp.

    792,800     13,176,336
        
       60,739,455
        

Household Products – 2.3%

     

Colgate-Palmolive Co.

    180,200     11,950,864

Procter & Gamble Co.

    718,900     46,951,359
        
       58,902,223
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   275

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Tobacco – 1.8%

     

Altria Group, Inc.

    560,300   $ 38,890,423

UST, Inc.

    173,900     8,569,792
        
       47,460,215
        
       221,187,953
        

Industrials – 8.6%

     

Aerospace & Defense – 1.2%

     

Boeing Co.

    126,400     12,222,880

Lockheed Martin Corp.

    30,400     3,013,856

Northrop Grumman Corp.

    200,900     15,838,956
        
       31,075,692
        

Commercial Services & Supplies – 1.0%

     

Allied Waste Industries, Inc.(a)

    1,021,400     13,043,278

Pitney Bowes, Inc.

    298,400     13,329,528
        
       26,372,806
        

Industrial Conglomerates – 4.3%

     

General Electric Co.

    2,718,700     105,675,869

Tyco International Ltd.

    95,000     4,195,200
        
       109,871,069
        

Machinery – 1.8%

     

Cummins, Inc.

    170,200     20,155,084

Eaton Corp.

    81,900     7,716,618

Ingersoll-Rand Co. Ltd. – Class A

    144,000     7,477,920

SPX Corp.

    132,300     11,913,615
        
       47,263,237
        

Road & Rail – 0.3%

     

Avis Budget Group, Inc.(a)

    273,600     6,350,256
        
       220,933,060
        

Health Care – 6.3%

     

Health Care Equipment & Supplies – 0.1%

     

Covidien Ltd.(a)

    95,000     3,783,850
        

Health Care Providers & Services – 0.8%

     

AmerisourceBergen Corp. – Class A

    156,700     7,498,095

McKesson Corp.

    234,800     13,432,908

Pharmerica Corp.(a)

    13,065     231,641
        
       21,162,644
        

Pharmaceuticals – 5.4%

     

Eli Lilly & Co.

    296,100     16,981,335

Johnson & Johnson

    392,000     24,221,680

Merck & Co., Inc.

    507,800     25,476,326

Pfizer, Inc.

    2,865,500     71,179,020
        
       137,858,361
        
       162,804,855
        
276   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Telecommunication Services – 6.3%

     

Diversified Telecommunication
Services – 4.8%

     

AT&T, Inc.

    1,714,000   $ 68,337,180

Verizon Communications, Inc.

    1,306,200     54,703,656
        
       123,040,836
        

Wireless Telecommunication
Services – 1.5%

     

Sprint Nextel Corp.

    1,351,200     25,564,704

Vodafone Group PLC (ADR)

    432,800     14,022,720
        
       39,587,424
        
       162,628,260
        

Materials – 4.7%

     

Chemicals – 2.4%

     

Ashland, Inc.

    162,300     9,703,917

Dow Chemical Co.

    449,200     19,149,396

E.I. Du Pont de Nemours & Co.

    509,100     24,818,625

Lubrizol Corp.

    123,500     7,852,130
        
       61,524,068
        

Containers & Packaging – 1.6%

     

Crown Holdings, Inc.(a)

    374,900     9,005,098

Owens-Illinois, Inc.(a)

    275,200     11,068,544

Smurfit-Stone Container Corp.(a)

    439,600     4,642,176

Sonoco Products Co.

    210,400     7,578,608

Temple-Inland, Inc.

    179,600     9,892,368
        
       42,186,794
        

Metals & Mining – 0.7%

     

Arcelor Mittal – Class A

    250,200     16,563,240
        
       120,274,102
        

Information Technology – 3.2%

     

Communications Equipment – 0.5%

     

Nokia OYJ (ADR)

    379,300     12,471,384
        

Computers & Peripherals – 0.9%

     

International Business Machines Corp.

    149,800     17,480,162

Lexmark International, Inc. – Class A(a)

    182,600     6,803,676
        
       24,283,838
        

Electronic Equipment & Instruments – 1.0%

     

Arrow Electronics, Inc.(a)

    136,200     5,714,952

Flextronics International Ltd.(a)

    924,900     10,534,611

Sanmina-SCI Corp.(a)

    599,600     1,373,084

Solectron Corp.(a)

    959,100     3,721,308

Tech Data Corp.(a)

    42,875     1,671,696

Tyco Electronics Ltd.(a)

    95,000     3,312,650
        
       26,328,301
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   277

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

IT Services – 0.3%

     

Electronic Data Systems Corp.

    321,700   $ 7,363,713
        

Software – 0.5%

     

Microsoft Corp.

    420,300     12,075,219
        
       82,522,455
        

Utilities – 1.7%

     

Electric Utilities – 1.0%

     

Allegheny Energy, Inc.(a)

    235,800     12,169,638

Entergy Corp.

    143,700     14,890,194
        
       27,059,832
        

Independent Power Producers & Energy Traders – 0.5%

     

Constellation Energy Group, Inc.

    162,700     13,494,338
        

Multi-Utilities – 0.2%

     

Alliant Energy Corp.

    17,600     666,688

Wisconsin Energy Corp.

    85,125     3,771,889
        
       4,438,577
        
       44,992,747
        

Total Common Stocks
(cost $2,173,110,314)

        2,451,931,358
        
    

SHORT-TERM INVESTMENTS – 4.0%

     

Investment Companies – 4.0%

     

AllianceBernstein Fixed-Income Shares,
Inc. – Government STIF Portfolio(b)
(cost $102,743,416)

    102,743,416     102,743,416
        

Total Investments – 99.3%
(cost $2,275,853,730)

        2,554,674,774

Other assets less liabilities – 0.7%

        18,664,813
        

Net Assets – 100.0%

      $ 2,573,339,587
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

  See notes to financial statements.
278   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Value Portfolio—Portfolio of Investments

 

U.S. LARGE CAP GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 98.1%

     

Information Technology – 27.8%

     

Communications Equipment – 5.9%

     

Cisco Systems, Inc.(a)

    3,441,900   $ 109,865,448

Qualcomm, Inc.

    797,700     31,820,253

Research In Motion Ltd.(a)

    134,150     11,457,752
        
       153,143,453
        

Computers & Peripherals – 9.5%

     

Apple, Inc.(a)

    1,185,150     164,119,572

Hewlett-Packard Co.

    1,695,200     83,658,120
        
       247,777,692
        

Internet Software & Services – 6.3%

     

Akamai Technologies, Inc.(a)

    152,900     4,926,438

Google, Inc. – Class A(a)

    307,525     158,452,256
        
       163,378,694
        

Semiconductors & Semiconductor Equipment – 4.8%

     

Broadcom Corp. – Class A(a)

    1,478,400     51,004,800

Intel Corp.

    1,924,700     49,561,025

Nvidia Corp.(a)

    479,700     24,541,452
        
       125,107,277
        

Software – 1.3%

     

Adobe Systems, Inc.(a)

    830,100     35,486,775
        
       724,893,891
        

Health Care – 16.8%

     

Biotechnology – 6.0%

     

Celgene Corp.(a)

    648,000     41,608,080

Genentech, Inc.(a)

    707,200     52,905,632

Gilead Sciences, Inc.(a)

    1,742,100     63,360,177
        
       157,873,889
        

Health Care Equipment & Supplies – 2.1%

     

Alcon, Inc.

    397,850     53,813,191
        

Health Care Providers & Services – 4.9%

     

Medco Health Solutions, Inc.(a)

    326,500     27,899,425

WellPoint, Inc.(a)

    1,254,000     101,059,860
        
       128,959,285
        

Pharmaceuticals – 3.8%

     

Abbott Laboratories

    1,159,800     60,205,218

Merck & Co., Inc.

    441,700     22,160,089

Teva Pharmaceutical Industries, Ltd. (ADR)

    322,600     13,871,800

Wyeth

    53,900     2,495,570
        
       98,732,677
        
       439,379,042
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   279

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

 

Company        
    
Shares		   U.S. $ Value
 
    

Financials – 16.5%

     

Capital Markets – 10.3%

     

The Blackstone Group LP(a)

    1,326,600   $ 30,684,258

Franklin Resources, Inc.

    633,950     83,535,591

The Goldman Sachs Group, Inc.

    191,690     33,739,357

Legg Mason, Inc.

    656,990     57,039,872

Merrill Lynch & Co., Inc.

    711,250     52,419,125

MF Global Ltd.(a)

    435,000     11,718,900
        
       269,137,103
        

Diversified Financial Services – 6.2%

     

CME Group, Inc. – Class A

    159,920     88,723,616

Moody’s Corp.

    677,300     31,054,205

NYSE Euronext

    563,100     40,965,525
        
       160,743,346
        
       429,880,449
        

Industrials – 13.3%

     

Aerospace & Defense – 9.1%

     

Boeing Co.

    1,084,850     104,904,995

Honeywell International, Inc.

    1,120,500     62,916,075

Spirit Aerosystems Holdings, Inc. – Class A(a)

    1,102,300     39,407,225

United Technologies Corp.

    390,550     29,146,746
        
       236,375,041
        

Construction & Engineering – 1.3%

     

Fluor Corp.

    265,300     33,732,895
        

Electrical Equipment – 0.8%

     

Emerson Electric Co.

    455,500     22,424,265
        

Machinery – 2.1%

     

Caterpillar, Inc.

    154,900     11,736,773

Deere & Co.

    321,250     43,709,275
        
       55,446,048
        
       347,978,249
        

Consumer Discretionary – 8.4%

     

Hotels Restaurants & Leisure – 1.7%

     

McDonald’s Corp.

    147,650     7,271,763

Starwood Hotels & Resorts Worldwide, Inc.

    615,350     37,610,192
        
       44,881,955
        

Media – 3.1%

     

Comcast Corp. - Special – Class A(a)

    3,088,850     79,877,661
        

Multiline Retail – 3.6%

     

Kohl’s Corp.(a)

    823,100     48,809,830

Nordstrom, Inc.

    145,900     7,017,790

Target Corp.

    599,350     39,515,145
        
       95,342,765
        
       220,102,381
        
280   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

 

Company        
    
Shares		   U.S. $ Value
 
    

Energy – 5.7%

     

Energy Equipment & Services – 5.5%

     

Baker Hughes, Inc.

    789,550   $ 66,211,663

Schlumberger, Ltd.

    794,550     76,674,075
        
       142,885,738
        

Oil, Gas & Consumable Fuels – 0.2%

     

Petro-Canada

    97,300     4,967,165
        
       147,852,903
        

Consumer Staples – 4.5%

     

Beverages – 1.2%

     

PepsiCo, Inc.

    452,900     30,810,787
        

Food Products – 0.9%

     

WM Wrigley Jr Co.

    410,800     23,929,100
        

Household Products – 2.4%

     

Colgate-Palmolive Co.

    383,600     25,440,352

Procter & Gamble Co.

    591,000     38,598,210
        
       64,038,562
        
       118,778,449
        

Materials – 3.9%

     

Chemicals – 3.9%

     

Air Products & Chemicals, Inc.

    451,400     40,630,514

Monsanto Co.

    860,600     60,018,244
        
       100,648,758
        

Telecommunication Services – 1.2%

     

Wireless Telecommunication
Services – 1.2%

     

America Movil SAB de CV Series L (ADR)

    509,400     30,798,324
        

Total Common Stocks
(cost $2,252,033,899)

        2,560,312,446
        
    

SHORT-TERM INVESTMENTS – 1.7%

     

Investment Companies – 1.7%

     

AllianceBernstein Fixed-Income Shares,
Inc. – Government STIF Portfolio(b)
(cost $43,620,504)

    43,620,504     43,620,504
        

Total Investments – 99.8%
(cost $2,295,654,403)

        2,603,932,950

Other assets less liabilities – 0.2%

        4,221,333
        

Net Assets – 100.0%

     $ 2,608,154,283
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

  See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   281

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

GLOBAL REAL ESTATE INVESTMENT PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 97.0%

     

Equity: Other – 41.0%

     

Diversified/Specialty – 37.4%

     

Alexandria Real Estate Equities, Inc.

    138,100   $ 12,888,873

British Land Co. PLC

    901,826     23,591,782

Canadian Real Estate Investment Trust

    453,852     12,764,591

DB RREEF Trust

    17,729,194     29,085,962

Digital Realty Trust, Inc.

    512,700     19,995,300

Fonciere Des Regions

    84,200     13,116,034

Forest City Enterprises, Inc. – Class A

    175,113     9,727,527

General Property Group

    2,458,297     9,629,367

Hang Lung Properties, Ltd.

    7,938,000     29,059,657

Keppel Land Ltd.

    1,889,000     9,549,154

Kerry Properties Ltd.

    5,301,610     39,147,401

Land Securities Group PLC

    881,562     32,302,572

Mitsubishi Estate Co. Ltd.

    712,000     19,034,837

Mitsui Fudosan Co. Ltd.

    991,000     25,925,704

New World Development Co., Ltd.

    9,864,168     23,628,480

Sino Land Co.

    5,648,601     13,208,613

Sumitomo Realty & Development

    778,000     25,443,644

Sun Hung Kai Properties Ltd.

    2,562,600     34,237,039

Unibail

    178,018     42,645,642

Vornado Realty Trust

    239,100     25,485,669
        
       450,467,848
        

Health Care – 3.6%

     

Health Care Property Investors, Inc.

    365,100     11,106,342

Nationwide Health Properties, Inc.

    373,500     10,364,625

Omega Healthcare Investors, Inc.

    315,000     4,690,350

Ventas, Inc.

    460,300     17,528,224
        
       43,689,541
        
       494,157,389
        

Retail – 20.3%

     

Regional Mall – 8.1%

     

General Growth Properties, Inc.

    432,700     21,509,517

Macerich Co.

    66,900     5,433,618

Simon Property Group, Inc.

    366,000     34,740,720

Taubman Centers, Inc.

    206,600     10,656,428

Westfield Group

    1,453,764     24,893,690
        
       97,233,973
        

Shopping Center/Other Retail – 11.2%

     

CapitaMall Trust

    7,098,800     15,832,599

Developers Diversified Realty Corp.

    130,000     6,952,400

Hammerson PLC

    451,600     12,133,130

Japan Retail Fund Investment Corp. – Class A

    3,409     27,856,229

Kimco Realty Corp.

    418,700     17,928,734
282   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Klepierre

    153,900   $ 24,126,707

Liberty International PLC

    128,700     3,120,534

New World Department Store China Ltd.(a)

    53,722     41,819

Primaris Retail Real Estate Investment Trust

    316,469     5,463,286

RioCan Real Estate Investment Trust

    501,057     11,164,651

Tanger Factory Outlet Centers

    273,400     10,408,338
        
       135,028,427
        

Shopping Centers – 1.0%

     

Citycon Oyj

    1,810,000     11,769,152
        
       244,031,552
        

Office – 16.8%

     

Diversified – 16.8%

     

H&R Real Estate Investment

    138,531     2,985,763

Allied Properties Real Estate Investment Trust

    473,932     9,541,472

Beni Stabili SpA

    8,214,000     10,178,062

Boston Properties, Inc.

    132,300     13,239,261

Brookfield Properties Corp.

    273,924     6,322,166

Cominar Real Estate Investment Trust

    406,735     8,542,976

Derwent Valley Holdings PLC

    494,710     17,953,708

Great Portland Estates PLC

    1,205,300     15,766,409

ING Office Fund

    8,019,300     11,389,813

IVG Immobilien AG

    282,000     10,087,892

Japan Real Estate Investment Corp. – Class A

    870     9,656,646

Maguire Properties, Inc.

    168,900     4,393,089

Nippon Building Fund, Inc. – Class A

    511     6,549,085

Nomura Real Estate Office Fund, Inc. – Class A

    1,085     10,256,854

Norwegian Property ASA

    918,800     10,644,018

NTT Urban Development Corp.

    17,200     30,841,297

SL Green Realty Corp.

    102,800     11,463,228

Sponda OYJ

    925,000     12,663,306
        
       202,475,045
        

Residential – 8.6%

     

Diversified – 0.3%

     

Stockland

    444,084     3,117,620
        

Multi-Family – 7.7%

     

Apartment Investment & Management Co. –Class A

    248,100     11,090,070

Archstone-Smith Trust

    78,700     4,627,560

AvalonBay Communities, Inc.

    98,750     11,295,025

Boardwalk Real Estate Investment Trust

    317,051     14,069,136

Camden Property Trust

    108,100     6,647,069

Canadian Apartment Properties REI

    468     8,155

Equity Residential

    175,500     7,062,120

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   283

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

 

    
    
Company		    Shares   U.S. $ Value
 
    

Essex Property Trust, Inc.

    46,200   $ 5,441,898

Mid-America Apartment Communities, Inc.

    164,500     8,157,555

Mirvac Group

    4,856,089     21,364,746

UDR, Inc.

    132,150     3,318,286
        
       93,081,620
        

Self Storage – 0.6%

     

Public Storage

    97,200     7,365,816
        
       103,565,056
        

Lodging – 5.4%

     

Ashford Hospitality Trust, Inc.

    432,800     4,721,848

Diamondrock Hospitality Co.

    165,148     2,964,407

Felcor Lodging Trust, Inc.

    237,000     5,199,780

Hilton Hotels Corp.

    279,500     12,843,025

Host Hotels & Resorts, Inc.

    647,557     14,434,046

LaSalle Hotel Properties

    83,177     3,463,490

Starwood Hotels & Resorts Worldwide, Inc.

    144,600     8,837,952

Strategic Hotels & Resorts, Inc.

    324,800     6,681,136

Sunstone Hotel Investors, Inc.

    240,600     6,486,576
        
       65,632,260
        

Industrial – 4.6%

     

Industrial Warehouse Distribution – 4.6%

     

AMB Property Corp.

    97,600     5,366,048

Ascendas Real Estate Investment Trust

    4,125,000     6,358,873

First Industrial Realty Trust, Inc.

    148,200     6,043,596

Prologis

    482,200     29,009,152

Segro PLC

    747,923     8,274,276
        
       55,051,945
        

Mixed Office Industrial – 0.0%

     

Macquarie Goodman Group

    31,930     176,161
        
       55,228,106
        

Real Estate Investment Trusts – 0.3%

     

Apartments – 0.0%

     

Stockland - New

    12,688     89,074
        

Retail – 0.3%

     

RioCan Real Estate Investment Trust(b)

    132,100     2,943,478
        
       3,032,552
        

Total Common Stocks
(cost $1,043,274,426)

        1,168,121,960
        
284   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 2.1%

     

Investment Companies – 2.1%

     

AllianceBernstein Fixed-Income Shares, Inc. –Government STIF Portfolio(c)
(cost $26,004,560)

    26,004,560   $ 26,004,560
        

Total Investments – 99.1%
(cost $1,069,278,986)

        1,194,126,520

Other assets less liabilities – 0.9%

        9,768,000
        

Net Assets – 100.0%

      $ 1,203,894,520
        

 

 

(a) Non-income producing security.

 

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in the transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $2,943,478 or 0.2% of net assets.

 

(c) Investment in affiliated money market mutual fund.

 

  See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   285

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

INTERNATIONAL VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

    
    
Company		    Shares   U.S. $ Value
 
    

COMMON STOCKS – 95.7%

     

Financials – 34.4%

     

Banking – 0.0%

     

Fortis (Euronext Amsterdam)

    5,900   $ 216,250
        

Capital Markets – 3.2%

     

Credit Suisse Group

    394,500     25,890,309

Deutsche Bank AG

    136,700     16,877,072
        
       42,767,381
        

Commercial Banks – 16.9%

     

Bank Hapoalim BM

    1,664,800     7,934,172

Bank Leumi Le-Israel

    736,900     2,878,685

Barclays PLC

    1,831,300     22,700,089

BNP Paribas SA

    296,200     31,093,325

Credit Agricole SA

    585,231     21,982,918

HBOS PLC

    1,183,350     21,035,015

Kookmin Bank

    164,700     13,360,340

Mitsubishi UFJ Financial Group, Inc.

    2,628     25,192,824

Royal Bank of Scotland Group PLC

    2,421,181     28,134,517

Societe Generale

    131,381     21,096,667

Sumitomo Mitsui Financial Group, Inc.

    3,345     26,385,323
        
       221,793,875
        

Consumer Finance – 1.7%

     

ORIX Corp.

    107,280     22,776,856
        

Diversified Financial Services – 4.2%

     

Fortis

    511,300     18,752,805

ING Groep NV

    922,011     37,107,711
        
       55,860,516
        

Insurance – 8.1%

     

Allianz SE

    166,300     35,639,598

Aviva PLC

    1,273,223     18,239,312

Fondiaria-Sai SpA (ordinary shares)

    207,700     9,767,644

Fondiaria-Sai SpA (saving shares)

    19,000     612,083

Friends Provident PLC

    2,652,020     9,593,915

Muenchener Rueckversicherungs AG

    185,900     32,106,040
        
       105,958,592
        

Real Estate Management &
Development – 0.3%

     

Leopalace21 Corp.

    126,100     3,887,938
        
       453,261,408
        

Materials – 13.8%

     

Chemicals – 4.6%

     

BASF AG

    265,700     35,128,712

Mitsubishi Chemical Holdings Corp.

    1,530,500     14,301,676

Mitsui Chemicals, Inc.

    1,280,000     11,586,487
        
       61,016,875
        
286   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Value Portfolio—Portfolio of Investments

 

    
    
Company		    Shares   U.S. $ Value
 
    

Construction Materials – 0.7%

     

Buzzi Unicem SpA

    194,400   $ 5,593,148

Italcementi SpA

    119,400     2,960,750
        
       8,553,898
        

Metals & Mining – 7.7%

     

Antofagasta PLC

    308,300     4,436,421

JFE Holdings, Inc.

    498,400     32,452,102

Kazakhmys PLC

    405,200     10,413,964

Mittal Steel Co. NV (Euronext Paris)

    211,632     13,880,180

POSCO

    29,300     17,931,072

Xstrata PLC

    368,300     21,669,219
        
       100,782,958
        

Paper & Forest Products – 0.8%

     

Svenska Cellulosa

    643,200     11,184,541
        
       181,538,272
        

Energy – 10.9%

     

Oil, Gas & Consumable Fuels – 10.9%

     

China Petroleum & Chemical Corp. – Class H

    17,332,500     19,089,809

ENI SpA

    976,800     33,740,265

Petroleo Brasileiro SA (NY) (ADR)

    514,600     27,392,158

Repsol YPF SA

    343,200     12,366,999

Royal Dutch Shell PLC (London) – Class A

    850,400     32,939,845

Total SA

    244,100     18,305,962
        
       143,835,038
        

Consumer Discretionary – 9.5%

     

Auto Components – 2.8%

     

Compagnie Generale des Etablissements
Michelin – Class B

    167,400     21,011,059

Hyundai Mobis

    148,510     15,967,085
        
       36,978,144
        

Automobiles – 4.3%

     

Nissan Motor Co., Ltd.

    2,496,100     23,844,930

Renault SA

    244,800     32,886,197
        
       56,731,127
        

Household Durables – 2.4%

     

Sharp Corp.

    1,053,000     18,303,877

Taylor Wimpey PLC

    1,752,944     12,321,499
        
       30,625,376
        
       124,334,647
        

Information Technology – 6.8%

     

Computers & Peripherals – 2.7%

     

Compal Electronics, Inc. (GDR)(a)

    2,179,452     12,379,288

Toshiba Corp.

    2,598,000     23,358,162
        
       35,737,450
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   287

 

International Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Electronic Equipment & Instruments – 0.9%

     

AU Optronics Corp.(b)

    8,279,006   $ 12,076,570
        

Semiconductors & Semiconductor Equipment – 3.2%

     

Hynix Semiconductor, Inc.(b)

    433,500     15,619,591

Samsung Electronics Co., Ltd.

    12,150     7,659,235

United Microelectronics Corp.

    32,284,227     18,225,642
        
       41,504,468
        
       89,318,488
        

Industrials – 6.1%

     

Aerospace & Defense – 2.0%

     

BAE Systems PLC

    1,488,100     13,929,740

European Aeronautic Defence & Space Co., NV

    398,220     11,765,280
        
       25,695,020
        

Airlines – 2.1%

     

Air France-KLM

    298,000     12,333,388

Deutsche Lufthansa AG

    547,700     15,974,659
        
       28,308,047
        

Marine – 2.0%

     

Mitsui OSK Lines Ltd.

    1,250,000     18,362,097

Nippon Yusen KK

    820,000     8,085,787
        
       26,447,884
        
       80,450,951
        

Utilities – 5.1%

     

Electric Utilities – 3.7%

     

E.ON AG

    215,200     36,079,749

The Tokyo Electric Power Co.

    492,800     12,924,842
        
       49,004,591
        

Multi-Utilities – 1.4%

     

RWE AG

    163,120     18,338,820
        
       67,343,411
        

Telecommunication Services – 4.0%

     

Diversified Telecommunication
Services – 1.8%

     

China Netcom Group Corp. Ltd.

    5,620,000     13,586,876

Nippon Telegraph & Telephone Corp.

    2,031     9,350,046
        
       22,936,922
        

Wireless Telecommunication Services – 2.2%

     

Vodafone Group PLC

    9,082,937     29,352,920
        
       52,289,842
        
288   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Value Portfolio—Portfolio of Investments

 

    
    
Company		    Shares   U.S. $ Value
 
    

Health Care – 3.0%

     

Pharmaceuticals – 3.0%

     

AstraZeneca PLC

    258,000   $ 12,715,126

GlaxoSmithKline PLC

    246,300     6,427,589

Sanofi-Aventis

    249,319     20,419,837
        
       39,562,552
        

Consumer Staples – 1.3%

     

Food & Staples Retailing – 1.3%

     

Koninklijke Ahold NV(b)

    1,241,840     16,642,661
        

Industrial Commodities – 0.8%

     

Metal - Steel – 0.8%

     

Arcelor Mittal (Euronext Amsterdam)

    165,500     10,903,176
        

Total Common Stocks
(cost $1,011,021,467)

        1,259,480,446
        
    

NON-CONVERTIBLE - PREFERRED STOCKS – 0.4%

     

Information Technology – 0.4%

     

Semiconductors & Semiconductor Equipment – 0.4%

     

Samsung Electronics Co., Ltd.
(cost $5,490,011)

    11,500     5,397,738
        
    

SHORT-TERM INVESTMENTS – 2.4%

     

Investment Companies – 2.4%

     

AllianceBernstein Fixed-Income Shares,
Inc. – Government STIF Portfolio(c)
(cost $31,204,944)

    31,204,944     31,204,944
        

Total Investments – 98.5%
(cost $1,047,716,422)

        1,296,083,128

Other assets less liabilities – 1.5%

        19,901,063
        

Net Assets – 100.0%

      $ 1,315,984,191
        

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type   Number of
Contracts		   Expiration
Month		   Original
Value		   Value at
August 31,
2007		   Unrealized
Appreciation/
(Depreciation)		  

Purchased Contracts

        

EURO STOXX 50

   204   September 2007   $ 12,308,141   $ 11,938,536   $ (369,605 )

 

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in the transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $12,379,288 or 0.9% of net assets.

 

(b) Non-income producing security.

 

(c) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt
GDR – Global Depositary Receipt

 

  See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   289

 

International Value Portfolio—Portfolio of Investments

 

INTERNATIONAL GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 96.8%

     

Financials – 22.4%

     

Capital Markets – 12.8%

     

3i Group PLC

    896,386   $ 19,116,965

Credit Suisse Group

    826,856     54,265,037

Macquarie Bank Ltd.

    409,580     24,465,452

Man Group PLC

    3,513,435     35,113,722

UBS AG (Swiss Virt-X)

    700,730     36,690,178
        
       169,651,354
        

Commercial Banks – 4.8%

     

Anglo Irish Bank Corp. PLC (Dublin)

    1,624,674     30,324,903

China Construction Bank Corp. – Class H

    9,709,000     8,175,525

UniCredito Italiano SpA

    2,996,253     25,739,082
        
       64,239,510
        

Diversified Financial Services – 1.2%

     

Deutsche Boerse AG

    141,081     15,567,188
        

Insurance – 3.6%

     

QBE Insurance Group Ltd.

    1,018,404     29,023,164

Swiss Reinsurance

    227,050     19,156,674
        
       48,179,838
        
       297,637,890
        

Industrials – 15.9%

     

Building Products – 0.9%

     

Cie de Saint-Gobain

    115,118     12,466,967
        

Commercial Services & Supplies – 1.0%

     

Capita Group PLC

    904,948     13,729,258
        

Construction & Engineering – 1.4%

     

Vinci SA

    257,130     18,231,037
        

Electrical Equipment – 3.6%

     

ABB Ltd.

    1,545,138     38,154,528

Renewable Energy Corp.(a)

    242,230     9,184,898
        
       47,339,426
        

Industrial Conglomerates – 1.1%

     

Siemens AG

    115,177     14,450,185
        

Machinery – 4.6%

     

Atlas Copco AB

    1,092,628     18,250,813

Komatsu Ltd.

    422,800     12,989,866

NGK Insulators Ltd.

    907,000     29,970,739
        
       61,211,418
        

Trading Companies & Distributors – 3.3%

     

Mitsui & Co. Ltd.

    2,130,000     44,276,719
        
       211,705,010
        
290   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Materials – 13.2%

     

Chemicals – 3.8%

     

Bayer AG

    449,852   $ 35,481,105

Nitto Denko Corp.

    330,200     15,388,570
        
       50,869,675
        

Metals & Mining – 9.4%

     

Anglo American PLC

    194,339     11,157,060

BHP Billiton PLC

    230,773     6,767,356

Cia Vale do Rio Doce (ADR)

    548,600     27,062,438

MMC Norilsk Nickel (ADR)

    37,455     8,352,465

Rio Tinto PLC

    473,546     32,709,948

Xstrata PLC

    652,716     38,403,057
        
       124,452,324
        
       175,321,999
        

Consumer Discretionary – 9.0%

     

Auto Components – 0.9%

     

Denso Corp.

    333,400     11,674,171
        

Automobiles – 4.1%

     

Fiat SpA

    1,260,251     33,609,369

Porsche AG

    9,751     17,430,094

Suzuki Motor Corp.

    128,100     3,461,122
        
       54,500,585
        

Hotels Restaurants & Leisure – 1.1%

     

Accor SA

    168,721     14,413,476
        

Specialty Retail – 2.9%

     

Esprit Holdings Ltd.

    1,346,000     19,552,666

Inditex SA

    320,858     18,837,137
        
       38,389,803
        
       118,978,035
        

Energy – 7.8%

     

Energy Equipment & Services – 1.0%

     

Technip SA

    166,405     13,272,422
        

Oil, Gas & Consumable Fuels – 6.8%

     

China Shenhua Energy Co., Ltd. – Class H

    4,398,500     19,115,521

Petroleo Brasileiro SA (NY) (ADR)

    105,900     6,548,856

Petroplus Holdings AG(a)

    80,237     7,009,638

Royal Dutch Shell PLC (Euronext Amsterdam) – Class A

    709,418     27,565,773

Total SA

    406,721     30,501,513
        
       90,741,301
        
       104,013,723
        

Information Technology – 7.7%

     

Communications Equipment – 3.1%

     

Nokia OYJ

    1,242,703     40,939,082
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   291

 

International Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Electronic Equipment & Instruments – 0.9%

     

HON HAI Precision Industry Co. Ltd.

    1,632,800   $ 12,117,478
        

IT Services – 0.4%

     

Infosys Technologies, Ltd.

    130,928     5,955,891
        

Office Electronics – 2.5%

     

Canon, Inc.

    570,500     32,563,825
        

Semiconductors & Semiconductor Equipment – 0.8%

     

Sumco Corp.

    188,000     10,045,580
        
       101,621,856
        

Consumer Staples – 7.3%

     

Beverages – 0.5%

     

Cia de Bebidas das Americas (ADR)

    92,900     6,500,213
        

Food & Staples Retailing – 0.8%

     

Tesco PLC

    1,194,700     10,271,002
        

Food Products – 3.4%

     

Nestle SA

    104,491     45,541,387
        

Household Products – 1.4%

     

Reckitt Benckiser PLC

    348,058     18,979,076
        

Personal Products – 1.2%

     

L’Oreal SA

    137,791     16,076,898
        
       97,368,576
        

Health Care – 7.2%

     

Biotechnology – 0.5%

     

CSL Ltd./Australia

    84,822     6,806,878
        

Health Care Equipment & Supplies – 2.9%

     

Alcon, Inc.

    101,200     13,688,312

Essilor International SA

    320,024     19,383,772

Nobel Biocare Holding AG

    18,840     5,142,103
        
       38,214,187
        

Pharmaceuticals – 3.8%

     

Merck KGaA

    147,499     18,914,927

Roche Holding AG

    138,350     24,099,865

Teva Pharmaceutical Industries, Ltd. (ADR)

    156,700     6,738,100
        
       49,752,892
        
       94,773,957
        

Telecommunication Services – 5.3%

     

Diversified Telecommunication
Services – 2.3%

     

Telefonica SA

    557,829     13,871,932

Telekomunikasi Indonesia Tbk PT

    5,521,500     6,454,501

TeliaSonera AB

    1,320,344     10,320,167
        
       30,646,600
        
292   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Wireless Telecommunication
Services – 3.0%

     

America Movil SAB de CV Series L (ADR)

    410,500   $ 24,818,830

Vodafone Group PLC

    4,708,768     15,217,114
        
       40,035,944
        
       70,682,544
        

Utilities – 1.0%

     

Independent Power Producers & Energy Traders – 1.0%

     

International Power PLC

    1,651,376     13,497,170
        

Total Common Stocks (cost $1,104,407,231)

        1,285,600,760
        
    

SHORT-TERM INVESTMENTS – 2.4%

     

Investment Companies – 2.4%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $32,217,367)

    32,217,367     32,217,367
        

Total Investments – 99.2%
(cost $1,136,624,598)

        1,317,818,127

Other assets less liabilities – 0.8%

        11,108,845
        

Net Assets – 100.0%

      $ 1,328,926,972
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

Glossary:

 

ADR – American Depositary Receipt

 

  See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   293

 

International Growth Portfolio—Portfolio of Investments

 

SMALL-MID CAP VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 97.0%

     

Industrials – 25.1%

     

Aerospace & Defense – 1.2%

     

Goodrich Corp.

    125,941   $ 7,954,434
        

Airlines – 1.9%

     

Alaska Air Group, Inc.(a)

    170,700     4,236,774

Continental Airlines, Inc. – Class B(a)

    135,700     4,513,382

Skywest, Inc.

    140,200     3,523,226
        
       12,273,382
        

Commercial Services & Supplies – 3.2%

     

IKON Office Solutions, Inc.

    554,300     7,782,372

Kelly Services, Inc. – Class A

    124,000     2,817,280

Quebecor World, Inc.(a)

    215,600     1,974,896

United Stationers, Inc.(a)

    143,400     8,463,468
        
       21,038,016
        

Electrical Equipment – 4.0%

     

Acuity Brands, Inc.

    103,600     5,443,144

Cooper Industries, Ltd. – Class A

    127,200     6,508,824

EnerSys(a)

    224,300     4,050,858

Regal-Beloit Corp.

    197,500     9,975,725
        
       25,978,551
        

Machinery – 8.0%

     

AGCO Corp.(a)

    159,800     6,903,360

Briggs & Stratton Corp.

    231,800     6,766,242

Kennametal, Inc.

    133,500     10,768,110

Mueller Industries, Inc.

    201,700     6,986,888

SPX Corp.

    133,850     12,053,192

Terex Corp.(a)

    101,400     8,099,832
        
       51,577,624
        

Road & Rail – 5.5%

     

Arkansas Best Corp.

    198,800     7,136,920

Avis Budget Group, Inc.(a)

    360,000     8,355,600

Con-way, Inc.

    139,400     6,758,112

Ryder System, Inc.

    134,300     7,352,925

Werner Enterprises, Inc.

    324,500     6,038,945
        
       35,642,502
        

Trading Companies & Distributors – 1.3%

     

GATX Corp.

    188,000     8,196,800
        
       162,661,309
        

Financials – 20.8%

     

Capital Markets – 0.5%

     

A.G. Edwards, Inc.

    38,300     3,201,114
        

Commercial Banks – 6.8%

     

Central Pacific Financial Corp.

    243,400     7,744,988

The South Financial Group, Inc.

    298,400     6,848,280
294   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Susquehanna Bancshares, Inc.

    285,000   $ 5,603,100

Trustmark Corp.

    250,261     7,067,371

UnionBanCal Corp.

    64,800     3,808,944

Webster Financial Corp.

    194,000     8,237,240

Whitney Holding Corp.

    162,000     4,487,400
        
       43,797,323
        

Insurance – 7.8%

     

Arch Capital Group Ltd.(a)

    156,700     11,255,761

Aspen Insurance Holdings, Ltd.

    320,600     8,043,854

Fidelity National Financial, Inc. – Class A

    305,000     5,547,950

Old Republic International Corp.

    376,000     6,839,440

Partnerre, Ltd.

    14,800     1,076,108

Platinum Underwriters Holdings, Ltd.

    270,900     9,394,812

RenaissanceRe Holdings, Ltd.

    35,000     2,004,800

StanCorp Financial Group, Inc.

    141,700     6,674,070
        
       50,836,795
        

Real Estate Investment Trusts (REITs) – 4.0%

     

Ashford Hospitality Trust, Inc.

    270,000     2,945,700

Digital Realty Trust, Inc.

    133,500     5,206,500

Felcor Lodging Trust, Inc.

    256,700     5,631,998

Mid-America Apartment Communities, Inc.

    74,000     3,669,660

Strategic Hotels & Resorts, Inc.

    101,000     2,077,570

Tanger Factory Outlet Centers

    86,300     3,285,441

Taubman Centers, Inc.

    60,100     3,099,958
        
       25,916,827
        

Thrifts & Mortgage Finance – 1.7%

     

Astoria Financial Corp.

    224,900     5,863,143

Provident Financial Services, Inc.

    322,000     5,409,600
        
       11,272,743
        
       135,024,802
        

Materials – 14.6%

     

Chemicals – 7.8%

     

Ashland, Inc.

    129,200     7,724,868

Celanese Corp. – Class A Series A

    266,800     9,583,456

Cytec Industries, Inc.

    133,800     8,884,320

Lubrizol Corp.

    169,100     10,751,378

Methanex Corp.

    160,500     3,619,275

Rockwood Holdings, Inc.(a)

    303,500     9,727,175
        
       50,290,472
        

Containers & Packaging – 2.8%

     

Aptargroup, Inc.

    95,500     3,469,515

Owens-Illinois, Inc.(a)

    145,200     5,839,944

Silgan Holdings, Inc.

    112,000     5,722,080

Sonoco Products Co.

    90,700     3,267,014
        
       18,298,553
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   295

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Metals & Mining – 4.0%

     

Commercial Metals Co.

    235,100   $ 6,792,039

Metal Management, Inc.

    166,500     7,810,515

Quanex Corp.

    76,800     3,326,208

Steel Dynamics, Inc.

    187,200     8,120,736
        
       26,049,498
        
       94,638,523
        

Information Technology – 8.0%

     

Communications Equipment – 2.4%

     

Andrew Corp.(a)

    504,500     7,103,360

CommScope, Inc.(a)

    150,100     8,495,660
        
       15,599,020
        

Electronic Equipment & Instruments – 3.5%

     

Arrow Electronics, Inc.(a)

    163,500     6,860,460

AVX Corp.

    76,200     1,197,864

Checkpoint Systems, Inc.(a)

    171,100     4,765,135

Sanmina-SCI Corp.(a)

    504,600     1,155,534

Solectron Corp.(a)

    150,700     584,716

Tech Data Corp.(a)

    47,600     1,855,924

Vishay Intertechnology, Inc.(a)

    450,000     5,953,500
        
       22,373,133
        

Semiconductors & Semiconductor Equipment – 2.1%

     

Amkor Technology, Inc.(a)

    220,000     2,534,400

Spansion, Inc. – Class A(a)

    310,000     2,821,000

Teradyne, Inc.(a)

    183,000     2,724,870

Zoran Corp.(a)

    336,000     5,802,720
        
       13,882,990
        
       51,855,143
        

Consumer Staples – 7.8%

     

Beverages – 1.3%

     

Molson Coors Brewing Co. – Class B

    92,000     8,230,320
        

Food & Staples Retailing – 3.5%

     

Performance Food Group Co.(a)

    281,000     7,991,640

Ruddick Corp.

    267,200     8,705,376

Supervalu, Inc.

    148,200     6,246,630
        
       22,943,646
        

Food Products – 1.7%

     

Corn Products International, Inc.

    164,400     7,430,880

Smithfield Foods, Inc.(a)

    119,600     3,914,508
        
       11,345,388
        

Tobacco – 1.3%

     

Universal Corp.

    170,700     8,386,491
        
       50,905,845
        
296   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Consumer Discretionary – 7.4%

     

Auto Components – 3.0%

     

ArvinMeritor, Inc.

    486,700   $ 8,492,915

Autoliv, Inc.

    50,100     2,874,237

TRW Automotive Holdings Corp.(a)

    259,000     7,915,040
        
       19,282,192
        

Hotels Restaurants & Leisure – 1.7%

     

Jack in the Box, Inc.(a)

    61,800     3,845,196

Papa John’s International, Inc.(a)

    159,364     4,041,471

Vail Resorts, Inc.(a)

    55,300     3,162,054
        
       11,048,721
        

Household Durables – 0.7%

     

Furniture Brands International, Inc.

    246,100     2,800,618

KB Home

    69,400     2,105,596
        
       4,906,214
        

Multiline Retail – 0.4%

     

Dillard’s, Inc. – Class A

    101,400     2,407,236
        

Specialty Retail – 0.8%

     

AutoNation, Inc.(a)

    158,338     3,005,255

Office Depot, Inc.(a)

    84,400     2,063,580
        
       5,068,835
        

Textiles Apparel & Luxury Goods – 0.8%

     

Jones Apparel Group, Inc.

    57,200     1,097,668

VF Corp.

    50,100     4,000,485
        
       5,098,153
        
       47,811,351
        

Utilities – 5.3%

     

Electric Utilities – 3.0%

     

Allegheny Energy, Inc.(a)

    58,800     3,034,668

Northeast Utilities

    267,000     7,382,550

Reliant Energy, Inc.(a)

    354,300     9,038,193
        
       19,455,411
        

Independent Power Producers & Energy Traders – 0.7%

     

Constellation Energy Group, Inc.

    55,300     4,586,582
        

Multi-Utilities – 1.6%

     

Puget Energy, Inc.

    196,000     4,572,680

Wisconsin Energy Corp.

    135,500     6,004,005
        
       10,576,685
        
       34,618,678
        

Health Care – 5.0%

     

Health Care Providers & Services – 3.2%

     

Apria Healthcare Group, Inc.(a)

    131,100     3,491,193

Kindred Healthcare, Inc.(a)

    175,000     3,468,500
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   297

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

LifePoint Hospitals, Inc.(a)

    115,778   $ 3,253,362

Molina Healthcare, Inc.(a)

    208,325     7,093,466

Pharmerica Corp.(a)

    64,054     1,135,678

Universal Health Services, Inc. – Class B

    49,200     2,597,760
        
       21,039,959
        

Life Sciences Tools & Services – 1.3%

     

PerkinElmer, Inc.

    300,000     8,223,000
        

Pharmaceuticals – 0.5%

     

Endo Pharmaceuticals Holdings, Inc.(a)

    69,584     2,218,338

King Pharmaceuticals, Inc.(a)

    71,050     1,067,881
        
       3,286,219
        
       32,549,178
        

Energy – 3.0%

     

Energy Equipment & Services – 2.2%

     

Exterran Holdings, Inc.(a)

    105,941     8,210,427

Oil States International, Inc.(a)

    91,600     3,865,520

Rowan Cos., Inc.

    63,600     2,387,544
        
       14,463,491
        

Oil, Gas & Consumable Fuels – 0.8%

     

Hess Corp.

    77,700     4,768,449
        
       19,231,940
        

Total Common Stocks
(cost $573,646,964)

        629,296,769
        
    

SHORT-TERM INVESTMENTS – 2.5%

     

Investment Companies – 2.5%

     

AllianceBernstein Fixed-Income Shares,
Inc. – Government STIF Portfolio(b)
(cost $15,915,539)

    15,915,539     15,915,539
        

Total Investments – 99.5%
(cost $589,562,503)

        645,212,308

Other assets less liabilities – 0.5%

        3,189,027
        

Net Assets – 100.0%

      $ 648,401,335
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

   See notes to financial statements.
298   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

SMALL-MID CAP GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    
    

COMMON STOCKS – 96.8%

     

Information Technology – 24.8%

     

Communications Equipment – 4.1%

     

Ciena Corp.(a)

    67,985   $ 2,575,272

Foundry Networks, Inc.(a)

    783,400     14,485,066

Netgear, Inc.(a)

    273,500     7,674,410

Polycom, Inc.(a)

    81,800     2,479,358
        
       27,214,106
        

Electronic Equipment & Instruments – 1.8%

  

Amphenol Corp. – Class A

    344,880     12,453,617
        

Internet Software & Services – 3.3%

     

Omniture, Inc.(a)

    320,000     7,939,200

VistaPrint Ltd.(a)

    433,600     14,256,768
        
       22,195,968
        

IT Services – 1.9%

     

Global Cash Access Holdings, Inc.(a)

    281,800     3,127,980

Iron Mountain, Inc.(a)

    333,200     9,416,232
        
       12,544,212
        

Semiconductors & Semiconductor Equipment – 8.9%

     

Formfactor, Inc.(a)

    41,800     1,896,048

Hittite Microwave Corp.(a)

    305,700     12,952,509

Integrated Device Technology, Inc.(a)

    577,400     9,030,536

Intersil Corp. – Class A

    432,600     14,414,232

Lam Research Corp.(a)

    13,100     702,553

Microsemi Corp.(a)

    300,100     7,610,536

ON Semiconductor Corp.(a)

    1,140,400     13,365,488
        
       59,971,902
        

Software – 4.8%

     

Activision, Inc.(a)

    487,054     9,492,682

Business Objects SA (ADR)(a)

    169,500     7,442,745

Factset Research Systems, Inc.

    26,400     1,582,152

McAfee, Inc.(a)

    212,200     7,586,150

Quest Software, Inc.(a)

    397,400     5,786,144
        
       31,889,873
        
       166,269,678
        

Industrials – 21.0%

     

Aerospace & Defense – 1.0%

     

Hexcel Corp.(a)

    303,400     6,611,086
        

Air Freight & Logistics – 1.3%

     

CH Robinson Worldwide, Inc.

    111,800     5,482,672

UTI Worldwide, Inc.

    135,300     3,010,425
        
       8,493,097
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   299

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Commercial Services & Supplies – 4.2%

     

Resources Connection, Inc.

    485,200   $ 14,556,000

Stericycle, Inc.(a)

    264,500     13,198,550
        
       27,754,550
        

Construction & Engineering – 2.4%

     

Chicago Bridge & Iron Co. NV

    194,500     7,264,575

Granite Construction, Inc.

    164,300     8,944,492
        
       16,209,067
        

Electrical Equipment – 3.8%

     

Ametek, Inc.

    339,100     13,560,609

Baldor Electric Co.

    292,300     12,171,372
        
       25,731,981
        

Machinery – 6.5%

     

IDEX Corp.

    318,575     12,255,580

Joy Global, Inc.

    228,750     9,925,463

Kaydon Corp.

    85,700     4,524,960

Lincoln Electric Holdings, Inc.

    187,100     13,459,974

Watts Water Technologies, Inc. – Class A

    93,500     3,311,770
        
       43,477,747
        

Trading Companies & Distributors – 1.8%

     

MSC Industrial Direct Co. – Class A

    234,600     12,152,280
        
       140,429,808
        

Consumer Discretionary – 14.9%

     

Diversified Consumer Services – 1.9%

     

Strayer Education, Inc.

    78,900     12,590,862
        

Hotels Restaurants & Leisure – 5.3%

     

Chipotle Mexican Grill, Inc. – Class A(a)

    69,500     7,227,305

Gaylord Entertainment Co.(a)

    210,500     10,809,175

Life Time Fitness, Inc.(a)

    161,700     8,985,669

Orient–Express Hotels, Ltd. – Class A

    175,500     8,783,775
        
       35,805,924
        

Media – 1.4%

     

National CineMedia, Inc.

    386,700     9,524,421
        

Specialty Retail – 4.6%

     

Coldwater Creek, Inc.(a)

    612,600     7,620,744

Dick’s Sporting Goods, Inc.(a)

    167,200     10,851,280

GameStop Corp. – Class A(a)

    240,400     12,053,656
        
       30,525,680
        

Textiles Apparel & Luxury Goods – 1.7%

     

Lululemon Athletica, Inc.(a)

    125,700     4,282,599

Under Armour, Inc. – Class A(a)

    106,400     6,917,064
        
       11,199,663
        
       99,646,550
        
300   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Health Care – 14.5%

     

Biotechnology – 2.4%

     

Alexion Pharmaceuticals, Inc.(a)

    172,800   $ 10,449,216

Amylin Pharmaceuticals, Inc.(a)

    7,600     372,628

Pharmion Corp.(a)

    32,500     1,332,825

Vertex Pharmaceuticals, Inc.(a)

    100,100     3,899,896
        
       16,054,565
        

Health Care Equipment & Supplies – 4.4%

     

ArthroCare Corp.(a)

    193,800     10,856,676

Hologic, Inc.(a)

    227,800     12,107,570

Kyphon, Inc.(a)

    98,100     6,559,947

Resmed, Inc.(a)

    7,600     309,016
        
       29,833,209
        

Health Care Providers & Services – 3.5%

     

HealthExtras, Inc.(a)

    311,300     8,750,643

Psychiatric Solutions, Inc.(a)

    240,800     8,875,888

WellCare Health Plans, Inc.(a)

    57,547     5,679,889
        
       23,306,420
        

Life Sciences Tools & Services – 4.2%

     

AMAG Pharmaceuticals, Inc.(a)

    153,700     8,399,705

Icon PLC (ADR)(a)

    278,100     12,703,608

Nektar Therapeutics(a)

    247,100     2,041,046

Ventana Medical Systems, Inc.(a)

    59,600     4,874,684
        
       28,019,043
        
       97,213,237
        

Energy – 10.0%

     

Energy Equipment & Services – 6.4%

     

Cameron International Corp. – Class W(a)

    118,000     9,648,860

Complete Production Services, Inc.(a)

    366,500     8,136,300

FMC Technologies, Inc.(a)

    47,000     4,450,900

Grant Prideco, Inc.(a)

    192,900     10,667,370

Oceaneering International, Inc.(a)

    38,300     2,572,228

Superior Energy Services, Inc.(a)

    179,400     6,964,308
        
       42,439,966
        

Oil, Gas & Consumable Fuels – 3.6%

     

Bill Barrett Corp.(a)

    245,900     8,665,516

Forest Oil Corp.(a)

    130,600     5,047,690

Newfield Exploration Co.(a)

    151,800     6,601,782

Penn Virginia Corp.

    101,300     4,042,883
        
       24,357,871
        
       66,797,837
        

Financials – 7.5%

     

Capital Markets – 6.1%

     

Affiliated Managers Group, Inc.(a)

    70,550     7,989,787

Greenhill & Co., Inc.

    174,900     10,126,710
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   301

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Lazard Ltd. – Class A

    245,500   $ 9,842,095

MF Global Ltd.(a)

    208,200     5,608,908

optionsXpress Holdings, Inc.

    309,800     7,286,496
        
       40,853,996
        

Real Estate – 1.4%

     

CB Richard Ellis Group, Inc. – Class A(a)

    316,100     9,331,272
        
       50,185,268
        

Telecommunication Services – 1.9%

     

Diversified Telecommunication
Services – 0.1%

     

Time Warner Telecom, Inc. – Class A(a)

    19,800     434,610
        

Wireless Telecommunication
Services – 1.8%

     

SBA Communications Corp. – Class A(a)

    369,100     12,021,587
        
       12,456,197
        

Consumer Staples – 1.2%

     

Personal Products – 1.2%

     

Bare Escentuals, Inc.(a)

    333,100     8,194,260
        

Materials – 1.0%

     

Metals & Mining – 1.0%

     

Allegheny Technologies, Inc.

    64,780     6,438,484
        

Total Common Stocks
(cost $562,146,174)

        647,631,319
        
    

SHORT-TERM INVESTMENTS – 1.7%

     

Investment Companies – 1.7%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $11,301,034)

    11,301,034     11,301,034
        

Total Investments – 98.5%
(cost $573,447,208)

        658,932,353

Other assets less liabilities – 1.5%

        9,838,938
        

Net Assets – 100.0%

      $ 668,771,291
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

   See notes to financial statements.

 

302   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

SHORT DURATION BOND PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

MORTGAGE PASS-THRU’S – 31.2%

     

Fixed Rate 30-Year – 10.2%

     

Federal Gold Loan Mortgage Corp.
Series 2006
7.00%, 5/01/35

    $ 7,807   $ 8,015,503

Federal Home Loan Mortgage Corp.
Series 2007
6.00%, 7/01/37-9/01/37

      15,625     15,613,607

7.00%, 2/01/37

      17,610     18,089,443

Federal National Mortgage Association
7.00%, TBA

      40,910     42,047,789

Series 2001
7.00%, 4/01/31

      50     52,188

Series 2002
7.00%, 8/01/32

      355     368,369

Series 2003
7.00%, 5/01/33

      43     44,562

Series 2004
7.00%, 2/01/31-12/01/34

      634     657,106

Series 2006
6.50%, 7/01/36

      23,000     23,349,128

Series 2007
6.50%, 8/01/37

      21,800     22,127,000
        
       130,364,695
        

Agency ARMS – 10.2%

     

Federal Home Loan Mortgage Corp.
6.055%, TBA

      7,000     7,059,878

Series 2006
4.22%, 4/01/35(a)

      6,762     6,676,432

6.164%, 12/01/36(a)

      5,653     5,709,296

Series 2007
5.944%, 11/01/36(a)

      10,281     10,360,364

5.948%, 2/01/37(a)

      5,625     5,666,238

5.98%, 3/01/37(a)

      9,089     9,161,782

6.072%, 3/01/37(a)

      8,257     8,320,121

6.109%, 1/01/37(a)

      8,541     8,622,096

Federal National Mortgage Association
5.528%, 3/01/37(a)

      5,413     5,401,172

Series 2005
4.813%, 7/01/35(a)

      1,585     1,570,945

6.03%, 1/01/36(a)

      2,523     2,510,340

Series 2006
4.41%, 8/01/34(a)

      1,336     1,342,494

5.465%, 5/01/36(a)

      3,845     3,856,087

5.804%, 3/01/36(a)

      7,326     7,391,905

5.89%, 11/01/36(a)

      13,267     13,391,834

5.923%, 6/01/36(a)

      4,741     4,792,425
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   303

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

5.95%, 6/01/36(a)

    $ 9,427   $ 9,523,568

Series 2007
5.751%, 12/01/36(a)

      4,678     4,708,421

5.79%, 8/01/37(a)

      12,600     13,036,579
        
       129,101,977
        

Fixed Rate 15-Year – 6.6%

     

Federal Gold Loan Mortgage Corp.
Series 2006
5.00%, 4/01/21

      18,924     18,484,934

Series 2007
5.00%, 9/01/21

      54,188     52,932,281

Federal National Mortgage Association
Series 1996
6.00%, 12/01/09

      1     919

Series 1998
6.00%, 10/01/13-12/01/13

      63     64,226

Series 2001
6.00%, 11/01/16

      226     228,751

Series 2002
6.00%, 12/01/17

      118     119,802

Series 2005
6.00%, 6/01/17-5/01/20

      678     686,328

Series 2006
6.00%, 5/01/21-1/01/22

      9,510     9,613,505

Series 2007
6.00%, 2/01/22

      1,998     2,019,371
        
       84,150,117
        

Non-Agency ARMS – 4.2%

     

Adjustable Rate Mortgage Trust
Series 2005-4, Class 3A1
5.003%, 8/25/35(b)

      4,294     4,177,229

Banc of America Funding Corp.
Series 2007-C, Class 1A3
5.763%, 5/20/36(b)

      8,944     8,873,259

Bear Stearns Alt-A Trust
Series 2006-1, Class 22A1
5.45%, 2/25/36(b)

      3,750     3,706,900

Series 2006-3, Class 22A1
6.25%, 5/25/36(b)

      2,606     2,604,441

Series 2007-1, Class 21A1
5.75%, 1/25/47(b)

      7,512     7,441,977

Citigroup Mortgage Loan Trust, Inc.
Series 2005-2, Class 1A4
5.105%, 5/25/35(b)

      3,145     3,066,693
304   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Countrywide Home Loan Mortgage Pass Through Trust
Series 2006-HYB4, Class 2A1
5.86%, 6/20/36(b)

    $ 2,393   $ 2,375,758

Indymac INDA Mortgage Loan Trust
Series 2006-AR2, Class 1A1
5.992%, 9/25/36(b)

      7,274     7,241,577

Indymac Index Mortgage Loan Trust
Series 2006-AR7, Class 4A1
6.237%, 5/25/36(b)

      1,712     1,704,251

JPMorgan Alternative Loan Trust
Series 2006-A4, Class A1
5.95%, 9/25/36(b)

      6,191     6,214,521

JPMorgan Mortgage Trust
Series 2006-A4, Class 1A1
5.862%, 6/25/36(b)

      3,097     3,073,710

Residential Funding Mortgage Securities, Inc.
Series 2005-SA3, Class 3A
5.249%, 8/25/35(b)

      2,759     2,690,563
        
       53,170,879
        

Total Mortgage Pass-Thru’s
(cost $396,784,450)

        396,787,668
        
    

COMMERCIAL MORTGAGE-BACKED SECURITIES – 17.7%

     

Non-Agency Fixed Rate CMBS – 14.9%

     

Asset Securitization Corp.
Series 1996-MD6, Class A1C
7.04%, 11/13/29

      85     85,034

Banc of America Commercial Mortgage, Inc.
Series 2006-6, Class A2
5.309%, 10/10/45

      7,950     7,871,224

Series 2007-1, Class A2
5.49%, 1/15/49

      8,000     7,921,579

Bear Stearns Commercial Mortgage Securities
Series 2002-TOP6, Class A2
6.46%, 10/15/36

      10,615     10,977,471

Series 2007-PW15, Class A2
5.205%, 2/11/44

      5,125     5,063,019

Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2007-CD4, Class A2B
5.205%, 12/11/49

      9,735     9,625,173

CW Capital Cobalt Ltd.
Series 2006-C1, Class A2
5.174%, 8/15/48

      7,800     7,677,725
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   305

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

First Union-Lehman Brothers-Bank of America
Series 1998-C2, Class A2
6.56%, 11/18/35

    $ 470   $ 469,639

GE Capital Commercial Mortgage Corp.
Series 2005-C3, Class A3FX
4.863%, 7/10/45

      5,665     5,564,276

Greenwich Capital Commercial Funding Corp.
Series 2005-GG3, Class A2
4.305%, 8/10/42

      8,500     8,287,957

Series 2007-GG9, Class A2
5.38%, 3/10/39

      6,250     6,219,920

GS Mortgage Securities Corp. II
Series 2007-GG10, Class AJ
5.993%, 8/10/45(b)

      4,841     4,705,967

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP5, Class A2
5.198%, 12/15/44

      5,847     5,779,105

Series 2007-LD11, Class C
6.007%, 6/15/49(b)

      7,760     7,354,596

LB Commercial Conduit Mortgage Trust
Series 2007-C3, Class A2
5.84%, 7/15/44(b)

      9,000     9,096,866

Series 2007-C3, Class C
6.134%, 7/15/44(b)

      10,000     9,943,400

LB-UBS Commercial Mortgage Trust
Series 2002-C1, Class A4
6.462%, 3/15/31

      5,900     6,106,726

Series 2003-C5, Class A3
4.254%, 7/15/27

      7,435     7,163,362

Series 2004-C7, Class A2
3.992%, 10/15/29

      15,840     15,381,103

Series 2005-C7, Class XCL
0.094%, 11/15/40(b)(c)(d)

      212,017     1,938,831

Series 2006-C1, Class XCL
0.081%, 2/15/41(b)(c)(d)

      288,740     3,188,897

Series 2006-C6, Class A2
5.262%, 9/15/39

      10,000     9,898,174

Series 2007-C1, Class A2
5.318%, 2/15/40

      8,430     8,345,037

Morgan Stanley Capital I
Series 2006-T21, Class X
0.273%, 10/12/52(b)(c)(d)

      171,857     2,467,260

Nomura Asset Securities Corp.
Series 1998-D6, Class A1B
6.59%, 3/15/30

      921     922,468
306   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Wachovia Bank Commercial Mortgage Trust
Series 2006-C29, Class A2
5.275%, 11/15/48

    $ 13,100   $ 12,986,749

Series 2007-C30, Class A3
5.246%, 12/15/43

      7,000     6,893,095

Series 2007-C32, Class C
5.929%, 6/15/49(b)

      7,500     7,156,800
        
       189,091,453
        

Non-Agency Adjustable Rate CMBS – 2.8%

  

Banc of America Large Loan, Inc.
Series 2005-MIB1, Class C
5.921%, 3/15/22(a)(c)

      2,500     2,500,000

Commercial Mortgage Pass-Through Certificates
Series 2005-F10A, Class A1
5.711%, 4/15/17(a)(c)

      469     469,117

Series 2005-FL11, Class D
5.951%, 11/15/17(a)(c)

      1,808     1,807,659

Series 2007-FL14, Class C
5.805%, 6/15/22(a)(c)

      7,333     7,295,839

Credit Suisse Mortgage Capital Certificates
Series 2006-TF2A, Class SVD
6.081%, 10/15/21(a)(c)

      4,900     4,897,456

Series 2007-TFLA, Class A2
5.731%, 2/15/22(a)(c)

      8,000     7,975,200

CS First Boston Mortgage Securities Corp.
Series 2005-TF2A, Class F
6.111%, 9/15/20(a)(c)

      1,435     1,436,529

Series 2005-TF2A, Class G
6.161%, 9/15/20(a)(c)

      1,435     1,433,773

Lehman Brothers Floating Rate Commercial Mortgage Trust
Series 2004-LLFA, Class C
5.921%, 10/15/17(a)(c)

      2,400     2,400,003

Morgan Stanley Capital I
Series 2005-XLF, Class G
5.981%, 8/15/19(a)(c)

      2,000     1,998,750

Series 2005-XLF, Class H
6.001%, 8/15/19(a)(c)

      1,000     998,750

Wachovia Bank Commercial Mortgage Trust
Series 2006-WL7A, Class H
6.011%, 9/15/21(a)(c)

      2,600     2,572,017
        
       35,785,093
        

Total Commercial Mortgage-Backed Securities
(cost $226,860,046)

        224,876,546
        
    

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   307

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

GOVERNMENT-RELATED – U.S.
AGENCIES – 13.3%

     

Agency Debentures – 11.6%

     

Federal Home Loan Bank
5.125%, 6/13/08

    $ 18,520   $ 18,522,796

5.375%, 8/19/11

      4,410     4,507,117

Federal Home Loan Mortgage Corp.
Series 2005
3.875%, 6/15/08

      16,380     16,228,551

Federal National Mortgage Association
5.00%, 2/16/12

      23,435     23,643,876

5.75%, 2/15/08

      42,335     42,418,739

Series 1999
6.625%, 9/15/09

      17,500     18,143,965

Series 2004
4.25%, 5/15/09

      24,175     23,971,567
        
       147,436,611
        

Agency Callables – 1.7%

     

Federal National Mortgage Association
4.90%, 11/28/07

      8,650     8,657,268

Series 2006
5.00%, 2/27/08

      13,210     13,221,964
        
       21,879,232
        

Total Government-Related – U.S. Agencies
(cost $169,045,601)

        169,315,843
        
    

MORTGAGE CMO’S – 9.9%

     

Non-Agency Fixed Rate – 5.6%

     

Citigroup Mortgage Loan Trust, Inc.
Series 2005-WF2, Class AF3
4.871%, 8/25/35

      5,000     4,967,316

Countrywide Alternative Loan Trust
Series 2006-J8, Class A2
6.00%, 2/25/37

      9,673     9,605,897

Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2006-AB2, Class A7
5.961%, 6/25/36(b)

      2,405     2,407,671

Deutsche Mortgage Securities, Inc.
Series 2005-WF1, Class 1A1
5.059%, 6/26/35(b)(c)

      3,111     3,092,910

Merrill Lynch Mortgage Investors, Inc.
Series 2005-A8, Class A1C1
5.25%, 8/25/36(b)

      1,781     1,744,363

Series 2005-A9, Class 2A1A
5.159%, 12/25/35(b)

      4,519     4,461,479

 

308   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Nomura Asset Acceptance Corp.
Series 2006-WF1, Class A2
5.755%, 6/25/36(b)

    $ 6,125   $ 6,132,307

Residential Accredit Loans, Inc.
Series 2007-QS1, Class 1A1
6.00%, 1/25/37

      15,732     15,896,073

Series 2007-QS1, Class 2A10
6.00%, 1/25/37

      6,023     6,042,530

Residential Asset Mortgage Products, Inc.
Series 2004-SL2, Class A2
6.50%, 10/25/31

      5,016     5,014,160

Washington Mutual Mortgage Pass Through
Series 2007-HY4, Class 2A2
5.746%, 4/25/37(a)

      8,953     8,869,402

Wells Fargo Mortgage Backed Securities Trust
Series 2006-AR11, Class A4
5.525%, 8/25/36(b)

      2,649     2,632,911
        
       70,867,019
        

Non-Agency Adjustable Rate – 3.7%

     

Adjustable Rate Mortgage Trust
Series 2005-11, Class 5M1
5.975%, 2/25/36(a)

      4,155     3,509,064

American Home Mortgage Investment Trust
Series 2005-2, Class 2A1
7.075%, 9/25/45(a)

      149     149,511

Countrywide Alternative Loan Trust
Series 2005-62, Class 2A1
6.027%, 12/25/35(a)

      1,521     1,518,120

Series 2006-OA14, Class 3A1
5.855%, 11/25/46(a)

      2,250     2,204,604

Deutsche ALT-A Securities, Inc. Alternate Loan Trust
Series 2007-OA4, Class 1A1A
5.51%, 8/25/47(a)

      3,024     2,931,624

Deutsche ALT-A Securities, Inc. Mortgage Loan
Series 2005-AR1, Class 1A1
5.815%, 8/25/35(a)

      163     154,885

Homebanc Mortgage Trust
Series 2005-4, Class A2
5.835%, 10/25/35(a)

      4,651     4,271,272

Merrill Lynch First Franklin Mtg Ln Trust
Series 2007-3, Class A2B
5.635%, 6/25/37(a)

      4,060     3,993,392

Merrill Lynch Mortgage Investors, Inc.
Series 2004-A, Class A1
5.735%, 4/25/29(a)

      152     152,404
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   309

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

MortgageIT Trust
Series 2005-4, Class M1
5.955%, 10/25/35(a)

    $ 1,817   $ 1,772,915

Sequoia Mortgage Trust
Series 2007-3, Class 1A1
5.52%, 7/20/36(a)

      4,520     4,479,184

Specialty Underwriting & Residential Finance
Series 2005-AB2, Class M1
5.955%, 6/25/36(a)

      2,000     1,761,540

Structured Adjustable Rate Mortgage Loan Trust
Series 2005-5, Class A3
5.735%, 5/25/35(a)

      267     265,336

Series 2005-9, Class 2A1
6.905%, 5/25/35(a)

      1,264     1,261,854

Structured Asset Mortgage Investment, Inc.
Series 2004-AR5, Class 1A1
5.868%, 10/19/34(a)

      911     888,743

Wachovia Bank Commercial Mortgage Trust
Series 2007-WHL8, Class E
6.011%, 6/15/20(a)(c)

      2,725     2,725,000

Washington Mutual, Inc.
Series 2006-AR11, Class 1A
6.465%, 9/25/46(a)

      4,257     4,234,215

Series 2006-AR11, Class 3A1A
6.425%, 9/25/46(a)

      1,568     1,532,087

Series 2006-AR4, Class 1A1B
5.945%, 5/25/46(a)

      1,841     1,831,033

Series 2006-AR9, Class 1AB2
5.614%, 8/25/46(a)

      4,575     4,479,036

Series 2007-OA1, Class A1A
5.583%, 2/25/47(a)

      3,705     3,592,873
        
       47,708,692
        

Agency Adjustable Rate – 0.6%

     

Federal National Mortgage Association
Series 2003-52, Class FV
6.505%, 5/25/31(a)

      4,334     4,384,308

Series 2003-W13, Class AV2
5.785%, 10/25/33(a)

      653     652,328

Freddie Mac Reference REMIC
Series 2006-R008, Class FK
5.74%, 7/15/23(a)

      2,049     2,043,559
        
       7,080,195
        

Total Mortgage CMO’s
(cost $127,909,269)

        125,655,906
        
    
310   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

ASSET-BACKED SECURITIES – 9.8%

     

Home Equity Loans – Floating Rate – 4.7%

     

ACE Securities Corp.
Series 2003-OP1, Class A2
5.865%, 12/25/33(a)

    $ 18   $ 16,373

BNC Mortgage Loan Trust
Series 2007-2, Class M5
6.405%, 5/25/37(a)

      1,200     893,784

Series 2007-3, Class A3
5.635%, 7/25/37(a)

      4,435     4,330,201

Countrywide Asset-Backed Certificates
Series 2007-10, Class 2A2
5.625%, 6/25/30(a)

      2,500     2,440,950

First Franklin Mortgage Loan Trust
Series 2004-FF4, Class A2
5.795%, 6/25/34(a)

      83     76,079

Home Equity Mortgage Trust
Series 2005-3, Class M1
6.045%, 11/25/35(a)

      800     680,000

Household Home Equity Loan Trust
Series 2006-1, Class M1
5.818%, 1/20/36(a)

      2,090     1,946,877

Series 2007-2, Class A2V
5.48%, 7/21/36(a)

      2,800     2,687,563

HSI Asset Securitization Corp.
Series 2006-OPT1, Class 2A1
5.585%, 12/25/35(a)

      2,784     2,767,038

Indymac Residential Asset Backed Trust
Series 2007-B, Class 2A2
5.665%, 7/25/37(a)

      3,350     3,295,563

Lehman ABS Mortgage Loan Trust
Series 2007-1, Class 2A2
5.705%, 6/25/37(a)(c)

      3,700     3,643,923

Lehman XS Trust
Series 2005-2, Class 1M1
6.005%, 8/25/35(a)

      5,000     4,228,100

Series 2006-1, Class 1M1
5.955%, 2/25/36(a)

      4,000     3,353,120

Series 2007-2N, Class M1
5.66%, 2/25/37(a)

      3,600     2,956,176

Master Asset Backed Securities Trust
Series 2004-HE1, Class A1
5.905%, 9/25/34(a)

      598     589,117

Series 2006-WMC1, Class A2
5.615%, 2/25/36(a)

      2,000     1,968,095

Nationstar Home Equity Loan Trust
Series 2007-C, Class 2AV2
5.635%, 6/25/37(a)

      3,100     3,054,470

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   311

 

Short Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Newcastle Mortgage Securities Trust
Series 2007-1, Class 2A1
5.45%, 4/25/37(a)

    $ 4,107   $ 4,075,280

Novastar Home Loan Equity
Series 2007-2, Class A2B
5.665%, 9/25/37(a)

      3,125     3,082,031

Series 2007-2, Class M1
5.65%, 9/25/37(a)

      4,900     4,138,932

Option One Mortgage Loan Trust
Series 2006-2, Class 2A2
5.605%, 7/25/36(a)

      4,215     4,152,433

Soundview Home Equity Loan Trust
Series 2007-OPT1, Class M6
6.705%, 6/25/37(a)

      1,100     825,165

Series 2007-OPT2, Class 2A2
5.635%, 7/25/37(a)

      4,185     4,118,957
        
       59,320,227
        

Home Equity Loans – Fixed Rate – 3.9%

     

American General Mortgage Loan Trust
Series 2003-1, Class A3
4.03%, 4/25/33

      2,873     2,712,995

Citifinancial Mortgage Securities, Inc.
Series 2004-1, Class AF2
2.645%, 4/25/34

      507     493,552

Countrywide Asset-Backed Certificates
Series 2007-S1, Class A3
5.81%, 11/25/36(b)

      3,500     3,269,630

Credit-Based Asset Servicing & Securities, Inc.
Series 2003-CB1, Class AF
3.45%, 1/25/33(e)

      1,621     1,520,123

Credit-Based Asset Servicing and
Securities Trust
Series 2003-CB3, Class AF1
2.879%, 12/25/32

      2,180     2,071,265

Series 2005-CB4, Class AF2
4.751%, 8/25/35

      2,250     2,216,557

Series 2005-RP2, Class AF2
5.75%, 9/25/35(b)(c)

      1,800     1,784,394

Series 2007-CB4, Class A2A
5.844%, 4/25/37

      2,741     2,730,133

Flagstar Home Equity Loan Trust
Series 2007-1A, Class AF2
5.765%, 1/25/35(c)

      5,500     5,491,704

Home Equity Mortgage Trust
Series 2005-4, Class A3
4.742%, 1/25/36(e)

      2,038     2,027,386

 

312   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Series 2006-1, Class A2
5.30%, 5/25/36(e)

    $ 4,010   $ 3,408,500

Series 2006-5, Class A1
5.50%, 1/25/37

      3,255     2,992,791

Household Home Equity Loan Trust
Series 2006-4, Class A2F
5.32%, 3/20/36

      1,285     1,275,379

Series 2007-1, Class A2F
5.60%, 3/20/36

      7,610     7,576,761

Series 2007-2, Class A2F
5.69%, 7/21/36

      4,600     4,568,846

Nationstar NIM Trust
Series 2007-A, Class A
9.97%, 3/25/37(c)

      482     456,436

Residential Asset Mortgage Products, Inc.
Series 2004-RS4, Class AI4
4.911%, 4/25/34(b)

      21     21,047

Security National Mortgage Loan Trust
Series 2007-1A, Class 1A1
5.91%, 4/25/47(b)(c)

      2,655     2,651,363

Structured Asset Securities Corp.
Series 2007-RM1, Class AI0
5.00%, 5/25/47(c)(d)

      12,013     2,777,917
        
       50,046,779
        

Other – Floating Rate – 0.8%

     

Ballyrock ABS CDO Ltd.
Series 2007-1A, Class A1B
6.118%, 8/06/47(a)(c)*

      1,875     1,312,500

Halcyon Securitized Product Investors
Series 2007-1A, Class A2
6.367%, 5/13/52(a)(c)*

      645     335,400

Libertas Preferred Funding Ltd.
Series 2007-3A, Class 2
6.01%, 4/09/47(a)(c)*

      3,600     1,800,576

Mortgage Equity Conversion Asset Trust
Series 2007-FF2, Class A
5.42%, 2/25/42(a)(c)

      3,600     3,472,920

Neapolitan Segregated Portfolio
Series 2007-1A, Class I
6.32%, 3/30/46(a)(c)*

      1,100     330,000

Petra CRE CDO Ltd.
Series 2007-1A, Class C
6.459%, 2/25/47(a)(c)*

      1,865     1,691,089

SLM Student Loan Trust
Series 2005-10, Class A2
5.37%, 4/27/15(a)

      1,054     1,053,518
        
       9,996,003
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   313

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Autos – Floating Rate – 0.3%

     

GE Dealer Floorplan Master Note Trust
Series 2006-2, Class A
5.405%, 4/22/13(a)

    $ 4,360   $ 4,328,686
        

Other – Fixed Rate – 0.1%

     

DB Master Finance, LLC
Series 2006-1, Class A2
5.779%, 6/20/31(c)

      1,600     1,599,184
        

Autos – Fixed Rate – 0.0%

     

Capital Auto Receivables Asset Trust
Series 2005-SN1A, Class A3A
4.10%, 6/15/08

      1     1,305
        

Total Asset-Backed Securities
(cost $134,817,906)

        125,292,184
        
    

U.S. TREASURIES – 7.2%

     

U.S. Treasury Notes
3.50%, 8/15/09

      66,705     65,834,700

4.875%, 5/31/11

      24,720     25,285,865
        

Total U.S. Treasuries
(cost $89,809,548)

        91,120,565
        
    

CORPORATES – INVESTMENT GRADES – 3.2%

     

Financial Institutions – 1.7%

     

Banking – 0.3%

     

UBS Preferred Funding Trust I
8.622%, 10/29/49(b)

      3,885     4,251,814
        

Finance – 1.1%

     

American General Finance Corp.
5.80%, 8/17/11(a)

      9,500     9,458,931

Capital One Financial
6.00%, 9/10/09(a)

      4,800     4,753,618
        
       14,212,549
        

REITS – 0.3%

     

Simon Property Group LP
6.375%, 11/15/07

      3,804     3,803,646
        
       22,268,009
        

Industrial – 1.5%

     

Capital Goods – 0.4%

     

Waste Management, Inc.
6.50%, 11/15/08

      5,623     5,688,176
        

Communications – Media – 0.6%

     

British Sky Broadcasting Group PLC
6.875%, 2/23/09

      7,340     7,527,485
        

Consumer Cyclical – Automotive – 0.1%

  

DaimlerChrysler North America
4.875%, 6/15/10

      1,210     1,190,091
        
314   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value  
   
    

Consumer Non-Cyclical – 0.4%

     

Safeway, Inc.
6.50%, 11/15/08

    $ 4,495   $ 4,556,339  
          
       18,962,091  
          

Total Corporates – Investment Grades
(cost $41,439,232)

        41,230,100  
          
    

INFLATION-LINKED SECURITIES – 2.5%

  

U.S. Treasury Notes
3.875%, 1/15/09 (TIPS)(f)
(cost $31,643,899)

      31,232     31,663,678  
          
         Shares      

SHORT-TERM INVESTMENTS – 10.5%

     

Investment Companies – 10.5%

     

AllianceBernstein Fixed-Income Shares, Inc. – Prime STIF Portfolio(g)
(cost $133,091,432)

      133,091,432     133,091,432  
          

Total Investments – 105.3%
(cost $1,351,400,885)

        1,339,033,922  

Other assets less liabilities – (5.3)%

        (66,957,893 )
          

Net Assets – 100.0%

      $ 1,272,076,029  
          

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type   Number of
Contracts		   Expiration
Month		   Original
Value		   Value at
August 31,
2007		   Unrealized
Appreciation/
(Depreciation)

Purchased Contracts

        

U.S. T-Note 10yr Future

   29   December 2007   $ 3,160,467   $ 3,162,359   $ 1,892

 

(a) Floating Rate Security. Stated interest rate was in effect at August 31, 2007.

 

(b) Variable rate coupon, rate shown as of August 31, 2007.

 

(c) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in the transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $76,545,396 or 6.0% of net assets.

 

(d) IO – Interest Only

 

(e) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at August 31, 2007.

 

(f) Position, or a portion thereof, has been segregated to collateralize margin requirements for open future contracts. The market value of this security amounted to $712,500.

 

(g) Investment in affiliated money market mutual fund.

 

* Illiquid securities.

 

Currency Abbreviations:

 

Glossary:

 

TBA – To Be Announced
TIPS – Treasury Inflation Protected Security

The Portfolio currently owns investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Portfolio’s total exposure to subprime investments was 8.69%. These investments are valued in accordance with the Portfolio’s Valuation Policies (see Note A1 for additional details).

 

   See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   315

 

Short Duration Bond Portfolio—Portfolio of Investments

 

INTERMEDIATE DURATION BOND PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

MORTGAGE PASS-THRU’S – 38.0%

     

Fixed Rate 30-Year – 29.9%

     

Federal Gold Loan Mortgage Corp.
Series 2005
4.50%, 8/01/35-10/01/35(a)

    $ 7,350   $ 6,806,985

Series 2007
7.00%, 2/01/37(a)

      103     106,314

Federal Gold Loan Mortgage Corp.
Series 2005
4.50%, 8/01/35-10/01/35(a)

      5,716     5,293,787

Series 2006
4.50%, 1/01/36-5/01/36(a)

      199     184,148

6.00%, 7/01/36-11/01/36(a)

      37,392     37,371,368

7.00%, 8/01/36-10/01/36(a)

      1,748     1,795,166

Series 2007
6.00%, 7/01/37-8/01/37(a)

      11,303     11,294,603

7.00%, 2/01/37(a)

      16,435     16,882,078

Federal National Mortgage Association
Series 2003
5.00%, 11/01/33(a)

      11,190     10,674,103

5.50%, 4/01/33-7/01/33(a)

      24,539     24,035,812

Series 2004
5.50%, 4/01/34-11/01/34(a)

      17,839     17,460,354

Series 2005
4.50%, 9/01/35-12/01/35(a)

      9,428     8,722,936

5.50%, 2/01/35-7/01/35(a)

      18,843     18,436,209

6.00%, 4/01/35(a)

      15,277     15,318,064

6.50%, 11/01/35(a)

      62     63,450

Series 2006
5.00%, 1/01/36-2/01/36(a)

      26,814     25,528,366

5.50%, 1/01/36-11/01/36(a)

      118,400     115,744,405

6.50%, 2/01/36-1/01/37(a)

      58,830     59,723,051

Series 2007
4.50%, 7/01/37-8/01/37(a)

      5,602     5,181,062

5.50%, 5/01/36(a)

      25,902     25,321,928

6.00%, 4/01/37-8/01/37(a)

      19,459     19,438,703

6.50%, 2/01/37-8/01/37(a)

      52,575     53,369,948
        
       478,752,840
        

Agency ARMS – 4.0%

     

Federal Home Loan Mortgage Corp.
Series 2006
5.833%, 12/01/36(a)(b)

      32,585     32,767,551

Series 2007
5.997%, 2/01/37(a)(b)

      6,570     6,626,081

Federal National Mortgage Association
Series 2006
4.41%, 8/01/34(a)(b)

      3,549     3,565,527
316   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

5.465%, 5/01/36(a)(b)

    $ 1,256   $ 1,259,898

5.804%, 3/01/36(a)(b)

      4,463     4,503,114

5.923%, 6/01/36(a)(b)

      3,237     3,272,361

Series 2007
5.773%, 1/01/37(a)(b)

      7,083     7,134,161

5.79%, 8/01/37(a)(b)

      5,250     5,431,844
        
       64,560,537
        

Fixed Rate 15-Year – 2.3%

     

Federal Gold Loan Mortgage Corp.
Series 2006
5.00%, 4/01/21(a)

      3,101     3,029,181

Federal National Mortgage Association
Series 2005
5.00%, 4/01/19-9/01/20(a)

      12,109     11,883,829

Series 2006
5.00%, 3/01/20-12/01/21(a)

      15,535     15,179,375

Series 2007
5.00%, 2/01/22-6/01/22(a)

      5,939     5,798,850
        
       35,891,235
        

Non-Agency ARMS – 1.8%

     

Banc of America Funding Corp.
Series 2007-C, Class 1A3
5.763%, 5/20/47(a)(b)

      6,364     6,313,213

Bear Stearns Alt-A Trust
Series 2006-1, Class 22A1
5.45%, 2/25/36(a)(c)

      3,988     3,941,962

Series 2006-3, Class 22A1
6.25%, 5/25/36(a)(c)

      1,918     1,916,545

Series 2007-1, Class 21A1
5.75%, 1/25/47(a)(c)

      2,567     2,543,056

Citigroup Mortgage Loan Trust, Inc.
Series 2005-2, Class 1A4
5.105%, 5/25/35(a)(c)

      4,493     4,380,990

Series 2006-AR1, Class 3A1
5.50%, 3/25/36(a)(b)

      4,896     4,971,770

Indymac Index Mortgage Loan Trust
Series 2006-AR7, Class 4A1
6.237%, 5/25/36(a)(c)

      2,288     2,277,758

Residential Funding Mortgage Securities, Inc.
Series 2005-SA3, Class 3A
5.249%, 8/25/35(a)(c)

      2,880     2,808,703
        
       29,153,997
        

Total Mortgage Pass-Thru’s
(cost $610,707,010)

        608,358,609
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   317

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

CORPORATES – INVESTMENT GRADES – 14.8%

     

Industrial – 8.3%

     

Basic – 0.3%

     

The Dow Chemical Co.
7.375%, 11/01/29(a)

    $ 220   $ 241,583

International Paper Co.
5.30%, 4/01/15(a)

      2,625     2,520,026

Lubrizol Corp.
4.625%, 10/01/09(a)

      805     792,881

Westvaco Corp.
8.20%, 1/15/30(a)

      670     699,954

Weyerhaeuser Co.
5.95%, 11/01/08(a)

      1,083     1,091,372
        
       5,345,816
        

Capital Goods – 0.6%

     

Boeing Capital Corp.
4.75%, 8/25/08(a)

      1,615     1,604,501

6.50%, 2/15/12(a)

      205     218,344

Hutchison Whampoa International, Ltd.
7.45%, 11/24/33(a)(d)

      1,449     1,580,449

Textron Financial Corp.
4.125%, 3/03/08(a)

      2,610     2,592,633

Textron, Inc.
6.375%, 11/15/08(a)

      875     884,486

Tyco International Group, SA
6.00%, 11/15/13(a)

      1,250     1,257,771

Waste Management, Inc.
6.875%, 5/15/09(a)

      1,435     1,479,603
        
       9,617,787
        

Communications – Media – 1.2%

     

British Sky Broadcasting Group PLC
6.875%, 2/23/09(a)

      489     501,490

BSKYB Finance UK PLC
5.625%, 10/15/15(a)(d)

      2,325     2,298,374

Comcast Cable Communications Holdings, Inc.
8.375%, 3/15/13(a)

      940     1,051,460

9.455%, 11/15/22(a)

      1,731     2,188,815

Comcast Cable Communications LLC
6.875%, 6/15/09(a)

      1,463     1,501,363

Comcast Corp.
5.30%, 1/15/14(a)

      2,253     2,183,982

5.50%, 3/15/11(a)

      2,767     2,766,162

News America, Inc.
6.55%, 3/15/33(a)

      1,383     1,361,974

RR Donnelley & Sons Co.
4.95%, 4/01/14(a)

      710     670,468

 

318   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Time Warner Entertainment Co.
8.375%, 3/15/23(a)

    $ 3,190   $ 3,687,563

WPP Finance Corp.
5.875%, 6/15/14(a)

      886     909,369
        
       19,121,020
        

Communications – Telecommunications – 2.6%

  

AT&T Corp.
8.00%, 11/15/31(a)

      295     351,035

British Telecommunications PLC
8.375%, 12/15/10(a)

      4,581     5,024,482

Embarq Corp.
6.738%, 6/01/13(a)

      210     218,496

7.082%, 6/01/16(a)

      5,970     6,156,700

New Cingular Wireless Services, Inc.
7.875%, 3/01/11(a)

      2,435     2,622,639

8.75%, 3/01/31(a)

      1,429     1,781,350

Pacific Bell
6.625%, 10/15/34(a)

      3,900     3,897,391

Qwest Corp.
7.875%, 9/01/11(a)

      3,735     3,907,744

8.875%, 3/15/12(a)

      2,780     3,009,350

Sprint Capital Corp.
8.375%, 3/15/12(a)

      3,219     3,556,924

Telecom Italia Capital SA
4.00%, 11/15/08-1/15/10(a)

      3,815     3,702,788

6.375%, 11/15/33(a)

      375     357,825

Verizon Communications, Inc.
4.90%, 9/15/15(a)

      1,590     1,508,717

Verizon New Jersey, Inc.
Series A 5.875%, 1/17/12(a)

      2,200     2,234,942

Vodafone Group PLC
5.50%, 6/15/11(a)

      3,015     3,013,809
        
       41,344,192
        

Consumer Cyclical – Automotive – 0.0%

     

DaimlerChrysler North America
4.875%, 6/15/10(a)

      698     686,515
        

Consumer Cyclical – Other – 0.7%

     

Centex Corp.
5.45%, 8/15/12(a)

      4,085     3,766,395

Starwood Hotels & Resorts Worldwide, Inc.
7.375%, 11/15/15(a)

      2,676     2,706,991

7.875%, 5/01/12(a)

      2,826     3,022,791

Toll Brothers Finance Corp.
5.15%, 5/15/15(a)

      405     343,267

6.875%, 11/15/12(a)

      1,055     1,047,105
        
       10,886,549
        
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   319

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Consumer Non-Cyclical – 2.0%

     

Altria Group, Inc.
7.75%, 1/15/27(a)

    $ 2,120   $ 2,579,637

Bunge Ltd Finance Corp.
5.10%, 7/15/15(a)

      1,711     1,563,476

Cadbury Schweppes US Finance LLC
5.125%, 10/01/13(a)(d)

      3,480     3,337,599

ConAgra Foods, Inc.
7.875%, 9/15/10(a)

      641     688,104

Fisher Scientific International, Inc.
6.125%, 7/01/15(a)

      3,241     3,175,286

6.75%, 8/15/14(a)

      1,166     1,166,320

Kraft Foods, Inc.
4.125%, 11/12/09(a)

      3,245     3,180,600

The Kroger Co.
6.80%, 12/15/18(a)

      1,100     1,148,293

Reynolds American, Inc.
7.25%, 6/01/13(a)

      3,730     3,862,907

7.625%, 6/01/16(a)

      3,655     3,827,834

Safeway, Inc.
4.125%, 11/01/08(a)

      683     675,126

6.50%, 3/01/11(a)

      453     471,126

Tyson Foods, Inc.
6.85%, 4/01/16(a)

      3,785     3,948,213

Wyeth
5.50%, 2/01/14(a)

      2,212     2,210,237
        
       31,834,758
        

Energy – 0.4%

     

Amerada Hess Corp.
7.875%, 10/01/29(a)

      2,273     2,592,702

Tengizchevroil Finance Co.
6.124%, 11/15/14(a)(d)

      380     368,600

Valero Energy Corp.
6.875%, 4/15/12(a)

      2,588     2,731,463
        
       5,692,765
        

Technology – 0.5%

     

Electronic Data Systems Corp.
7.45%, 10/15/29(a)

      1,555     1,592,300

Series B
6.50%, 8/01/13(a)

      3,745     3,743,322

IBM Corp.
4.375%, 6/01/09(a)

      455     452,572

Motorola, Inc.
6.50%, 9/01/25(a)

      1,800     1,737,369

7.50%, 5/15/25(a)

      290     296,855

7.625%, 11/15/10(a)

      146     155,131
        
       7,977,549
        
       132,506,951
        
320   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    Principal
Amount
(000)		    U.S. $ Value
 
    

Financial Institutions – 4.8%

     

Banking – 1.6%

     

Barclays Bank PLC
8.55%, 9/29/49(a)(c)(d)

   $    961    $ 1,066,363

Citigroup, Inc.
4.625%, 8/03/10(a)

     2,357      2,330,877

5.50%, 6/09/09(a)(b)

     421      421,941

Credit Suisse First Boston USA, Inc.
5.50%, 8/15/13(a)

     1,812      1,811,369

Huntington National Bank
4.375%, 1/15/10(a)

     517      510,714

JPMorgan Chase & Co.
6.75%, 2/01/11(a)

     4,225      4,406,722

MBNA Corp.
4.625%, 9/15/08(a)

     1,362      1,349,109

MUFG Capital Finance 1 Ltd.
6.346%, 7/25/16(a)(c)

     770      734,922

RBS Capital Trust III
5.512%, 9/29/49(a)(c)

     562      531,120

Resona Bank Ltd.
5.85%, 4/15/16(a)(c)(d)

     330      313,036

Resona Preferred Global Securities
7.191%, 12/30/49(a)(c)(d)

     619      622,461

Bank of Tokyo-Mitsubishi UFJ
7.40%, 6/15/11(a)

     170      182,420

Suntrust Bank Series CD
5.70%, 6/02/09(a)(b)

     591      589,651

UBS Preferred Funding Trust I
8.622%, 10/29/49(a)(c)

     1,825      1,997,313

UFJ Finance Aruba AEC
6.75%, 7/15/13(a)

     1,913      1,980,793

Wachovia Corp.
5.35%, 3/15/11(a)

     2,205      2,207,293

Washington Mutual, Inc.
4.00%, 1/15/09(a)

     2,185      2,118,607

Wells Fargo & Co.
4.20%, 1/15/10(a)

     1,808      1,768,049

Zions Bancorporation
5.50%, 11/16/15(a)

     1,420      1,371,710
        
       26,314,470
        

Brokerage – 0.6%

     

The Bear Stearns Cos, Inc.
5.55%, 1/22/17(a)

     4,125      3,797,805

Goldman Sachs Group, Inc.
4.75%, 7/15/13(a)

     1,876      1,774,460

5.125%, 1/15/15(a)

     1,590      1,508,646

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   321

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    Principal
Amount
(000)		    U.S. $ Value
 
    

Lehman Brothers Holdings, Inc.
4.80%, 3/13/14(a)

   $ 1,065    $ 991,935

6.50%, 7/19/17(a)

     1,315      1,294,667
        
       9,367,513
        

Finance – 1.9%

     

American General Finance Corp.
4.625%, 5/15/09(a)

     2,620      2,603,829

Capital One Financial Corp.
4.80%, 2/21/12(a)

     665      628,666

CIT Group, Inc.
5.85%, 9/15/16(a)

     3,790      3,335,484

Core Investment Grade Trust
4.642%, 11/30/07(a)(c)

     3,882      3,869,427

Countrywide Financial Corp.
5.80%, 6/07/12(a)

     1,233      1,158,699

6.25%, 5/15/16(a)

     3,256      2,889,625

Countrywide Home Loans, Inc.
4.00%, 3/22/11(a)

     1,503      1,345,209

4.25%, 12/19/07(a)

     1,855      1,832,714

General Electric Capital Corp.
4.00%, 2/17/09(a)

     880      869,043

4.375%, 11/21/11(a)

     1,213      1,177,580

6.75%, 3/15/32(a)

     3,134      3,442,342

HSBC Finance Corp.
6.50%, 11/15/08(a)

     4,771      4,831,315

7.00%, 5/15/12(a)

     2,095      2,210,676

iStar Financial, Inc.
5.15%, 3/01/12(a)

     1,019      945,066
        
       31,139,675
        

Insurance – 0.6%

     

Assurant, Inc.
5.625%, 2/15/14(a)

     1,028      1,012,989

Berkshire Hathaway Finance Corp.
4.20%, 12/15/10(a)

     1,656      1,627,716

Humana, Inc.
6.30%, 8/01/18(a)

     1,094      1,098,194

Liberty Mutual Group, Inc.
5.75%, 3/15/14(a)(d)

     993      975,386

WellPoint, Inc.
3.50%, 9/01/07(a)

     2,200      2,200,000

3.75%, 12/14/07(a)

     412      409,553

4.25%, 12/15/09(a)

     2,555      2,508,422
        
       9,832,260
        

REITS – 0.1%

     

Simon Property Group LP
6.375%, 11/15/07(a)

     1,015      1,014,906
        
       77,668,824
        

 

322   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Utility – 1.2%

     

Electric – 1.1%

     

Carolina Power & Light Co.
6.50%, 7/15/12(a)

    $ 3,155   $ 3,306,926

CE Electric UK Funding Co.
6.995%, 12/30/07(a)(d)

      700     704,278

Consumers Energy Co.
Series C
4.25%, 4/15/08(a)

      734     727,812

Exelon Corp.
6.75%, 5/01/11(a)

      1,295     1,343,069

FirstEnergy Corp.
Series B
6.45%, 11/15/11(a)

      1,300     1,342,649

Series C
7.375%, 11/15/31(a)

      1,436     1,582,544

MidAmerican Energy Holdings Co.
5.875%, 10/01/12(a)

      1,763     1,798,923

Nisource Finance Corp.
7.875%, 11/15/10(a)

      1,656     1,758,894

Pacific Gas & Electric Co.
4.80%, 3/01/14(a)

      1,700     1,623,039

Progress Energy, Inc.
7.10%, 3/01/11(a)

      574     606,321

Public Service Company of Colorado
7.875%, 10/01/12(a)

      874     970,441

TXU Australia Holdings Pty Ltd.
6.15%, 11/15/13(a)(d)

      1,447     1,469,653
        
       17,234,549
        

Natural Gas – 0.1%

     

Duke Energy Field Services Corp.
7.875%, 8/16/10(a)

      506     538,828

Enterprise Products Operating L.P.
Series B
5.60%, 10/15/14(a)

      1,278     1,253,026
        
       1,791,854
        
       19,026,403
        

Non Corporate Sectors – 0.5%

     

Agencies – Not Government
Guaranteed – 0.5%

     

Gaz Capital For Gazprom
6.212%, 11/22/16(d)

      7,890     7,632,786
        

Total Corporates – Investment Grades
(cost $240,142,163)

        236,834,964
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   323

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

GOVERNMENT-RELATED –
SOVEREIGNS – 11.8%

     

Japan Government
Series 253
0.80%, 2/15/09(a)

    JPY 2,230,000   $ 19,253,033

Series 283
1.80%, 9/20/16(a)

      2,577,650     22,757,273

Series 48
0.70%, 6/20/10(a)

      5,612,250     48,103,511

Series 63
1.20%, 3/20/12(a)

      8,016,650     69,513,889

Mexican Bonos Series MI10
8.00%, 12/19/13(a)

    MXN 171,965     15,757,873

Government of Sweden
Series 1043
5.00%, 1/28/09(a)

    SEK 93,350     13,700,816
        

Total Government-Related – Sovereigns
(cost $180,054,304)

        189,086,395
        
    

U.S. TREASURIES – 11.2%

     

U.S. Treasury Bonds
4.50%, 2/15/36(a)(e)

    $ 66,290     62,835,694

U.S. Treasury Notes
4.875%, 5/31/08-5/31/11(a)

      115,290     115,816,165
        

Total U.S. Treasuries
(cost $176,395,073)

        178,651,859
        
    

COMMERCIAL MORTGAGE-BACKED SECURITIES – 8.8%

     

Non-Agency Fixed Rate CMBS – 8.2%

     

Banc of America Commercial Mortgage, Inc.
Series 2001-PB1, Class A2
5.787%, 5/11/35(a)

      864     870,748

Series 2004-4, Class A3
4.128%, 7/10/42(a)

      1,035     1,009,366

Series 2004-6, Class A2
4.161%, 12/10/42(a)

      3,865     3,763,158

Bear Stearns Commercial Mortgage Securities, Inc.
Series 2005-PWR7, Class A3
5.116%, 2/11/41(a)(c)

      2,500     2,408,937

Series 2005-T18, Class A4
4.933%, 2/13/42(a)(c)

      4,235     3,975,606

Series 2006-PW12, Class A4
5.895%, 9/11/38(a)(c)

      2,285     2,305,615

 

324   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-CK2, Class A2
3.861%, 3/15/36(a)

    $ 899   $ 885,638

Series 2004-C1, Class A4
4.75%, 1/15/37(a)(c)

      1,815     1,734,122

Series 2005-C1, Class A4
5.014%, 2/15/38(a)(c)

      1,516     1,441,038

Credit Suisse Mortgage Capital Certificates
Series 2006-C3, Class A3
6.021%, 6/15/38(a)(c)

      2,095     2,120,278

Series 2006-C4, Class A3
5.467%, 9/15/39(a)

      6,475     6,354,432

GE Capital Commercial Mortgage Corp.
Series 2005-C3, Class A3FX
4.863%, 7/10/45(a)

      3,265     3,206,948

Greenwich Capital Commercial Funding Corp.
Series 2003-C1, Class A4
4.111%, 7/05/35(a)

      1,102     1,027,558

Series 2005-GG3, Class A2
4.305%, 8/10/42(a)

      1,823     1,777,523

Greenwich Capital Funding Corp.
Series 2007-GG9, Class A4
5.444%, 3/10/39(a)

      3,800     3,717,839

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2004-C1, Class A2
4.302%, 1/15/38(a)

      1,720     1,653,032

Series 2005-LDP1, Class A4
5.038%, 3/15/46(a)(c)

      1,846     1,782,734

Series 2005-LDP3, Class A2
4.851%, 8/15/42(a)

      2,810     2,755,076

Series 2005-LDP4, Class A2
4.79%, 10/15/42(a)

      1,420     1,390,469

Series 2006-CB15, Class A4
5.814%, 6/12/43(a)(c)

      7,100     7,143,365

Series 2007-LD11, Class A2
5.992%, 6/15/49(a)(c)

      9,010     9,087,844

LB-UBS Commercial Mortgage Trust
Series 2003-C3, Class A4
4.166%, 5/15/32(a)

      4,900     4,577,708

Series 2004-C2, Class A4
4.367%, 3/15/36(a)

      7,760     7,250,571

Series 2004-C4, Class A4
5.295%, 6/15/29(a)(c)

      6,015     5,972,247

Series 2004-C8, Class A2
4.201%, 12/15/29(a)

      1,084     1,055,278

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   325

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Series 2005-C1, Class A4
4.742%, 2/15/30(a)

    $ 4,209   $ 3,969,195

Series 2005-C7, Class A4
5.197%, 11/15/30(a)(c)

      2,380     2,301,491

Series 2006-C1, Class A4
5.156%, 2/15/31(a)

      6,557     6,332,414

Series 2006-C6, Class A4
5.372%, 9/15/39(a)

      6,005     5,860,205

Merrill Lynch Mortgage Trust
Series 2005-CKI1, Class A6
5.417%, 11/12/37(a)(c)

      2,100     2,047,205

Series 2005-MKB2, Class A2
4.806%, 9/12/42(a)

      2,230     2,195,800

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2006-1, Class A2
5.439%, 2/12/39(a)(c)

      5,385     5,384,352

Series 2006-2, Class A4
6.105%, 6/12/46(a)(c)

      3,075     3,129,287

Morgan Stanley Capital I
Series 2004-HQ4, Class A5
4.59%, 4/14/40(a)

      6,500     6,288,682

Series 2005-HQ5, Class A4
5.168%, 1/14/42(a)

      5,186     5,012,106

Series 2007-T27, Class A4
5.804%, 6/11/42(a)(c)

      9,860     9,865,385
        
       131,653,252
        

Non-Agency Adjustable Rate CMBS –0.6%

     

GS Mortgage Securities Corp. II
Series 2007-EOP, Class E
5.81%, 3/06/20(a)(b)(d)

      1,855     1,817,900

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2006-CB14, Class A4
5.481%, 12/12/44(a)(c)

      1,720     1,694,186

LB-UBS Commercial Mortgage Trust
Series 2007-C6, Class A4
5.858%, 7/15/40(a)(c)

      5,725     5,775,094
        
       9,287,180
        

Total Commercial Mortgage-Backed Securities
(cost $142,615,537)

        140,940,432
        
    

GOVERNMENT-RELATED – NON-U.S.
ISSUERS – 3.8%

     

Sovereigns – 3.7%

     

United Mexican States
5.625%, 1/15/17(a)

      22,748     22,748,000

7.50%, 1/14/12(a)

      7,030     7,606,460
326   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Russian Federation
7.50%, 3/31/30(a)(d)(f)

    $ 19,931   $ 22,123,238

Republic of South Africa
5.875%, 5/30/22(a)

      7,325     7,086,937
        
       59,564,635
        

Agencies – 0.1%

     

Korea Development Bank
4.625%, 9/16/10(a)

      1,335     1,314,058
        

Total Government-Related – Non-U.S. Issuers
(cost $60,589,430)

        60,878,693
        
    

ASSET-BACKED SECURITIES – 2.5%

     

Home Equity Loans – Floating Rate –1.5%

     

Asset Backed Funding Certificates
Series 2003-WF1, Class A2
6.07%, 12/25/32(a)(b)

      870     868,195

Bear Stearns Asset Backed Securities, Inc.
Series 2005-SD1, Class 1A1
5.655%, 4/25/22(a)(b)

      98     98,156

Citigroup Mortgage Loan Trust, Inc.
Series 2007-AMC4, Class M1
5.775%, 5/25/37(a)(b)

      3,715     3,134,308

Credit-Based Asset Servicing & Securities, Inc.
Series 2005-CB7, Class AF2
5.147%, 11/25/35(a)(f)

      1,805     1,790,448

GE-WMC Mortgage Securities LLC
Series 2005-2, Class A2B
5.675%, 12/25/35(a)(b)

      2,190     2,166,436

HFC Home Equity Loan Asset Backed Certificates
Series 2005-3, Class A1
5.798%, 1/20/35(a)(b)

      1,286     1,247,273

HSI Asset Securitization Corp. Trust
Series 2006-OPT2, Class 2A1
4.685%, 1/25/36(a)(b)

      757     753,390

Lehman XS Trust
Series 2005-4, Class 1M1
6.005%, 10/25/35(a)(b)

      4,865     4,094,725

Master Asset Backed Securities Trust
Series 2004-HE1, Class A1
5.905%, 9/25/34(a)(b)

      604     595,467

Option One Mortgage Loan Trust
Series 2006-3, Class M1
5.735%, 2/25/37(a)(b)

      1,785     1,627,688

RAAC Series
Series 2006-SP3, Class A1
5.40%, 8/25/36(a)(b)

      1,400     1,389,390
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   327

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

Residential Asset Mortgage Products, Inc.
Series 2005-RS3, Class AIA2
5.675%, 3/25/35(a)(b)

    $ 892   $ 883,639

Series 2005-RZ1, Class A2
5.705%, 4/25/35(a)(b)

      1,899     1,871,025

Saxon Asset Securities Trust
Series 2005-4, Class A2B
5.685%, 11/25/37(a)(b)

      1,402     1,398,262

Specialty Underwriting & Residential Finance
Series 2006-BC1, Class A2A
5.585%, 12/25/36(a)(b)

      872     866,458

Structured Asset Investment Loan Trust
Series 2006-1, Class A1
5.585%, 1/25/36(a)(b)

      1,410     1,406,207
        
       24,191,067
        

Other-Floating Rate – 0.4%

     

Ballyrock ABS CDO Ltd.
Series 2007-1A, Class A1B
6.118%, 8/06/47(a)(b)(d)*

      3,500     2,450,000

Cairn Mezzanine ABS CDO PLC
Series 2007-3A, Class A2B
6.15%, 8/13/47(a)(b)(d)*

      1,450     1,015,000

Halcyon Securitized Product Investors
Series 2007-1A, Class A2
6.367%, 5/13/46(a)(b)(d)*

      910     473,200

Neapolitan Segregated Portfolio
Series 2007-1A, Class I
6.32%, 3/30/46(a)(b)(d)*

      1,775     532,500

Petra CRE CDO Ltd.
Series 2007-1A, Class C
6.459%, 2/25/47(a)(b)(d)*

      2,220     2,012,985

SLM Student Loan Trust
Series 2003-C, Class A1
5.46%, 9/15/16(a)(b)

      650     650,559
        
       7,134,244
        

Home Equity Loans – Fixed Rate – 0.3%

     

Citifinancial Mortgage Securities, Inc.
Series 2003-1, Class AFPT
3.36%, 1/25/33(a)(f)

      818     715,018

Home Equity Mortgage Trust
Series 2005-4, Class A3
4.742%, 1/25/36(a)(f)

      1,212     1,205,945

Series 2006-1, Class A2
5.30%, 5/25/36(a)(f)

      1,040     884,000

Residential Funding Mortgage Securities II, Inc.
Series 2005-HI2, Class A3
4.46%, 5/25/35(a)

      1,152     1,137,755
        
       3,942,718
        

 

328   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

Credit Cards – Floating Rate – 0.2%

     

American Express Credit Account Master Trust
Series 2005-1, Class A
5.641%, 10/15/12(a)(b)

    $ 1,298   $ 1,291,922

Discover Card Master Trust I
Series 2004-1, Class A
5.641%, 4/16/10(a)(b)

      2,457     2,456,823
        
       3,748,745
        

Other – Fixed Rate – 0.1%

     

DB Master Finance, LLC
Series 2006-1, Class A2
5.779%, 6/20/31(a)(d)

      1,000     999,490
        

Autos – Fixed Rate – 0.0%

     

Capital Auto Receivables Asset Trust
Series 2005-SN1A, Class A3A
4.10%, 6/15/08(a)

      7     7,164
        

Total Asset-Backed Securities
(cost $45,210,343)

        40,023,428
        
    

MORTGAGE CMO’S – 2.1%

     

Non-Agency Fixed Rate – 1.4%

     

Countrywide Alternative Loan Trust
Series 2006-J8, Class A2
6.00%, 2/25/37(a)

      5,062     5,027,385

Deutsche Mortgage Securities, Inc.
Series 2005-WF1, Class 1A1
5.059%, 6/26/35(a)(c)(d)

      3,882     3,845,674

Residential Accredit Loans, Inc.
Series 2007-QS1, Class 1A1
6.00%, 1/25/37(a)

      4,009     4,050,789

Series 2007-QS1, Class 2A10
6.00%, 1/25/37(a)

      5,011     5,027,314

Wells Fargo Mortgage Backed Securities Trust
Series 2006-AR11, Class A4
5.525%, 8/25/36(a)(c)

      4,168     4,143,006
        
       22,094,168
        

Non-Agency Adjustable Rate – 0.7%

     

Countrywide Alternative Loan Trust
Series 2005-62, Class 2A1
6.027%, 2/25/37(a)(b)

      1,815     1,811,539

Series 2006-OA14, Class 3A1
5.855%, 11/25/46(a)(b)

      5,147     5,043,593

Countrywide Home Loan
Series 2004-25, Class M1
6.035%, 2/25/35(a)(b)

      3,593     3,256,019

JP Morgan Alternative Loan Trust
Series 2006-S1, Class 3A1
5.615%, 3/25/36(a)(b)

      757     750,806
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   329

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

    

Principal
Amount

(000)

   U.S. $ Value  
   
    

Washington Mutual, Inc.
Series 2005-AR2, Class 2A22
5.725%, 1/25/45(a)(b)

    $       41   $ 40,776  
          
       10,902,733  
          

Agency Adjustable Rate – 0.0%

     

Fannie Mae Grantor Trust
Series 2004-T5, Class AB4
6.149%, 5/28/35(a)(b)

    392     365,433  
          

Total Mortgage CMO’s
(cost $33,783,253)

        33,362,334  
          
    

CORPORATES – NON-INVESTMENT GRADES – 0.1%

     

Industrial – 0.1%

     

Basic – 0.1%

     

Packaging Corp. of America
5.75%, 8/01/13(a)
(cost $1,078,424)

    1,099     1,095,805  
          
     Shares      

SHORT-TERM INVESTMENTS – 7.2%

     

Investment Companies – 7.2%

     

AllianceBernstein Fixed-Income Shares, Inc. – Prime STIF Portfolio(g)
(cost $114,983,655)

    114,983,655     114,983,655  
          

Total Investments – 100.3%
(cost $1,605,559,192)

        1,604,216,174  

Other assets less liabilities – (0.3)%

        (4,564,448 )
          

Net Assets – 100.0%

      $ 1,599,651,726  
          

INTEREST RATE SWAP TRANSACTIONS (see Note C)

 

               Rate Type        
Swap
Counterparty		    Notional
Amount
(000)		    Termination
Date		    Payments
made
by the
Portfolio		    Payments
received
by the
Portfolio		     Unrealized
Appreciation/
(Depreciation)		  

Lehman Brothers

    $ 20,120    11/02/07    3 Month LIBOR    4.814 %   $ 203,723  

Lehman Brothers

      23,000    1/23/08    3 Month LIBOR    4.777 %     (89,635 )

Lehman Brothers

      10,000    12/04/11    3 Month LIBOR    4.850 %     (44,363 )

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type   Number of
Contracts		   Expiration
Month		   Original
Value		   Value at
August 31,
2007		   Unrealized
Appreciation/
(Depreciation)		  

Purchased Contracts

      

U.S. T-Bond Future

   470   December 2007   $ 52,314,588   $ 52,434,375   $ 119,787  

U.S. T-Note 10yr Future

   989   December 2007     107,782,845     107,847,359     64,514  

Sold Contracts

      

U.S. T-Note 2yr Future

   63   September 2007     12,827,208     12,981,938     (154,730 )

U.S. T-Note 5yr Future

   120   September 2007     12,466,527     12,813,750     (347,223 )
               
          $ (317,652 )
               
330   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

 

      Contract
Amount
(000)		    U.S. $
Value on
Origination
Date		    U.S. $ Value
at
August 31,
2007		    Unrealized
Appreciation/
(Depreciation)		  

Buy Contracts:

      

Swedish Krona settling 9/07/07

    12,286    $ 1,781,768    $ 1,781,782    $ 14  

Sale Contracts:

      

Japanese Yen settling 9/10/07

    18,436,575      155,441,245      159,449,618      (4,008,373 )

Japanese Yen settling 9/10/07

    68,000      587,176      588,101      (925 )

Mexican Peso settling 9/26/07

    174,208      15,621,236      15,770,832      (149,596 )

Swedish Krona settling 9/07/07

    108,173      16,085,372      15,687,965      397,407  

 

(a) Position, or a portion thereof, has been segregated to collateralize forward currency exchange contracts. The aggregate market value of these securities amounted to $1,489,232,519.

 

(b) Floating Rate Security. Stated interest rate was in effect at August 31, 2007.

 

(c) Variable rate coupon, rate shown as of August 31, 2007.

 

(d) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $55,638,972 or 3.5% of net assets.

 

(e) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. The market value of this security amounted to $1,564,020.

 

(f) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at August 31, 2007.

 

(g) Investment in affiliated money market mutual fund.

 

* Illiquid Securities.

 

Currency Abbreviations:

 

JPY – Japanese Yen
MXN – Mexican Peso
SEK – Swedish Krona

 

Glossary:

 

LIBOR – London Interbank Offered Rates

The Portfolio currently owns investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of August 31, 2007, the Portfolio’s total exposure to subprime investments was 1.78%. These investments are valued in accordance with the Portfolio’s Valuation Policies (see Note A1 for additional details).

 

   See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   331

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

INFLATION PROTECTED SECURITIES PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

     Shares or
Principal
Amount
(000)		   U.S. $ Value
 
    

INFLATION-LINKED SECURITIES – 97.8%

     

U.S. Treasury Notes
0.875%, 4/15/10 (TIPS)

    $28,483   $ 27,227,989

1.625%, 1/15/15 (TIPS)

    81,270     76,971,396

1.875%, 7/15/13-7/15/15 (TIPS)

    98,363     95,553,113

2.00%, 1/15/14-1/15/16 (TIPS)

    89,843     87,652,496

2.375%, 1/15/17 (TIPS)

    68,288     68,202,550

3.00%, 7/15/12 (TIPS)

    65,897     68,018,067

3.375%, 1/15/12 (TIPS)

    72,170     75,260,053

3.50%, 1/15/11 (TIPS)

    48,414     50,123,888

3.875%, 1/15/09 (TIPS)

    26,595     26,962,742

4.25%, 1/15/10 (TIPS)

    51,347     53,332,197
        

Total Inflation-Linked Securities
(cost $636,040,616)

        629,304,491
        
     Shares    

SHORT-TERM INVESTMENTS – 1.3%

     

Investment Companies – 1.3%

     

AllianceBernstein Fixed-Income Shares, Inc. – Prime STIF Portfolio(a)
(cost $8,150,947)

    8,150,947     8,150,947
        

Total Investments – 99.1%
(cost $644,191,563)

        637,455,438

Other assets less liabilities – 0.9%

        6,093,647
        

Net Assets – 100.0%

      $ 643,549,085
        

 

(a) Investment in affiliated money market mutual fund.

 

Glossary:

 

TIPS – Treasury Inflation Protected Security

 

   See notes to financial statements.
332   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Inflation Protected Securities Portfolio—Portfolio of Investments

 

HIGH-YIELD PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

CORPORATES – NON-INVESTMENT GRADES – 88.2%

     

Industrial – 63.2%

     

Basic – 7.0%

     

Arch Western Finance LLC
6.75%, 7/01/13(a)

    $ 670   $ 633,988

Basell AF SCA
8.375%, 8/15/15(a)(b)

      1,445     1,286,050

Citigroup (JSC Severstal)
Series REGS
9.25%, 4/19/14(a)(b)

      1,938     2,084,842

Equistar Chemicals Funding LP
10.125%, 9/01/08(a)

      787     816,513

10.625%, 5/01/11(a)

      356     375,580

Evraz Group, SA
8.25%, 11/10/15(a)(b)

      1,369     1,355,310

FMG Finance Pty Ltd.
10.625%, 9/01/16(a)(b)

      2,000     2,290,000

Freeport-McMoRan Copper & Gold, Inc.
8.375%, 4/01/17(a)

      3,880     4,132,200

Georgia-Pacific Corp.
7.00%, 1/15/15(a)(b)

      905     855,225

7.125%, 1/15/17(a)(b)

      1,095     1,029,300

Hexion Us Fin/nova Scoti
9.75%, 11/15/14(a)

      525     567,000

10.058%, 11/15/14(a)(c)

      525     535,500

Huntsman International LLC
7.875%, 11/15/14(a)

      1,130     1,180,850

Huntsman LLC
11.50%, 7/15/12(a)

      801     871,087

Ineos Group Holdings PLC
8.50%, 2/15/16(a)(b)

      1,575     1,449,000

Jefferson Smurfit Corp. US
8.25%, 10/01/12(a)

      630     615,825

Lyondell Chemical Co.
8.00%, 9/15/14(a)

      1,290     1,402,875

8.25%, 9/15/16(a)

      3,575     4,004,000

The Mosaic Co.
7.625%, 12/01/16(a)(b)

      2,875     2,946,875

NewMarket Corp.
7.125%, 12/15/16(a)

      615     584,250

NewPage Corp.
10.00%, 5/01/12(a)

      797     824,895

Peabody Energy Corp.
5.875%, 4/15/16(a)

      900     834,750

Series B
6.875%, 3/15/13(a)

      1,815     1,810,462
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   333

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Domtar, Inc.
7.125%, 8/15/15(a)

    $ 2,500   $ 2,325,000
        
       34,811,377
        

Capital Goods – 7.1%

     

Alion Science and Technology Corp.
10.25%, 2/01/15(a)

      270     257,850

Allied Waste North America, Inc.
6.375%, 4/15/11(a)

      1,603     1,578,955

6.875%, 6/01/17(a)

      1,430     1,387,100

Series B
7.125%, 5/15/16(a)

      2,053     2,042,735

7.375%, 4/15/14(a)

      820     799,500

Associated Materials, Inc.
11.25%, 3/01/14(a)(d)

      1,635     1,066,837

Berry Plastics Holding Corp.
8.875%, 9/15/14(a)

      1,580     1,576,050

10.25%, 3/01/16(a)

      555     532,800

Bombardier, Inc.
6.30%, 5/01/14(a)(b)

      3,015     2,879,325

8.00%, 11/15/14(a)(b)

      2,120     2,189,655

Case Corp.
7.25%, 1/15/16(a)

      2,935     2,964,350

Case New Holland, Inc.
7.125%, 3/01/14(a)

      2,990     3,019,900

Crown Americas
7.625%, 11/15/13(a)

      1,500     1,507,500

Goodman Global Holdings, Inc.
7.875%, 12/15/12(a)

      992     982,080

L-3 Communications Corp.
5.875%, 1/15/15

      1,828     1,732,030

Owens Brockway Glass Container, Inc.
8.875%, 2/15/09(a)

      1,715     1,742,869

Series $
6.75%, 12/01/14(a)

      2,530     2,441,450

Plastipak Holdings, Inc.
8.50%, 12/15/15(a)(b)

      640     649,600

Russell-Stanley Holdings, Inc.
9.00%, 11/30/08(a)(e)(f)(g)

      453     56,691

Sequa Corp.
9.00%, 8/01/09(a)

      601     622,035

Trinity Industries, Inc.
6.50%, 3/15/14(a)

      2,100     1,984,500

United Rentals North America, Inc.
6.50%, 2/15/12(a)

      640     643,200

7.00%, 2/15/14(a)

      485     494,700

7.75%, 11/15/13(a)

      2,075     2,137,250
        
       35,288,962
        
334   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Communications – Media – 10.9%

     

Allbritton Communications Co.
7.75%, 12/15/12(a)

    $ 1,351   $ 1,320,602

AMC Entertainment, Inc.
11.00%, 2/01/16(a)

      2,000     2,080,000

Cablevision Systems Corp.
Series B
8.00%, 4/15/12(a)

      1,637     1,567,428

CCH I Holdings LLC
11.75%, 5/15/14(a)

      6,257     5,568,730

CCH I LLC
11.00%, 10/01/15(a)

      1,000     980,000

Clear Channel Communications, Inc.
5.50%, 9/15/14(a)

      4,519     3,524,820

5.75%, 1/15/13(a)

      1,641     1,353,825

CSC Holdings, Inc.
7.625%, 7/15/18(a)

      1,535     1,408,363

7.875%, 2/15/18(a)

      640     600,000

Series WI
6.75%, 4/15/12(a)

      2,565     2,423,925

Dex Media East LLC
12.125%, 11/15/12(a)

      641     684,268

Dex Media West LLC
Series B
8.50%, 8/15/10(a)

      444     449,550

DirecTV Holdings LLC
6.375%, 6/15/15(a)

      3,311     3,095,785

EchoStar DBS Corp.
6.375%, 10/01/11(a)

      1,080     1,061,100

6.625%, 10/01/14(a)

      3,595     3,478,163

7.125%, 2/01/16(a)

      850     830,875

Idearc, Inc.
8.00%, 11/15/16(a)

      1,710     1,688,625

Insight Communications Co., Inc.
12.25%, 2/15/11(a)

      1,612     1,658,345

Insight Midwest LP
9.75%, 10/01/09(a)

      379     379,000

Insight Midwest LP/Insight Capital, Inc.
9.75%, 10/01/09(a)

      173     173,000

Intelsat Bermuda Ltd.
11.25%, 6/15/16(a)

      2,812     2,942,055

Intelsat Subsidiary Holding Co. Ltd.
8.625%, 1/15/15(a)

      1,274     1,281,962

Lamar Media Corp.
6.625%, 8/15/15(a)

      475     453,625
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   335

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Liberty Media Corp.
5.70%, 5/15/13(a)

    $ 545   $ 503,857

7.875%, 7/15/09(a)

      350     362,071

8.25%, 2/01/30(a)

      530     514,100

LIN Television Corp.
6.50%, 5/15/13(a)

      725     681,500

Quebecor Media, Inc.
7.75%, 3/15/16(a)

      2,755     2,620,694

Rainbow National Services LLC
8.75%, 9/01/12(a)(b)

      764     782,145

10.375%, 9/01/14(a)(b)

      473     514,979

RH Donnelley Corp.
Series A-1
6.875%, 1/15/13(a)

      705     664,462

Series A-2
6.875%, 1/15/13(a)

      748     704,990

Series A-3
8.875%, 1/15/16(a)

      2,000     2,050,000

Sirius Satellite Radio, Inc.
9.625%, 8/01/13(a)

      545     515,025

Univision Communications, Inc.
7.85%, 7/15/11(a)

      1,190     1,157,275

WDAC Subsidiary Corp.
8.375%, 12/01/14(a)(b)

      982     982,000

WMG Holdings Corp.
9.50%, 12/15/14(a)(d)

      3,196     2,261,170

XM Satellite Radio, Inc.
9.75%, 5/01/14(a)

      840     798,000
        
       54,116,314
        

Communications – Telecommunications – 6.7%

  

Alltel Corp.
7.875%, 7/01/32(a)

      2,750     2,255,385

American Tower Corp.
7.125%, 10/15/12(a)

      2,430     2,430,000

Citizens Communications Co.
6.25%, 1/15/13(a)

      1,977     1,897,920

Cricket Communications, Inc.
9.375%, 11/01/14(a)

      3,470     3,400,600

Digicel Ltd.
9.25%, 9/01/12(a)(b)

      2,227     2,265,973

Dobson Cellular Systems, Inc.
Series B
8.375%, 11/01/11(a)

      620     655,650

Dobson Communications Corp.
8.875%, 10/01/13(a)

      665     703,238
336   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Inmarsat Finance PLC
7.625%, 6/30/12(a)

    $ 1,835   $ 1,890,050

10.375%, 11/15/12(d)

      1,037     982,557

Level 3 Financing, Inc.
8.75%, 2/15/17(a)

      835     784,900

9.25%, 11/01/14(a)

      5,095     4,903,937

12.25%, 3/15/13(a)

      1,073     1,169,570

Mobile Telesystems Finance SA
8.00%, 1/28/12(a)(b)

      1,358     1,370,222

Series REGS
8.00%, 1/28/12(a)(b)

      500     503,750

PanAmSat Corp.
9.00%, 8/15/14(a)

      1,171     1,191,492

Qwest Capital Funding, Inc.
7.25%, 2/15/11(a)

      4,029     3,968,565

Qwest Communications International, Inc.
7.50%, 2/15/14(a)

      350     343,875

Time Warner Telecom Holdings, Inc.
9.25%, 2/15/14(a)

      740     765,900

Windstream Corp.
8.125%, 8/01/13(a)

      714     737,205

8.625%, 8/01/16(a)

      810     846,450
        
       33,067,239
        

Consumer Cyclical – Automotive – 6.7%

     

Affinia Group, Inc.
9.00%, 11/30/14(a)

      45     41,512

Ford Motor Co.
7.45%, 7/16/31(a)

      5,020     3,765,000

Ford Motor Credit Co.
4.95%, 1/15/08(a)

      1,298     1,278,908

7.00%, 10/01/13(a)

      2,524     2,247,791

8.11%, 1/13/12(a)(c)

      2,785     2,550,528

General Motors Acceptance Corp.
6.75%, 12/01/14(a)

      2,700     2,291,401

6.875%, 9/15/11(a)

      3,570     3,183,940

8.00%, 11/01/31(a)

      1,870     1,679,941

General Motors Corp.
8.25%, 7/15/23(a)

      4,155     3,313,613

8.375%, 7/15/33(a)

      4,470     3,587,175

The Goodyear Tire & Rubber Co.
8.625%, 12/01/11(a)(b)

      550     558,580

9.00%, 7/01/15(a)

      1,307     1,352,745

Keystone Automotive Operations, Inc.
9.75%, 11/01/13(a)

      1,436     1,148,800
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   337

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Lear Corp.
Series B
5.75%, 8/01/14(a)

    $ 1,635   $ 1,332,525

8.50%, 12/01/13(a)

      370     349,650

8.75%, 12/01/16(a)

      3,010     2,784,250

Tenneco, Inc.
8.625%, 11/15/14(a)

      465     460,350

Visteon Corp.
7.00%, 3/10/14(a)

      1,795     1,346,250
        
       33,272,959
        

Consumer Cyclical – Other – 6.2%

     

Boyd Gaming Corp.
7.75%, 12/15/12(a)

      737     732,394

Broder Brothers Co.
Series B
11.25%, 10/15/10(a)

      642     552,120

Gaylord Entertainment Co.
8.00%, 11/15/13(a)

      1,307     1,287,395

Greektown Holdings LLC
10.75%, 12/01/13(a)(b)

      550     550,000

Harrah’s Operating Co., Inc
5.625%, 6/01/15(a)

      3,460     2,655,550

6.50%, 6/01/16(a)

      2,600     2,047,500

Host Hotels & Resorts LP
6.875%, 11/01/14(a)

      385     384,037

Host Marriott LP
Series Q
6.75%, 6/01/16(a)

      2,935     2,854,287

KB HOME
6.375%, 8/15/11(a)

      600     549,000

7.75%, 2/01/10(a)

      410     387,450

Levi Strauss & Co.
8.875%, 4/01/16(a)

      742     745,710

MGM Mirage
6.625%, 7/15/15(a)

      3,952     3,719,820

7.625%, 1/15/17(a)

      905     895,950

8.375%, 2/01/11(a)

      2,179     2,228,027

Mohegan Tribal Gaming Auth
7.125%, 8/15/14(a)

      1,245     1,216,988

NCL Corp.
10.625%, 7/15/14(a)

      515     509,850

Penn National Gaming, Inc.
6.875%, 12/01/11(a)

      1,496     1,496,000

Six Flags, Inc.
9.625%, 6/01/14(a)

      1,250     1,018,750

Station Casinos, Inc.
6.625%, 3/15/18(a)

      395     317,975
338   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Turning Stone Resort Casino Enterprise
9.125%, 12/15/10(a)(b)

    $ 1,097   $ 1,107,970

Universal City Development Partners
11.75%, 4/01/10(a)

      913     960,933

Universal City Florida Holding Co.
8.375%, 5/01/10(a)

      630     625,275

William Lyon Homes, Inc.
10.75%, 4/01/13(a)

      1,107     885,600

Wynn Las Vegas LLC/Corp.
6.625%, 12/01/14(a)

      2,935     2,839,613
        
       30,568,194
        

Consumer Cyclical – Restaurants – 0.1%

     

Sbarro, Inc.
10.375%, 2/01/15(a)

      415     364,681
        

Consumer Cyclical – Retailers – 2.0%

     

Autonation, Inc.
7.36%, 4/15/13(a)(c)

      175     164,500

The Bon-Ton Dept Stores, Inc.
10.25%, 3/15/14(a)

      1,630     1,483,300

Burlington Coat Factory Warehouse Corp.
11.125%, 4/15/14(a)

      555     505,050

Couche-Tard, Inc.
7.50%, 12/15/13(a)

      1,006     985,880

GSC Holdings Corp.
8.00%, 10/01/12(a)

      2,070     2,132,100

Rite Aid Corp.
6.875%, 8/15/13(a)

      2,400     1,968,000

9.25%, 6/01/13

      870     804,750

9.375%, 12/15/15(a)(b)

      100     91,000

9.50%, 6/15/17(a)(b)

      1,919     1,741,492
        
       9,876,072
        

Consumer Non – Cyclical – 6.4%

     

Albertson’s, Inc.
7.45%, 8/01/29(a)

      4,055     3,850,166

ARAMARK Corp.
8.50%, 2/01/15(a)

      1,155     1,150,669

8.50%, 2/01/15(a)(b)

      555     552,919

Community Health Systems, Inc.
8.875%, 7/15/15(a)(b)

      2,266     2,263,167

DaVita, Inc.
7.25%, 3/15/15(a)

      1,219     1,194,620

Dean Foods Co.
7.00%, 6/01/16(a)

      921     847,320

Del Monte Corp.
6.75%, 2/15/15(a)

      395     375,250
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   339

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Dole Food Company, Inc.
8.625%, 5/01/09(a)

    $ 420   $ 409,500

8.875%, 3/15/11(a)

      718     682,100

Elan Finance PLC/Elan Finance Corp.
7.75%, 11/15/11

      2,825     2,754,375

Hanger Orthopedic Group, Inc.
10.25%, 6/01/14(a)

      670     685,075

HCA, Inc.
6.375%, 1/15/15(a)

      2,508     2,044,020

6.50%, 2/15/16(a)

      1,520     1,238,800

6.75%, 7/15/13(a)

      1,650     1,431,375

9.625%, 11/15/16(a)(b)(h)

      2,665     2,754,944

Healthsouth Corp.
10.75%, 6/15/16(a)

      580     597,400

IASIS Healthcare Corp.
8.75%, 6/15/14(a)

      1,174     1,144,650

Select Medical Corp.
7.625%, 2/01/15(a)

      1,145     993,287

Spectrum Brands, Inc.
7.375%, 2/01/15(a)

      1,180     867,300

Stater Brothers Holdings
8.125%, 6/15/12(a)

      594     592,515

Tenet Healthcare Corp.
7.375%, 2/01/13(a)

      1,175     975,250

9.875%, 7/01/14

      1,700     1,504,500

Universal Hospital Services, Inc.
8.759%, 6/01/15(a)(b)(c)

      895     863,675

Ventas Realty LP/CAP CRP
6.75%, 4/01/17(a)

      832     809,120

Viant Holdings, Inc.
10.12%, 7/15/17(a)(b)

      567     527,310

Visant Corp.
7.625%, 10/01/12(a)

      883     885,207
        
       31,994,514
        

Energy – 2.7%

     

Chesapeake Energy Corp.
6.625%, 1/15/16(a)

      220     212,850

6.875%, 1/15/16(a)

      270     263,925

7.50%, 9/15/13(a)

      805     819,088

7.75%, 1/15/15(a)

      1,895     1,921,056

CIE Gener De Geophysique
7.50%, 5/15/15(a)

      915     919,575

7.75%, 5/15/17(a)

      195     196,950

Complete Production Services, Inc.
8.00%, 12/15/16(a)

      650     625,625

Grant Prideco, Inc.
Series B
6.125%, 8/15/15(a)

      856     817,480
340   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Hilcorp Energy I LP/Hilcorp Finance Co.
7.75%, 11/01/15(a)(b)

      $      760   $ 727,700

Opti Canada, Inc.
8.25%, 12/15/14(a)(b)

      313     316,130

PetroHawk Energy Corp.
Series WI
9.125%, 7/15/13(a)

      776     808,980

Plains Exploration & Production Co.
7.75%, 6/15/15(a)

      1,155     1,097,250

Pride International, Inc.
7.375%, 7/15/14(a)

      634     640,340

Range Resources Corp.
7.50%, 5/15/16(a)

      940     949,400

Tesoro Corp.
6.25%, 11/01/12(a)

      1,180     1,159,350

6.50%, 6/01/17(a)(b)

      2,160     2,100,600
        
       13,576,299
        

Other Industrial – 1.1%

     

Central European Distribution Corp.
8.00%, 7/25/12(b)

    EUR 173     236,927

Central European Media Enterprises, Ltd.
8.25%, 5/15/12(a)(b)

      398     538,922

Noble Group Ltd.
6.625%, 3/17/15(a)(b)

      $   2,000     1,869,802

RBS Global, Inc. and Rexnord Corp.
9.50%, 8/01/14(a)

      1,295     1,295,000

11.75%, 8/01/16(a)

      725     749,469

Sensus Metering Systems, Inc.
8.625%, 12/15/13(a)

      655     625,525
        
       5,315,645
        

Services – 0.6%

     

Realogy Corp.
10.50%, 4/15/14(a)(b)

      1,630     1,373,275

Service Corp. International
6.75%, 4/01/16(a)

      1,000     942,500

West Corp.
9.50%, 10/15/14(a)

      500     502,500
        
       2,818,275
        

Technology – 4.2%

     

Amkor Technology, Inc.
9.25%, 6/01/16(a)

      3,305     3,205,850

Avago Technologies Finance
10.125%, 12/01/13(a)

      755     788,975

CA, Inc.
4.75%, 12/01/09(a)(b)

      965     959,942
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   341

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Flextronics International Ltd.
6.50%, 5/15/13(a)

    $ 1,418   $ 1,350,645

Freescale Semiconductor, Inc.
8.875%, 12/15/14(a)

      3,530     3,256,425

10.125%, 12/15/16(a)

      910     791,700

Iron Mountain, Inc.
6.625%, 1/01/16(a)

      1,360     1,224,000

Nortel Networks Corp.
6.875%, 9/01/23(a)

      626     507,060

Nortel Networks Ltd.
10.125%, 7/15/13(a)(b)

      1,025     1,048,063

NXP BV / NXP Funding LLC
8.11%, 10/15/13(a)(c)

      1,000     906,250

9.50%, 10/15/15(a)

      445     384,925

Seagate Technology HDD Holding
6.375%, 10/01/11(a)

      2,143     2,121,570

Serena Software, Inc.
Series WI
10.375%, 3/15/16(a)

      875     870,625

Sungard Data Systems, Inc.
9.125%, 8/15/13(a)

      3,122     3,223,465
        
       20,639,495
        

Transportation – Airlines – 0.7%

     

AMR Corp.
9.00%, 8/01/12(a)

      1,675     1,695,938

Continental Airlines, Inc.
8.75%, 12/01/11(a)

      1,330     1,243,550

Series RJO3
7.875%, 7/02/18(a)

      608     597,403
        
       3,536,891
        

Transportation – Services – 0.8%

     

Avis Budget Car Rental
7.75%, 5/15/16(a)

      1,660     1,610,200

Hertz Corp.
8.875%, 1/01/14(a)

      1,145     1,185,075

10.50%, 1/01/16(a)

      1,175     1,269,000
        
       4,064,275
        
       313,311,192
        

Utility – 11.2%

     

Electric – 8.7%

     

The AES Corp.
7.75%, 3/01/14(a)

      2,430     2,405,700

8.75%, 5/15/13(a)(b)

      225     234,000

9.00%, 5/15/15(a)(b)

      1,080     1,125,900
342   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Allegheny Energy Supply
7.80%, 3/15/11(a)

    $ 1,070   $ 1,104,775

8.25%, 4/15/12(a)(b)

      1,830     1,889,475

Aquila, Inc.
14.875%, 7/01/12(a)

      1,096     1,372,740

CMS Energy Corp.
8.50%, 4/15/11(a)

      835     888,904

Dynegy Holdings, Inc.
7.75%, 6/01/19(a)(b)

      2,740     2,534,500

8.375%, 5/01/16(a)

      3,180     3,124,350

Dynegy-Roseton Danskammer
Series A
7.27%, 11/08/10(a)

      385     385,000

Series B
7.67%, 11/08/16(a)

      1,222     1,211,307

Edison Mission Energy
7.00%, 5/15/17(a)(b)

      3,840     3,628,800

7.50%, 6/15/13(a)

      1,860     1,873,950

7.75%, 6/15/16(a)

      695     700,213

Mirant Americas Generation LLC
8.50%, 10/01/21(a)

      3,550     3,354,750

NRG Energy, Inc.
7.25%, 2/01/14(a)

      420     415,800

7.375%, 2/01/16-1/15/17(a)

      4,805     4,729,262

Reliant Energy, Inc.
6.75%, 12/15/14(a)

      598     592,020

7.625%, 6/15/14(a)

      1,495     1,465,100

7.875%, 6/15/17(a)

      1,840     1,798,600

Sierra Pacific Power Co.
Series M
6.00%, 5/15/16(a)

      440     432,863

Sierra Pacific Resources
8.625%, 3/15/14

      960     1,015,904

TECO Energy, Inc.
7.00%, 5/01/12(a)

      1,222     1,253,130

TXU Corp.
Series O
4.80%, 11/15/09(a)

      125     122,650

Series P
5.55%, 11/15/14(a)

      3,604     2,956,621

Series Q
6.50%, 11/15/24(a)

      3,106     2,492,590
        
       43,108,904
        

Natural Gas – 2.5%

     

El Paso Corp.
7.375%, 12/15/12(a)

      1,245     1,272,516
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   343

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Enterprise Products Operating LP
8.375%, 8/01/66(a)(i)

    $ 3,450   $ 3,532,379

Regency Energy Partners
8.375%, 12/15/13(a)(b)

      1,089     1,121,670

Williams Cos, Inc.
7.625%, 7/15/19(a)

      3,744     3,978,000

7.875%, 9/01/21(a)

      2,214     2,374,515
        
       12,279,080
        
       55,387,984
        

Non Corporate Sectors – 7.8%

     

Derivatives – Total Return Swaps – 4.3%

     

High Yield Total Return Trust 2007-1
5.30%, 7/01/08(a)(b)(c)

      22,505     21,398,654
        

Structured Note – 3.5%

     

Racers SER 06-6-T
5.296%, 7/01/08(a)(b)(c)

      18,550     17,333,306
        
       38,731,960
        

Credit Default Index Holdings – 4.5%

     

DJ CDX.NA.HY-100 – 4.5%

     

CDX North America High Yield Series 8-T1
7.625%, 6/29/12(a)(b)

      19,000     17,860,000

Dow Jones CDX HY Series 5-T2
7.25%, 12/29/10(a)(b)

      4,312     4,312,196
        
       22,172,196
        

Financial Institutions – 1.5%

     

Brokerage – 0.7%

     

E*Trade Financial Corp.
7.375%, 9/15/13(a)

      870     774,300

7.875%, 12/01/15(a)

      2,574     2,252,250

8.00%, 6/15/11(a)

      810     773,550
        
       3,800,100
        

Insurance – 0.3%

     

Crum & Forster Holdings Corp.
7.75%, 5/01/17(a)

      760     718,200

Liberty Mutual Group, Inc.
7.80%, 3/15/37(a)(b)

      770     682,798
        
       1,400,998
        

REITS – 0.5%

     

American Real Estate
7.125%, 2/15/13(a)(b)

      2,500     2,350,000
        
       7,551,098
        

Total Corporates – Non-Investment Grades
(cost $455,160,651)

        437,154,430
        
    
344   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

CORPORATES – INVESTMENT GRADES – 6.4%

  

Industrial – 3.9%

     

Basic – 1.1%

     

International Steel Group, Inc.
6.50%, 4/15/14(a)

    $ 2,081   $ 2,089,690

Weyerhaeuser Co.
7.375%, 3/15/32(a)

      3,165     3,168,327
        
       5,258,017
        

Communications – Telecommunications – 1.0%

  

Qwest Corp.
6.875%, 9/15/33(a)

      2,240     2,049,600

8.875%, 3/15/12(a)

      355     384,287

Sprint Capital Corp.
6.875%, 11/15/28(a)

      2,800     2,725,428
        
       5,159,315
        

Consumer Cyclical – Other – 0.2%

     

DR Horton, Inc.
4.875%, 1/15/10(a)

      250     232,586

Starwood Hotels & Resorts Worldwide, Inc.
7.875%, 5/01/12(a)

      539     576,534
        
       809,120
        

Consumer Non-Cyclical – 1.3%

     

Cadbury Schweppes US Finance LLC
5.125%, 10/01/13(a)(b)

      1,080     1,035,806

Reynolds American, Inc.
7.25%, 6/01/12-6/01/13(a)

      3,395     3,538,026

7.625%, 6/01/16(a)

      1,800     1,885,117
        
       6,458,949
        

Energy – 0.2%

     

Kerr-McGee Corp.
6.875%, 9/15/11(a)

      894     939,142
        

Technology – 0.1%

     

Xerox Corp.
6.40%, 3/15/16(a)

      535     540,827
        
       19,165,370
        

Financial Institutions – 2.4%

     

Brokerage – 1.0%

     

The Bear Stearns Cos, Inc.
5.55%, 1/22/17(a)

      2,700     2,485,836

Lehman Brothers Holdings, Inc.
5.75%, 1/03/17(a)

      2,585     2,412,410
        
       4,898,246
        

Finance – 0.8%

     

Countrywide Financial Corp.
5.80%, 6/07/12(a)

      181     170,093

6.25%, 5/15/16(a)

      2,345     2,081,134
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   345

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Countrywide Home Loans, Inc.
4.00%, 3/22/11(a)

      $        56   $ 50,121

SLM Corp.
4.50%, 7/26/10(a)

      845     782,073

5.125%, 8/27/12(a)

      1,100     982,250
        
       4,065,671
        

Insurance – 0.6%

     

American International Group, Inc.
6.25%, 5/01/36(a)

      1,500     1,517,911

Coventry Health Care, Inc.
5.875%, 1/15/12(a)

      683     685,411

Liberty Mutual Group, Inc.
5.75%, 3/15/14(a)(b)

      950     933,149
        
       3,136,471
        
       12,100,388
        

Utility – 0.1%

     

Natural Gas – 0.1%

     

Tennessee Gas Pipeline Co.
7.00%, 10/15/28(a)

      570     573,765
        

Total Corporates – Investment Grades
(cost $31,739,400)

        31,839,523
        
    

EMERGING MARKETS – NON-INVESTMENT GRADES – 0.5%

     

Industrial – 0.5%

     

Consumer Cyclical – Other – 0.2%

     

Royal Caribbean Cruises Ltd.
8.75%, 2/02/11(a)

      846     898,260
        

Consumer Non-Cyclical – 0.3%

     

Foodcorp Ltd. 8.875%, 6/15/12(a)(b)

    EUR 1,128     1,536,617
        

Total Emerging Markets – Non-Investment Grades
(cost $2,447,034)

        2,434,877
        
       Shares    

NON-CONVERTIBLE – PREFERRED STOCKS – 0.2%

     

Financial Institutions – 0.2%

     

REITS – 0.2%

     

Sovereign REIT 12.00%(a)(b)
(cost $904,800)

      624     892,320
        
    

EQUITIES – 0.0%

     

Common Stock – 0.0%

     

Phase Metrics(a)(e)(j)
(cost $904)

      90,400     904
        
346   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High Yield Portfolio—Portfolio of Investments

 

    

Shares

   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 1.5%

     

Investment Companies – 1.5%

     

AllianceBernstein Fixed-Income Shares, Inc. – Prime STIF Portfolio(k)
(cost $7,514,657)

    7,514,657   $ 7,514,657
        

Total Investments – 96.8%
(cost $497,767,446)

        479,836,711

Other assets less liabilities – 3.2%

        15,996,634
        

Net Assets – 100.0%

      $ 495,833,345
        

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

 

      Contract
Amount
(000)		    U.S. $
Value on
Origination
Date		    U.S. $
Value at
August 31,
2007		    Unrealized
Appreciation/
(Depreciation)		  

Sale Contracts:

            

Euro
settling 10/30/07

    1,496    $ 2,039,907    $ 2,042,452    $ (2,545 )

 

(a) Position, or a portion thereof, has been segregated to collateralize forward currency exchange contracts. The aggregate market value of these securities amounted to $472,322,054.

 

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $124,485,860 or 25.1% of net assets.

 

(c) Floating Rate Security. Stated interest rate was in effect at August 31, 2007.

 

(d) Indicates a security that has a zero coupon that remains in effect until a predetermined date at which time the stated coupon rate becomes effective until final maturity.

 

(e) Illiquid security, valued at fair value. (See note A)

 

(f) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represents 0.01% of net assets as of August 31, 2007, is considered illiquid and restricted (see Notes A & E).

 

Restricted
Security		    Acquisition
Date		    Acquisition
Cost		    Market
Value		    Percentage of
Net Assets		  

Russell-Stanley Holdings, Inc.
9.00%, 11/30/08

    8/5/05    $ 396,900    $ 56,691    0.01 %

 

(g) Security is in default and is non-income producing.

 

(h) Pay-In-Kind Payments (PIK).

 

(i) Variable rate coupon, rate shown as of August 31, 2007.

 

(j) Non-income producing security.

 

(k) Investment in affiliated money market mutual fund.

 

Currency Abbreviations:

 

EUR – Euro Dollar

 

   See notes to financial statements.
ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   347

 

High-Yield Portfolio—Portfolio of Investments

THE FOLLOWING IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

ALLIANCEBERNSTEIN FAMILY OF FUNDS

 

Wealth Strategies Funds

Balanced Wealth Strategy

Wealth Appreciation Strategy

Wealth Preservation Strategy

Tax-Managed Balanced Wealth Strategy

Tax-Managed Wealth Appreciation Strategy

Tax-Managed Wealth Preservation Strategy

Blended Style Funds

U.S. Large Cap Portfolio

International Portfolio

Tax-Managed International Portfolio

Growth Funds

Domestic

Growth Fund

Mid-Cap Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

Global & International

Global Health Care Fund

Global Research Growth Fund

Global Technology Fund

Greater China ‘97 Fund

International Growth Fund

International Research Growth Fund

Value Funds

Domestic

Balanced Shares

Focused Growth & Income Fund

Growth & Income Fund

Small/Mid-Cap Value Fund

Utility Income Fund

Value Fund

Global & International

Global Real Estate Investment Fund*

Global Value Fund

International Value Fund

 

Taxable Bond Funds

Global Government Income Trust

Corporate Bond Portfolio

Emerging Market Debt Fund

Global Strategic Income Trust

High Yield Fund

Intermediate Bond Portfolio

Short Duration Portfolio

U.S. Government Portfolio

Municipal Bond Funds

 

National
Insured National
Arizona
California
Insured California
Florida
Massachusetts

  

Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia

Intermediate Municipal Bond Funds

Intermediate California

Intermediate Diversified

Intermediate New York

Closed-End Funds

All-Market Advantage Fund

AllianceBernstein Global High Income Fund*

AllianceBernstein Income Fund*

AllianceBernstein National Municipal Income    Fund*

ACM Managed Dollar Income Fund

California Municipal Income Fund

New York Municipal Income Fund

The Spain Fund


Retirement Strategies Funds

 

2000 Retirement Strategy

  

2020 Retirement Strategy

  

2040 Retirement Strategy

2005 Retirement Strategy

  

2025 Retirement Strategy

  

2045 Retirement Strategy

2010 Retirement Strategy

  

2030 Retirement Strategy

  

2050 Retirement Strategy

2015 Retirement Strategy

  

2035 Retirement Strategy

  

2055 Retirement Strategy

We also offer Exchange Reserves,** which serves as the money market fund exchange vehicle for the AllianceBernstein mutual funds.

You should consider the investment objectives, risks, charges and expenses of any AllianceBernstein fund/portfolio carefully before investing. For free copies of our prospectuses, which contain this and other information, visit us online at www.alliancebernstein.com or contact your financial advisor. Please read the prospectus carefully before investing.

 

*   Prior to January 26, 2007, AllianceBernstein Global High Income Fund was named Alliance World Dollar Government Fund II and AllianceBernstein Income Fund was named ACM Income Fund. Prior to March 1, 2007, Global Real Estate Investment Fund was named Real Estate Investment Fund. Prior to May 18, 2007, AllianceBernstein National Municipal Income Fund was named National Municipal Income Fund.

 

** An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

 

AllianceBernstein Family of Funds

348   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

1345 Avenue of the Americas

New York, NY 10105

800.221.5672

LOGO

 

 

RS-00-55-0151-0807   LOGO

ANNUAL REPORT

 

AllianceBernstein Blended Style Funds

U.S. Large Cap Portfolio

 

 

LOGO

 

August 31, 2007

 

Annual Report

 

 

Investment Products Offered

  •  

Are Not FDIC Insured

  •  

May Lose Value

  •  

Are Not Bank Guaranteed

The investment return and principal value of an investment in the Fund will fluctuate as the prices of the individual securities in which it invests fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For a free copy of the Fund’s prospectus, which contains this and other information, visit our web site at www.alliancebernstein.com or call your financial advisor or AllianceBernstein® at (800) 227-4618. Please read the prospectus carefully before you invest.

You may obtain performance information current to the most recent month-end by visiting www.alliancebernstein.com.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AllianceBernstein’s web site at www.alliancebernstein.com, or go to the Securities and Exchange Commission’s (the “Commission”) web site at www.sec.gov, or call AllianceBernstein at (800) 227-4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s web site at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. AllianceBernstein publishes full portfolio holdings for the Fund monthly at www.alliancebernstein.com.

AllianceBernstein Investments, Inc. is an affiliate of AllianceBernstein L.P., the manager of the AllianceBernstein funds, and is a member of FINRA.

AllianceBernstein® and the AB Logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.

October 15, 2007

 

Annual Report

This report provides management’s discussion of fund performance for AllianceBernstein Blended Style Funds U.S. Large Cap Portfolio (the “Fund”) for the annual reporting period ended August 31, 2007. The Fund invests in the AllianceBernstein Pooling Portfolios and the Pooling Portfolios’ investment adviser is AllianceBernstein L.P.

Investment Objective and Policies

The Fund’s investment objective is long-term growth of capital. The Fund will seek to achieve its investment objective by investing in two portfolios, AllianceBernstein U.S. Value Portfolio and AllianceBernstein U.S. Large Cap Growth Portfolio of The AllianceBernstein Pooling Portfolios, representing growth and value equity investment styles (the “Underlying Portfolios”). Under normal circumstances, the Fund will invest at least 80% of its net assets in Underlying Portfolios that invest in large capitalization companies. By investing in the Underlying Portfolios, the Adviser efficiently diversifies the Fund between growth and value styles. Normally, approximately 50% of the value of the Fund’s investments in the Underlying Portfolios will consist of growth stocks and 50% of value stocks, although this allocation will vary within a narrow range around this 50/50 target. Beyond this range, the Adviser will rebalance the investments in the Underlying Portfolios as necessary to maintain this targeted allocation.

Investment Results

The table on page 4 shows the Fund’s performance compared to its bench-

mark, the Standard & Poor’s (S&P) 500 Stock Index, for the six- and 12-month periods ended August 31, 2007.

The Fund’s Class A shares without sales charges underperformed the benchmark for both the six- and 12-month periods ended August 31, 2007. For the 12-month period, both the growth and value portions of the Fund’s portfolio contributed to the underperformance. For the six-month period, the growth portion of the Fund’s portfolio outperformed, while the value portion modestly lagged. Performance was not impacted by leverage in either period.

Unfavorable stock selection in the health care sector detracted from the Fund’s performance in the 12-month period. Additionally, an overweight to the underperforming financial services sector detracted from performance for both the six- and 12-month periods. The largest positive contributor to performance for both the six- and 12-month periods was strong stock selection in the industrial, materials and technology sectors.

Market Review and Investment Strategy

After an extended period of calm in the global capital markets, volatility returned with a vengeance in the third quarter of 2007. The catalyst was heightened concerns about rising defaults in subprime mortgages in the United States. Further worries about losses on loan-backed financial instruments soon spread throughout the credit and equity markets worldwide. A rising tide of risk aversion


ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   1

 

manifested itself in sharp equity price movements across a wide range of asset classes. Within equities, financial services stocks suffered losses as a result of these concerns. Both the Fund’s Blend Investment Policy Team’s (the “Team’s”) growth and value managers see opportunity in financial firms that have declined in value during the recent market upheaval.

The growth managers seek opportunity to deliver strong returns from purchasing stocks with under-

appreciated growth potential after a long period when widespread strong earnings across many industry sectors made investors unwilling to pay a premium valuation for superior growth.

The value managers remain cautious, but anticipate that increased volatility and widening valuation spreads could lead to opportunities in distressed industries and companies whose share prices have fallen further than is justified by their long-term earnings forecasts.


2   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

HISTORICAL PERFORMANCE

An Important Note About the Value of Historical Performance

The performance shown on the following pages represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.alliancebernstein.com.

The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For a free copy of the Fund’s prospectus, which contains this and other information, visit our website at www.alliancebernstein.com or call your financial advisor or AllianceBernstein Investments at 800.227.4618. You should read the prospectus carefully before you invest.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares; the applicable contingent deferred sales charge for Class B shares (4% year 1, 3% year 2, 2% year 3, 1% year 4); a 1% 1 year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

Benchmark Disclosure

The unmanaged S&P 500 Stock Index does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Index is comprised of 500 U.S. companies and is a common measure of the performance of the overall U.S. stock market. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Neither growth investing nor value investing guarantees a profit or eliminates risk. Growth stocks can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. If a growth stock company should fail to meet these high earnings expectations, the price of these stocks can be severely negatively affected. Not all companies whose stocks are considered to be value stocks are able to turn their business around or successfully employ corrective strategies, which would result in stock prices that rise as initially expected. The Fund concentrates its investments in a limited number of issues and an investment in the Fund is therefore subject to greater risk and volatility than investments in a more diversified portfolio. Because the Fund allocates its investments between “growth” and “value” stocks, an investment in the Fund is subject to the risk that this allocation will result in lower returns during periods when one style is outperforming another than if the Fund had invested entirely in the outperforming style. The costs associated with this systematic rebalancing may be significant over time. While the Fund invests principally in common stocks and other equity securities, in order to achieve its investment objectives, the Fund may at times use certain types of investment derivatives, such as options and futures. These instruments involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments. These risks are fully discussed in the Fund’s prospectus.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   3

 

Historical Performance

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE FUND VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns    
  6 Months      12 Months     

AllianceBernstein Blended Style Funds

U.S. Large Cap Portfolio

         

Class A

   5.04%      12.70%  
 

Class B

   4.68%      11.86%  
 

Class C

   4.75%      11.95%  
 

Advisor Class*

   5.28%      13.06%  
 

Class R*

   4.94%      12.52%  
 

Class K*

   5.11%      12.84%  
 

Class I*

   5.24%      13.09%  
 

S&P 500 Stock Index

   5.69%      15.13%  
 

*  Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

        

GROWTH OF A $10,000 INVESTMENT IN THE FUND 7/15/02* TO 8/31/07

LOGO

* Since inception of the Fund’s Class A shares on 7/15/02.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein Blended Style Funds U.S. Large Cap Portfolio Class A shares (from 7/15/02* to 8/31/07) as compared to the performance of the Fund’s benchmark. 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 distributions.

See Historical Performance and Benchmark disclosures on previous page.

(Historical Performance continued on next page)

4   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Historical Performance

 

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    12.70 %      7.92 %

5 Years

    10.27 %      9.32 %

Since Inception*

    9.87 %      8.95 %
       
Class B Shares        

1 Year

    11.86 %      7.86 %

5 Years

    9.50 %      9.50 %

Since Inception*

    9.10 %      9.10 %
       
Class C Shares        

1 Year

    11.95 %      10.95 %

5 Years

    9.45 %      9.45 %

Since Inception*

    9.12 %      9.12 %
       
Advisor Class Shares†        

1 Year

    13.06 %      13.06 %

5 Years

    10.66 %      10.66 %

Since Inception*

    10.23 %      10.23 %
       
Class R Shares†        

1 Year

    12.52 %      12.52 %

Since Inception*

    7.83 %      7.83 %
       
Class K Shares†        

1 Year

    12.84 %      12.84 %

Since Inception*

    10.02 %      10.02 %
       
Class I Shares†        

1 Year

    13.09 %      13.09 %

Since Inception*

    10.34 %      10.34 %

The Fund’s current prospectus fee table shows the Fund’s total annual expense ratios as 1.38%, 2.11%, 2.09%, 1.08%, 1.67%, 1.40% and 1.02% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I, respectively.

 

* Inception Dates: 7/15/02 for Class A, Class B, Class C and Advisor Class shares; 2/17/04 for Class R shares; 3/1/05 for Class K and Class I shares.

 

† These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as the NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception dates for these share classes are listed above.

See Historical Performance disclosures on page 3.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   5

 

Historical Performance

 

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)

 

 

            SEC Returns  
Class A Shares        

1 Year

         9.88 %

5 Years

         12.61 %

Since Inception*

         9.66 %
       
Class B Shares        

1 Year

         9.90 %

5 Years

         12.80 %

Since Inception*

         9.80 %
       
Class C Shares        

1 Year

         12.98 %

5 Years

         12.77 %

Since Inception*

         9.81 %
       
Advisor Class Shares†        

1 Year

         15.13 %

5 Years

         13.99 %

Since Inception*

         10.93 %
       
Class R Shares†        

1 Year

         14.48 %

Since Inception*

         8.86 %
       
Class K Shares†        

1 Year

         14.85 %

Since Inception*

         11.43 %
       
Class I Shares†        

1 Year

         15.18 %

Since Inception*

         11.77 %

 

* Inception Dates: 7/15/02 for Class A, Class B, Class C and Advisor Class shares; 2/17/04 for Class R shares; 3/1/05 for Class K and Class I shares.

 

† Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception dates for these share classes are listed above.

See Historical Performance disclosures on page 3.

6   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Historical Performance

FUND EXPENSES

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. The Fund will indirectly bear its pro rata share of the expenses incurred by the Underlying Portfolios in which the Fund invests. These expenses are not included in the table below.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The Fund will indirectly bear its pro rata share of the expenses incurred by the Underlying Portfolios in which the Fund invests. These expenses are not included in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

     Beginning
Account Value
March 1, 2007		    Ending
Account Value
August 31, 2007		   

Expenses Paid

During Period*

     Actual    Hypothetical    Actual    Hypothetical**    Actual    Hypothetical
Class A    $ 1,000    $ 1,000    $ 1,050.37    $ 1,018.50    $ 6.87    $ 6.77
Class B    $ 1,000    $ 1,000    $ 1,046.78    $ 1,014.82    $ 10.63    $ 10.46
Class C    $ 1,000    $ 1,000    $ 1,047.54    $ 1,014.92    $ 10.53    $ 10.36
Advisor Class    $ 1,000    $ 1,000    $ 1,052.83    $ 1,020.01    $ 5.33    $ 5.24
Class R    $ 1,000    $ 1,000    $ 1,049.36    $ 1,017.49    $ 7.90    $ 7.78
Class K    $ 1,000    $ 1,000    $ 1,051.11    $ 1,017.09    $ 8.32    $ 8.19
Class I    $ 1,000    $ 1,000    $ 1,052.43    $ 1,020.32    $ 5.02    $ 4.94
* Expenses are equal to the classes’ annualized expense ratios of 1.33%, 2.06%, 2.04%, 1.03%, 1.53%, 1.61% and 0.97%, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses of the underlying portfolios in which the Fund invest are not included herein.

 

** Assumes 5% return before expenses.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   7

 

Fund Expenses

PORTFOLIO SUMMARY

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($mil): $181.6

LOGO

 

* All data are as of August 31, 2007. The Fund’s holdings breakdown is expressed as a percentage of total investments and may vary over time. The Fund invests in the AllianceBernstein Underlying Portfolios. For more details regarding the Fund’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 36-45.
8   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Portfolio Summary

STATEMENT OF NET ASSETS

August 31, 2007

 

Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth Portfolio (shares of 7,302,772)

    $ 91,065,573

AllianceBernstein U.S. Value Portfolio (shares of 7,300,618)

      90,819,691
      

Total investments (cost $140,139,683)

      181,885,264

Receivable for investment sold

      5,977,609

Receivable for capital stock sold

      535,007
      

Total assets

      188,397,880
      
Liabilities   

Payable for capital stock redeemed

      6,433,477

Advisory fee payable

      102,151

Distribution fee payable

      75,294

Administrative fee payable

      38,338

Transfer Agent fee payable

      10,673

Accrued expenses

      99,341
      

Total liabilities

      6,759,274
      

Net Assets

    $ 181,638,606
      
Composition of Net Assets   

Capital stock, at par

    $ 12,965

Additional paid-in capital

      130,482,481

Undistributed net investment income

      282,525

Accumulated net realized gain on investment transactions

      9,115,054

Net unrealized appreciation of investments

      41,745,581
      
   $     181,638,606
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets     

Shares

Outstanding

      Net Asset
Value		  
A   $   50,061,890      3,530,470      $   14.18 *
   
B   $ 42,458,706      3,110,600      $ 13.65  
   
C   $ 31,100,730      2,277,463      $ 13.66  
   
Advisor   $ 53,956,023      3,761,232      $ 14.35  
   
R   $ 62,917      4,485      $ 14.03  
   
K   $ 1,302,469      91,808      $ 14.19  
   
I   $ 2,695,871      189,171      $ 14.25  
   

 

* The maximum offering price per share for Class A shares was $14.81 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   9

 

Statement of Net Assets

STATEMENT OF OPERATIONS

Year Ended August 31, 2007

 

Investment Income     

Income distributions from Underlying Portfolios

      $     3,113,803
        
Expenses     

Advisory fee (see Note B)

    1,146,176    

Distribution fee—Class A

    158,405    

Distribution fee—Class B

    487,709    

Distribution fee—Class C

    330,267    

Distribution fee—Class R

    244    

Distribution fee—Class K

    193    

Transfer agency—Class A

    69,834    

Transfer agency—Class B

    78,557    

Transfer agency—Class C

    47,082    

Transfer agency—Advisor Class

    51,577    

Transfer agency—Class R

    56    

Transfer agency—Class K

    131    

Transfer agency—Class I

    268    

Registration fees

    96,846    

Administrative

    92,000    

Printing

    80,579    

Custodian

    67,573    

Audit

    42,495    

Directors’ fees

    38,922    

Legal

    36,278    

Miscellaneous

    12,260    
        

Total expenses

    2,837,452    

Less: expenses waived and reimbursed by the Adviser
(see Note B)

    (53,679 )  

Less: expense offset arrangement
(see Note B)

    (8,607 )  
        

Net expenses

        2,775,166
        

Net investment income

        338,637
        
Realized and Unrealized Gain on
Investment Transactions		     

Net realized gain on sale of Underlying Portfolio shares

        8,900,436

Net realized gain distributions from Underlying Portfolios

        2,145,882

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

        7,620,560
        

Net gain on investment transactions

        18,666,878
        

Net Increase in Net Assets from
Operations

      $     19,005,515
        

See notes to financial statements.

10   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Statement of Operations

STATEMENT OF CHANGES IN NET ASSETS

 

    

Year Ended

August 31,
2007

     Year Ended
August 31,
2006		  
Increase (Decrease) in Net Assets
from Operations		     

Net investment income (loss)

    $ 338,637     $ (855,569 )

Net realized gain on sale of Underlying Portfolio shares

      8,900,436       7,161,672  

Net realized gain distributions from Underlying Portfolios

      2,145,882       830,461  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      7,620,560       4,418,707  
                

Net increase in net assets from
operations

      19,005,515       11,555,271  
Dividends and Distributions
to Shareholders from		     

Net investment income

     

Class A

      (7,771 )     – 0 –

Advisor Class

      (43,252 )     – 0 –

Class R

      (82 )     – 0 –

Class K

      (7 )     – 0 –

Class I

      (1,199 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (2,948,818 )     (2,232,611 )

Class B

      (2,881,341 )     (2,669,669 )

Class C

      (1,924,664 )     (1,492,820 )

Advisor Class

      (758,348 )     (514,822 )

Class R

      (2,494 )     (461 )

Class K

      (647 )     (446 )

Class I

      (16,315 )     (446 )
Capital Stock Transactions     

Net increase (decrease)

      22,472,974       (22,870,409 )
                

Total increase (decrease)

      32,893,551       (18,226,413 )
Net Assets     

Beginning of period

      148,745,055       166,971,468  
                

End of period (including undistributed net investment Income/accumulated net investment loss of $282,525 and ($3,801), respectively)

    $     181,638,606     $     148,745,055  
                

See notes to financial statements.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   11

 

Statement of Changes in Net Assets

NOTES TO FINANCIAL STATEMENTS

August 31, 2007

 

NOTE A

Significant Accounting Policies

AllianceBernstein Blended Style Series, Inc. (the “Company”) was organized as a Maryland corporation on April 24, 2002 and is registered under the Investment Company Act of 1940, as a diversified open-end management investment company. The Company operates as a series company currently comprised of the U.S. Large Cap Portfolio (the “Fund”), the Global Blend Portfolio and the twelve portfolios of the AllianceBernstein Retirement Strategies (the “Funds”). Each fund is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the U.S. Large Cap Portfolio. The Fund offers Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares. 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. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class and Class I shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All seven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The Fund invests primarily in a combination of portfolios of the AllianceBernstein Pooling Portfolios (the “Underlying Portfolios”) representing a variety of asset classes and investment styles that are managed by AllianceBernstein L.P. (the “Adviser”). On May 20, 2005 the Fund acquired shares on the Underlying Portfolios through a tax-free exchange of Fund investment securities at cost for shares of beneficial interest of the Underlying Portfolios. The transfer had no impact on the Fund’s net assets. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles, which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Investments in the Underlying Portfolios are valued at their net asset value each business day.

12   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

2. 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.

3. Investment Income and Investment Transactions

Income and capital gain distributions from the Underlying Portfolios, if any, are recorded on the ex-dividend date. Transactions in shares of the Underlying Portfolios are accounted for on the trade date. Investment gains and losses are determined on the identified cost basis.

4. Class Allocations

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 for class specific expenses which are allocated to the respective class. Expenses of the Company are charged to each Fund in proportion to net assets. Expenses included in the accompanying statement of operations do not include any expenses of the Underlying Portfolios. Realized and unrealized gains and losses are allocated among the various share classes based on their relative net assets.

5. Dividends and Distributions

Dividends and distributions to shareholders, if any, 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 U.S. generally accepted accounting principles. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .65% of the first $2.5 billion, .55% of the next $2.5 billion and .50% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly.

The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit the total operating expenses on an annual basis to 1.65% of average daily net assets for Class A shares, 2.35% of average daily net assets for Class B and Class C shares, 1.35% of average daily net assets for Advisor Class shares, 1.85% of average daily net assets for Class R shares, 1.60% of average daily net assets for Class K shares and 1.35% of average daily net assets for Class I shares. For the year ended August 31, 2007, such reimbursement amounted to $17.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   13

 

Notes to Financial Statements

 

Pursuant to the Advisory agreement, the Adviser provides certain legal and accounting services for the Fund. For the year ended August 31, 2007 such fees amounted to $92,000. The Adviser agreed to waive a portion of its fees for such services. Such waiver amounted to $53,662 for the year ended August 31, 2007.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), 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. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $115,569 for the year ended August 31, 2007.

For the year ended August 31, 2007, the Fund’s expenses were reduced by $8,607 under an expense offset arrangement with ABIS.

AllianceBernstein Investments, 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 retained front-end sales charges of $4,651 from the sale of Class A shares and received $1,122, $56,020 and $3,521 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the year ended August 31, 2007.

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, 1% of the Fund’s average daily net assets attributable to both Class B and Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class and Class I shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $974,572, $968,033, $2,737 and $910, for Class B, Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

14   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

NOTE D

Investment Transactions

Purchases and sales of investments in the Underlying Portfolios, aggregated $48,537,098 and $32,566,056, respectively, for the year ended August 31, 2007.

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

 

Cost

    $  140,140,420
      

Gross unrealized appreciation

    $ 41,744,844

Gross unrealized depreciation

      –0–
      

Net unrealized appreciation

    $ 41,744,844
      

NOTE E

Capital Stock

Class A, Class B, Class C, Advisor Class and Class R shares each consist of 6,000,000,000 authorized shares and Class K and Class I shares each consist of 3,000,000,000 authorized shares. Transactions in capital stock for each class were as follows:

 

            
     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
        
Class A             

Shares sold

    419,412     692,441       $ 5,859,227     $ 9,257,642    
     

Shares issued in reinvestment of dividends and distributions

    197,416     155,495         2,698,672       2,074,313    
     

Shares converted from Class B

    169,013     104,854         2,365,282       1,396,032    
     

Shares redeemed

    (1,101,136 )   (1,417,055 )       (15,348,805 )     (18,827,144 )  
     

Net decrease

    (315,295 )   (464,265 )     $ (4,425,624 )   $ (6,099,157 )  
     
            

Class B

             

Shares sold

    163,715     275,493       $ 2,207,918     $ 3,585,004    
     

Shares issued in reinvestment of distributions

    173,154     161,668         2,290,830       2,106,538    
     

Shares converted to Class A

    (175,077 )   (107,026 )       (2,365,282 )     (1,396,032 )  
     

Shares redeemed

    (1,069,162 )   (1,447,073 )       (14,477,646 )     (18,764,363 )  
     

Net decrease

    (907,370 )   (1,116,938 )     $ (12,344,180 )   $ (14,468,853 )  
     
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   15

 

Notes to Financial Statements

 

     Shares         Amount      
     Year Ended
August 31,
2007		     Year Ended
August 31,
2006		         Year Ended
August 31,
2007		     Year Ended
August 31,
2006		      
        
Class C             

Shares sold

    230,664     276,270       $ 3,099,252     $ 3,595,924    
     

Shares issued in reinvestment of distributions

    93,499     73,827         1,236,991       961,964    
     

Shares redeemed

    (591,164 )   (720,583 )       (8,003,233 )     (9,295,784 )  
     

Net decrease

    (267,001 )   (370,486 )     $ (3,666,990 )   $ (4,737,896 )  
     
            

Advisor Class

             

Shares sold

    3,798,025     518,884       $ 52,834,451     $ 6,912,463    
     

Shares issued in reinvestment of dividends and distributions

    49,716     30,272         686,077       407,462    
     

Shares redeemed

    (1,008,440 )   (376,920 )       (14,382,894 )     (5,147,911 )  
     

Net increase

    2,839,301     172,236       $ 39,137,634     $ 2,172,014    
     
            
Class R             

Shares sold

    3,384     182       $ 46,476     $ 2,356    
     

Shares issued in reinvestment of dividends and distributions

    141     1         1,909       16    
     

Shares redeemed

    (58 )   –0–         (829 )     –0–    
     

Net increase

    3,467     183       $ 47,556     $ 2,372    
     
            
Class K             

Shares sold

    90,987     –0–       $ 1,256,239     $ –0–    
     

Shares issued in reinvestment of dividends and distributions

    –0– (a)   1         3       2    
     

Net increase

    90,987     1       $ 1,256,242     $ 2    
     
            
Class I             

Shares sold

    167,215     20,669       $ 2,450,826     $ 272,000    
     

Shares issued in reinvestment of dividends and distributions

    1,278     1         17,510       2    
     

Shares redeemed

    –0–     (812 )       –0–       (10,893 )  
     

Net increase

    168,493     19,858       $ 2,468,336     $ 261,109    
     

 

(a) Share amount is less than one full share.
16   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

NOTE F

Risks Involved in Investing in the Fund

Foreign Securities Risk — An Underlying Portfolio’s investments in securities of foreign companies or foreign governments involves special risks which include changes in foreign currency exchange rates and the possibility of future political and economic developments which could adversely affect the value of such securities. Moreover, securities of many foreign companies or foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies or of the U.S. government.

Indemnification Risk — In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $250 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 year ended August 31, 2007.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended August 31, 2007 and August 31, 2006 were as follows:

 

    

Year Ended

August 31,

2007

   

Year Ended

August 31,
2006

Distributions paid from:

      

Ordinary income

    $ 818,294    $ 508,156

Net long-term capital gains

      7,766,644      6,403,119
             

Total taxable distributions

      8,584,938      6,911,275
             

Total distributions paid

    $     8,584,938    $     6,911,275
             

As of August 31, 2007, the components of accumulated earnings/(deficit) on a tax basis were as follows:

 

Undistributed ordinary income

    $ 282,525

Undistributed long-term capital gains

      9,115,792

Unrealized appreciation/(depreciation)(a)

      41,744,843
      

Total accumulated earnings/(deficit)

    $     51,143,160
      

 

(a)

The difference between book-basis and tax-basic unrealized appreciation/(depreciation) is attributable primarily to the tax losses on wash sales.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   17

 

Notes to Financial Statements

 

NOTE I

Legal Proceeding

On October 2, 2003, a purported class action complaint entitled Hindo, et al. v. AllianceBernstein Growth & Income Fund, et al. (“Hindo Complaint”) was filed against the Adviser, Alliance Capital Management Holding L.P. (“Alliance Holding”), Alliance Capital Management Corporation, AXA Financial, Inc., the AllianceBernstein Funds, certain officers of the Adviser (“AllianceBernstein defendants”), and certain other unaffiliated defendants, as well as unnamed Doe defendants. The Hindo Complaint was filed in the United States District Court for the Southern District of New York by alleged shareholders of two of the AllianceBernstein Funds. The Hindo Complaint alleges that certain of the AllianceBernstein defendants failed to disclose that they improperly allowed certain hedge funds and other unidentified parties to engage in “late trading” and “market timing” of AllianceBernstein Fund securities, violating Sections 11 and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act and Sections 206 and 215 of the Advisers Act. Plaintiffs seek an unspecified amount of compensatory damages and rescission of their contracts with the Adviser, including recovery of all fees paid to the Adviser pursuant to such contracts.

Following October 2, 2003, 43 additional lawsuits making factual allegations generally similar to those in the Hindo Complaint were filed in various federal and state courts against the Adviser and certain other defendants. All state court actions against the Adviser either were voluntarily dismissed or removed to federal court. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred all federal actions to the United States District Court for the District of Maryland (the “Mutual Fund MDL”). On September 29, 2004, plaintiffs filed consolidated amended complaints with respect to four claim types: mutual fund shareholder claims; mutual fund derivative claims; derivative claims brought on behalf of Alliance Holding; and claims brought under ERISA by participants in the Profit Sharing Plan for Employees of the Adviser. All four complaints include substantially identical factual allegations, which appear to be based in large part on the Order of the SEC dated December 18, 2003 as amended and restated January 14, 2004 (“SEC Order) and the New York State Attorney General Assurance of Discontinuance dated September 1, 2004 (“NYAG Order”).

On April 21, 2006, the Adviser and attorneys for the plaintiffs in the mutual fund shareholder claims, mutual fund derivative claims, and ERISA claims entered into a confidential memorandum of understanding (“MOU”) containing their agreement to settle these claims. The agreement will be documented by a stipulation of settlement and will be submitted for court approval at a later date. The settlement amount ($30 million) which the Adviser previously accrued and disclosed, has been disbursed. The derivative claims brought on behalf of Alliance Holding, in which plaintiffs seek an unspecified amount of damages, remain pending.

18   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

On April 11, 2005, a complaint entitled The Attorney General of the State of West Virginia v. AIM Advisors, Inc., et al. (“WVAG Complaint”) was filed against the Adviser, Alliance Holding, and various unaffiliated defendants. The WVAG Complaint was filed in the Circuit Court of Marshall County, West Virginia by the Attorney General of the State of West Virginia. The WVAG Complaint makes factual allegations generally similar to those in the Hindo Complaint. On October 19, 2005, the WVAG Complaint was transferred to the Mutual Fund MDL. On August 30, 2005, the West Virginia Securities Commissioner signed a Summary Order to Cease and Desist, and Notice of Right to Hearing addressed to the Adviser and Alliance Holding. The Summary Order claims that the Adviser and Alliance Holding violated the West Virginia Uniform Securities Act, and makes factual allegations generally similar to those in the Commission Order and the NYAG Order. On January 25, 2006, the Adviser and Alliance Holding moved to vacate the Summary Order. In early September 2006, the court denied this motion, and the Supreme Court of Appeals in West Virginia denied the defendants’ petition for appeal. On September 22, 2006, the Adviser and Alliance Holding filed an answer and motion to dismiss the Summary Order with the West Virginia Securities Commissioner.

It is possible that these matters and/or other developments resulting from these matters could result in increased redemptions of the AllianceBernstein Mutual Funds’ shares or other adverse consequences to the AllianceBernstein Mutual Funds. This may require the AllianceBernstein Mutual Funds to sell investments held by those funds to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the AllianceBernstein Mutual Funds. However, the Adviser believes that these matters are not likely to have a material adverse effect on its ability to perform advisory services relating to the AllianceBernstein Mutual Funds.

NOTE J

Recent Accounting Pronouncements

On July 13, 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded in the current period. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. On December 22, 2006, the Securities and Exchange Commission notified the industry that the implementation of FIN 48 by registered investment companies could be delayed until the last business day of the first required financial statement reporting period for fiscal years beginning after

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   19

 

Notes to Financial Statements

 

December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.

On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 157 and its impact on the financial statements has not yet been determined.

20   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class A  
    Year Ended August 31,     October 1,
2004 to
August 31,
2005(a)		     July 1,
2004 to
September 30,
2004(b)		     Year
Ended
June 30,
2004		     July 15,
2002(c) to
June 30,
2003		  
    2007     2006          
     

Net asset value, beginning of period

   $  13.31     $  12.89     $  11.87     $  12.14     $  10.68     $  10.00  
     
Income From Investment Operations            

Net investment income (loss)(d)(e)

   .07     (.02 )   .01     – 0 –(f)   .01 (g)   .02  

Net realized and unrealized gain (loss) on investment transactions

   1.59     .98     1.44     (.27 )   1.47     .68  
     

Net increase (decrease) in net asset value from operations

   1.66     .96     1.45     (.27 )   1.48     .70  
     
Less: Dividends and Distributions            

Dividends from net investment income

   .00 (f)   – 0 –   – 0 –   – 0 –   – 0 –   (.02 )

Distributions from net realized gain on investment transactions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   – 0 –
     

Total dividends and distributions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   (.02 )
     

Net asset value, end of period

   $  14.18     $  13.31     $  12.89     $  11.87     $  12.14     $  10.68  
     
Total Return            

Total investment return based on net asset value(h)

   12.70  %   7.47  %   12.35  %   (2.22 )%   13.88  %   6.96  %
Ratios/Supplemental Data            

Net assets, end of period (000’s omitted)

   $50,062     $51,188     $55,567     $52,492     $54,956     $37,789  

Ratio to average net assets of:

            

Expenses, net of waivers/reimbursements

   1.31  %(i)   1.36  %(i)(j)   1.47  %(i)(k)   1.47  %(k)   1.53  %   1.65  %(k)

Expenses, before waivers/reimbursements

   1.34  %(i)   1.41  %(i)(j)   1.52  %(i)(k)   1.74  %(k)   1.76  %   2.62  %(k)

Net investment income (loss)(e)

   .52  %   (.13 )%(j)   .06  %(k)   .01  %(k)   .09  %(g)   .20  %(k)

Portfolio turnover rate

   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 27.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   21

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class B  
   

Year Ended August 31,

     October 1,
2004 to
August 31,
2005(a)		     July 1,
2004 to
September 30,
2004(b)		     Year
Ended
June 30,
2004		     July 15,
2002(c) to
June 30,
2003		  
    2007     2006          
     

Net asset value, beginning of period

   $  12.93     $  12.63     $  11.71     $  11.99     $  10.62     $  10.00  
     
Income From Investment Operations            

Net investment loss(d)(e)

   (.02 )   (.11 )   (.07 )   (.02 )   (.07 )(g)   (.04 )

Net realized and unrealized gain (loss) on investment transactions

   1.53     .95     1.42     (.26 )   1.46     .67  
     

Net increase (decrease) in net asset value from operations

   1.51     .84     1.35     (.28 )   1.39     .63  
     
Less: Dividends and Distributions            

Dividends from net investment income

   – 0 –   – 0 –   – 0 –   – 0 –   – 0 –   (.01 )

Distributions from net realized gain on investment transactions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   – 0 –
     

Total dividends and distributions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   (.01 )
     

Net asset value, end of period

   $  13.65     $  12.93     $  12.63     $  11.71     $  11.99     $  10.62  
     
Total Return            

Total investment return based on net asset value(h)

   11.86  %   6.65  %   11.64  %   (2.34 )%   13.11  %   6.25  %
Ratios/Supplemental Data            

Net assets, end of period (000’s omitted)

   $42,459     $51,945     $64,829     $64,399     $67,551     $47,963  

Ratio to average net assets of:

            

Expenses, net of waivers/reimbursements

   2.04  %(i)   2.09  %(i)(j)   2.19  %(i)(k)   2.19  %(k)   2.25  %   2.35  %(k)

Expenses, before waivers/reimbursements

   2.07  %(i)   2.14  %(i)(j)   2.24  %(i)(k)   2.46  %(k)   2.48  %   3.28  %(k)

Net investment loss(e)

   (.18 )%   (.84 )%(j)   (.66 )%(k)   (.71 )%(k)   (.63 )%(g)   (.50 )%(k)

Portfolio turnover rate

   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 27.

22   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class C  
    Year Ended August 31,     October 1,
2004 to
August 31,
2005(a)		     July 1,
2004 to
September 30,
2004(b)		     Year
Ended
June 30,
2004		     July 15,
2002(c) to
June 30,
2003		  
    2007     2006          
     

Net asset value, beginning of period

   $  12.93     $  12.63     $  11.71     $  11.99     $  10.62     $  10.00  
     
Income From Investment Operations            

Net investment loss(d)(e)

   (.03 )   (.11 )   (.07 )   (.02 )   (.07 )(g)   (.04 )

Net realized and unrealized gain
(loss) on investment transactions

   1.55     .95     1.42     (.26 )   1.46     .67  
     

Net increase (decrease) in net asset value from operations

   1.52     .84     1.35     (.28 )   1.39     .63  
     
Less: Dividends and Distributions            

Dividends from net investment income

   – 0 –   – 0 –   – 0 –   – 0 –   – 0 –   (.01 )

Distributions from net realized gain on investment transactions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   – 0 –
     

Total dividends and distributions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   (.01 )
     

Net asset value, end of period

   $  13.66     $  12.93     $  12.63     $  11.71     $  11.99     $  10.62  
     
Total Return            

Total investment return based on net asset value(h)

   11.95  %   6.65  %   11.64  %   (2.34 )%   13.11  %   6.25  %
Ratios/Supplemental Data            

Net assets, end of period (000’s omitted)

   $31,101     $32,904     $36,807     $39,267     $42,854     $28,806  

Ratio to average net assets of:

            

Expenses, net of waivers/reimbursements

   2.02  %(i)   2.07  %(i)(j)   2.17  %(i)(k)   2.18  %(k)   2.24  %   2.35  %(k)

Expenses, before waivers/reimbursements

   2.05  %(i)   2.12  %(i)(j)   2.22  %(i)(k)   2.45  %(k)   2.47  %   3.26  %(k)

Net investment loss(e)

   (.19 )%   (.83 )%(j)   (.63 )%(k)   (.71 )%(k)   (.62 )%(g)   (.47 )%(k)

Portfolio turnover rate

   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 27.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   23

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Advisor Class  
    Year Ended August 31,     October 1,
2004 to
August 31,
2005(a)		     July 1,
2004 to
September 30,
2004(b)		     Year
Ended
June 30,
2004		     July 15,
2002(c) to
June 30,
2003		  
    2007     2006          
     

Net asset value, beginning of period

   $  13.46     $  12.99     $  11.92     $  12.18     $  10.71     $  10.00  
     
Income From Investment Operations            

Net investment income(d)(e)

   .07     .03     .04     .01     .04 (g)   .04  

Net realized and unrealized gain
(loss) on investment transactions

   1.66     .98     1.46     (.27 )   1.48     .69  
     

Net increase (decrease) in net asset value from operations

   1.73     1.01     1.50     (.26 )   1.52     .73  
     
Less: Dividends and Distributions            

Dividends from net investment income

   (.05 )   – 0 –   – 0 –   – 0 –   (.03 )   (.02 )

Distributions from net realized gain on investment transactions

   (.79 )   (.54 )   (.43 )   – 0 –   (.02 )   – 0 –
     

Total dividends and distributions

   (.83 )   (.54 )   (.43 )   – 0 –   (.05 )   (.02 )
     

Net asset value, end of period

   $  14.35     $  13.46     $  12.99     $  11.92     $  12.18     $  10.71  
     
Total Return            

Total investment return based on net asset value(h)

   13.06  %   7.81  %   12.73  %   (2.13 )%   14.20  %   7.32  %
Ratios/Supplemental Data            

Net assets, end of period (000’s omitted)

   $53,956     $12,407     $9,737     $9,251     $9,261     $7,263  

Ratio to average net assets of:

            

Expenses, net of waivers/reimbursements

   1.02  %(i)   1.05  %(i)(j)   1.17  %(i)(k)   1.17  %(k)   1.23  %   1.35  %(k)

Expenses, before waivers/reimbursements

   1.05  %(i)   1.11  %(i)(j)   1.22  %(i)(k)   1.44  %(k)   1.46  %   4.78  %(k)

Net investment income(e)

   .51  %   .20  %(j)   .36  %(k)   .31  %(k)   .39  %(g)   .48  %(k)

Portfolio turnover rate

   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 27.

24   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class R  
    Year Ended August 31,     October 1,
2004 to
August 31,
2005(a)		     July 1, 2004 to
September 30,
2004(b)		     February 17,
2004(l) to
June 30,
2004		  
    2007     2006        
     

Net asset value,
beginning of
period

   $  13.22     $  12.85     $  11.86     $  12.13     $  12.27  
     
Income From
Investment
Operations		          

Net investment income (loss)(d)(e)

   .02     (.05 )   (.02 )   (.01 )   (.01 )(g)

Net realized and
unrealized gain
(loss) on investment
transactions

   1.61     .96     1.44     (.26 )   (.13 )
     

Net increase (decrease)
in net asset value
from operations

   1.63     .91     1.42     (.27 )   (.14 )
     
Less: Dividends and Distributions          

Dividends from net
investment
income

   (.03 )   – 0 –   – 0 –   – 0 –   – 0 –

Distributions from net
realized gain on
investment
transactions

   (.79 )   (.54 )   (.43 )   – 0 –   – 0 –
     

Total dividends and distributions

   (.82 )   – 0 –   – 0 –   – 0 –   – 0 –
     

Net asset value, end of
period

   $  14.03     $  13.22     $  12.85     $  11.86     $  12.13  
     
Total Return          

Total investment return
based on net asset
value(h)

   12.52  %   7.09  %   12.10  %   (2.23 )%   (1.14 )%
Ratios/Supplemental
Data		          

Net assets, end of
period (000’s
omitted)

   $63     $13     $11     $10     $10  

Ratio to average net
assets of:

          

Expenses, net of
waivers/
reimbursements

   1.50  %(i)   1.64  %(i)(j)   1.72  %(i)(k)   1.66  %(k)   1.78  %(k)

Expenses, before
waivers/
reimbursements

   1.53  %(i)   1.69  %(i)(j)   1.77  %(i)(k)   1.93  %(k)   2.15  %(k)

Net investment
Income (loss)(e)

   .17  %   (.41 )%(j)   (.20 )%(k)   (.18 )%(k)   (.12 )%(g)(k)

Portfolio turnover
rate

   19  %   6  %   44  %   11  %   39  %

See footnote summary on page 27.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   25

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class K  
    Year Ended August 31,     March 1,
2005(l) to
August 31,
2005		  
    2007     2006    
     

Net asset value, beginning of period

   $  13.31     $  12.90     $  12.31  
     
Income From Investment Operations      

Net investment loss(d)(e)

   (.10 )   (.02 )   (.03 )

Net realized and unrealized gain on investment transactions

   1.78     .97     .62  
     

Net increase in net asset value from operations

   1.68     .95     .59  
     
Less: Dividends and Distributions      

Dividends from net investment income

   (.01 )   – 0 –   – 0 –

Distributions from net realized gain on investment transactions

   (.79 )   (.54 )   – 0 –
     

Total dividends and distributions

   (.80 )   (.54 )   – 0 –
     

Net asset value, end of period

   $  14.19     $  13.31     $  12.90  
     
Total Return      

Total investment return based on net asset value(h)

   12.84  %   7.38  %   4.79  %
Ratios/Supplemental Data      

Net assets, end of period (000’s omitted)

   $1,302     $11     $10  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(i)

   1.58  %   1.37  %(j)   1.51  %(k)

Expenses, before waivers/reimbursements(i)

   1.63  %   1.42  %(j)   1.56  %(k)

Net investment loss(e)

   (1.20 )%   (.13 )%(j)   (.50 )%(k)

Portfolio turnover rate

   19  %   6  %   44  %

See footnote summary on page 27.

 

26   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class I  
    Year Ended August 31,     March 1,
2005(l) to
August 31,		  
    2007     2006     2005  
     

Net asset value, beginning of period

   $  13.38     $  12.92     $  12.31  
     
Income From Investment Operations      

Net investment income (loss)(d)(e)

   .08     (.02 )   (.01 )

Net realized and unrealized gain on investment transactions

   1.64     1.02     .62  
     

Net increase in net asset value from operations

   1.72     1.00     .61  
     
Less: Dividends and Distributions      

Dividends from net investment income

   (.06 )   – 0 –   – 0 –

Distributions from net realized gain on investment transactions

   (.79 )   (.54 )   – 0 –
     

Total dividends and distributions

   (.85 )   (.54 )   – 0 –
     

Net asset value, end of period

   $  14.25     $  13.38     $  12.92  
     
Total Return      

Total investment return based on net asset value(h)

   13.09  %   7.77  %   4.96  %
Ratios/Supplemental Data      

Net assets, end of period (000’s omitted)

   $2,696     $277     $10  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(i)

   .96  %   .97  %(j)   1.19  %(k)

Expenses, before waivers/reimbursements(i)

   .99  %   1.02  %(j)   1.24  %(k)

Net investment income (loss)(e)

   .62  %   (.19 )%(j)   (.17 )%(k)

Portfolio Turnover Rate

   19  %   6  %   44  %

 

(a) The Fund changed its fiscal year end from September 30 to August 31.

 

(b) The Fund changed its fiscal year end from June 30 to September 30.

 

(c) Commencement of operations.

 

(d) Based on average shares outstanding.

 

(e) Net of fees and expenses waived/reimbursed by the Adviser.

 

(f) Amount is less than $.005.

 

(g) Net of fees and expenses waived by the Transfer Agent.

 

(h) 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 return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

 

(i) Expense ratios do not include expenses of the Underlying Portfolios in which the Fund invest. The estimated blended expense ratio of the Underlying Portfolios was .02% and .04%, for the years ended August 31, 2007 and August 31, 2006, respectively.

 

(j) The ratio includes expenses attributable to costs of proxy solicitation.

 

(k) Annualized.

 

(l) Commencement of distributions.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   27

 

Financial Highlights

 

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders AllianceBernstein Blended Style Series, Inc. — US Large Cap Portfolio

We have audited the accompanying statement of net assets of AllianceBernstein Blended Style Series, Inc. — US Large Cap Portfolio as of August 31, 2007, and the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for each of the years in the two-year period then ended. 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 audits. The financial highlights for each of the presented periods ended prior to September 1, 2005 were audited by other independent registered public accountants whose report thereon, dated October 21, 2005, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. Our procedures included confirmation of securities owned as of August 31, 2007, by correspondence with the custodian and brokers or by other appropriate auditing procedures. 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 audits provide 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 Blended Style Series, Inc. — US Large Cap Portfolio as of August 31, 2007, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for each of the years in the two-year period then ended, in conformity with U.S. generally accepted accounting principles.

 

LOGO

New York, New York

October 22, 2007

28   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Report of Independent Registered Public Accounting Firm

 

TAX INFORMATION (unaudited)

For the fiscal year ended August 31, 2007, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided by JGTRR Act of 2003. The Fund designates $1,133,107 of ordinary income distributed as qualified dividend income. The Fund also designates $1,133,107 of ordinary income distributed as qualifying for the corporate dividends received deduction. The Fund designates $7,766,644 as long-term capital gain dividend. In addition, for foreign shareholders only, the Fund designates $765,983 of ordinary income distributed as qualified short term capital gain.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   29

 

Tax Information

 

BOARD OF DIRECTORS

William H. Foulk, Jr.(1), Chairman

Marc O. Mayer, President and Chief Executive Officer

David H. Dievler(1)

John H. Dobkin(1)

Michael J. Downey(1)

D. James Guzy(1)

Nancy P. Jacklin(1)

Marshall C. Turner, Jr.(1)

Earl D. Weiner(1)

OFFICERS(2)

Philip L. Kirstein, Senior Vice President and Independent Compliance Officer

Seth J. Masters, Senior Vice President

Thomas J. Fontaine, Vice President

Mark A Hamilton, Vice President

Joshua B. Lisser, Vice President

Christopher H. Nikolich, Vice President

Emilie D. Wrapp, Secretary

Joseph J. Mantineo, Treasurer and Chief Financial Officer

Vincent S. Noto, Controller

 

Custodian

State Street Bank & Trust Company
One Lincoln Street

Boston, MA 02111

   Independent Registered Public Accounting Firm
 

KPMG LLP

345 Park Avenue

New York, NY 10154

Principal Underwriter  

AllianceBernstein Investments, Inc.
1345 Avenue of the Americas

New York, NY 10105

Legal Counsel

Seward & Kissel LLP

One Battery Park Plaza

New York, NY 10004

  

Transfer Agent

AllianceBernstein Investor

Services, Inc.

P.O. Box 786003

San Antonio, TX 78278-6003

Toll-Free (800) 221-5672

 

(1) Member of the Audit Committee, Governance and Nominating Committee and Independent Directors Committee.

 

(2) The day-to-day management of and investment decisions for the Fund’s portfolio are made by the Blend Investment Policy Team, comprised of senior Blend portfolio managers. While all members of the team work jointly to determine the majority of the investment strategy, Messrs. Seth Masters, Thomas Fontaine, Mark Hamilton, Joshua Lisser and Christopher Nikolich, members of the Blend Investment Policy Team, are primarily responsible for the day-to- day management of the Fund’s portfolio.

 

30   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Board of Directors

MANAGEMENT OF THE FUND

 

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

 

NAME, ADDRESS,*
AND AGE
(YEAR ELECTED**)		   PRINCIPAL
OCCUPATION(S)
DURING PAST 5 YEARS		   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
INTERESTED DIRECTOR      

Marc O. Mayer,***

1345 Avenue of the Americas

New York, NY 10105
50
(2003)

   Executive Vice President of AllianceBernstein L.P. (“AllianceBernstein”) since 2001 and Executive Managing Director of AllianceBernstein Investments, Inc. (“ABI”) since 2003; prior thereto he was head of AllianceBernstein Institutional Investments, a unit of AllianceBernstein from 2001-2003. Prior thereto, Chief Executive Officer of Sanford C. Bernstein & Co., LLC (institutional research and brokerage arm of Bernstein & Co., LLC) (“SCB & Co.”) and its predecessor since prior to 2002.   108   SCB Partners, Inc. and SCB Inc.
     
DISINTERESTED DIRECTORS    

William H. Foulk, Jr., #, ##

75
(2002)

Chairman of the Board

   Investment Adviser and Independent Consultant. He was formerly Senior Manager of Barrett Associates, Inc., a registered investment adviser, with which he had been associated since prior to 2002. He was formerly Deputy Comptroller and Chief Investment Officer of the State of New York and, prior thereto, Chief Investment Officer of the New York Bank for Savings.   110   None
     

David H. Dievler, #

78
(2002)

   Independent Consultant. Until December 1994, he was Senior Vice President of AllianceBernstein Corporation (“AB Corp.”) (formerly Alliance Capital Management Corporation) responsible for mutual fund administration. Prior to joining AB Corp. in 1984, he was Chief Financial Officer of Eberstadt Asset Management since 1968. Prior to that, he was a Senior Manager at Price Waterhouse & Co. Member of the American Institute of Certified Public Accountants since 1953.   109   None
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   31

 

Management of the Fund

NAME, ADDRESS,*
AND AGE
(YEAR ELECTED**)		   PRINCIPAL
OCCUPATION(S)
DURING PAST 5 YEARS		   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
DISINTERESTED DIRECTORS
(continued)		    

John H. Dobkin, #

65
(2002)

   Consultant. Formerly, President of Save Venice, Inc. (preservation organization) from 2001-2002, Senior Advisor from June 1999-June 2000 and President of Historic Hudson Valley (historic preservation) from December 1989-May 1999. Previously, Director of the National Academy of Design and during 1988-1992, Director and Chairman of the Audit Committee of AB Corp.   108   None
     

Michael J. Downey, #

63
(2005)

   Consultant since January 2004. Formerly, managing partner of Lexington Capital, LLC (investment advisory firm) from December 1997 until December 2003. Prior thereto, Chairman and CEO of Prudential Mutual Fund Management from 1987 to 1993.   108   Asia Pacific Fund, Inc. and The Merger Fund
     

D. James Guzy, #

71
(2005)

   Chairman of the Board of PLX Technology (semi-conductors) and of SRC Computers Inc., with which he has been associated since prior to 2002. He is also President of the Arbor Company (private family investments).   108   Intel Corporation (semi-conductors) and Cirrus Logic Corporation (semi- conductors)
     

Nancy P. Jacklin, #

59
(2006)

   Formerly, U.S. Executive Director of the International Monetary Fund (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations.   108   None
32   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Management of the Fund

 

NAME, ADDRESS,*
AND AGE
(YEAR ELECTED**)		   PRINCIPAL
OCCUPATION(S)
DURING PAST 5 YEARS		   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
DISINTERESTED DIRECTORS
(continued)		    

Marshall C. Turner, Jr., #

66
(2005)

   Consultant. Formerly, President and CEO, Toppan Photomasks, Inc., (semi-conductor manufacturing services), 2005-2006, and Chairman and CEO from 2003 until 2005, when the company was acquired and renamed from Dupont Photomasks, Inc. Principal, Turner Venture Associates (venture capital and consulting) 1993-2003.   108   Xilinx, Inc. (semi-conductors) and MEMC Electronic Materials, Inc. (semi-conductor substrates)
     

Earl D. Weiner, #

68
(2007)

   Of Counsel, and Partner from 1976-2006, of the law firm Sullivan & Cromwell LLP, specializing in investment management, corporate and securities law; member of ABA Federal Regulation of Securities Committee Task Force on Fund Director’s Guidebook.   108   None

 

* The address for each of the Fund’s disinterested Directors is AllianceBernstein L.P., c/o Philip L. Kirstein, 1345 Avenue of the Americas, New York, NY 10105.

 

** There is no stated term of office for the Fund’s Directors.

 

*** Mr. Mayer is an “interested person”, as defined in the Investment Company Act of 1940, (the “1940 Act”) due to his position as Executive Vice President of AllianceBernstein.

 

# Member of the Audit Committee, Governance and Nominating Committee and Independent Directors Committee.

 

## Member of the Fair Value Pricing Committee.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   33

 

Management of the Fund

 

Officer Information

Certain information concerning the Fund’s Officers is listed below.

 

NAME, ADDRESS*
AND AGE		    POSITION(S)
HELD WITH FUND		    PRINCIPAL OCCUPATION
DURING PAST 5 YEARS
Marc O. Mayer
50		    President and Chief Executive Officer    See biography above.
     
Philip L. Kirstein
62		    Senior Vice President and Independent Compliance Officer    Senior Vice President and Independent Compliance Officer of the AllianceBernstein Funds with which he has been associated since October 2004. Prior thereto, he was Of Counsel to Kirkpatrick & Lockhart, LLP from October 2003 to October 2004, and General Counsel of Merrill Lynch Investment Managers L.P. since prior to 2002 until March 2003.
     
Seth J. Masters
48		    Senior Vice President    Executive Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Thomas J. Fontaine
42		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Mark A. Hamilton
42		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Joshua B. Lisser
40		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Christopher H. Nikolich
38		    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     
Emilie D. Wrapp
51		    Secretary    Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI,** with which she has been associated since prior to 2002.
34   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Management of the Fund

 

NAME, ADDRESS*
AND AGE		    POSITION(S)
HELD WITH FUND		    PRINCIPAL OCCUPATION
DURING PAST 5 YEARS
Joseph J. Matineo
48		    Treasurer and Chief Financial Officer    Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”),** with which he has been associated since prior to 2002.
     
Vincent S. Noto
42		    Controller    Vice President of ABIS,** with which he has been associated since prior to 2002.

 

 

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

 

** AllianceBernstein, ABI, ABIS and SCB & Co. are affiliates of the Fund.

 

   The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AllianceBernstein at 1-800-227-4618 for a free prospectus or SAI.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   35

 

Management of the Fund

PORTFOLIO SUMMARY

August 31, 2007

 

The information on pages 36 to 45 represents the holdings of the Underlying Portfolios in which the Fund may invest, including specific breakdowns within Underlying Portfolios. This holdings information has been derived from each fund’s August 31, 2007 financial statements, which have been audited by KPMG LLP, independent registered public accounting firm, whose report, along with each fund’s financial statements, is included in each fund’s annual report, which is available upon request.

U.S. VALUE PORTFOLIO

LOGO

U.S. LARGE CAP GROWTH PORTFOLIO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector breakdown is expressed as a percentage of total investments and may vary over time.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
36   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Portfolio Summary

 

U.S. LARGE CAP GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

Company   

    
Shares

   U.S. $ Value
 
    

COMMON STOCKS – 98.1%

     

Information Technology – 27.8%

     

Communications Equipment – 5.9%

     

Cisco Systems, Inc.(a)

    3,441,900   $ 109,865,448

Qualcomm, Inc.

    797,700     31,820,253

Research In Motion Ltd.(a)

    134,150     11,457,752
        
       153,143,453
        

Computers & Peripherals – 9.5%

     

Apple, Inc.(a)

    1,185,150     164,119,572

Hewlett-Packard Co.

    1,695,200     83,658,120
        
       247,777,692
        

Internet Software & Services – 6.3%

     

Akamai Technologies, Inc.(a)

    152,900     4,926,438

Google, Inc. – Class A(a)

    307,525     158,452,256
        
       163,378,694
        

Semiconductors & Semiconductor Equipment – 4.8%

     

Broadcom Corp. – Class A(a)

    1,478,400     51,004,800

Intel Corp.

    1,924,700     49,561,025

Nvidia Corp.(a)

    479,700     24,541,452
        
       125,107,277
        

Software – 1.3%

     

Adobe Systems, Inc.(a)

    830,100     35,486,775
        
       724,893,891
        

Health Care – 16.8%

     

Biotechnology – 6.0%

     

Celgene Corp.(a)

    648,000     41,608,080

Genentech, Inc.(a)

    707,200     52,905,632

Gilead Sciences, Inc.(a)

    1,742,100     63,360,177
        
       157,873,889
        

Health Care Equipment & Supplies – 2.1%

     

Alcon, Inc.

    397,850     53,813,191
        

Health Care Providers & Services – 4.9%

     

Medco Health Solutions, Inc.(a)

    326,500     27,899,425

WellPoint, Inc.(a)

    1,254,000     101,059,860
        
       128,959,285
        

Pharmaceuticals – 3.8%

     

Abbott Laboratories

    1,159,800     60,205,218

Merck & Co., Inc.

    441,700     22,160,089

Teva Pharmaceutical Industries, Ltd. (ADR)

    322,600     13,871,800

Wyeth

    53,900     2,495,570
        
       98,732,677
        
       439,379,042
        
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   37

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

Company   

    
Shares

   U.S. $ Value
 
    

Financials – 16.5%

     

Capital Markets – 10.3%

     

The Blackstone Group LP(a)

    1,326,600   $ 30,684,258

Franklin Resources, Inc.

    633,950     83,535,591

The Goldman Sachs Group, Inc.

    191,690     33,739,357

Legg Mason, Inc.

    656,990     57,039,872

Merrill Lynch & Co., Inc.

    711,250     52,419,125

MF Global Ltd.(a)

    435,000     11,718,900
        
       269,137,103
        

Diversified Financial Services – 6.2%

     

CME Group, Inc. – Class A

    159,920     88,723,616

Moody’s Corp.

    677,300     31,054,205

NYSE Euronext

    563,100     40,965,525
        
       160,743,346
        
       429,880,449
        

Industrials – 13.3%

     

Aerospace & Defense – 9.1%

     

Boeing Co.

    1,084,850     104,904,995

Honeywell International, Inc.

    1,120,500     62,916,075

Spirit Aerosystems Holdings, Inc. – Class A(a)

    1,102,300     39,407,225

United Technologies Corp.

    390,550     29,146,746
        
       236,375,041
        

Construction & Engineering – 1.3%

     

Fluor Corp.

    265,300     33,732,895
        

Electrical Equipment – 0.8%

     

Emerson Electric Co.

    455,500     22,424,265
        

Machinery – 2.1%

     

Caterpillar, Inc.

    154,900     11,736,773

Deere & Co.

    321,250     43,709,275
        
       55,446,048
        
       347,978,249
        

Consumer Discretionary – 8.4%

     

Hotels Restaurants & Leisure – 1.7%

     

McDonald’s Corp.

    147,650     7,271,763

Starwood Hotels & Resorts Worldwide, Inc.

    615,350     37,610,192
        
       44,881,955
        

Media – 3.1%

     

Comcast Corp. - Special – Class A(a)

    3,088,850     79,877,661
        

Multiline Retail – 3.6%

     

Kohl’s Corp.(a)

    823,100     48,809,830

Nordstrom, Inc.

    145,900     7,017,790

Target Corp.

    599,350     39,515,145
        
       95,342,765
        
       220,102,381
        
38   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

Company   

    
Shares

   U.S. $ Value
 
    

Energy – 5.7%

     

Energy Equipment & Services – 5.5%

     

Baker Hughes, Inc.

    789,550   $ 66,211,663

Schlumberger, Ltd.

    794,550     76,674,075
        
       142,885,738
        

Oil, Gas & Consumable Fuels – 0.2%

     

Petro-Canada

    97,300     4,967,165
        
       147,852,903
        

Consumer Staples – 4.5%

     

Beverages – 1.2%

     

PepsiCo, Inc.

    452,900     30,810,787
        

Food Products – 0.9%

     

WM Wrigley Jr Co.

    410,800     23,929,100
        

Household Products – 2.4%

     

Colgate-Palmolive Co.

    383,600     25,440,352

Procter & Gamble Co.

    591,000     38,598,210
        
       64,038,562
        
       118,778,449
        

Materials – 3.9%

     

Chemicals – 3.9%

     

Air Products & Chemicals, Inc.

    451,400     40,630,514

Monsanto Co.

    860,600     60,018,244
        
       100,648,758
        

Telecommunication Services – 1.2%

     

Wireless Telecommunication
Services – 1.2%

     

America Movil SAB de CV Series L (ADR)

    509,400     30,798,324
        

Total Common Stocks
(cost $2,252,033,899)

        2,560,312,446
        
    

SHORT-TERM INVESTMENTS – 1.7%

     

Investment Companies – 1.7%

     

AllianceBernstein Fixed-Income Shares,
Inc. – Government STIF Portfolio(b)
(cost $43,620,504)

    43,620,504     43,620,504
        

Total Investments – 99.8%
(cost $2,295,654,403)

        2,603,932,950

Other assets less liabilities – 0.2%

        4,221,333
        

Net Assets – 100.0%

     $ 2,608,154,283
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

  See notes to financial statements.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   39

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

U.S. VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

Company   

Shares

   U.S. $ Value
 
    
    

COMMON STOCKS – 95.3%

     

Financials – 31.6%

     

Capital Markets – 3.6%

     

Deutsche Bank AG

    91,900   $ 11,395,600

The Goldman Sachs Group, Inc.

    25,000     4,400,250

Janus Capital Group, Inc.

    373,650     9,935,353

Merrill Lynch & Co., Inc.

    389,500     28,706,150

Morgan Stanley

    533,900     33,299,343

Waddell & Reed Financial, Inc. – Class A

    151,300     3,758,292
        
       91,494,988
        

Commercial Banks – 4.1%

     

Comerica, Inc.

    252,300     14,073,294

Fifth Third Bancorp

    430,500     15,364,545

Keycorp

    89,900     2,993,670

National City Corp.

    511,700     13,769,847

SunTrust Banks, Inc.

    79,800     6,284,250

U.S. Bancorp

    523,400     16,931,990

Wachovia Corp.

    395,000     19,347,100

Wells Fargo & Co.

    449,200     16,413,768
        
       105,178,464
        

Diversified Financial Services – 9.7%

     

Bank of America Corp.

    1,759,500     89,171,460

CIT Group, Inc.

    425,300     15,978,521

Citigroup, Inc.

    1,825,800     85,593,504

JPMorgan Chase & Co.

    1,299,100     57,835,932
        
       248,579,417
        

Insurance – 10.6%

     

ACE Ltd.

    310,100     17,911,376

Allstate Corp.

    257,800     14,114,550

AMBAC Financial Group, Inc.

    222,000     13,946,040

American International Group, Inc.

    888,800     58,660,800

Chubb Corp.

    296,800     15,175,384

Fidelity National Financial, Inc. – Class A

    522,500     9,504,275

Genworth Financial, Inc. – Class A

    543,500     15,750,630

Hartford Financial Services Group, Inc.

    215,600     19,168,996

MBIA, Inc.

    201,400     12,084,000

MetLife, Inc.

    316,300     20,259,015

Old Republic International Corp.

    625,200     11,372,388

Partnerre, Ltd.

    66,100     4,806,131

RenaissanceRe Holdings, Ltd.

    128,700     7,371,936

Torchmark Corp.

    101,400     6,242,184

The Travelers Cos, Inc.

    457,000     23,096,780

UnumProvident Corp.

    605,700     14,821,479

XL Capital Ltd. – Class A

    124,300     9,471,660
        
       273,757,624
        
40   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Value Portfolio—Portfolio of Investments

Company    Shares   U.S. $ Value
 
    
    

Thrifts & Mortgage Finance – 3.6%

     

Astoria Financial Corp.

    235,300   $ 6,134,271

Countrywide Financial Corp.

    259,000     5,141,150

Federal Home Loan Mortgage Corp.

    330,500     20,362,105

Federal National Mortgage Association

    543,000     35,626,230

MGIC Investment Corp.

    182,500     5,504,200

Washington Mutual, Inc.

    568,500     20,875,320
        
       93,643,276
        
       812,653,769
        

Energy – 13.3%

     

Oil, Gas & Consumable Fuels – 13.3%

     

BP PLC (ADR)

    170,700     11,498,352

Chevron Corp.

    878,500     77,097,160

ConocoPhillips

    715,600     58,600,484

Exxon Mobil Corp.

    1,630,800     139,808,484

Marathon Oil Corp.

    467,000     25,166,630

Occidental Petroleum Corp.

    71,200     4,036,328

Royal Dutch Shell PLC (ADR)

    171,300     13,250,055

Total SA (ADR)

    162,000     12,164,580
        
       341,622,073
        

Consumer Discretionary – 11.0%

     

Auto Components – 1.1%

     

Autoliv, Inc.

    162,800     9,339,836

BorgWarner, Inc.

    121,100     10,232,950

Magna International, Inc. – Class A

    109,000     9,750,050
        
       29,322,836
        

Automobiles – 0.2%

     

General Motors Corp.

    172,000     5,287,280
        

Hotels Restaurants & Leisure – 1.1%

     

McDonald’s Corp.

    556,700     27,417,475
        

Household Durables – 1.2%

     

Black & Decker Corp.

    123,600     10,722,300

Centex Corp.

    129,700     3,749,627

KB Home

    227,500     6,902,350

Newell Rubbermaid, Inc.

    90,900     2,344,311

Pulte Homes, Inc.

    356,700     5,935,488
        
       29,654,076
        

Leisure Equipment & Products – 0.4%

     

Mattel, Inc.

    455,500     9,852,465
        

Media – 3.7%

     

CBS Corp. – Class B

    617,300     19,451,123

Gannett Co., Inc.

    332,900     15,646,300

Idearc, Inc.

    404,200     13,795,346

Interpublic Group of Cos., Inc.(a)

    611,100     6,691,545

Time Warner, Inc.

    1,335,900     25,355,382
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   41

 

U.S. Value Portfolio—Portfolio of Investments

Company    Shares   U.S. $ Value
 
    
    
    

Viacom, Inc. – Class B(a)

    298,800   $ 11,790,648

The Walt Disney Co.

    98,900     3,323,040
        
       96,053,384
        

Multiline Retail – 1.0%

     

Family Dollar Stores, Inc.

    383,000     11,214,240

Macy’s, Inc.

    476,400     15,111,408
        
       26,325,648
        

Specialty Retail – 1.6%

     

The Gap, Inc.

    655,500     12,297,180

Home Depot, Inc.

    262,000     10,037,220

Ltd. Brands, Inc.

    282,000     6,531,120

Office Depot, Inc.(a)

    309,400     7,564,830

The Sherwin-Williams Co.

    72,900     5,030,829
        
       41,461,179
        

Textiles Apparel & Luxury Goods – 0.7%

     

Jones Apparel Group, Inc.

    256,400     4,920,316

VF Corp.

    150,500     12,017,425
        
       16,937,741
        
       282,312,084
        

Consumer Staples – 8.6%

     

Beverages – 1.0%

     

The Coca-Cola Co.

    101,400     5,453,292

Coca-Cola Enterprises, Inc.

    224,800     5,354,736

Molson Coors Brewing Co. – Class B

    154,000     13,776,840
        
       24,584,868
        

Food & Staples Retailing – 1.1%

     

The Kroger Co.

    398,300     10,586,814

Safeway, Inc.

    458,600     14,551,378

Wal-Mart Stores, Inc.

    100,000     4,363,000
        
       29,501,192
        

Food Products – 2.4%

     

ConAgra Foods, Inc.

    419,900     10,795,629

General Mills, Inc.

    198,500     11,092,180

Kellogg Co.

    210,100     11,540,793

Kraft Foods, Inc. – Class A

    440,877     14,134,517

Sara Lee Corp.

    792,800     13,176,336
        
       60,739,455
        

Household Products – 2.3%

     

Colgate-Palmolive Co.

    180,200     11,950,864

Procter & Gamble Co.

    718,900     46,951,359
        
       58,902,223
        
42   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Value Portfolio—Portfolio of Investments

Company    Shares   U.S. $ Value
 
    

Tobacco – 1.8%

     

Altria Group, Inc.

    560,300   $ 38,890,423

UST, Inc.

    173,900     8,569,792
        
       47,460,215
        
       221,187,953
        

Industrials – 8.6%

     

Aerospace & Defense – 1.2%

     

Boeing Co.

    126,400     12,222,880

Lockheed Martin Corp.

    30,400     3,013,856

Northrop Grumman Corp.

    200,900     15,838,956
        
       31,075,692
        

Commercial Services & Supplies – 1.0%

     

Allied Waste Industries, Inc.(a)

    1,021,400     13,043,278

Pitney Bowes, Inc.

    298,400     13,329,528
        
       26,372,806
        

Industrial Conglomerates – 4.3%

     

General Electric Co.

    2,718,700     105,675,869

Tyco International Ltd.

    95,000     4,195,200
        
       109,871,069
        

Machinery – 1.8%

     

Cummins, Inc.

    170,200     20,155,084

Eaton Corp.

    81,900     7,716,618

Ingersoll-Rand Co. Ltd. – Class A

    144,000     7,477,920

SPX Corp.

    132,300     11,913,615
        
       47,263,237
        

Road & Rail – 0.3%

     

Avis Budget Group, Inc.(a)

    273,600     6,350,256
        
       220,933,060
        

Health Care – 6.3%

     

Health Care Equipment & Supplies – 0.1%

     

Covidien Ltd.(a)

    95,000     3,783,850
        

Health Care Providers & Services – 0.8%

     

AmerisourceBergen Corp. – Class A

    156,700     7,498,095

McKesson Corp.

    234,800     13,432,908

Pharmerica Corp.(a)

    13,065     231,641
        
       21,162,644
        

Pharmaceuticals – 5.4%

     

Eli Lilly & Co.

    296,100     16,981,335

Johnson & Johnson

    392,000     24,221,680

Merck & Co., Inc.

    507,800     25,476,326

Pfizer, Inc.

    2,865,500     71,179,020
        
       137,858,361
        
       162,804,855
        
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   43

 

U.S. Value Portfolio—Portfolio of Investments

Company    Shares   U.S. $ Value
 
    
    

Telecommunication Services – 6.3%

     

Diversified Telecommunication
Services – 4.8%

     

AT&T, Inc.

    1,714,000   $ 68,337,180

Verizon Communications, Inc.

    1,306,200     54,703,656
        
       123,040,836
        

Wireless Telecommunication
Services – 1.5%

     

Sprint Nextel Corp.

    1,351,200     25,564,704

Vodafone Group PLC (ADR)

    432,800     14,022,720
        
       39,587,424
        
       162,628,260
        

Materials – 4.7%

     

Chemicals – 2.4%

     

Ashland, Inc.

    162,300     9,703,917

Dow Chemical Co.

    449,200     19,149,396

E.I. Du Pont de Nemours & Co.

    509,100     24,818,625

Lubrizol Corp.

    123,500     7,852,130
        
       61,524,068
        

Containers & Packaging – 1.6%

     

Crown Holdings, Inc.(a)

    374,900     9,005,098

Owens-Illinois, Inc.(a)

    275,200     11,068,544

Smurfit-Stone Container Corp.(a)

    439,600     4,642,176

Sonoco Products Co.

    210,400     7,578,608

Temple-Inland, Inc.

    179,600     9,892,368
        
       42,186,794
        

Metals & Mining – 0.7%

     

Arcelor Mittal – Class A

    250,200     16,563,240
        
       120,274,102
        

Information Technology – 3.2%

     

Communications Equipment – 0.5%

     

Nokia OYJ (ADR)

    379,300     12,471,384
        

Computers & Peripherals – 0.9%

     

International Business Machines Corp.

    149,800     17,480,162

Lexmark International, Inc. – Class A(a)

    182,600     6,803,676
        
       24,283,838
        

Electronic Equipment & Instruments – 1.0%

     

Arrow Electronics, Inc.(a)

    136,200     5,714,952

Flextronics International Ltd.(a)

    924,900     10,534,611

Sanmina-SCI Corp.(a)

    599,600     1,373,084

Solectron Corp.(a)

    959,100     3,721,308

Tech Data Corp.(a)

    42,875     1,671,696

Tyco Electronics Ltd.(a)

    95,000     3,312,650
        
       26,328,301
        
44   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Value Portfolio—Portfolio of Investments

 

Company    Shares   U.S. $ Value
 
    
    

IT Services – 0.3%

     

Electronic Data Systems Corp.

    321,700   $ 7,363,713
        

Software – 0.5%

     

Microsoft Corp.

    420,300     12,075,219
        
       82,522,455
        

Utilities – 1.7%

     

Electric Utilities – 1.0%

     

Allegheny Energy, Inc.(a)

    235,800     12,169,638

Entergy Corp.

    143,700     14,890,194
        
       27,059,832
        

Independent Power Producers & Energy Traders – 0.5%

     

Constellation Energy Group, Inc.

    162,700     13,494,338
        

Multi-Utilities – 0.2%

     

Alliant Energy Corp.

    17,600     666,688

Wisconsin Energy Corp.

    85,125     3,771,889
        
       4,438,577
        
       44,992,747
        

Total Common Stocks
(cost $2,173,110,314)

        2,451,931,358
        
    

SHORT-TERM INVESTMENTS – 4.0%

     

Investment Companies – 4.0%

     

AllianceBernstein Fixed-Income Shares,
Inc. – Government STIF Portfolio(b)
(cost $102,743,416)

    102,743,416     102,743,416
        

Total Investments – 99.3%
(cost $2,275,853,730)

        2,554,674,774

Other assets less liabilities – 0.7%

        18,664,813
        

Net Assets – 100.0%

      $ 2,573,339,587
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

  See notes to financial statements.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   45

 

U.S. Value Portfolio—Portfolio of Investments

 

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AllianceBernstein Blended Style Series, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of U.S. Large Cap Portfolio (the “Fund”) at a meeting held on July 31-August 2, 2007.

Prior to approval of the continuance of the Advisory Agreement in respect of the Fund, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser who advised on the relevant legal standards. The directors also reviewed an independent evaluation prepared by the Company’s Senior Officer (who is also the Company’s Independent Compliance Officer) of the reasonableness of the advisory fees in the Advisory Agreement wherein the Senior Officer concluded that the contractual fees for the Fund were reasonable. The directors also discussed the proposed continuance in private sessions with counsel and the Company’s Senior Officer.

The directors noted that instead of investing directly in portfolio securities, the Fund pursues its investment objective by investing in a combination of the portfolios of The AllianceBernstein Pooling Portfolios (“Pooling”), each of which represents one of a variety of asset classes and investment styles. The directors also noted that the portfolios of Pooling do not pay advisory fees to the Adviser.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AllianceBernstein Funds. The directors noted that they have four regular meetings each year, at each of which they receive presentations from the Adviser on the investment results of the Fund and review extensive materials and information presented by the Adviser.

The directors also considered all other factors they believed relevant, including the specific matters discussed below. In their deliberations, the directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in

46   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services provided at the Fund’s request by employees of the Adviser or its affiliates. Requests for these reimbursements are approved by the directors on a quarterly basis and (to the extent requested and paid) result in a higher rate of total compensation from the Fund to the Adviser than the fee rates stated in the Fund’s Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Company’s Senior Officer. The directors noted that the Adviser had waived reimbursement payments from the Fund in the Fund’s last fiscal year. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also were considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues, expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2005 and 2006 that had been prepared with an updated expense allocation methodology arrived at in consultation with an independent consultant retained by the Company’s Senior Officer. The directors reviewed the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and noted that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationships with the Fund and the relevant portfolios of Pooling, including those relating to its subsidiaries which provide transfer agency, distribution and brokerage services to the Fund and such portfolios of Pooling. The directors recognized that it is difficult to make comparisons of profitability from fund advisory contracts because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that they were satisfied that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   47

 

Fall-Out Benefits

The directors considered the benefits to the Adviser and its affiliates from their relationships with the Fund (and the portfolios of Pooling in which the Fund invests) other than the fees and expense reimbursements payable under the Advisory Agreement, including but not limited to benefits relating to soft dollar arrangements (whereby the Adviser receives brokerage and research services from many of the brokers and dealers that execute purchases and sales of securities on behalf of its clients (including the portfolios of Pooling in which the Fund invests) on an agency basis), 12b-1 fees and sales charges received by the Company’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares, transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser, and brokerage commissions paid by the portfolios of Pooling in which the Fund invests to brokers affiliated with the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the meeting, the directors receive detailed comparative performance information for the Fund at each regular Board meeting during the year. At the meeting, the directors reviewed information prepared by Lipper showing the comparative performance of the Class A Shares of the Fund as compared to a group of funds selected by Lipper (the “Performance Group”) and as compared to a broader array of funds selected by Lipper (the “Performance Universe”), and information prepared by the Adviser showing performance of the Class A Shares as compared to the Standard & Poor’s 500 Stock Index (the “Index”), in each case for periods ended April 30, 2007 over the 1- and 3-year periods and (in the case of the Index) the since inception period (July 2002 inception). The directors noted that the Fund was in the 2nd quintile of the Performance Group and Performance Universe in the 1-year period and 1st quintile in the 3-year period, and that the Fund underperformed the Index in all periods reviewed. Based on their review, the directors concluded that the Fund’s relative performance over time had been satisfactory.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate paid by the Fund to the Adviser and information prepared by Lipper concerning fee rates paid by other funds in the same Lipper category as the Fund at a common asset level. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds.

The directors also considered the fees the Adviser charges other clients with a substantially similar investment style as the Fund. For this purpose, they reviewed information in the Adviser’s Form ADV and the evaluation from the

48   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Company’s Senior Officer disclosing the institutional fee schedule for institutional products managed by the Adviser that have a substantially similar investment style as the Fund. The directors noted that the institutional fee schedule for clients with a substantially similar investment style as the Fund had breakpoints at lower asset levels than those in the fee schedule applicable to the Fund and that the application of the institutional fee schedule to the level of assets of the Fund would result in a fee rate that would be lower than that in the Fund’s Advisory Agreement. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors also noted that the Adviser advises a portfolio of another AllianceBernstein fund with a substantially similar investment style as the Fund for the same fee schedule as the Fund.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional clients. The Adviser also noted that since mutual funds are constantly issuing and redeeming shares, they are more difficult to manage than an institutional account, where the assets are relatively stable. In light of these facts, the directors did not place significant weight on these fee comparisons.

The directors also considered the total expense ratio of the Class A shares of the Fund in comparison to the fees and expenses of funds within two comparison groups created by Lipper: an Expense Group and an Expense Universe. Lipper described an Expense Group as a representative sample of funds comparable to the Fund and an Expense Universe as a broader group, consisting of all funds in the investment classification/objective with a similar load type as the Fund. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year expense ratio. The directors recognized that the expense ratio information for the Fund potentially reflected on the Adviser’s provision of services, as the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that it was likely that the expense ratios of some funds in the Fund’s Lipper category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases were voluntary and perhaps temporary.

The directors noted that the Fund’s at approximate current size contractual effective advisory fee rate of 65 basis points was lower than the Expense Group median. The directors noted that in the Fund’s latest fiscal year, the administrative expense reimbursement of 5 basis points had been waived by the Adviser. The directors also noted that the Fund’s total expense ratio, which had been capped by the Adviser (although the expense ratio was currently lower than the cap) was higher than the Expense Group and Expense Universe medians. The directors also noted that the Adviser had reviewed with them steps that are being taken that are intended to reduce the expenses of the AllianceBernstein Funds. The directors concluded that the Fund’s expense ratio was acceptable.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   49

 

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors also considered presentations by an independent consultant discussing economies of scale in the mutual fund industry and for the AllianceBernstein Funds as well as a presentation by the Adviser concerning certain of its views on economies of scale. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for establishing breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s breakpoint arrangements would result in a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

50   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

THE FOLLOWING IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

SUMMARY OF SENIOR OFFICER’S EVALUATION OF INVESTMENT ADVISORY AGREEMENT1

The following is a summary of the evaluation of the Investment Advisory Agreement between AllianceBernstein L.P. (the “Adviser”) and AllianceBernstein Blended Style Series, Inc. (the “Fund”), in respect of the AllianceBernstein U.S. Large Cap Portfolio (the “Portfolio”).2 The evaluation of the Investment Advisory Agreement was prepared by Philip L. Kirstein, the Senior Officer of the Fund, for the Directors of the Fund, as required by the August 2004 agreement between the Adviser and the New York State Attorney General (the “NYAG”).

The Portfolio seeks long term growth of capital through investing in a combination of shares of The AllianceBernstein Pooling Portfolios (the “Pooling Portfolios”),3 rather than making direct investments in portfolio securities. As a result, certain expenses will be minimal, such as custodian charges, or non-existent, such as brokerage commissions, except as incurred indirectly through the Pooling Portfolios.

The Senior Officer’s evaluation of the Investment Advisory Agreement is not meant to diminish the responsibility or authority of the Board of Directors of the Fund to perform its duties pursuant to Section 15 of the Investment Company Act of 1940 (the “40 Act”) and applicable state law. The purpose of the summary is to provide shareholders with a synopsis of the independent evaluation of the reasonableness of the advisory fees proposed to be paid by the Fund which was provided to the Directors in connection with their review of the proposed approval of the continuance of the Investment Advisory Agreement. The Senior Officer’s evaluation considered the following factors:

 

  1. Advisory fees charged to institutional and other clients of the Adviser for like services;

 

  2. Advisory fees charged by other mutual fund companies for like services;

 

  3. Costs to the Adviser and its affiliates of supplying services pursuant to the advisory agreement, excluding any intra-corporate profit;

 

1. It should be noted that the information in the fee summary was completed on July 17, 2007 and presented to the Board of Directors on July 31-August 2, 2007.

 

2. Future references to the Portfolio do not include “AllianceBernstein.” References in the fee summary pertaining to performance and expense ratios refer to the Class A shares of the Portfolio.

 

3. The Portfolio invests in a combination of the following Pooling Portfolios: U.S. Value Portfolio and U.S. Large Cap Growth Portfolio.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   51

 

  4. Profit margins of the Adviser and its affiliates from supplying such services;

 

  5. Possible economies of scale as the Portfolio grows larger; and

 

  6. Nature and quality of the Adviser’s services including the performance of the Portfolio.

PORTFOLIO ADVISORY FEES, EXPENSE CAPS REIMBURSEMENTS & RATIOS

The Adviser proposed that the Portfolio pay the advisory fee set forth in the table below for receiving the services to be provided pursuant to the Investment Advisory Agreement. The fee schedule below, implemented in January 2004 in consideration of the Adviser’s settlement with the NYAG in December 2003, is based on a master schedule that contemplates eight categories of funds with almost all funds in each category having the same advisory fee schedule.4

 

Category   

Advisory Fee

Based on % of Average
Daily Net Assets

     

Net Assets

06/30/07

($MIL)

      Portfolio
Blend    65 bp on 1st $2.5 billion      $ 192.7      U.S. Large
   55 bp on next $2.5 billion           Cap Portfolio
   50 bp on the balance          

The Adviser is reimbursed as specified in the Investment Advisory Agreement for certain clerical, legal, accounting, administrative and other services provided to the Portfolio. During the Portfolio’s most recently completed fiscal year, the Adviser was entitled to receive $84,000 (0.05% of the Portfolio’s average daily net assets) for such services but waived the amount in its entirety.

 

4. Most of the AllianceBernstein Mutual Funds, which the Adviser manages, were affected by the Adviser’s settlement with the NYAG.

 

52   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

The Adviser agreed to waive that portion of its management fees and/or reimburse the Portfolio for that portion of its total operating expenses to the degree necessary to limit the Portfolio’s expense ratios to the amounts set forth below for the Portfolio’s fiscal year. The waiver is terminable by the Adviser at the end of the Portfolio’s fiscal year upon at least 60 days written notice prior to the termination date of the undertaking. It should be noted that all share classes of the Portfolio were operating below their expense caps for the most recent semi-annual period. Accordingly, the expense limitation undertaking of the Portfolio was of no effect. Set forth below are the gross expense ratios of the Portfolio for the most recent semi-annual period:

 

Portfolio      Expense Cap Pursuant to
Expense Limitation
Undertaking		     

Gross
Expense

Ratio

(02/28/07)5

     Fiscal
Year End
U.S. Large Cap Portfolio      Class A    1.65 %    1.36 %   August 31
     Class B    2.35 %    2.09 %  
     Class C    2.35 %    2.07 %  
     Class R    1.85 %    1.53 %  
     Class K    1.60 %    1.28 %  
     Class I    1.35 %    0.96 %  
     Advisor    1.35 %    1.04 %  

The expense limitation undertaking set forth in the table above for U.S. Large Cap Portfolio includes the blended expense ratio of the Pooling Portfolios (i.e., the Portfolio’s underlying expense ratio). For the six months ended February 28, 2007, the estimated underlying expense ratio for the Portfolio was 0.02%.

I.  ADVISORY FEES CHARGED TO INSTITUTIONAL AND OTHER CLIENTS

The advisory fees charged to investment companies which the Adviser manages and sponsors are normally higher than those charged to similar sized institutional accounts, including pension plans and sub-advised investment companies. The fee differential reflects, among other things, different services provided to such clients, and different liabilities assumed. Services provided by the Adviser to the Portfolio that are not provided to non-investment company clients and sub-advised investment companies include providing office space and personnel to serve as Fund Officers, who among other responsibilities make the certifications required under the Sarbanes-Oxley Act of 2002, and coordinating with and monitoring the Portfolio’s third party service providers such as Fund counsel, auditors, custodians, transfer agents and pricing services. The accounting, administrative, legal and compliance requirements for the Portfolio are more costly than those for institutional assets due to the greater complexities and time

 

5 Annualized
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   53

 

required for investment companies, although as previously noted, a portion of these expenses are entitled to be reimbursed by the Portfolio to the Adviser. Also, retail mutual funds managed by the Adviser are widely held. Servicing the Portfolio’s investors is more time consuming and labor intensive compared to institutional clients since the Adviser needs to communicate with a more extensive network of financial intermediaries and shareholders. In addition, managing the cash flow of an investment company may be more difficult than managing that of a stable pool of assets, such as an institutional account with little cash movement in either direction, particularly, if a fund is in net redemption and the Adviser is frequently forced to sell securities to raise cash for redemptions. However, managing a fund with positive cash flow may be easier at times than managing a stable pool of assets. Finally, in recent years, investment advisers have been sued by institutional clients and have suffered reputational damage both by the attendant publicity and outcomes other than complete victories. Accordingly, the legal and reputational risks associated with institutional accounts are greater than previously thought, although still not equal to those related to the mutual fund industry.

Notwithstanding the Adviser’s view that managing an investment company is not comparable to managing other institutional accounts because the services provided are different and legal and reputational risks are greater, it is worth considering information regarding the advisory fees charged to institutional accounts with a substantially similar investment style as the Portfolio.6 In addition to the AllianceBernstein Institutional fee schedule, set forth below is what would have been the effective advisory fee of the Portfolio had the AllianceBernstein Institutional fee schedule been applicable to the Portfolio versus the Portfolio’s advisory fee based on June 30, 2007 net assets:

 

Portfolio   Net Assets
06/30/07
($MIL)		  

AllianceBernstein (“AB”)
Institutional (“Inst.”)

Fee Schedule

   Effective
AB Inst.
Adv. Fee		   Portfolio
Advisory
Fee7
U.S. Large Cap Portfolio   $192.7  

U.S. Blend Schedule

80 bp on 1st $25 million

60 bp on next $25 million

50 bp on next $50 million

40 bp on the balance

30 bp on the balance

Minimum Account Size: $50m

   0.504%   0.650%

 

6 The Adviser has indicated that with respect to institutional accounts with assets greater than $300 million, it will negotiate a fee schedule. Discounts that are negotiated vary based upon each client relationship.

 

7 Portfolio advisory fee based on June 30, 2007 net assets. It should be noted that the advisory fee shown for the Portfolio exclude any expense reimbursements related to expense caps.
54   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

The AllianceBernstein Variable Products Series Fund, Inc. (“AVPS”), which is managed by the adviser and is available through variable annuity and variable life contracts offered by other financial institutions, offers policyholders the option to utilize the AVPS portfolios as the investment option underlying their insurance contracts. Set forth below is the fee schedule of the AVPS portfolio that has a substantially similar investment style as the Portfolio:8

 

Portfolio   

AVPS Portfolio

   

Fee Schedule

    Effective AVPS
Adv. Fee		  
U.S. Large Cap Portfolio    U.S. Large Cap
Blended Style
Portfolio		   

0.65% on first $2.5 billion

0.55% on next $2.5 billion

0.50% on the balance

    0.65 %

The Adviser also manages and sponsors retail mutual funds, which are organized in jurisdictions outside the United States, generally Luxembourg and Japan, and sold to non-United States resident investors. The Adviser charges the following fees for American Blended Portfolio, which is a Luxembourg fund that has a somewhat similar investment style as the Portfolio.

 

Portfolio    Luxembourg Fund    Fee
U.S. Large Cap Portfolio    American Blend Portfolio Class A9    1.50%
   Class I (Institutional)    0.70%

 

8 It should be noted that the AVPS portfolio was also affected by the settlement between the Adviser and the NYAG. As a result, the Portfolio has the same breakpoints in its advisory fee schedule as the AVPS portfolio.

 

9 Class A shares of the Luxembourg funds are charged an “all-in” fee, which covers investment advisory and distribution-related services.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   55

 

II. MANAGEMENT FEES CHARGED BY OTHER MUTUAL FUND COMPANIES FOR LIKE SERVICES.

Lipper, Inc. (“Lipper”), an analytical service that is not affiliated with the Adviser, compared the fees charged to the Portfolio with fees charged to other investment companies for similar services offered by other investment advisers. Lipper’s analysis included the Portfolio’s ranking with respect to the proposed management fee relative to the median of the Portfolio’s Lipper Expense Group (“EG”)10 at the approximate current asset level of the Portfolio.11

 

Portfolio    Contractual
Management
Fee12		   

Lipper

Group

Median

   

Rank

U.S. Large Cap Portfolio    0.650    0.790    1/17

Lipper also analyzed the total expense ratio of the Portfolio in comparison to its Lipper Expense13 Group and Lipper Expense Universe.14 Lipper describes a Lipper Expense Group as a representative sample of comparable funds and a Lipper Expense Universe as a broader group, consisting of all funds in the same investment classification/objective with a similar load type as the subject Portfolio. It should be noted that the Portfolio’s total expense ratio is inclusive of the Portfolio’s underlying expenses. The result of that analysis is set forth below:

 

Portfolio  

Expense

Ratio
(%)15

  

Lipper

Group

Median (%)

  

Lipper

Group

Rank

  

Lipper

Universe

Median (%)

  

Lipper
Universe

Rank

U.S. Large cap Portfolio   1.429   1.410   10/17   1.273   89/126

 

10 It should be noted that Lipper does not consider average account size when constructing EGs. Funds with relatively small average account sizes tend to have higher transfer agent expense ratios than comparable sized funds that have relatively large average account sizes. Note that there are limitations on Lipper expense category data because different funds categorize expenses differently.

 

11 The contractual management fee is calculated by Lipper using the Portfolio’s contractual management fee rate at a hypothetical asset level. The hypothetical asset level is based on the combined net assets of all classes of the Portfolio, rounded up to the next $25 million. Lipper’s total expense ratio information is based on the most recent annual report except as otherwise noted. A ranking of “1” would mean that the Portfolio had the lowest effective fee rate in the Lipper peer group.

 

12 The contractual management fee would not reflect any expense reimbursements made by the Portfolio to the Adviser for certain clerical, legal, accounting, administrative and other services. As previously mentioned, during the most recently completed fiscal year, the Adviser waived such payments. In addition, the contractual management fee would not reflect any advisory fee waivers or expense reimbursements made by the Adviser to the Portfolio for expense caps that would effectively reduce the actual management fee.

 

13 Lipper uses the following criteria in screening funds to be included in the Portfolio’s expense group: fund type, investment classification/objective, load type and similar 12b-1/non-12b-1 service fees, asset (size) comparability, and expense components and attributes. A Lipper Expense Group will typically consist of seven to twenty funds.

 

14 Except for asset (size) comparability and load type, Lipper uses the same criteria for selecting a Lipper Expense Group when selecting a Lipper Expense Universe. Unlike the Lipper Expense Group, the Lipper Expense Universe allows for the same adviser to be represented by more than just one fund.

 

15 Most recently completed fiscal year Class A share total expense ratio.
56   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Based on this analysis, the Portfolio has a more favorable ranking on a management fee basis than on a total expense ratio basis.

 

III. COSTS TO THE ADVISER AND ITS AFFILIATES OF SUPPLYING SERVICES PURSUANT TO THE ADVISORY FEE ARRANGEMENT, EXCLUDING ANY INTRA-CORPORATE PROFIT.

The Adviser utilizes two profitability reporting systems, which operate independently but are aligned with each other, to estimate the Adviser’s profitability in connection with investment advisory services provided to the Portfolio. The Senior Officer has retained a consultant to provide independent advice regarding the alignment of the two profitability systems as well as the methodologies and allocations utilized by both profitability systems. See Section IV for additional discussion.

 

IV. PROFIT MARGINS OF THE ADVISER AND ITS AFFILIATES FOR SUPPLYING SUCH SERVICES.

The Portfolio’s profitability information, prepared by the Adviser for the Board of Directors, was reviewed by the Senior Officer and the consultant. The Adviser’s profitability percentage from providing investment advisory services to the Portfolio was unchanged during calendar year 2006 versus 2005.

In addition to the Adviser’s direct profits from managing the Portfolio, certain of the Adviser’s affiliates have business relationships with the Portfolio and may earn a profit from providing other services to the Portfolio. The courts have referred to this type of business opportunity as “fall-out benefits” to the Adviser and indicated that such benefits should be factored into the evaluation of the total relationship between the Portfolio and the Adviser. Neither case law nor common business practice precludes the Adviser’s affiliates from earning a reasonable profit on this type of relationship provided the affiliates’ charges and services are competitive. These affiliates provide transfer agent, distribution and brokerage related services to the Portfolio and/or Pooling Portfolios receive transfer agent fees, Rule 12b-1 payments, front-end sales loads, contingent deferred sales charges (“CDSC”), and brokerage commissions. In addition, the Adviser benefits from soft dollar arrangements which offset expenses the Adviser would otherwise incur.

AllianceBernstein Investments, Inc. (“ABI”), an affiliate of the Adviser, is the Portfolio’s principal underwriter. ABI and the Adviser have disclosed in the Portfolio’s prospectus that they may make revenue sharing payments from their own resources, in addition to resources derived from sales loads and Rule 12b-1 fees, to firms that sell shares of the Portfolio. In 2006, ABI paid approximately 0.044% of the average monthly assets of the AllianceBernstein Mutual Funds or

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   57

 

approximately $20.4 million for distribution services and educational support (revenue sharing payments). For 2007, it is anticipated, ABI will pay approximately 0.04% of the average monthly assets of the AllianceBernstein Mutual Funds or approximately $20 million.16 During the Portfolio’s most recently completed fiscal year, ABI received from the Portfolio $7,565, $1,130,770 and $87,204 in front-end sales charges, Rule 12b-1 and CDSC fees, respectively.

Fees and reimbursements for out of pocket expenses charged by AllianceBernstein Investor Services, Inc. (“ABIS”), the affiliated transfer agent for the Portfolio, are charged on a per account basis, based on the level of service provided and the class of share held by the account. ABIS also receives a fee per shareholder sub-account for each account maintained by an intermediary on an omnibus basis. ABIS’ after-tax profitability decreased in 2006 in comparison to 2005. During the Portfolio’s most recently completed fiscal year, ABIS received $113,467 in fees from the Portfolio.17

There are no portfolio transactions for the Portfolio since the Portfolio pursues its investment objectives through investing in a combination of the Pooling Portfolios. However, the Pooling Portfolios do engage in portfolio transactions. During the Portfolio’s most recently completed fiscal year, certain of the Pooling Portfolios effected brokerage transactions through the Adviser’s affiliate, Sanford C. Bernstein & Co., LLC (“SCB & Co.”) and/or its U.K. affiliate, Sanford C. Bernstein Limited (“SCB Ltd.”), collectively “SCB”, and paid commissions for such transactions. The Adviser represented that SCB’s profitability from any business conducted with the Pooling Portfolio is comparable to the profitability of SCB’s dealings with other similar third party clients. In the ordinary course of business, SCB receives and pays liquidity rebates from electronic communications networks (“ECNs”) derived from trading for its clients, including the Pooling Portfolios. These credits and charges are not being passed on to any SCB client. The Adviser also receives certain soft dollar benefits from brokers that execute agency trades for the Pooling Portfolios and other clients. These soft dollar benefits reduce the Adviser’s cost of doing business and increase its profitability.

 

16 ABI currently inserts the “Advance” in quarterly account statements and pays the incremental costs associated with the mailing. The incremental cost is less than what an “independent mailing” would cost.

 

17 The fees disclosed are net of any expense offsets with ABIS. An expense offset is created by the interest earned on the positive cash balance that occurs within the transfer agent account as there is a one day lag with regards to money movement from the shareholder’s account to the transfer agent’s account and then the transfer agent’s account to the Portfolio’s account. During the Portfolio’s most recently completed fiscal year, the fees paid by the Portfolio to ABIS were reduced by $5,840 under the offset agreement between the Portfolio and ABIS.
58   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

V. POSSIBLE ECONOMIES OF SCALE

An independent consultant, retained by the Senior Officer, made a presentation to the Board of Directors regarding economies of scale and/or scope. Based on the independent consultant’s initial survey, there was a consensus that fund management companies benefited from economies of scale. However, due to the lack of cost data, researchers had to infer facts about the costs from the behavior of fund expenses; there was a lack of consensus among researchers as to whether economies of scale were being passed on to the shareholders.

The independent consultant conducted further studies of the Adviser’s operations to determine the existence of economies of scale and/or scope within the Adviser. The independent consultant also analyzed patterns related to advisory fees at the industry level. In a recent presentation to the Board of Directors, the independent consultant noted the potential for economies of scale and/or scope through the use of “pooling portfolios” and blend products. The independent consultant also remarked that there may be diseconomies as assets grow in less liquid and active markets. It was also observed that various factors, including fund size, family size, asset class, and investment style, had an impact on advisory fees.

 

VI. NATURE AND QUALITY OF THE ADVISER’S SERVICES, INCLUDING THE PERFORMANCE OF THE PORTFOLIO

With assets under management of approximately $793 billion as of June 30, 2007, the Adviser has the investment experience to manage and provide non-investment services (described in Section I) to the Portfolio.

The information prepared by Lipper shows the 1 and 3 year performance rankings of the Portfolio18 relative to its Lipper Performance Group (“PG”) and Lipper Performance Universe (“PU”)19 for the periods ended April 30, 2007.20

 

Portfolio  

Portfolio

Return

   PG Median   PU Median   PG Rank   PU Rank
U.S. Large Cap Portfolio          

1 year

   9.57   7.05   8.34   5/17   45/137

3 year

   11.53   8.27   8.79   1/17   8/125

 

18 The performance rankings are for the Class A shares of the Portfolio. It should be noted that the performance returns of the Portfolio shown were provided by the Adviser. Lipper maintains its own database that includes the Portfolio’s performance returns. Rounding differences may cause the Adviser’s Portfolio returns to be one or two basis points different from Lipper’s own Portfolio returns. To maintain consistency, the performance returns of the Portfolio, as reported by the Adviser, are provided instead of Lipper.

 

19 The Portfolio’s PG is identical to the Portfolio’s EG. The Portfolio’s PU is not identical to the EU. Lipper’s criteria for including or excluding a fund in/from a PU are somewhat different than that of an EU.

 

20 Note that the current Lipper investment classification/objective dictates the PG and PU throughout the life of the fund even if a fund had a different investment classification/objective at a different point in time.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   59

 

Set forth below are the 1 and 3 year and since inception performance returns of the Portfolio (in bold)21 versus its benchmark.

 

     Periods Ending April 30, 2007
Annualized Net Performance (%)
     1 Year (%)   3 Year (%)   Since
Inception (%)22

U.S. Large Cap Portfolio

   9.57   11.53   10.62

S&P 500 Stock Index

   15.23   12.24   12.80

Inception Date: July 15, 2002

  

CONCLUSION:

Based on the factors discussed above the Senior Officer’s conclusion is that the proposed advisory fee for the Portfolio is reasonable and within the range of what would have been negotiated at arm’s-length in light of all the surrounding circumstances. This conclusion in respect of the Portfolio is based on an evaluation of all of these factors and no single factor was dispositive.

Dated: August 22, 2007

 

21 The performance returns are for the Class A shares of the Portfolio.

 

22 The Adviser provided Portfolio and benchmark performance return information for periods through April 30, 2007. It should be noted that the “since inception” performance returns of the Portfolio’s benchmark goes back only through the nearest month-end after inception date. In contrast, the Portfolio’s since inception return goes back to the Portfolio’s actual inception date.
60   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

THIS PAGE IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

ALLIANCEBERNSTEIN FAMILY OF FUNDS

 

Wealth Strategies Funds

Balanced Wealth Strategy

Wealth Appreciation Strategy

Wealth Preservation Strategy

Tax-Managed Balanced Wealth Strategy

Tax-Managed Wealth Appreciation Strategy

Tax-Managed Wealth Preservation Strategy

Blended Style Funds

U.S. Large Cap Portfolio

International Portfolio

Tax-Managed International Portfolio

Growth Funds

Domestic

Growth Fund

Mid-Cap Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

Global & International

Global Health Care Fund

Global Research Growth Fund

Global Technology Fund

Greater China ‘97 Fund

International Growth Fund

International Research Growth Fund

Value Funds

Domestic

Balanced Shares

Focused Growth & Income Fund

Growth & Income Fund

Small/Mid-Cap Value Fund

Utility Income Fund

Value Fund

Global & International

Global Real Estate Investment Fund*

Global Value Fund

International Value Fund

 

Taxable Bond Funds

Global Government Income Trust

Corporate Bond Portfolio

Emerging Market Debt Fund

Global Strategic Income Trust

High Yield Fund

Intermediate Bond Portfolio

Short Duration Portfolio

U.S. Government Portfolio

Municipal Bond Funds

 

National
Insured National
Arizona
California
Insured California
Florida
Massachusetts

  

Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia

Intermediate Municipal Bond Funds

Intermediate California

Intermediate Diversified

Intermediate New York

Closed-End Funds

All-Market Advantage Fund

AllianceBernstein Global High Income Fund*

AllianceBernstein Income Fund*

AllianceBernstein National Municipal Income    Fund*

ACM Managed Dollar Income Fund

California Municipal Income Fund

New York Municipal Income Fund

The Spain Fund


Retirement Strategies Funds

 

2000 Retirement Strategy

  

2020 Retirement Strategy

  

2040 Retirement Strategy

2005 Retirement Strategy

  

2025 Retirement Strategy

  

2045 Retirement Strategy

2010 Retirement Strategy

  

2030 Retirement Strategy

  

2050 Retirement Strategy

2015 Retirement Strategy

  

2035 Retirement Strategy

  

2055 Retirement Strategy

We also offer Exchange Reserves,** which serves as the money market fund exchange vehicle for the AllianceBernstein mutual funds.

You should consider the investment objectives, risks, charges and expenses of any AllianceBernstein fund/portfolio carefully before investing. For free copies of our prospectuses, which contain this and other information, visit us online at www.alliancebernstein.com or contact your financial advisor. Please read the prospectus carefully before investing.

 

*   Prior to January 26, 2007, AllianceBernstein Global High Income Fund was named Alliance World Dollar Government Fund II and AllianceBernstein Income Fund was named ACM Income Fund. Prior to March 1, 2007, Global Real Estate Investment Fund was named Real Estate Investment Fund. Prior to May 18, 2007, AllianceBernstein National Municipal Income Fund was named National Municipal Income Fund.

 

** An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   61

 

AllianceBernstein Family of Funds

NOTES

62   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

NOTES

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   63

NOTES

64   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800.221.5672

LOGO

 

 

LCB-0151-0807   LOGO

ANNUAL REPORT

 

AllianceBernstein Blended Style Funds Global Blend Portfolio

 

 

LOGO

 

August 31, 2007

 

Annual Report

 

 

Investment Products Offered

  •  

Are Not FDIC Insured

  •  

May Lose Value

  •  

Are Not Bank Guaranteed

The investment return and principal value of an investment in the Fund will fluctuate as the prices of the individual securities in which it invests fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For a free copy of the Fund’s prospectus, which contains this and other information, visit our web site at www.alliancebernstein.com or call your financial advisor or AllianceBernstein® at (800) 227-4618. Please read the prospectus carefully before you invest.

You may obtain performance information current to the most recent month-end by visiting www.alliancebernstein.com.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AllianceBernstein’s web site at www.alliancebernstein.com, or go to the Securities and Exchange Commission’s (the “Commission”) web site at www.sec.gov, or call AllianceBernstein at (800) 227-4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s web site at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. AllianceBernstein publishes full portfolio holdings for the Fund monthly at www.alliancebernstein.com.

AllianceBernstein Investments, Inc. is an affiliate of AllianceBernstein L.P., the manager of the AllianceBernstein funds, and is a member of FINRA.

AllianceBernstein® and the AB Logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.

October 26, 2007

 

Annual Report

This report provides management’s discussion of fund performance for AllianceBernstein Blended Style Fund Global Blend Portfolio (the “Fund”) for the annual reporting period ended August 31, 2007.

Investment Objective and Policies

The Fund’s investment objective is long-term growth of capital. The Fund will seek to achieve its investment objective by investing in two portfolios, AllianceBernstein Global Research Growth Portfolio and AllianceBernstein Global Value Portfolio, of The AllianceBernstein Pooling Portfolios, representing growth and value equity investment styles (the “Underlying Portfolios”). The Underlying Portfolios invest in global portfolios of equity securities of companies in various market sectors from developed and emerging-market countries, including the United States. Investment in the two Underlying Portfolios is intended to result in a single, unified portfolio that is designed to provide an efficiently diversified portfolio of the most attractive growth and value stocks. The process targets 50% of the value of the portfolio to an Underlying Portfolio that invests in growth stocks and 50% to an Underlying Portfolio that invests in value stocks. Depending on market conditions, however, the actual weighting of securities from each investment discipline in the portfolio will vary within a narrow range. In extraordinary circumstances, when conditions favoring one investment style are compelling, the range may be 40%-60% before rebalancing occurs.

 

Investment Results

The table on page 5 shows Fund’s performance compared to its benchmark, the Morgan Stanley Capital International (MSCI) World Index, for the six- and 12-month periods ended August 31, 2007.

The Fund underperformed its benchmark for both the six- and 12-month periods ended August 31, 2007. The growth component of the Fund was largely responsible for the underperformance over the past 12 months, as the growth index underperformed the value index. Over the six-month period, however, both the growth and value components of the Fund lagged the overall market.

At a sector level, the Fund’s overweight position in materials contributed to performance, although an overweight position in financials and an underweight position in the telecommunications sector offset this performance for the 12-month period. Stock selection in the materials and industrials sectors led Fund performance as strong commodity prices persisted, and sector consolidation added to the performance of mining stocks. At the stock level, too, financials detracted from performance, as the Fund’s positions in capital-market stocks (investment banks, asset managers) were impacted by the concerns surrounding U.S. subprime mortgages and associated credit markets.


ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   1

 

For the six-month period ended August 31, 2007, the Fund’s overweight position in the financials sector dominated the relative performance, as concerns surrounding U.S. subprime mortgages and associated credit markets led to the broadly based selling of this sector. Furthermore, the Fund benefited from its overweight position in the materials sector.

Stock selection overall also contributed to performance, as the Fund’s holdings in materials benefited from rising mid-year commodity prices. The Fund’s holdings in the financials sector were a major detractor from performance, due to positions in capital-market stocks (investment banks, asset managers) and U.S. consumer-finance stocks. Certain consumer-discretionary stocks also suffered in the recent concern about the outlook for U.S. economic growth.

Market Review and Investment Strategy

Global equity markets, as measured by the MSCI World Index in U.S. dollars, rose by 16.97% during the 12-month period ended August 31, 2007. Market performance, driven by buoyant corporate earnings growth and sound economic fundamentals, was particularly strong up to the end of February 2007, when concerns about U.S. subprime mortgages sparked a correction. In the second quarter of 2007, continued positive surprises in corporate earnings results, underpinned by strong growth in capital spending—notably in emerging markets—drove the markets to new highs. Still, subprime worries returned

in mid-July, sparked by difficulties encountered by certain hedge funds, and led to wider dislocations in the credit and interbank lending markets, forcing central banks to intervene. The MSCI World Index nonetheless finished August 5.98% ahead of where it started the six-month period.

Throughout the 12-month reporting period, the Fund’s allocations have remained roughly inline with the MSCI World Index. At the country level, the Fund was overweight in selected emerging markets (e.g. Brazil, Taiwan, Korea) and Switzerland, while remaining modestly underweight in the U.S. Overweight positions in the financials and materials sectors have been offset by underweights in the utilities and telecommunications sectors.

During the six-month period ended August 31, 2007, concerns regarding subprime exposure became more significant. Furthermore, the crisis of investor confidence and the corresponding liquidity crunch also became more pronounced in July and August 2007. An unwinding of risk was also apparent as the returns of the carry trade—shoring lower yielding currencies to fund purchases of higher yielding currencies—came under pressure, especially in late July and early August. That said, markets did rebound, as did the carry trade when a massive amount of liquidity was provided by the European Central Bank and the U.S. Federal Reserve (the “Fed”) via capital injections and an easing of the U.S. discount rate, which helped calm markets.


2   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

HISTORICAL PERFORMANCE

An Important Note About the Value of Historical Performance

The performance shown on the following pages represents past performance and does not guarantee future results. This Fund is relatively new and has been in existence for less than two years. The returns reflected may not be illustrative of long-term performance. Fund returns for periods less than one year are cumulative. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling 800.227.4618.

The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For a free copy of the Fund’s prospectus, which contains this and other information, call your financial advisor or AllianceBernstein Investments at 800.227.4618. You should read the prospectus carefully before you invest.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares; the applicable contingent deferred sales charge for Class B shares (4% year 1, 3% year 2, 2% year 3, 1% year 4); a 1% 1 year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

Benchmark Disclosure

The unmanaged Morgan Stanley Capital International (MSCI) World Index does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The 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 the performance for any specific investment, including the Fund.

All returns for the MSCI World Index shown on page 5 are net returns. Net returns approximate the minimum possible dividend reinvestment. The dividend is reinvested after deduction of withholding tax, applying the highest rate applicable to non-resident individuals who do not benefit from double taxation treaties.

A Word About Risk

The Fund concentrates its investments in a limited number of issues and an investment in the Fund is therefore subject to greater risk and volatility than investments in a more diversified portfolio.

Neither growth investing nor value investing guarantees a profit or eliminates risk. Growth stocks can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. If a growth stock company should fail to meet these high earnings expectations, the price of these stocks can be severely negatively affected. Not all companies whose stocks are considered to be “value” stocks are able to turn their business around or successfully employ corrective strategies, which would result in stock prices that rise as initially expected. Because the Fund allocates its investments between “growth” and “value” stocks, an investment in the Fund is subject to the risk that this allocation will result in lower returns during periods when one style is outperforming another than if the Fund had

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   3

 

Historical Performance

 

invested entirely in the outperforming style. The costs associated with this systematic rebalancing may be significant over time.

A substantial amount of the Fund’s assets will 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. While the Fund invests principally in common stocks and other equity securities, in order to achieve its investment objectives, the Fund may at times use certain types of investment derivatives, such as options, futures, forwards and swaps. These instruments involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments. These risks are fully discussed in the Fund’s prospectus.

(Historical Performance continued on next page)

4   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Historical Performance

HISTORICAL PERFORMANCE

(continued from previous page)

 

         

THE FUND VS. ITS BENCHMARK

PERIODS ENDED AUGUST 31, 2007

   Returns     
  6 Months      12 Months      

AllianceBernstein Blended Style Funds Global Blend Portfolio

        

Class A

   4.79%      15.32%   
 

Class B

   4.35%      14.53%   
 

Class C

   4.35%      14.53%   
 

Advisor Class†

   4.97%      15.70%   
 

Class R†

   4.61%      15.01%   
 

Class K†

   4.79%      15.36%   
 

Class I†

   4.97%      15.70%   
 

MSCI World Index

   5.98%      16.97%   
 

†  Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds.

 

GROWTH OF A $10,000 INVESTMENT IN THE FUND 6/1/06* TO 8/31/07

LOGO

* Since inception of the Fund’s Class A shares on 6/1/06.

This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein Blended Style Funds Global Blend Portfolio Class A shares (from 6/1/06* to 8/31/07) as compared to the performance of the Fund’s benchmark. 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 distributions.

See Historical Performance and Benchmark disclosures on pages 3-4.

(Historical Performance continued on next page)

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   5

 

Historical Performance

 

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS AS OF AUGUST 31, 2007  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    15.32 %      10.40 %

Since Inception*

    12.81 %      8.98 %
       
Class B Shares        

1 Year

    14.53 %      10.53 %

Since Inception*

    12.01 %      9.67 %
       
Class C Shares        

1 Year

    14.53 %      13.53 %

Since Inception*

    12.01 %      12.01 %
       
Advisor Class Shares†        

1 Year

    15.70 %      15.70 %

Since Inception*

    13.19 %      13.19 %
       
Class R Shares†        

1 Year

    15.01 %      15.01 %

Since Inception*

    12.56 %      12.56 %
       
Class K Shares†        

1 Year

    15.36 %      15.36 %

Since Inception*

    12.83 %      12.83 %
       
Class I Shares†        

1 Year

    15.70 %      15.70 %

Since Inception*

    13.19 %      13.19 %

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 3.83%, 4.53%, 4.53%, 3.53%, 4.16%, 3.85% and 3.52% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios to 1.50%, 2.20%, 2.20%, 1.20%, 1.70%, 1.45% and 1.20% for Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I, respectively. These waivers/reimbursements extend through the Fund’s current fiscal year and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower.

 

* Inception date for all share classes is 6/1/06.

 

†

These share classes are offered at net asset value (NAV) to eligible investors and their SEC returns are the same as the NAV returns. Please note that these share classes are for investors purchasing shares through accounts

6   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Historical Performance

 

 

established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception date for these share classes are listed above.

See Historical Performance disclosures on pages 3-4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   7

 

Historical Performance

 

HISTORICAL PERFORMANCE

(continued from previous page)

 

SEC AVERAGE ANNUAL RETURNS (WITH ANY APPLICABLE SALES CHARGES) AS OF THE MOST RECENT CALENDAR QUARTER-END (SEPTEMBER 30, 2007)   
            SEC Returns  
       
Class A Shares        

1 Year

         15.83 %

Since Inception*

         12.87 %
       
Class B Shares        

1 Year

         16.08 %

Since Inception*

         13.61 %
       
Class C Shares        

1 Year

         19.18 %

Since Inception*

         15.84 %
       
Advisor Class Shares†        

1 Year

         21.35 %

Since Inception*

         16.94 %
       
Class R Shares†        

1 Year

         20.77 %

Since Inception*

         16.35 %
       
Class K Shares†        

1 Year

         21.10 %

Since Inception*

         16.68 %
       
Class I Shares†        

1 Year

         21.35 %

Since Inception*

         16.94 %

 

* Inception date for all share classes is 6/1/06.

 

†

Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Funds. The inception dates for these share classes are listed above.

See Historical Performance disclosures on pages 3-4.

8   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Historical Performance

Portfolio Summary

August 31, 2007

 

PORTFOLIO STATISTICS

Net Assets ($mil): $13.9

LOGO

 

 

 

* All data are as of August 31, 2007. The Fund’s holdings breakdown is expressed as a percentage of total investments and may vary over time. The Fund invests in the AllianceBernstein Pooling Portfolios. For more details regarding the Fund’s holdings, including specific breakdowns within the Underlying Portfolios, please refer to pages 37-51.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   9

 

Portfolio Summary

FUND EXPENSES

 

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. The Fund will indirectly bear its pro rata share of the expenses incurred by the Underlying Portfolios in which the Fund invests. These expenses are not included in the table below.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The Fund will indirectly bear its pro rata share of the expenses incurred by the Underlying Portfolios in which the Fund invests. These expenses are not included in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

     Beginning
Account Value
March 1, 2007		    Ending
Account Value
August 31, 2007		    Expenses Paid
During Period*
     Actual    Hypothetical    Actual    Hypothetical**    Actual    Hypothetical
Class A    $   1,000    $   1,000    $   1,047.92    $   1,018.40    $   6.97    $   6.87
Class B    $ 1,000    $ 1,000    $ 1,043.48    $ 1,014.87    $ 10.56    $ 10.41
Class C    $ 1,000    $ 1,000    $ 1,043.48    $ 1,014.87    $ 10.56    $ 10.41
Advisor Class    $ 1,000    $ 1,000    $ 1,049.68    $ 1,019.91    $ 5.43    $ 5.35
Class R    $ 1,000    $ 1,000    $ 1,046.11    $ 1,017.39    $ 7.99    $ 7.88
Class K    $ 1,000    $ 1,000    $ 1,047.92    $ 1,018.65    $ 6.71    $ 6.61
Class I    $ 1,000    $ 1,000    $ 1,049.68    $ 1,019.91    $ 5.43    $ 5.35
* Expenses are equal to the classes’ annualized expense ratios of 1.35%, 2.05%, 2.05%, 1.05%, 1.55%, 1.30% and 1.05%, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses of the underlying portfolios in which the fund invests are not included herein.

 

** Assumes 5% return before expenses.
10   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Fund Expenses

STATEMENT OF NET ASSETS

August 31, 2007

 

Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein Global Research Growth Portfolio (shares of 622,402)

    $ 7,058,040

AllianceBernstein Global Value Portfolio (shares of 595,819)

      7,030,670
      

Total investments (cost $12,222,300)

      14,088,710

Receivable due from Adviser

      3,154
      

Total assets

      14,091,864
      
Liabilities   

Registration fee payable

      114,524

Legal fee payable

      19,704

Audit fee payable

      9,750

Distribution fee payable

      75

Transfer Agent fee payable

      14

Accrued expenses

      10,062
      

Total liabilities

      154,129
      

Net Assets

    $ 13,937,735
      
Composition of Net Assets   

Capital stock, at par

    $ 1,200

Additional paid-in capital

      11,969,126

Undistributed net investment income

      81,721

Accumulated net realized gain on investment transactions

      19,278

Net unrealized appreciation of investments

      1,866,410
      
   $     13,937,735
      

Net Asset Value Per Share—36 billion shares of capital stock authorized, $.001 par value

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $ 28,976      2,500      $ 11.59 *
   
B   $ 28,804      2,500      $ 11.52  
   
C   $ 28,805      2,500      $ 11.52  
   
Advisor   $   13,764,017      1,185,000      $   11.62  
   
R   $ 29,051      2,510      $ 11.57  
   
K   $ 29,044      2,505      $ 11.59  
   
I   $ 29,038      2,500      $ 11.62  
   

 

* The maximum offering price per share for Class A shares was $12.10 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   11

 

Statement of Net Assets

STATEMENT OF OPERATIONS

Year Ended August 31, 2007

 

Investment Income   

Income distributions from Underlying Portfolios

    $ 282,339  
        
Expenses   

Advisory fee (see Note B)

      100,972  

Distribution fee—Class A

      84  

Distribution fee—Class B

      281  

Distribution fee—Class C

      279  

Distribution fee—Class R

      141  

Distribution fee—Class K

      70  

Transfer agency—Class A

      46  

Transfer agency—Class B

      47  

Transfer agency—Class C

      46  

Transfer agency—Advisor Class

      21,907  

Transfer agency—Class R

      37  

Transfer agency—Class K

      37  

Transfer agency—Class I

      37  

Amortization of offering expenses

      123,868  

Administrative

      82,000  

Custodian

      71,251  

Legal

      56,546  

Directors’ fees

      39,168  

Audit

      35,634  

Printing

      2,601  

Miscellaneous

      2,582  
        

Total expenses

      537,634  

Less: expenses waived and reimbursed by the Adviser and the Transfer Agent
(see Note B)

      (395,412 )

Less: expense offset arrangement (see Note B)

      (6 )
        

Net expenses

      142,216  
        

Net investment income

      140,123  
        
Realized and Unrealized Gain on Investment Transactions   

Net realized gain on sale of Underlying Portfolio shares

      21,680  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      1,729,004  
        

Net gain on investment transactions

      1,750,684  
        

Net Increase in Net Assets from Operations

    $     1,890,807  
        

See notes to financial statements.

12   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Statement of Operations

STATEMENT OF CHANGES IN NET ASSETS

 

     Year Ended
August 31,
2007		     June 1, 2006(a)
to August 31,
2006		  
Increase (Decrease) in Net Assets from Operations     

Net investment income (loss)

    $ 140,123     $ (30,692 )

Net realized gain on sale of Underlying Portfolio shares

      21,680       872  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      1,729,004       137,406  
                

Net increase in net assets from operations

      1,890,807       107,586  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (78 )     0  

Advisor Class

      (58,065 )     0  

Class R

      (50 )     0  

Class K

      (85 )     0  

Class I

      (123 )     0  

Net realized gain on investment transactions

     

Class A

      (5 )     0  

Class B

      (5 )     0  

Class C

      (5 )     0  

Advisor Class

      (2,370 )     0  

Class R

      (5 )     0  

Class K

      (5 )     0  

Class I

      (5 )     0  
Capital Stock Transactions     

Net increase

      0       12,000,143  
                

Total increase

      1,830,006       12,107,729  
Net Assets     

Beginning of period

      12,107,729       0  
                

End of period (including undistributed net investment income of
$81,721 and $0, respectively)

    $     13,937,735     $     12,107,729  
                

 

(a) Commencement of operations.

 

   See notes to financial statements.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   13

 

Statement of Changes in Net Assets

NOTES TO FINANCIAL STATEMENTS

August 31, 2007

 

NOTE A

Significant Accounting Policies

The AllianceBernstein Blended Style Series Global Blend Portfolio (the “Fund”) commenced operations on June 1, 2006 and is a portfolio of the AllianceBernstein Blended Style Series, Inc. (the “Company”). The Company was organized as a Maryland corporation on April 24, 2002 and is registered under the Investment Company Act of 1940, as a diversified open-end management investment company. The Company operates as a series company currently comprised of 14 portfolios, which are the AllianceBernstein Blended Style Series Global Blend Portfolio, the AllianceBernstein Blended Style Series U.S. Large Cap Portfolio and the twelve portfolios of the AllianceBernstein Retirement Strategies (the “Funds”). Each fund is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the Global Blend Portfolio. The Fund offers Class A, Class B, Class C, Advisor Class, Class R, Class K and Class I shares. 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. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class and Class I shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All seven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The Fund invests primarily in a combination of portfolios of the AllianceBernstein Pooling Portfolios (the “Underlying Portfolios”) representing a variety of asset classes and investment styles that are managed by AllianceBernstein L.P. (the “Adviser”). The financial statements have been prepared in conformity with U.S. generally accepted accounting principles, which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Investments in the Underlying Portfolios are valued at their net asset value each business day.

2. 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.

3. Offering Expenses

Offering expenses of $165,000 have been fully amortized on a straight line basis over a one year period.

4. Investment Income and Investment Transactions

Income and capital gain distributions from the Underlying Portfolios, if any, are recorded on the ex-dividend date. Transactions in shares of the Underlying Portfolios are accounted for on the trade date. Investment gains and losses are determined on the identified cost basis.

14   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Notes to Financial Statements

 

5. Class Allocations

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 for class specific expenses which are allocated to the respective class. Expenses of the Company are charged to each Fund in proportion to net assets. Expenses included in the accompanying statement of operations do not include any expenses of the Underlying Portfolios. Realized and unrealized gains and losses are allocated among the various share classes based on their relative net assets.

6. Dividends and Distributions

Dividends and distributions to shareholders, if any, 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 U.S. generally accepted accounting principles. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .75% of the first $2.5 billion, .65% of the next $2.5 billion and .60% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly.

The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit the total 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 and Class C shares, 1.20% of average daily net assets for Advisor Class shares, 1.70% of average daily net assets for Class R shares, 1.45% of average daily net assets for Class K shares and 1.20% of average daily net assets for Class I shares. For the year ended August 31, 2007, such reimbursement amounted to $295,557.

Pursuant to the advisory agreement, the Adviser provides certain legal and accounting services for the Fund. The Adviser agreed to waive it’s fees for such services. Such waiver amounted to $82,000 for the year ended August 31, 2007.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), 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. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $145 for the year ended August 31, 2007. During the period, ABIS voluntarily agreed to waive a portion of its fees for such services. Such waiver amounted to $17,855.

For the year ended August 31, 2007, the Fund’s expenses were reduced by $6 under an expense offset arrangement with ABIS.

AllianceBernstein Investments, 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 retained front-end sales charge of $0 from the sale of Class A shares and received $0, $0 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the year ended August 31, 2007.

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

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   15

 

Notes to Financial Statements

 

Class A shares, 1% of the Fund’s average daily net assets attributable to both Class B and Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class and Class I shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $224,088, $224,089, $518 and $5,265, for Class B, Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. 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 investments in the Underlying Portfolios, aggregated $499,808 and $309,038, respectively, for the year ended August 31, 2007.

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

 

Cost

    $ 12,222,610
      

Gross unrealized appreciation

    $ 1,866,100

Gross unrealized depreciation

      0
      

Net unrealized appreciation

    $ 1,866,100
      

NOTE E

Capital Stock

Class A, Class B, Class C, Advisor Class and Class R shares each consist of 6,000,000,000 authorized shares and Class K and Class I shares each consist of 3,000,000,000 authorized shares. Transactions in capital stock for each class were as follows:

 

     Shares       Amount    
     Year Ended
August 31,
2007		    June 1, 2006(a)
to August 31,
2006		      

Year Ended

August 31,
2007

   June 1, 2006(a)
to August 31,
2006		    
      
Class A              

Shares sold

    0    2,500     $ 0   $ 25,000  
   
Net increase    0    2,500     $ 0   $ 25,000  
   
Class B              

Shares sold

    0    2,500     $ 0   $ 25,000  
   
Net increase    0    2,500     $ 0   $ 25,000  
   
Class C              

Shares sold

    0    2,500     $ 0   $ 25,000  
   
Net increase    0    2,500     $ 0   $ 25,000  
   
Advisor Class              

Shares sold

    0    1,185,000     $ 0   $ 11,850,000  
   
Net increase    0    1,185,000     $ 0   $ 11,850,000  
   
Class R              

Shares sold

    0    2,510     $ 0   $ 25,096  
   
Net increase    0    2,510     $ 0   $ 25,096  
   
Class K              

Shares sold

    0    2,505     $ 0   $ 25,047  
   
Net increase    0    2,505     $ 0   $ 25,047  
   
Class I              

Shares sold

    0    2,500     $ 0   $ 25,000  
   
Net increase    0    2,500     $ 0   $ 25,000  
   

 

(a) Commencement of distributions.
16   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Notes to Financial Statements

 

NOTE F

Risks Involved in Investing in the Fund

Foreign Securities Risk — An Underlying Portfolio’s investments in securities of foreign companies or foreign governments involves special risks which include changes in foreign currency exchange rates and the possibility of the future political and economic developments which could adversely affect the value of such securities. Moreover, securities of many foreign companies or foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies or of the U.S. government.

Indemnification Risk — In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $250 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 year ended August 31, 2007.

NOTE H

Distributions to Shareholders

The tax character of distributions paid for the fiscal year ending August 31, 2007 and 2006 were as follows:

 

     2007    2006

Distributions paid from:

      

Ordinary income

    $ 60,800    $ 0

Long-term capital gain

      0      0

Total taxable distributions

    $ 60,800    $ 0

Total distributions paid

    $ 60,800    $ 0

As of August 31, 2007, the components of accumulated earnings/(deficit) on a tax basis were as follows:

 

Undistributed ordinary income

    $ 92,643

Undistributed long-term capital gains

      8,664

Unrealized appreciation(a)

    $ 1,866,102

Total accumulated earnings/(deficit)

    $ 1,967,409

 

(a) The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   17

 

Notes to Financial Statements

 

NOTE I

Legal Proceedings

On October 2, 2003, a purported class action complaint entitled Hindo, et al. v. AllianceBernstein Growth & Income Fund, et al. (“Hindo Complaint”) was filed against the Adviser, Alliance Capital Management Holding L.P. (“Alliance Holding”), Alliance Capital Management Corporation, AXA Financial, Inc., the AllianceBernstein Funds, certain officers of the Adviser (“AllianceBernstein defendants”), and certain other unaffiliated defendants, as well as unnamed Doe defendants. The Hindo Complaint was filed in the United States District Court for the Southern District of New York by alleged shareholders of two of the AllianceBernstein Funds. The Hindo Complaint alleges that certain of the AllianceBernstein defendants failed to disclose that they improperly allowed certain hedge funds and other unidentified parties to engage in “late trading” and “market timing” of AllianceBernstein Fund securities, violating Sections 11 and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act and Sections 206 and 215 of the Advisers Act. Plaintiffs seek an unspecified amount of compensatory damages and rescission of their contracts with the Adviser, including recovery of all fees paid to the Adviser pursuant to such contracts.

Following October 2, 2003, 43 additional lawsuits making factual allegations generally similar to those in the Hindo Complaint were filed in various federal and state courts against the Adviser and certain other defendants. All state court actions against the Adviser either were voluntarily dismissed or removed to federal court. On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred all federal actions to the United States District Court for the District of Maryland (the “Mutual Fund MDL”). On September 29, 2004, plaintiffs filed consolidated amended complaints with respect to four claim types: mutual fund shareholder claims; mutual fund derivative claims; derivative claims brought on behalf of Alliance Holding; and claims brought under ERISA by participants in the Profit Sharing Plan for Employees of the Adviser. All four complaints include substantially identical factual allegations, which appear to be based in large part on the Order of the SEC dated December 18, 2003 as amended and restated January 14, 2004 (“SEC Order) and the New York State Attorney General Assurance of Discontinuance dated September 1, 2004 (“NYAG Order”).

On April 21, 2006, the Adviser and attorneys for the plaintiffs in the mutual fund shareholder claims, mutual fund derivative claims, and ERISA claims entered into a confidential memorandum of understanding (“MOU”) containing their agreement to settle these claims. The agreement will be documented by a stipulation of settlement and will be submitted for court approval at a later date. The settlement amount ($30 million) which the Adviser previously accrued and disclosed, has been disbursed. The derivative claims brought on behalf of Alliance Holding, in which plaintiffs seek an unspecified amount of damages, remain pending.

On April 11, 2005, a complaint entitled The Attorney General of the State of West Virginia v. AIM Advisors, Inc., et al. (“WVAG Complaint”) was filed against the Adviser, Alliance Holding, and various unaffiliated defendants. The WVAG Complaint was filed in the Circuit Court of Marshall County, West Virginia by the Attorney General of the State of West Virginia. The WVAG Complaint makes factual allegations generally similar to those in the Hindo Complaint. On October 19, 2005, the WVAG Complaint was transferred to the Mutual Fund MDL. On August 30, 2005, the West Virginia Securities Commissioner signed a Summary Order to Cease and Desist, and Notice of Right to Hearing addressed to the Adviser and Alliance Holding. The Summary Order claims that the Adviser and Alliance Holding violated the West Virginia Uniform Securities Act, and makes factual allegations generally similar to those in the Commission Order and the NYAG Order. On January 25, 2006, the Adviser and Alliance Holding moved

18   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Notes to Financial Statements

 

to vacate the Summary Order. In early September 2006, the court denied this motion, and the Supreme Court of Appeals in West Virginia denied the defendants’ petition for appeal. On September 22, 2006, the Adviser and Alliance Holding filed an answer and motion to dismiss the Summary Order with the West Virginia Securities Commissioner.

It is possible that these matters and/or other developments resulting from these matters could result in increased redemptions of the AllianceBernstein Mutual Funds’ shares or other adverse consequences to the AllianceBernstein Mutual Funds. This may require the AllianceBernstein Mutual Funds to sell investments held by those funds to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the AllianceBernstein Mutual Funds. However, the Adviser believes that these matters are not likely to have a material adverse effect on its ability to perform advisory services relating to the AllianceBernstein Mutual Funds.

NOTE J

Recent Accounting Pronouncements

On July 13, 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing a fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded in the current period. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. On December 22, 2006, the Securities and Exchange Commission notified the industry that the implementation of FIN 48 by registered investment companies could be delayed until the last business day of the first required financial statement reporting period for fiscal years beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact on the financial statements has not yet been determined.

On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 157 and its impact on the financial statements has not yet been determined.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   19

 

Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class A  
    Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.08     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .08     (.03 )

Net realized and unrealized gain on investment transactions

   1.46     .11  
     

Net increase in net asset value from operations

   1.54     .08  
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.03 )   0  

Distributions from net realized gain on investment transactions

   .00  (d)   0  
     

Total dividends and distributions

   (.03 )   0  
     

Net asset value, end of period

   $  11.59     $  10.08  
     

Total Return

    

Total investment return based on net asset value(e)

   15.32  %   .80  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $29     $25  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   1.35  %   1.35  %(g)

Expenses, before waivers/reimbursements(f)

   4.29  %   5.22  %(g)

Net investment income (loss)(c)

   .75  %   (1.35 )%(g)

Portfolio turnover rate

   2  %   .34  %

See footnote summary on page 27.

20   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class B  
    Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.06     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .00 (d)   (.05 )

Net realized and unrealized gain on investment transactions

   1.45     .11  
     

Net increase in net asset value from operations

   1.46     .06  
     

Less: Distributions

    

Distributions from net realized gain on investment transactions

   .00  (d)   0  
     

Net asset value, end of period

   $  11.52     $  10.06  
     

Total Return

    

Total investment return based on net asset value(e)

   14.53  %   .60  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $29      $25  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   2.05  %   2.05  %(g)

Expenses, before waivers/reimbursements(f)

   4.99  %   5.92  %(g)

Net investment income (loss)(c)

   .03  %   (2.05 )%(g)

Portfolio turnover rate

   2  %   .34  %

 

See footnote summary on page 27.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   21

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class C  
    Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.06     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .01     (.05 )

Net realized and unrealized gain on investment transactions

   1.45     .11  
     

Net increase in net asset value from operations

   1.46     .06  
     

Less: Distributions

    

Distributions from net realized gain on investment transactions

   .00  (d)   0  
     

Net asset value, end of period

   $  11.52     $  10.06  
     

Total Return

    

Total investment return based on net asset value(e)

   14.53  %   .60  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $29      $25  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   2.05  %   2.05  %(g)

Expenses, before waivers/reimbursements(f)

   4.99  %   5.92  %(g)

Net investment income (loss)(c)

   .05  %   (2.05 )%(g)

Portfolio turnover rate

   2  %   .34  %

 

See footnote summary on page 27.

 

22   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Advisor Class  
   

Year

Ended
August 31,
2007

     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.09     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .12     (.03 )

Net realized and unrealized gain on investment transactions

   1.46     .12  
     

Net increase in net asset value from operations

   1.58     .09  
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.05 )   0  

Distributions from net realized gain on investment transactions

   .00  (d)   0  
     

Total dividends and distributions

   (.05 )   0  
     

Net asset value, end of period

   $  11.62     $  10.09  
     

Total Return

    

Total investment return based on net asset value(e)

   15.70  %   .90  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $13,764     $11,956  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   1.05  %   1.05  %(g)

Expenses, before waivers/reimbursements(f)

   3.99  %   4.92  %(g)

Net investment income (loss)(c)

   1.05  %   (1.05 )%(g)

Portfolio turnover rate

   2  %   .34  %

See footnote summary on page 27.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   23

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class R  
    Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.08     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .06     (.04 )

Net realized and unrealized gain on investment transactions

   1.45     .12  
     

Net increase in net asset value from operations

   1.51     .08  
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.02 )   0  

Distributions from net realized gain on

investment transactions

   .00  (d)   0  
     

Total dividends and distributions

   (.02 )   0  
     

Net asset value, end of period

   $  11.57     $  10.08  
     

Total Return

    

Total investment return based on net asset value(e)

   15.01  %   .80  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $29      $25  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   1.55  %   1.55  %(g)

Expenses, before waivers/reimbursements(f)

   4.45  %   5.42  %(g)

Net investment income (loss)(c)

   .55  %   (1.55 )%(g)

Portfolio turnover rate

   2  %   .34  %

See footnote summary on page 27.

24   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class K  
    Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.08     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .09     (.03 )

Net realized and unrealized gain on investment transactions

   1.45     .11  
     

Net increase in net asset value from operations

   1.54     .08  
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.03 )   0  

Distributions from net realized gain on investment transactions

   .00  (d)   0  
           

Total dividends and distributions

   (.04 )   0  
     

Net asset value, end of period

   $  11.59     $  10.08  
     

Total Return

    

Total investment return based on net asset value(e)

   15.36  %   .80  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $29      $25   

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   1.30  %   1.30  %(g)

Expenses, before waivers/reimbursements(f)

   4.20  %   5.17  %(g)

Net investment income (loss)(c)

   .80  %   (1.30 ) %(g)

Portfolio turnover rate

   2  %   .34  %

See footnote summary on page 27.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   25

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class I  
    Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  

Net asset value, beginning of period

   $  10.09     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(b)(c)

   .12     (.03 )

Net realized and unrealized gain on investment transactions

   1.46     .12  
     

Net increase in net asset value from operations

   1.58     .09  
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.05 )   0  

Distributions from net realized gain on

investment transactions

   .00  (d)   0  
     

Total dividends and distributions

   (.05 )   0  
     

Net asset value, end of period

   $  11.62     $  10.09  
     

Total Return

    

Total investment return based on net asset value(e)

   15.70  %   .90  %

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $29      $25   

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(f)

   1.05  %   1.05  %(g)

Expenses, before waivers/reimbursements(f)

   3.95  %   4.92  %(g)

Net investment income (loss)(c)

   1.05  %   (1.05 )%(g)

Portfolio Turnover Rate

   2  %   .34  %

 

(a) Commencement of distributions.
(b) Based on average shares outstanding.
(c) Net of fees waivers/reimbursed by the Adviser and the Transfer Agent.
(d) Amount is less than $.005.
(e) 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 return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.
(f) Expense ratios do not include expenses of the Underlying Portfolios in which the Fund invests. The estimated blended expense ratio of the Underlying Portfolios was .15%, for the periods ended August 31, 2007 and August 31, 2006, respectively.
(g) Annualized.
26   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders AllianceBernstein Blended Style Series, Inc. – Global Blend Portfolio

We have audited the accompanying statement of net assets of AllianceBernstein Blended Style Series, Inc. – Global Blend Portfolio as of August 31, 2007, and the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for the year then ended and for the period from June 1, 2006 (commencement of operations) through August 31, 2006. 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 audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (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. Our procedures included confirmation of securities owned as of August 31, 2007, by correspondence with the custodian and brokers or by other appropriate auditing procedures. 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 audits provide 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 Blended Style Series, Inc. – Global Blend Portfolio as of August 31, 2007, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period from June 1, 2006 through August 31, 2006, in conformity with U.S. generally accepted accounting principles.

LOGO

New York, New York

October 22, 2007

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   27

 

Report of Independent Registered Public Accounting Firm

 

TAX INFORMATION (unaudited)

For the fiscal year ended August 31, 2007, certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided by JGTRR Act of 2003. We designate $60,800 of ordinary income distributed as qualified dividend income. We also designate $27,361 of ordinary income distributed as qualifying for the corporate dividends received deduction. In addition, for foreign shareholders only, we designate $2,400 of ordinary income distributed as qualified short term capital gain.

28   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Tax Information

 

BOARD OF DIRECTORS

 

William H. Foulk, Jr.(1), Chairman    D. James Guzy(1)
Marc O. Mayer, President and Chief Executive Officer    Nancy P. Jacklin(1)
David H. Dievler(1)    Marshall C. Turner, Jr.(1)
John H. Dobkin(1)    Earl D. Weiner(1)
Michael J. Downey(1)   

OFFICERS(2)

Philip L. Kirstein,

Senior Vice President and Independent Compliance Officer

Seth J. Masters, Senior Vice President

Thomas J. Fontaine, Vice President

Mark A. Hamilton, Vice President

   

Joshua B. Lisser, Vice President

Christopher H. Nikolich, Vice President

Emilie D. Wrapp, Secretary

Joseph J. Mantineo, Treasurer and Chief Financial Officer

Vincent S. Noto, Controller

 

Custodian

State Street Bank & Trust Company

One Lincoln Street

Boston, MA 02111

 

Principal Underwriter

AllianceBernstein Investments, Inc.
1345 Avenue of the Americas

New York, NY 10105

 

Legal Counsel

Seward & Kissel LLP

One Battery Park Plaza

New York, NY 10004

  

Independent Registered Public Accounting Firm

KPMG LLP

345 Park Avenue

New York, NY 10154

 

Transfer Agent

AllianceBernstein Investor

Services, Inc.

P.O. Box 786003

San Antonio, TX 78278-6003

Toll-Free (800) 221-6003

 

(1) Member of the Audit Committee, Governance and Nominating Committee and Independent Directors Committee.

 

(2) The day-to-day management of and investment decisions for the Fund’s portfolio are made by the Blend Investment Policy Team, comprised of senior Blend portfolio managers . While all members of the team work jointly to determine the majority of the investment strategy, Messrs. Seth Masters, Thomas Fontaine, Mark Hamilton, Joshua Lisser and Christopher Nikolich, members of the Blend Investment Policy Team, are primarily responsible for the day-to-day management of the Fund’s portfolio.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   29

 

BOARD OF DIRECTORS

MANAGEMENT OF THE FUND

 

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

 

NAME, ADDRESS*,

AND AGE

(YEAR ELECTED**)

  

PRINCIPAL

OCCUPATION(S)

DURING PAST 5 YEARS

   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR
INTERESTED DIRECTOR      

Marc O. Mayer,***

1345 Avenue of the Americas

New York, NY 10105

50

(2003)

   Executive Vice President of AllianceBernstein L.P. (“AllianceBernstein”) since 2001 and Executive Managing Director of AllianceBernstein Investments, Inc. (“ABI”) since 2003; prior thereto he was head of AllianceBernstein Institutional Investments, a unit of AllianceBernstein from 2001-2003. Prior thereto, Chief Executive Officer of Sanford C. Bernstein & Co., LLC (institutional research and brokerage arm of Bernstein & Co., LLC) (“SCB & Co.”) and its predecessor since prior to 2002.   108   SCB Partners Inc. and SCB, Inc.
     
DISINTERESTED DIRECTORS    

William H. Foulk, Jr.,#,##

75

(2002)

Chairman of the Board

   Investment Adviser and Independent Consultant. He was formerly Senior Manager of Barrett Associates, Inc., a registered investment adviser, with which he had been associated since prior to 2002. He was formerly Deputy Comptroller and Chief Investment Officer of the State of New York and, prior thereto, Chief Investment Officer of the New York Bank for Savings.   110   None
30   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Management of the Fund

NAME, ADDRESS*,

AND AGE

(YEAR ELECTED**)

  

PRINCIPAL

OCCUPATION(S)

DURING PAST 5 YEARS

   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR

DISINTERESTED DIRECTORS

(continued)

    

David H. Dievler, #

78

(2002)

   Independent Consultant. Until December 1994, he was Senior Vice President of AllianceBernstein Corporation (“AB Corp.”) (formerly Alliance Capital Management Corporation) responsible for mutual fund administration. Prior to joining AB Corp. in 1984, he was Chief Financial Officer of Eberstadt Asset Management since 1968. Prior to that, he was a Senior Manager at Price Waterhouse & Co. Member of the American Institute of Certified Public Accounts since 1953.   109  
     

John H. Dobkin, #

65

(2002)

   Consultant. Formerly, President of Save Venice, Inc. (preservation organization) from 2001-2002, Senior Advisor from June 1999-June 2000 and President of historic Hudson Valley (historic preservation) from December 1989-May 1999. Previously, Director of the National Academy of Design and during 1988-1992, Director and Chairman of the Audit Committee of AB Corp.   108   None
     

Michael J. Downey, #

63

(2005)

   Consultant since January 2004. Formerly, managing partner of Lexington Capital, LLC (investment advisory firm) from December 1997 until December 2003. Prior thereto, Chairman and CEO of Prudential Mutual Fund Management from 1987 to 1993.   108   Asia Pacific Fund, Inc. and The Merger Fund
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   31

 

Management of the Fund

 

NAME, ADDRESS*,

AND AGE

(YEAR ELECTED**)

  

PRINCIPAL

OCCUPATION(S)

DURING PAST 5 YEARS

   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR

DISINTERESTED DIRECTORS

(continued)

    

D. James Guzy, #

71

(2005)

   Chairman of the Board of PLX Technology (semi-conductors) and of SRC Computers Inc., with which he has been associated since prior to 2002. He is also President of the Arbor Company (private family investments).   108   Intel Corporation (semi-conductors) and Cirrus Logic Corporation (semi-conductors)
     

Nancy P. Jacklin, #

59

(2006)

   Formerly, U.S. Executive Director of the International Monetary Fund (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations.   108   None
     

Marshall C. Turner, Jr., #

66

(2005)

   Consultant. Formerly, President and CEO, Toppan Photomasks, Inc., (semi-conductor manufacturing services), 2005-2006, and Chairman and CEO from 2003 until 2005, when the company was acquired and renamed from Dupont Photomasks, Inc. Principal, Turner Venture Associates (venture capital and consulting) 1993-2003.   108   Xilinx, Inc. (semi-conductors) and MEMC Electronic Materials, Inc. (semi-conductor substrates)
32   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Management of the Fund

 

NAME, ADDRESS*,

AND AGE

(YEAR ELECTED**)

  

PRINCIPAL

OCCUPATION(S)

DURING PAST 5 YEARS

   PORTFOLIOS
IN FUND
COMPLEX
OVERSEEN BY
DIRECTOR		   OTHER
DIRECTORSHIPS
HELD BY
DIRECTOR

DISINTERESTED DIRECTORS

(continued)

    

Earl D. Weiner, #

68

(2007)

   Of Counsel, and Partner from 1976-2006, of the law firm Sullivan & Cromwell LLP, specializing in investment management, corporate and securities law; member of ABA Federal Regulation of Securities Committee Task Force on Fund Director’s Guidebook.   108   None

 

* The address for each of the Fund’s disinterested Directors is AllianceBernstein L.P., c/o Philip L. Kirstein, 1345 Avenue of the Americas, New York, NY 10105.

 

** There is no stated term of office for the Fund’s Directors.

 

*** Mr. Mayer is an “interested person”, as defined in the Investment Company Act of 1940 (the “1940 Act”) , due to his position as Executive Vice President of AllianceBernstein.

 

# Member of the Audit Committee, Governance and Nominating Committee and Independent Directors Committee.

 

## Member of the Fair Value Pricing Committee.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   33

 

Management of the Fund

 

Officer Information

Certain information concerning the Fund’s Officers is listed below.

 

NAME, ADDRESS*
AND AGE		    POSITIONS(S)
HELD WITH FUND		    PRINCIPAL OCCUPATION
DURING PAST 5 YEARS

Marc O. Mayer

50

    President and Chief Executive Officer    See biography above.
     

Philip L. Kirstein

62

    Senior Vice President and Independent Compliance Officer    Senior Vice President and Independent Compliance Officer of the AllianceBernstein Funds, with which he has been associated with since October 2004. Prior thereto, he was Of Counsel to Kirkpatrick & Lockhart, LLP from October 2003 to October 2004, and General Counsel of Merrill Lynch Investment Managers L.P. since prior to 2002 until March 2003.
     

Seth J. Masters

48

    Senior Vice President    Executive Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     

Thomas J. Fontaine

42

    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     

Mark A. Hamilton

42

    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     

Joshua B. Lisser

40

    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
34   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Management of the Fund

 

NAME, ADDRESS*
AND AGE		    POSITIONS(S)
HELD WITH FUND		    PRINCIPAL OCCUPATION
DURING PAST 5 YEARS

Christopher H. Nikolich

38

    Vice President    Senior Vice President of AllianceBernstein,** with which he has been associated since prior to 2002.
     

Emilie D. Wrapp

51

    Secretary    Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI,** with which she has been associated since prior to 2002.
     

Joseph J. Mantineo

48

   

Treasurer and Chief

Financial Officer

    Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”),** with which he has been associated since prior to 2002.
     

Vincent S. Noto

42

    Controller    Vice President of ABIS,** with which he has been associated since prior to 2002.

 

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

 

** AllianceBernstein, ABI, ABIS and SCB & Co. are affiliates of the Fund.

 

   The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AllianceBernstein at 1-800-227-4618 for a free prospectus or SAI.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   35

 

Management of the Fund

 

The following 15 pages represent the holdings of the Underlying Portfolios in which the Fund may invest, including specific breakdowns within Underlying Portfolios. This holdings information has been derived from each fund’s August 31, 2007 financial statements. A copy of the Underlying Portfolios’ annual report is available upon request.

36   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

PORTFOLIO SUMMARY

August 31, 2007

 

GLOBAL VALUE PORTFOLIO

LOGO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. ‘Other’ country weightings represent less than 1.1% in the following countries: Australia, Belgium, Bermuda, China, Finland, Greece, Hong Kong, Hungary, India, Luxembourg, Singapore, South Africa, Taiwan and Thailand.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   37

 

Portfolio Summary

PORTFOLIO SUMMARY

August 31, 2007

 

GLOBAL RESEARCH GROWTH PORTFOLIO

LOGO

LOGO

 

* All data are as of August 31, 2007. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. ‘Other’ country weightings represent less than 1.4% in the following countries: Argentina, Cayman Islands, China, Finland, Germany, Hong Kong, Israel, Luxembourg, Mexico, Netherlands, South Africa, South Korea, Sweden and Taiwan.

 

  Please Note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard and Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the Broad Market. These sector classifications are broadly defined. The “Portfolio of Investments” section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Portfolio’s prospectus.
38   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Portfolio Summary

 

GLOBAL VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company   

Shares

   U.S. $ Value
 
    

COMMON STOCKS – 94.8%

     

Financials – 31.8%

     

Capital Markets – 3.0%

     

Credit Suisse Group(a)

    1,500   $ 98,442

Deutsche Bank AG

    300     37,038

The Goldman Sachs Group, Inc.

    100     17,601

Merrill Lynch & Co., Inc.

    800     58,960
        
       212,041
        

Commercial Banks – 7.6%

     

Barclays PLC

    4,900     60,738

BNP Paribas SA

    900     94,477

Can Imperial Bank Of Commerce

    200     18,125

HBOS PLC

    4,450     79,102

Industrial Bank Of Korea

    920     20,088

Kookmin Bank (ADR)

    200     16,290

Royal Bank of Scotland Group PLC

    8,373     97,296

Shinhan Financial Group Co., Ltd.

    270     16,554

Standard Bank Group Ltd.

    700     10,264

State Bank of India Ltd. (GDR)(b)

    390     35,934

Sumitomo Mitsui Financial Group, Inc.

    8     63,104

Unibanco – Uniao de Bancos Brasileiros SA (GDR)

    200     22,316
        
       534,288
        

Consumer Finance – 0.9%

     

ORIX Corp.

    300     63,694
        

Diversified Financial Services – 7.1%

     

Bank of America Corp.

    1,600     81,088

Citigroup, Inc.

    2,500     117,200

Fortis

    1,900     69,686

ING Groep NV

    2,800     112,690

JPMorgan Chase & Co.

    2,600     115,752
        
       496,416
        

Insurance – 10.7%

     

Allianz SE

    500     107,155

American International Group, Inc.

    1,300     85,800

Aviva PLC

    6,200     88,817

Fondiaria-Sai SpA (ordinary shares)

    1,100     51,730

Fondiaria-Sai SpA (saving shares)

    500     16,108

Genworth Financial, Inc. – Class A

    1,500     43,470

MBIA, Inc.

    300     18,000

MetLife, Inc.

    1,100     70,455

Muenchener Rueckversicherungs AG

    500     86,353

Sanlam, Ltd.

    7,300     22,047

Sun Life Financial, Inc.

    800     38,477

The Travelers Cos, Inc.

    900     45,486

XL Capital Ltd. – Class A

    1,000     76,200
        
       750,098
        
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   39

 

Global Value Portfolio—Portfolio of Investments

 

Company   

Shares

   U.S. $ Value
 
    

Thrifts & Mortgage Finance – 2.5%

     

Federal Home Loan Mortgage Corp.

    1,300   $ 80,093

Federal National Mortgage Association

    1,500     98,415
        
       178,508
        
       2,235,045
        

Materials – 12.3%

     

Chemicals – 3.4%

     

BASF AG

    800     105,770

Dow Chemical Co.

    1,200     51,156

Mitsubishi Chemical Holdings Corp.

    8,500     79,428
        
       236,354
        

Construction Materials – 0.5%

     

Buzzi Unicem SpA

    1,300     37,403
        

Containers & Packaging – 0.2%

     

Rengo Co. Ltd.

    2,000     12,467
        

Metals & Mining – 7.6%

     

Antofagasta PLC

    2,100     30,219

Arcelor Mittal (Euronext Amsterdam)

    1,400     92,232

Gerdau Ameristeel Corp.

    2,300     26,790

Gerdau SA (ADR)

    1,700     40,868

JFE Holdings, Inc.

    1,400     91,158

Kazakhmys PLC

    1,400     35,981

POSCO (ADR)

    200     30,662

Teck Cominco Ltd. – Class B

    1,600     68,182

Xstrata PLC

    1,580     92,960

Zinifex Ltd.

    1,600     21,967
        
       531,019
        

Paper & Forest Products – 0.6%

     

Stora Enso Oyj – Class R

    2,500     45,041
        
       862,284
        

Energy – 10.7%

     

Oil, Gas & Consumable Fuels – 10.7%

     

Chevron Corp.

    1,600     140,416

ConocoPhillips

    900     73,701

ENI SpA

    2,000     69,083

Exxon Mobil Corp.

    700     60,011

Marathon Oil Corp.

    1,100     59,279

MOL Hungarian Oil and Gas NyRt

    200     28,495

Nippon Mining Holdings, Inc.

    4,500     40,598

Petroleo Brasileiro SA (NY) (ADR)

    800     42,584

PTT PCL

    1,300     11,064

Repsol YPF SA

    2,500     90,086

Royal Dutch Shell PLC (London) – Class A

    2,600     100,710

Total SA

    500     37,497
        
       753,524
        
40   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Global Value Portfolio—Portfolio of Investments

 

Company   

Shares

   U.S. $ Value
 
    

Consumer Discretionary – 10.5%

     

Auto Components – 0.8%

     

Compagnie Generale des Etablissements Michelin – Class B

    400   $ 50,206

Hyundai Mobis

    90     9,676
        
       59,882
        

Automobiles – 2.9%

     

Nissan Motor Co., Ltd.

    8,400     80,244

Renault SA

    900     120,905
        
       201,149
        

Hotels Restaurants & Leisure – 0.5%

     

McDonald’s Corp.

    700     34,475
        

Household Durables – 1.5%

     

Black & Decker Corp.

    400     34,700

Sharp Corp.

    4,000     69,530
        
       104,230
        

Internet & Catalog Retail – 0.4%

     

Home Retail Group PLC

    3,200     26,808
        

Media – 2.9%

     

CBS Corp. – Class B

    2,700     85,077

Comcast Corp. – Special – Class A(c)

    1,200     31,032

Time Warner, Inc.

    4,600     87,308
        
       203,417
        

Multiline Retail – 0.8%

     

Macy’s, Inc.

    1,700     53,924
        

Specialty Retail – 0.3%

     

Office Depot, Inc.(c)

    800     19,560
        

Textiles Apparel & Luxury Goods – 0.4%

     

VF Corp.

    400     31,940
        
       735,385
        

Industrials – 9.3%

     

Aerospace & Defense – 0.9%

     

Northrop Grumman Corp.

    800     63,072
        

Airlines – 2.6%

     

Air France-KLM

    1,900     78,635

Deutsche Lufthansa AG

    3,500     102,084
        
       180,719
        

Industrial Conglomerates – 2.1%

     

General Electric Co.

    3,900     151,593
        

Machinery – 1.6%

     

Ingersoll-Rand Co. Ltd. – Class A

    1,300     67,509

SPX Corp.

    500     45,025
        
       112,534
        
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   41

 

Global Value Portfolio—Portfolio of Investments

Company   

Shares

   U.S. $ Value
 
    

Marine – 2.1%

     

Mitsui OSK Lines Ltd.

    6,000   $ 88,138

Neptune Orient Lines Ltd.

    12,000     38,534

Nippon Yusen KK

    2,000     19,722
        
       146,394
        
       654,312
        

Health Care – 5.4%

     

Health Care Providers & Services – 1.1%

     

AmerisourceBergen Corp. – Class A

    1,100     52,635

McKesson Corp.

    400     22,884

Pharmerica Corp.(c)

    92     1,626
        
       77,145
        

Pharmaceuticals – 4.3%

     

AstraZeneca PLC

    1,600     78,854

GlaxoSmithKline PLC

    1,400     36,535

Merck & Co., Inc.

    500     25,085

Pfizer, Inc.

    4,000     99,360

Sanofi-Aventis

    800     65,522
        
       305,356
        
       382,501
        

Information Technology – 4.7%

     

Computers & Peripherals – 1.6%

     

Fujitsu, Ltd.

    3,000     20,496

International Business Machines Corp.

    800     93,352
        
       113,848
        

Electronic Equipment & Instruments – 1.2%

     

AU Optronics Corp. (ADR)

    1,681     24,691

Solectron Corp.(c)

    8,300     32,204

Tech Data Corp.(c)

    700     27,293
        
       84,188
        

Semiconductors & Semiconductor
Equipment – 0.8%

     

Hynix Semiconductor, Inc.(c)

    400     14,413

Samsung Electronics Co., Ltd.

    14     8,825

Siliconware Precision Industries Co. (ADR)

    3,353     36,177
        
       59,415
        

Software – 1.1%

     

Microsoft Corp.

    2,600     74,698
        
       332,149
        

Utilities – 3.8%

     

Electric Utilities – 3.8%

     

E.ON AG

    700     117,360

Kyushu Electric Power Co., Inc.

    1,700     45,366

Public Power Corp.

    1,210     37,625

The Tokyo Electric Power Co.

    2,400     62,945
        
       263,296
        
42   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Global Value Portfolio—Portfolio of Investments

 

Company   

Shares

   U.S. $ Value
 
    

Telecommunication Services – 3.5%

     

Diversified Telecommunication Services – 0.6%

     

China Netcom Group Corp. Ltd.

    10,500   $ 25,385

China Telecom Corp. Ltd. – Class H

    24,420     14,114
        
       39,499
        

Wireless Telecommunication Services – 2.9%

     

Sprint Nextel Corp.

    3,600     68,112

Vodafone Group PLC

    41,912     135,445
        
       203,557
        
       243,056
        

Consumer Staples – 2.8%

     

Food & Staples Retailing – 0.9%

     

Safeway, Inc.

    2,000     63,460
        

Food Products – 0.7%

     

Kraft Foods, Inc. – Class A

    1,630     52,258
        

Tobacco – 1.2%

     

Altria Group, Inc.

    1,200     83,292
        
       199,010
        

Total Common Stocks
(cost $5,894,013)

        6,660,562
        
    

WARRANTS – 0.7%

     

Information Technology – 0.7%

     

Computers & Peripherals – 0.3%

     

Compal Electronics, Inc., expiring 1/17/12(b)(c)

    17,975     19,899
        

Semiconductors & Semiconductor Equipment – 0.4%

     

Taiwan Semiconductor Manufacturing Co. Ltd.,
expiring 1/17/12(b)(c)

    9,346     17,674

United Microelectronics Corp., Deutshe Bank AG London, expiring 1/24/17(b)(c)

    28,169     15,774
        
       33,448
        

Total Warrants
(cost $49,988)

        53,347
        
    

NON-CONVERTIBLE – PREFERRED STOCKS – 0.4%

     

Consumer Discretionary – 0.2%

     

Automobiles – 0.2%

     

Hyundai Motor Co.

    340     13,528
        

Information Technology – 0.2%

     

Semiconductors & Semiconductor Equipment – 0.2%

     

Samsung Electronics Co., Ltd.

    25     11,735
        

Total Non-Convertible – Preferred Stocks
(cost $29,416)

        25,263
        
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   43

 

Global Value Portfolio—Portfolio of Investments

 

Company   

Shares

   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 0.9%

     

Investment Companies – 0.9%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(d)
(cost $63,580)

    63,580   $ 63,580
        

Total Investments – 96.8%
(cost $6,036,997)

        6,802,752

Other assets less liabilities – 3.2%

        224,815
        

Net Assets – 100.0%

      $ 7,027,567
        

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

 

      Contract
Amount
(000)		    U.S. $
Value on
Origination
Date		    U.S. $
Value at
August 31,
2007		    Unrealized
Appreciation/
(Depreciation)		  

Buy Contracts:

            

Swiss Franc settling 9/18/07

    21    $ 17,772    $ 17,400    $ (372 )

Swiss Franc settling 9/18/07

    100      83,133      82,859      (274 )

Sale Contracts:

            

Swiss Franc settling 9/18/07

    121      98,182      100,259      (2,077 )

 

(a) Position, or a portion thereof, has been segregated to collateralize forward currency exchange contracts. The market value of this security amounted to $98,442.

 

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $89,281 or 1.3% of net assets.

 

(c) Non-income producing security.

 

(d) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

GDR – Global Depositary Receipt

 

   See notes to financial statements.
44   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Global Value Portfolio—Portfolio of Investments

 

GLOBAL RESEARCH GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

August 31, 2007

 

Company        
    
Shares		   U.S. $ Value
 
    
    

COMMON STOCKS – 93.3%

     

Financials – 24.9%

     

Capital Markets – 14.3%

     

3i Group PLC

    1,951   $ 41,608

The Blackstone Group LP(a)

    5,600     129,528

Credit Suisse Group

    3,209     210,601

Franklin Resources, Inc.

    300     39,531

Janus Capital Group, Inc.

    1,900     50,521

Lehman Brothers Holdings, Inc.

    3,400     186,422

Macquarie Bank Ltd.

    957     57,164

Merrill Lynch & Co., Inc.

    900     66,330

MF Global Ltd.(a)

    1,300     35,022

UBS AG (Swiss Virt-X)

    3,608     188,915
        
       1,005,642
        

Commercial Banks – 3.3%

     

Banco Bilbao Vizcaya Argentaria SA

    2,983     68,935

Banco Itau Holding Financeira SA (ADR)

    800     34,824

Standard Chartered PLC

    2,106     65,175

UniCredito Italiano SpA

    7,858     67,504
        
       236,438
        

Diversified Financial Services – 3.8%

     

CME Group, Inc. – Class A

    120     66,576

JPMorgan Chase & Co.

    3,835     170,734

NYSE Euronext

    400     29,100
        
       266,410
        

Insurance – 3.5%

     

American International Group, Inc.

    1,900     125,400

QBE Insurance Group Ltd.

    1,989     56,684

Swiss Reinsurance

    775     65,388
        
       247,472
        
       1,755,962
        

Information Technology – 13.5%

     

Communications Equipment – 3.0%

     

Cisco Systems, Inc.(a)

    2,848     90,908

Juniper Networks, Inc.(a)

    900     29,628

Nokia OYJ

    1,940     63,911

Qualcomm, Inc.

    600     23,934
        
       208,381
        

Computers & Peripherals – 3.1%

     

Apple, Inc.(a)

    400     55,392

Hewlett-Packard Co.

    1,279     63,119

InnoLux Display Corp.

    3,119     13,241

International Business Machines Corp.

    500     58,345

Sun Microsystems, Inc.(a)

    5,318     28,504
        
       218,601
        
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   45

 

Global Research Growth Portfolio—Portfolio of Investments

Company        
    
Shares		   U.S. $ Value
 
    

Electronic Equipment & Instruments – 0.2%

     

Murata Manufacturing Co. Ltd.

    200   $ 14,014
        

Internet Software & Services – 1.4%

     

eBay, Inc.(a)

    1,100     37,510

Google, Inc. – Class A(a)

    120     61,830
        
       99,340
        

IT Services – 0.3%

     

Cognizant Technology Solutions Corp. – Class A(a)

    100     7,351

Genpact Ltd.(a)

    300     4,956

Infosys Technologies Ltd. (ADR)

    200     9,542
        
       21,849
        

Office Electronics – 0.2%

     

Konica Minolta Holdings, Inc.

    1,000     15,640
        

Semiconductors & Semiconductor Equipment – 3.0%

     

ASML Holding NV(a)

    253     7,504

Broadcom Corp. – Class A(a)

    800     27,600

Integrated Device Technology, Inc.(a)

    800     12,512

Intel Corp.

    3,000     77,250

KLA-Tencor Corp.

    200     11,494

MediaTek, Inc.

    1,000     16,903

Nvidia Corp.(a)

    400     20,464

Samsung Electronics Co., Ltd. (GDR)(b)

    20     6,350

Samsung Electronics Co., Ltd.

    17     10,717

Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)

    1     10

Texas Instruments, Inc.

    689     23,591
        
       214,395
        

Software – 2.3%

     

Adobe Systems, Inc.(a)

    695     29,711

Citrix Systems, Inc.(a)

    600     21,810

Microsoft Corp.

    1,600     45,968

Oracle Corp.(a)

    1,750     35,490

Shanda Interactive Entertainment Ltd. (ADR)(a)

    200     5,972

VMware, Inc. – Class A(a)

    300     20,667
        
       159,618
        
       951,838
        

Industrials – 11.1%

     

Aerospace & Defense – 2.7%

     

BAE Systems PLC

    6,267     58,664

Boeing Co.

    600     58,020

United Technologies Corp.

    1,000     74,630
        
       191,314
        
46   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Global Research Growth Portfolio—Portfolio of Investments

Company        
    
Shares		   U.S. $ Value
 
    

Airlines – 0.5%

     

Continental Airlines, Inc. – Class B(a)

    1,000   $ 33,260
        

Building Products – 0.9%

     

American Standard Cos, Inc.

    700     25,781

Cie de Saint-Gobain

    379     41,045
        
       66,826
        

Electrical Equipment – 1.4%

     

ABB Ltd.

    1,738     42,917

Emerson Electric Co.

    1,200     59,076
        
       101,993
        

Industrial Conglomerates – 2.2%

     

General Electric Co.

    2,600     101,062

Siemens AG

    413     51,815
        
       152,877
        

Machinery – 1.9%

     

Atlas Copco AB

    2,667     44,549

Danaher Corp.

    700     54,362

Deere & Co.

    250     34,015
        
       132,926
        

Trading Companies & Distributors – 1.5%

     

Mitsubishi Corp.

    1,500     42,103

Mitsui & Co. Ltd.

    3,000     62,361
        
       104,464
        
       783,660
        

Health Care – 10.6%

     

Biotechnology – 1.4%

     

Celgene Corp.(a)

    300     19,263

Genentech, Inc.(a)

    500     37,405

Gilead Sciences, Inc.(a)

    1,100     40,007
        
       96,675
        

Health Care Equipment & Supplies – 1.4%

     

Alcon, Inc.

    300     40,578

Becton Dickinson & Co.

    400     30,776

Nobel Biocare Holding AG

    101     27,566
        
       98,920
        

Health Care Providers & Services – 2.5%

     

Aetna, Inc.

    800     40,728

Laboratory Corp. of America Holdings(a)

    410     31,841

Medco Health Solutions, Inc.(a)

    300     25,635

WellPoint, Inc.(a)

    1,000     80,590
        
       178,794
        

Pharmaceuticals – 5.3%

     

Abbott Laboratories

    500     25,955

Eli Lilly & Co.

    500     28,675
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   47

 

Global Research Growth Portfolio—Portfolio of Investments

Company        
    
Shares		   U.S. $ Value
 
    

Merck & Co., Inc.

    1,300   $ 65,221

Novartis AG

    640     33,737

Roche Holding AG

    323     56,265

Schering-Plough Corp.

    1,900     57,038

Takeda Pharmaceutical Co. Ltd.

    200     13,684

Teva Pharmaceutical Industries, Ltd. (ADR)

    1,400     60,200

Wyeth

    700     32,410
        
       373,185
        
       747,574
        

Energy – 9.6%

     

Energy Equipment & Services – 2.7%

     

Baker Hughes, Inc.

    1,359     113,966

Technip SA

    510     40,677

Tenaris SA (ADR)

    700     32,851
        
       187,494
        

Oil, Gas & Consumable Fuels – 6.9%

     

Addax Petroleum Corp.

    1,053     34,701

China Shenhua Energy Co., Ltd. – Class H

    14,500     63,016

Gazprom OAO

    2,238     92,989

LUKOIL (ADR)

    348     25,822

Noble Energy, Inc.

    1,500     90,105

Petro-Canada

    1,126     57,430

Petroleo Brasileiro SA (NY) (ADR)

    300     15,969

Total SA

    1,451     108,816
        
       488,848
        
       676,342
        

Consumer Staples – 8.5%

     

Beverages – 0.4%

     

PepsiCo, Inc.

    400     27,212
        

Food & Staples Retailing – 1.7%

     

Safeway, Inc.

    1,300     41,249

Walgreen Co.

    600     27,042

Wal-Mart de Mexico SAB de CV Series V

    14,168     50,403
        
       118,694
        

Food Products – 3.7%

     

Archer-Daniels-Midland Co.

    1,600     53,920

Bunge Ltd.

    600     54,864

Nestle SA

    202     88,040

WM Wrigley Jr Co.

    1,100     64,075
        
       260,899
        

Household Products – 1.2%

     

Procter & Gamble Co.

    1,300     84,903
        

Personal Products – 0.4%

     

L’Oreal SA

    286     33,369
        
48   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Global Research Growth Portfolio—Portfolio of Investments

Company        
    
Shares		   U.S. $ Value
 
    

Tobacco – 1.1%

     

Altria Group, Inc.

    1,100   $ 76,351
        
       601,428
        

Consumer Discretionary – 7.8%

     

Auto Components – 0.5%

     

Denso Corp.

    800     28,012

WABCO Holdings, Inc.

    233     10,531
        
       38,543
        

Automobiles – 1.5%

     

Fiat SpA

    2,230     59,471

Porsche AG

    15     26,813

Suzuki Motor Corp.

    700     18,913
        
       105,197
        

Diversified Consumer Services – 0.6%

     

Apollo Group, Inc. – Class A(a)

    800     46,936
        

Hotels Restaurants & Leisure – 2.1%

     

Accor SA

    564     48,181

Ctrip.com International Ltd. (ADR)

    300     12,747

Ladbrokes PLC

    3,768     33,203

Punch Taverns PLC

    2,329     51,793
        
       145,924
        

Media – 0.9%

     

Comcast Corp. – Class A(a)

    2,550     66,529
        

Multiline Retail – 1.4%

     

Kohl’s Corp.(a)

    1,300     77,090

Nordstrom, Inc.

    400     19,240
        
       96,330
        

Specialty Retail – 0.8%

     

Esprit Holdings Ltd.

    1,500     21,790

Inditex SA

    550     32,290
        
       54,080
        
       553,539
        

Materials – 5.9%

     

Chemicals – 1.5%

     

Air Products & Chemicals, Inc.

    1,100     99,011

Monsanto Co.

    100     6,974
        
       105,985
        

Metals & Mining – 4.4%

     

Cia Vale do Rio Doce (ADR)

    1,000     49,330

Cia Vale do Rio Doce Sponsored (ADR)

    800     33,400

Rio Tinto PLC

    1,595     110,174

Sterlite Industries India Ltd.(a)

    2,800     44,772

Xstrata PLC

    1,185     69,720
        
       307,396
        
       413,381
        
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   49

 

Global Research Growth Portfolio—Portfolio of Investments

Company        
    
Shares		   U.S. $ Value
 
    

Telecommunication Services – 1.0%

     

Diversified Telecommunication Services – 0.2%

     

Verizon Communications, Inc.

    300   $ 12,564
        

Wireless Telecommunication Services – 0.8%

     

America Movil SAB de CV Series L (ADR)

    500     30,230

MTN Group Ltd.

    355     5,416

Vimpel-Communications (ADR)

    1,000     24,400
        
       60,046
        
       72,610
        

Utilities – 0.4%

     

Independent Power Producers & Energy Traders – 0.4%

     

International Power PLC

    3,330     27,217
        

Total Common Stocks
(cost $5,970,288)

        6,583,551
        
    

WARRANTS – 2.0%

     

Utilities – 0.8%

     

Independent Power Producers & Energy Traders – 0.8%

     

Novatek Microelectronics, Deutsche Bank, expiring 11/02/16(a)(b)

    50     201

NTPC Ltd., Deutsche Bank, expiring 2/06/17(a)(b)

    13,307     56,382
        
       56,583
        

Financials – 0.5%

     

Thrifts & Mortgage Finance – 0.5%

     

Housing Development Finance Corp., Merrill Lynch, expiring 1/18/11(a)

    705     34,023
        

Information Technology – 0.4%

     

Electronic Equipment & Instruments – 0.4%

     

HON HAI Precision Industry Co., Ltd., Citigroup Global Markets, expiring 1/17/12(a)

    3,956     29,357
        

Telecommunication Services – 0.3%

     

Diversified Telecommunication Services – 0.2%

     

Telekomunikasi Indonesia Tbk PT, Deutsche Bank, expiring 3/23/17(a)(b)

    9,000     10,413
        

Wireless Telecommunication Services – 0.1%

     

Bharti Airtel Ltd., Merrill Lynch, expiring 3/17/11(a)(b)

    439     9,434
        
       19,847
        

Consumer Discretionary – 0.0%

     

Leisure Equipment & Products – 0.0%

     

Largan Precision Co. Ltd., Citigroup Global Markets, expiring 1/20/10(a)

    7     57
        

Total Warrants
(cost $120,820)

        139,867
        
50   •  ALLIANCEBERNSTEIN POOLING PORTFOLIOS

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 0.8%

     

Investment Companies – 0.8%

     

AllianceBernstein Fixed-Income Shares, Inc. –
Government STIF Portfolio(c)
(cost $58,003)

    58,003   $ 58,003
        

Total Investments – 96.1%
(cost $6,149,111)

        6,781,421

Other assets less liabilities – 3.9%

        274,693
        

Net Assets – 100.0%

      $ 7,056,114
        

 

 

(a) Non-income producing security.

 

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered liquid and may be resold in the transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2007, the aggregate market value of these securities amounted to $112,137 or 1.6% of net assets.

 

(c) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt
GDR – Global Depositary Receipt

 

   See notes to financial statements.
ALLIANCEBERNSTEIN POOLING PORTFOLIOS  •   51

 

Global Research Growth Portfolio—Portfolio of Investments

 

THE FOLLOWING IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

SUMMARY OF SENIOR OFFICER’S EVALUATION OF INVESTMENT ADVISORY AGREEMENT1

The following is a summary of the evaluation of the investment advisory agreement between AllianceBernstein L.P. (the “Adviser”) and AllianceBernstein Blended Style Series, Inc. (the “Fund”) in respect of the AllianceBernstein Global Blend Portfolio (the “Portfolio”), prepared by Philip L. Kirstein, the Senior Officer of the Fund for the Directors of the Fund, as required by an August 2004 agreement between the Adviser and the New York State Attorney General.2

The Portfolio will pursue its investment objective through investing in shares of AllianceBernstein Global Research Growth Portfolio and AllianceBernstein Global Value Portfolio (the “Underlying Portfolios”) of the AllianceBernstein Pooling Portfolios (“Pooling Portfolios”), rather than making direct investments in portfolio securities. It should be noted that the Portfolio has not yet commenced operations.

The Senior Officer’s evaluation of the investment advisory agreement is not meant to diminish the responsibility or authority of the Board of Directors of the Fund to perform its duties pursuant to Section 15 of the Investment Company Act of 1940 (the “40 Act”) and applicable state law. The purpose of the summary is to provide shareholders with a synopsis of the independent evaluation of the reasonableness of the advisory fees proposed to be paid by the Portfolio which was provided to the Directors in

 

1 It should be noted that the information in the fee summary was completed on April 24, 2006 and presented to the Board of Directors on May 2, 2006 in accordance with the Assurance of Discontinuance between the New York State Attorney General and the Adviser. It also should be noted that references in the fee summary pertaining to performance and expense ratios refer to Class A shares of the Fund.

 

2 Futures references to the Portfolio do not include “AllianceBernstein.”
52   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

connection with their review of the proposed initial approval of the investment advisory agreement. The Senior Officer’s evaluation considered the following factors:

 

  1. Management fees charged to institutional and other clients of the Adviser for like services;

 

  2. Management fees charged by other mutual fund companies for like services;

 

  3. Costs to the Adviser and its affiliates of supplying services pursuant to the advisory agreement, excluding any intra-corporate profit;

 

  4. Profit margins of the Adviser and its affiliates from supplying such services;

 

  5. Possible economies of scale as the Portfolio grows larger; and

 

  6. Nature and quality of the Adviser’s services including the performance of the Portfolio.

FUND ADVISORY FEES, EXPENSE CAPS, REIMBURSEMENTS & RATIOS

The table below describes the Portfolio’s advisory fees pursuant to the Investment Advisory Agreement. The fee schedule below, implemented in January 2004 in connection with the Adviser’s settlement with the New York State Attorney General in December 2003 is based on a master schedule that contemplates eight categories of funds with almost all funds in each category having the same advisory fee schedule.3

 

Category   

Advisory Fee

Based on % of Average

Daily Net Assets

    Portfolio
International   

75 bp on 1st $2.5 billion

65 bp on next $2.5 billion

60 bp on the balance

    Global Blend Portfolio

 

3 Most of the AllianceBernstein Mutual Funds, which the Adviser manages, were affected by the Adviser’s settlement with the New York State Attorney General.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   53

 

The Investment Advisory Agreement for the Portfolio provides for the Adviser to be reimbursed by the Portfolio for certain clerical, legal, accounting and administrative services.

The Adviser agreed to waive that portion of its management fees and/or reimburse the Portfolio for that portion of its total operating expenses to the degree necessary to limit the Portfolio’s expense ratio to the amounts set forth below for the Portfolio’s fiscal year. The waiver extends until August 31, 2007 and will automatically extend for additional one-year terms unless terminated by the Adviser upon at least 60 days written notice prior to the termination date of the undertaking.

 

Portfolio    Expense Cap Pursuant to
Expense Limitation
Undertaking		     Fiscal
Year End
Global Blend Portfolio    Class A    1.50 %   August 31
   Class B    2.20 %  
   Class C    2.20 %  
   Class R    1.70 %  
   Class K    1.45 %  
   Class I    1.20 %  
   Adv. Class                        1.20 %  

I.  MANAGEMENT FEES CHARGED TO INSTITUTIONAL AND OTHER CLIENTS

The management fees charged to investment companies which the Adviser manages and sponsors are normally higher than those charged to similar sized institutional accounts, including pension plans and sub-advised investment companies. The fee differential reflects, among other things, different services provided to such clients, and different liabilities assumed. Services that will be provided by the Adviser to the Portfolio that are not provided to non-investment company clients include providing

54   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

office space and personnel to serve as Fund Officers, who among other responsibilities make the certifications required under the Sarbanes–Oxley Act of 2002, and coordinating with and monitoring the Portfolio’s third party service providers such as Fund counsel, auditors, custodians, transfer agents and pricing services. The accounting, administrative, legal and compliance requirements for the Portfolio will be more costly than those for institutional assets due to the greater complexities and time required for investment companies, although as previously noted, a portion of these expenses will be reimbursed by the Portfolio to the Adviser. In addition, retail mutual funds managed by the Adviser are widely held. Servicing the Portfolio’s investors will be more time consuming and labor intensive compared to institutional clients since the Adviser will need to communicate with a more extensive network of financial intermediaries and shareholders. In addition, managing the cash flow of an investment company may be more difficult than that of a stable pool of assets, such as an institutional account with little cash movement in either direction, particularly, if the Portfolio is in net redemption and the Adviser is frequently forced to sell securities to raise cash for redemptions. However, managing a Portfolio with positive cash flow may be easier at times than managing a stable pool of assets. This factor is less significant for the Portfolio, which will invest almost all of its assets in shares of the Underlying Portfolios. Finally, in recent years, investment advisers have been sued by institutional clients and have suffered reputational damage both by the attendant publicity and outcomes other than complete victories. Accordingly, the legal and reputational risks associated with institutional accounts are greater than previously thought, although still not equal to those related to the mutual fund industry.

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   55

 

Notwithstanding the Adviser’s view that managing an investment company is not comparable to managing other institutional accounts because the services provided are different, it is worth considering information regarding the advisory fees charged to institutional accounts with a substantially similar investment style as the Portfolio. In addition to the AllianceBernstein Institutional fee schedule, set forth below are what would have been the effective advisory fees of the Portfolio had the AllianceBernstein Institutional fee schedule been applicable to the Portfolio versus the Portfolio’s management fees.

 

Portfolio  

Assumed
Initial

Net
Assets

($MIL)

  

AllianceBernstein (AB)
Institutional (Inst.)

Fee Schedule

   Effective
AB Inst.
Adv. Fee		   Management
Fee4
Global Blend Portfolio   $100.0   Global Style Blend
80 bp on 1st $25 million
65 bp on next $25 million
55 bp on next $50 million
45 bp on next $100 million
40 bp on the balance Minimum Account Size: $50 m		   0.638%   0.750%

The Adviser manages the Sanford C. Bernstein Fund, Inc., an open-end management investment company. The International Portfolio of the Sanford C. Bernstein Fund, Inc. has a somewhat similar investment style as the Portfolio. The following table shows the fee schedule of International Portfolio.

 

Portfolio    SCB
Portfolio		    Fee Schedule
Global Blend Portfolio    International Portfolio   

0.925% on first $1 billion

0.85% on next $3 billion

0.80% on next $2 billion

0.75% on next $2 billion

0.65% on the balance

 

4 Fund management fee information was provided by Lipper. See Section II for additional discussion.
56   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

The AllianceBernstein Variable Products Series Fund, Inc. (“AVPS”), which is managed by the Adviser and is available through variable annuity and variable life contracts offered by other financial institutions, offers investors the option to invest in a portfolio with a somewhat similar investment style as the Portfolio. The following table shows the fee schedule of the AVPS portfolio, which is the same as the fee schedule of the Portfolio:

 

Portfolio    AVPS Portfolio    Fee Schedule
Global Blend Portfolio    International Portfolio   

0.75% on first $2.5 billion

0.65% on next $2.5 billion

0.60% on the balance

The Adviser also manages and sponsors retail mutual funds, including the Global Wealth Strategies, which are organized in jurisdictions outside the United States, generally Luxembourg and Japan, and sold to non-United States resident investors. The Adviser charges the following “all-in” fee5 for the Global Wealth Strategy that has a somewhat similar investment strategy as the Portfolio:

 

Fund      Fee  

Global Equity Blend

      1.60 %

The Adviser represented that it does not sub-advise any registered investment companies with a similar investment style as the Portfolio.

 

II. MANAGEMENT FEES CHARGED BY OTHER MUTUAL FUND COMPANIES FOR LIKE SERVICES.

Lipper, Inc. (“Lipper”), an analytical service that is not affiliated with the Adviser, compared the proposed management fee of the Portfolio based on an assumed initial net asset base of $100 million with fees charged to other investment companies for

 

5 The “all-in” fee shown is for the class A shares of Global Equity Blend. This includes a fee for investment advisory services and a separate fee for distribution related services.
ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   57

 

similar services by other investment advisers. Lipper’s analysis included the Portfolio’s ranking with respect to the proposed management fee relative to the Lipper group median at the assumed initial net assets base of the Portfolio.6

 

Portfolio   Effective
Management
Fee		  

Lipper

Group

Median

   Rank
Global Blend Portfolio7   0.750   0.969   2/13

Lipper also analyzed the anticipated total expense ratio of the Portfolio in comparison to its Lipper Expense Group8 and Lipper Expense Universe.9 Lipper describes a Lipper Expense Group as a representative sample of comparable funds and a Lipper Expense Universe as a broader group, consisting of all funds in the same investment classification/objections with a similar load type as the subject Portfolio. The result of that analysis is set forth below:

 

Portfolio  

Expense

Ratio
(%)10

  

Lipper

Group
Median (%)

  

Lipper

Group

Rank

  

Lipper

Universe

Median (%)

  

Lipper
Universe

Rank

Global Blend Portfolio7   1.500   1.500   7/13   1.682   44/126

Based on this analysis, the Portfolio has a more favorable ranking on a management fee basis than it does on a total expense ratio basis.

 

6 A ranking of “1” means that the Portfolio has the lowest effective fee rate in the Lipper peer group. The effective management fee rate does not reflect any fee waivers or expense reimbursements that effectively reduce the contractual fee rates. In addition, the effective management fee rate does not reflect the expense reimbursements made by the Portfolio to the Adviser for the provision of administrative services, which have an adverse effect on the expense ratio of the Portfolio.

 

7 The Portfolio’s expense information is based on an assumed initial asset base of $100 million.

 

8 Lipper uses the following criteria in screening funds to be included in the Portfolio’s expense group: fund type, investment classification/objective, load type and similar 12b-1/non-12b-1 service fees, asset (size) comparability, and expense components and attributes. A Lipper Expense Group will typically consist of seven to twenty funds.

 

9 Except for asset (size) comparability and load type, Lipper uses the same criteria for selecting a Lipper Expense Group when selecting a Lipper Expense Universe. Unlike the Lipper Expense Group, the Lipper Expense Universe allows for the same adviser to be represented by more than just one fund.

 

10 Anticipated Class A share total expense ratio.
58   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

III. COSTS TO THE ADVISER AND ITS AFFILIATES OF SUPPLYING SERVICES PURSUANT TO THE MANAGEMENT FEE ARRANGEMENT, EXCLUDING ANY INTRA-CORPORATE PROFIT.

See discussion below in Section IV.

 

IV. PROFIT MARGINS OF THE ADVISER AND ITS AFFILIATES FOR SUPPLYING SUCH SERVICES.

The Adviser has not managed the Portfolio previously and therefore did not provide historic profitability data for supplying the services it will provide after the Portfolio commences operations. It should be noted that a consultant was retained by the Senior Officer to work with the Adviser’s personnel to align the Adviser’s two profitability reporting systems. The alignment, which now has been completed, will allow the Adviser’s management and the Directors to receive consistent presentations of financial results and profitability although the two profitability reporting systems operate independently.

In addition to the direct profits that the Adviser will earn from managing the Portfolio, certain of the Adviser’s affiliates will have business relationships with the Portfolio and will earn a profit from providing other services to the Portfolio. The courts have referred to this type of business opportunity as “fall-out benefits” to the Adviser and indicated that they should be factored into the evaluation of the total relationship between the Portfolio and the Adviser. Neither case law nor common business practice precludes the Adviser’s affiliates from earning a reasonable profit on this type of relationship. These affiliates will provide transfer agent and distribution related services to the Portfolio and brokerage related services to the Underlying Portfolios and will receive transfer-agent fees, Rule 12b-1 payments, front-end sales loads, contingent deferred sales charges (“CDSC”) and commissions for providing brokerage services. In addition, the

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   59

 

Adviser will benefit from soft dollar arrangements which offset expenses the Adviser would otherwise incur.

The Underlying Portfolios will likely effect brokerage transactions through the Adviser’s affiliate, Sanford C. Bernstein & Co., LLC (“SCB & Co.”) and its U.K. affiliate, Sanford C. Bernstein Limited (“SCB Ltd.”), collectively “SCB,” and pay commissions during the Portfolio’s fiscal year. The Adviser represented that SCB’s profitability from any business conducted with the Underlying Portfolios will be comparable to the profitability of SCB’s dealings with other comparable third-party clients. In the ordinary course of business, SCB receives and pays liquidity rebates from electronic communications networks (“ECNs”) derived from trading for its clients, which will include the Underlying Portfolios. These credits and charges are not being passed on to any SCB client. The Adviser also receives certain soft dollar benefits from brokers that execute agency trades for the Underlying Portfolios and other clients. These soft dollar benefits reduce the Adviser’s cost of doing business and increase its profitability.

 

V. POSSIBLE ECONOMIES OF SCALE

The Adviser has indicated that the breakpoints in the fee schedule in the Investment Advisory Agreement reflect a sharing of economies of scale to the extent the breakpoints are reached. Based on some of the professional literature that has considered economies of scale in the mutual fund industry it is thought that to the extent economies of scale exist, they may more often exist across a fund family as opposed to a specific fund. This is because the costs incurred by the Adviser, such as investment research or technology for trading or compliance systems can be spread across a greater asset base as the fund family increases in size. It is also possible that as the level of services required

60   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

to operate a successful investment company has increased over time, and advisory firms have made such investments in their business to provide improved services, there may be a sharing of economies of scale without a reduction in advisory fees.

An independent consultant made a presentation to the Board of Directors and the Senior Officer regarding possible economies of scale or scope in the mutual fund industry. Based on the presentation, it was evident that fund management companies benefit from economies of scale. However, due to lack of cost data, researchers had to infer facts about the costs from the behavior of fund expenses; there was a lack of consensus among researchers as to whether economies of scale were being passed on to the shareholders. It is contemplated that additional work will be performed to determine if the benefits of economies of scale or scope are being passed to shareholders by the Adviser. In the meantime, it is clear that to the extent a fund’s assets exceeds its initial breakpoint its shareholders benefit from a lower fee rate.

 

VI. NATURE AND QUALITY OF THE ADVISER’S SERVICES INCLUDING THE PERFORMANCE OF THE FUND.

With assets under management of $617 billion as of March 31, 2006, the Adviser has the investment experience to manage and provide non-investment services (described in Section II) to the Portfolio.

Since there is no historical performance information for the Portfolio or the Underlying Portfolios it is worth considering the performance information of funds managed by the Adviser that have substantially similar investment styles as the Underlying Portfolios. The following table shows the 1 and 3 year performance rankings of AllianceBernstein Global Research Growth Fund, Inc. and AllianceBernstein Trust—Global Value Fund, whose investment styles are substantially similar to the

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   61

 

Underlying Portfolios, relative to these fund’s Lipper Performance Groups and Lipper Performance Universes for the periods ended December 31, 2005.11

 

AllianceBernstein Global Research Growth Fund, Inc.    Group    Universe

1 year

    1/4    3/12

3 year

    1/4    1/10
AllianceBernstein Trust - Global Value Fund    Group    Universe

1 year

    2/4    5/11

3 year

    2/4    4/9

Set forth below are the 1, 3 year and since inception performance returns of the two funds managed by the Adviser that have substantially similar investment styles as the Underlying Portfolios for the periods ending December 31, 2005:12

 

     Periods Ending December 31, 2005
Annualized Performance
Fund   1 Year   3 Year   Since
Inception

AllianceBernstein Global Research Growth Fund, Inc.

   15.82   20.41   16.90

MSCI World Index (Net)

   9.49   18.69   14.84

MSCI World Growth (Net)

   9.41   15.83   12.65

AllianceBernstein Trust—Global Value Fund

   14.57   22.26   9.25

MSCI World Index (Net)

   9.49   18.69   5.30

CONCLUSION:

Based on the factors discussed above the Senior Officer’s conclusion is that the proposed fee for the Portfolio is reasonable and within the range of what would have been negotiated at arms-length in light of all the surrounding circumstances. This conclusion in respect of the Portfolio is based on an evaluation of all of these factors and no single factor was dispositive.

Dated: June 7, 2006

 

11 The performance rankings are for the Class A shares of the AllianceBernstein Mutual Funds.

 

12 The performance returns for the Class A shares of the AllianceBernstein Mutual Funds were provided by the Adviser.
62   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

ITEM 2. CODE OF ETHICS.

(a) The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant’s code of ethics is filed herewith as Exhibit 12(a)(1).

(b) During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.

(c) During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Directors has determined that independent directors David H. Dievler and William H. Foulk, Jr. qualify as audit committee financial experts.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) - (c) The following table sets forth the aggregate fees billed by the independent registered public accounting firm KPMG LLP, for the Fund’s last two fiscal years, for professional services rendered for: (i) the audit of the Fund’s annual financial statements included in the Fund’s annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues, quarterly press release review (for those Funds that issue quarterly press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

 

          Audit Fees    Audit Related
Fees		    Tax Fees

U.S. Large Cap Portfolio

    2006    $ 21,500    $ 0    $ 7,650
   2007      22,250         10,650

AB Global Blend Portfolio

    2006    $ 15,000       $ 7,650
   2007    $ 15,750       $ 12,650

AB 2000 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2005 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2010 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2015 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2020 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2025 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2030 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2035 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2040 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2045 Retirement Strategy

    2006    $ 21,500       $ 7,150
   2007    $ 22,250       $ 11,400

AB 2050 Retirement Strategy

    2006    $ —         $ —  
   2007    $ 13,350       $ 11,400

AB 2055 Retirement Strategy

    2006    $ —         $ —  
   2007    $ 13,350       $ 11,400

(d) Not applicable.

(e) (1) Beginning with audit and non-audit service contracts entered into on or after May 6, 2003, the Fund’s Audit Committee policies and procedures require the pre-approval of all audit and non-audit services provided to the Fund by the Fund’s independent registered public accounting firm. The Fund’s Audit Committee policies and procedures also require pre-approval of all audit and non-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.

(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in the table under Item 4 (a) – (c) are for services pre-approved by the Fund’s Audit Committee.

(f) Not applicable.

(g) The following table sets forth the aggregate non-audit services provided to the Fund, the Fund’s Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund, which include conducting an annual internal control report pursuant to Statement on Auditing Standards No. 70 (“Service Affiliates”):

          All Fees for
Non-Audit Services
Provided to the
Portfolio, the Adviser
and Service Affiliates		   

Pre-approved by the
Audit Committee
(Portion Comprised of

Audit Related Fees)
(Portion Comprised of
Tax Fees)

  

U.S. Large Cap Portfolio

    2006    $ 6,419,453    $ 7,650  
         ($ —   )
         ($ 7,650 )
   2007    $ 661,772    $ 10,650  
         ($ —   )
         ($ 10650 )

AB Global Blend Portfolio

    2006    $ 6,419,453    $ 7,650  
         ($ —   )
         ($ 7,650 )
   2007    $ 663,772    $ 12,650  
         ($ —   )
         ($ 12,650 )

AB 2000 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2005 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2010 Retirement Strategy

    2006    $ 6,411,803    $ 7,1500  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2015 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2020 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2025 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2030 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )

 

         ($  11,400 )

AB 2035 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2040 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2045 Retirement Strategy

    2006    $ 6,411,803    $ 7,150  
         ($ —   )
         ($ 7,150 )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2050 Retirement Strategy

    2006    $ —      $ —    
         ($ —   )
         ($ —   )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

AB 2055 Retirement Strategy

    2006    $ —      $ —    
         ($ —   )
         ($ —   )
   2007    $ 662,522    $ 11,400  
         ($ —   )
         ($ 11,400 )

(h) The Audit Committee of the Fund has considered whether the provision of any non-audit services not pre-approved by the Audit Committee provided by the Fund’s independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor’s independence.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

 

ITEM 6. SCHEDULE OF INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

ITEM 12. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

 

EXHIBIT NO.  

DESCRIPTION OF EXHIBIT

12 (a) (1)   Code of Ethics that is subject to the disclosure of Item 2 hereof
12 (b) (1)   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2)   Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (c)         Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant): AllianceBernstein Blended Style Series, Inc.
By:   /s/ Marc O. Mayer
  Marc O. Mayer
  President
Date:   October 24, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Marc O. Mayer
  Marc O. Mayer
  President
Date:   October 24, 2007
By:   /s/ Joseph J. Mantineo
  Joseph J. Mantineo
  Treasurer and Chief Financial Officer
Date:   October 24, 2007