N-CSRS 1 dncsrs.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, 2008

Date of reporting period: February 29, 2008

 

 

 

 

ITEM 1. REPORTS TO STOCKHOLDERS.

 

2

SEMI-ANNUAL REPORT

 

AllianceBernstein

Blended Style Funds

Global Blend Portfolio

 

 

LOGO

 

February 29, 2008

 

Semi-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.

April 18, 2008

 

Semi-Annual Report

This report provides management’s discussion of fund performance for AllianceBernstein Blended Style Funds Global Blend Portfolio (the “Fund”) for the semi-annual reporting period ended February 29, 2008.

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 Underlying 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. Performance for each of the Underlying Portfolios compared to its benchmark, plus additional performance, may be found on page 7.

Investment Results

The table on page 4 shows Fund’s performance compared to its benchmark, the Morgan Stanley Capital International (MSCI) World Index, for the six- and 12-month periods ended February 29, 2008.

The Fund’s Class A shares without sales charges underperformed the benchmark for the six-month period ended February 29, 2008. The MSCI World Value Index underperformed the MSCI World Growth Index significantly for the six-month period ended February 29, 2008. During this period, the Fund’s growth component outperformed modestly while the Fund’s value component underperformed. Security selection in the financials and consumer discretionary sectors also accounted for almost all of the Fund’s relative underperformance; an overweight in the outperforming materials sector offset an overweight in the weaker financials sector, resulting in a minimal impact from sector selection.

The Fund’s Class A shares without sales charges also underperformed the benchmark for the 12-month period ended February 29, 2008. The MSCI World Growth Index markedly outperformed the MSCI World Value Index in the second half of the reporting period, and the Fund’s value component underperformed for the


 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   1

 

12-month period, offsetting the outperformance delivered by the growth component.

Security selection drove the relative performance of the Fund during the 12-month period. While strong security selection in the materials and industrials sectors benefited the Fund’s performance, this was more than offset by security selection in the financials and consumer discretionary sectors. Sector weight contribution showed a similar pattern, with an overweight in materials and an underweight in consumer discretionary adding to performance, while a significant overweight in financials, held mostly on the value side, more than offset this.

Market Review and Investment Strategy

The 12-month period ended February 29, 2008, fell into two distinct periods: the first four-and-a-half months, up to mid-July 2007, were characterized by a continuation of the confident market and low volatilities which had been prevalent for the previous few years. However, the near-collapse of some hedge funds troubled with losses in subprime mortgage-backed securities in July sparked a broad-based re-pricing of risk in the market, which has continued into early 2008. This re-pricing brought with it

the drying up of liquidity in a broad range of credit markets and has spread well beyond the market for subprime, which was the initial focus of concern. The resulting write-offs and impact on future earnings prospects have markedly reduced valuations in the financial sector, while the increasingly evident negative impact on economic growth, notably in the U.S. and the U.K., has resulted in a significant downward correction in world markets. Central banks in both the U.S. and the U.K. have intervened to support confidence—aggressively in the U.S.—by reducing short-term interest rates and increasing the supply of credit to banks, while a $150 billion package of tax cuts comes into effect in the U.S. in May 2008. Meanwhile, growth has continued relatively unaffected in most of the emerging economies, as increasing price pressures, notably in raw materials, are providing increasing upward pressure on inflation.

This correction has brought increased levels of volatility (though not excessive by historical standards), as well as a widening out in the spread of valuations. This has provided not only one of the most compelling opportunities for value investors in the last several years, but also greater dispersion in performance, and so a more opportune environment for actively managed funds.


 

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.

MSCI World 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 possible 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 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)

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   3

 

Historical Performance

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE FUND VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein Blended Style Funds Global Blend Portfolio

         

Class A

   -8.23%      -3.83%  
 

Class B

   -8.59%      -4.61%  
 

Class C

   -8.59%      -4.61%  
 

Advisor Class†

   -8.18%      -3.62%  
 

Class R†

   -8.31%      -4.08%  
 

Class K†

   -8.15%      -3.75%  
 

Class I†

   -8.15%      -3.59%  
 

MSCI World Index (net)

   -6.14%      -0.53%  
 

†  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.

 

 

 

See Historical Performance and Benchmark disclosures on the previous page.

(Historical Performance continued on next page)

 

4   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Historical Performance

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -3.83 %      -7.91 %

Since Inception*

    3.77 %      1.25 %
       
Class B Shares        

1 Year

    -4.61 %      -8.36 %

Since Inception*

    3.02 %      1.33 %
       
Class C Shares        

1 Year

    -4.61 %      -5.55 %

Since Inception*

    3.02 %      3.02 %
       
Advisor Class Shares†        

1 Year

    -3.62 %      -3.62 %

Since Inception*

    4.06 %      4.06 %
       
Class R Shares†        

1 Year

    -4.08 %      -4.08 %

Since Inception*

    3.56 %      3.56 %
       
Class K Shares†        

1 Year

    -3.75 %      -3.75 %

Since Inception*

    3.84 %      3.84 %
       
Class I Shares†        

1 Year

    -3.59 %      -3.59 %

Since Inception*

    4.07 %      4.07 %

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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 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 page 3.

(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 (WITH ANY APPLICABLE SALES CHARGES)

AS OF THE MOST RECENT CALENDAR QUARTER-END (MARCH 31, 2008)

 

 

     SEC Returns  
Class A Shares   

1 Year

    -11.61 %

Since Inception*

    -0.26 %
  
Class B Shares   

1 Year

    -11.87 %

Since Inception*

    -0.23 %
  
Class C Shares   

1 Year

    -9.17 %

Since Inception*

    1.40 %
  
Advisor Class Shares†   

1 Year

    -7.37 %

Since Inception*

    2.43 %
  
Class R Shares†   

1 Year

    -7.83 %

Since Inception*

    1.91 %
  
Class K Shares†   

1 Year

    -7.59 %

Since Inception*

    2.18 %
  
Class I Shares†   

1 Year

    -7.35 %

Since Inception*

    2.45 %

 

 

* 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 page 3.

(Historical Performance continued on next page)

 

6   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Historical Performance

 

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

 

      
EACH UNDERLYING PORTFOLIO*
VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months    12 Months     
AllianceBernstein Global Research Growth Portfolio   -3.72%    1.19%  
 

MSCI World Index

   -6.14%    -0.53%  
 
AllianceBernstein Global Value Portfolio   -11.33%    -6.25%  
 

MSCI World Index

   -6.14%    -0.53%  
 

 

AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTFOLIOS* AS OF FEBRUARY 29, 2008   
            NAV/SEC Returns†  
       
AllianceBernstein Global Research Growth Portfolio  

1 Year

         1.19 %

Since Inception^

         6.14 %
       
AllianceBernstein Global Value Portfolio  

1 Year

         -6.25 %

Since Inception^

         4.13 %
       
AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTFOLIOS*
AS OF THE MOST RECENT CALENDAR QUARTER-END (MARCH 31, 2008)		   
            NAV/SEC Returns†  
       
AllianceBernstein Global Research Growth Portfolio  

1 Year

         -4.37 %

Since Inception^

         3.62 %
       
AllianceBernstein Global Value Portfolio  

1 Year

         -8.40 %

Since Inception^

         3.33 %

 

* 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. These share classes are not currently offered for direct investment from the general public. The Underlying Portfolios do not bear sales charges or management fees.

 

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

 

^ Inception Date: 6/1/06.

Global Value Portfolio and Global Research Growth 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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   7

 

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
September 1, 2007		    Ending
Account Value
February 29, 2008		    Expenses Paid
During Period*
     Actual    Hypothetical    Actual    Hypothetical**    Actual    Hypothetical
Class A    $   1,000    $   1,000    $   917.70    $   1,018.15    $   6.44    $ 6.77
Class B    $ 1,000    $ 1,000    $ 914.15    $ 1,014.67    $ 9.76    $   10.27
Class C    $ 1,000    $ 1,000    $ 914.15    $ 1,014.67    $ 9.76    $ 10.27
Advisor Class    $ 1,000    $ 1,000    $ 918.20    $ 1,019.64    $ 5.01    $ 5.27
Class R    $ 1,000    $ 1,000    $ 916.90    $ 1,017.16    $ 7.39    $ 7.77
Class K    $ 1,000    $ 1,000    $ 918.52    $ 1,018.40    $ 6.20    $ 6.52
Class I    $ 1,000    $ 1,000    $ 918.47    $ 1,019.64    $ 5.01    $ 5.27
* 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 182/366 (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.

 

8   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Fund Expenses

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

PORTFOLIO STATISTICS

Net Assets ($mil): $12.4

LOGO

 

 

 

 

* All data are as of February 29, 2008. 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 28-42.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   9

 

Portfolio Summary

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     Global Blend  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein Global Research Growth (shares of 608,803)

    $ 6,368,082  

AllianceBernstein Global Value (shares of 637,276)

      6,232,560  
        

Total investments (cost $12,599,819)

      12,600,642  

Receivable due from Adviser

      12,999  
        

Total assets

      12,613,641  
        
Liabilities   

Registration fee payable

      114,524  

Audit fee payable

      24,172  

Legal fee payable

      12,463  

Distribution fee payable

      70  

Transfer Agent fee payable

      2  

Accrued expenses

      12,687  
        

Total liabilities

      163,918  
        

Net Assets

    $ 12,449,723  
        
Composition of Net Assets   

Capital stock, at par

    $ 1,200  

Additional paid-in capital

      11,969,130  

Distributions in excess of net investment income

      (1,749 )

Accumulated net realized gain on investment transactions

      480,319  

Net unrealized appreciation on investments

      823  
        
   $     12,449,723  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $ 25,924      2,500      $   10.37 *
   
B   $ 25,860      2,500      $ 10.34  
   
C   $ 25,861      2,500      $ 10.34  
   
Advisor   $   12,294,168      1,185,000      $ 10.37  
   
R   $ 26,010      2,510      $ 10.36  
   
K   $ 25,970      2,505      $ 10.37  
   
I   $ 25,930      2,500      $ 10.37  
   

 

* The maximum offering price per share for Class A shares was $10.83 which reflects a sales charge of 4.25%.

See notes to financial statements.

 

10   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Statement of Net Assets

STATEMENT OF OPERATIONS

Six Months Ended February 29, 2008 (unaudited)

 

     Global Blend  
Investment Income     

Income distributions from Underlying Portfolios

      $ 353,930  
          
Expenses     

Advisory fee (see Note B)

    $ 52,162    

Distribution fee—Class A

      43    

Distribution fee—Class B

      144    

Distribution fee—Class C

      144    

Distribution fee—Class R

      73    

Distribution fee—Class K

      36    

Transfer agency—Class A

      23    

Transfer agency—Class B

      25    

Transfer agency—Class C

      24    

Transfer agency—Advisor Class

      10,883    

Transfer agency—Class R

      19    

Transfer agency—Class K

      18    

Transfer agency—Class I

      18    

Administrative

      47,500    

Custodian

      34,470    

Directors’ fees

      22,271    

Audit

      15,922    

Legal

      13,943    

Printing

      1,271    

Miscellaneous

      1,486    
          

Total expenses

      200,475    

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

      (127,005 )  

Less: expense offset arrangement
(see Note B)

      (5 )  
          

Net expenses

        73,465  
          

Net investment income

        280,465  
          
Realized and Unrealized Gain (Loss) on Investment Transactions     

Net realized gain on sale of Underlying Portfolio shares

        55,288  

Net realized gain distributions from Underlying Portfolios

                 429,753  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

        (1,865,587 )
          

Net loss on investment transactions

        (1,380,546 )
          

Net Decrease in Net Assets from Operations

      $ (1,100,081 )
          

 

See notes to financial statements.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   11

 

Statement of Operations

STATEMENT OF CHANGES IN NET ASSETS

 

     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 280,465     $ 140,123  

Net realized gain on sale of Underlying Portfolio shares

      55,288       21,680  

Net realized gain distributions from Underlying Portfolios

      429,753       –0 –

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (1,865,587 )     1,729,004  
                

Net increase (decrease) in net assets from operations

      (1,100,081 )     1,890,807  
Dividends and Distributions
to Shareholders from		     

Net investment income

     

Class A

      (670 )     (78 )

Class B

      (468 )     –0 –

Class C

      (468 )     –0 –

Advisor Class

      (360,240 )     (58,065 )

Class R

      (625 )     (50 )

Class K

      (696 )     (85 )

Class I

      (768 )     (123 )

Net realized gain on investment transactions

     

Class A

      (50 )     (5 )

Class B

      (50 )     (5 )

Class C

      (50 )     (5 )

Advisor Class

      (23,700 )     (2,370 )

Class R

      (50 )     (5 )

Class K

      (50 )     (5 )

Class I

      (50 )     (5 )
Capital Stock Transactions     

Net increase

      4       –0 –
                

Total increase (decrease)

      (1,488,012 )     1,830,006  
Net Assets     

Beginning of period

      13,937,735       12,107,729  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($1,749) and $81,721, respectively)

    $     12,449,723     $     13,937,735  
                

See notes to financial statements.

 

12   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Statement of Changes in Net Assets

NOTES TO FINANCIAL STATEMENTS

February 29, 2008 (unaudited)

 

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   13

 

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 their 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 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.

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 six months ended February 29, 2008, such reimbursements totaled $70,635.

 

14   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Notes to Financial Statements

 

Pursuant to the Advisory agreement, the Adviser provides certain legal and accounting services for the Fund. The Adviser agreed to waive its fees for such services. Such waiver amounted to $47,500 for the six months ended February 29, 2008.

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 $130 for the six months ended February 29, 2008. During the period, ABIS voluntarily agreed to waive a portion of its fees for such services. Such waiver amounted to $8,870.

For the six months ended February 29, 2008, the Fund’s expenses were reduced by $5 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 $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 six months ended February 29, 2008.

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 0.30% 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, 0.50% of the average daily net assets attributable to Class R shares and 0.25% 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 expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $223,945, $223,946, $448 and $5,229 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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   15

 

Notes to Financial Statements

 

NOTE D

Investment Transactions

Purchases and sales of investments in the Underlying Portfolios, aggregated $787,518 and $465,288, respectively, for the six months ended February 29, 2008.

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

 

Gross unrealized appreciation

    $ 823  

Gross unrealized depreciation

      (0 )
        

Net unrealized appreciation

    $ 823  
        

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    
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		       Six Months Ended
February 29, 2008
(unaudited)		   Year Ended
August 31,
2007		    
      
Class R             

Shares issued in reinvestment of dividends and distributions

    –0– (a)   –0–     $    3   $    –0–  
   

Net increase

    –0– (a)   –0–     $    3   $    –0–  
   
            
Class K             

Shares issued in reinvestment of dividends and distributions

    –0– (a)   –0–     $    1   $    –0–  
   

Net increase

    –0– (a)   –0–     $    1   $    –0–  
   

 

(a)

Share amount is less than one full share.

There were no capital stock transactions for Class A, Class B, Class C, Advisor Class and Class I during the reporting periods.

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

 

16   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Notes to Financial Statements

 

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 six months ended February 29, 2008.

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending August 31, 2008 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended August 31, 2007 and August 31, 2006 were as follows:

 

     2007    2006

Distributions paid from:

      

Ordinary income

    $ 60,800    $ –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/(depreciation)

          1,866,102 (a)
        

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 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. 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 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.

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

 

18   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Notes to Financial Statements

 

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 February 29, 2008, the Fund implemented FIN 48 which supplements FASB 109, “Accounting for Income Taxes”. Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended August 31, 2004-2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Fund’s financial statements.

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.

On March 19, 2008, Financial Accounting Standards Board released Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 161 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  
    Six Months
Ended
February 29,
2008
(unaudited)		    

Year

Ended,
August 31,
2007

    

June 1,

2006(a) to
August 31,
2006

  
     

Net asset value, beginning of period

   $  11.59     $  10.08     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .22     .08     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.15 )   1.46     .11  
     

Net increase (decrease) in net asset value from operations

   (.93 )   1.54     .08  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.27 )   (.03 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.29 )   (.03 )   – 0 –
     

Net asset value, end of period

   $  10.37     $  11.59     $  10.08  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.23 )%   15.32  %   .80  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26     $29     $25  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   1.35  %(g)   1.35  %   1.35  %(g)

Expenses, before waivers/reimbursements(f)

   3.17  %(g)   4.29  %   5.22  %(g)

Net investment income (loss)(c)

   3.73  %(g)   .75  %   (1.35 )%(g)

Portfolio turnover rate

   3  %   2  %   .34  %

See footnote summary on page 26.

 

20   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  
     

Net asset value, beginning of period

   $  11.52     $  10.06     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .17     .00 (d)   (.05 )

Net realized and unrealized gain (loss) on investment transactions

   (1.14 )   1.46     .11  
     

Net increase (decrease) in net asset value from operations

   (.97 )   1.46     .06  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.19 )   – 0 –   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.21 )   .00     – 0 –
     

Net asset value, end of period

   $  10.34     $  11.52     $  10.06  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.59 )%   14.53 %   .60  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26     $29     $25  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   2.05  %(g)   2.05 %   2.05  %(g)

Expenses, before waivers/reimbursements(f)

   3.89  %(g)   4.99 %   5.92  %(g)

Net investment income (loss)(c)

   3.02  %(g)   .03 %   (2.05 )%(g)

Portfolio turnover rate

   3  %   2 %   .34  %

See footnote summary on page 26.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   21

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  
     

Net asset value, beginning of period

   $  11.52     $  10.06     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .17     .01     (.05 )

Net realized and unrealized gain (loss) on investment transactions

   (1.14 )   1.45     .11  
     

Net increase (decrease) in net asset value from operations

   (.97 )   1.46     .06  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.19 )   – 0 –   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.21 )   .00     – 0 –
     

Net asset value, end of period

   $  10.34     $  11.52     $  10.06  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.59 )%   14.53 %   .60  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26     $29     $25  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   2.05  %(g)   2.05 %   2.05  %(g)

Expenses, before waivers/reimbursements(f)

   3.89  %(g)   4.99 %   5.92  %(g)

Net investment income (loss)(c)

   3.02  %(g)   .05 %   (2.05 )%(g)

Portfolio turnover rate

   3  %   2 %   .34  %

See footnote summary on page 26.

 

22   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  
     

Net asset value, beginning of period

   $  11.62     $  10.09     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .23     .12     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.16 )   1.46     .12  
     

Net increase (decrease) in net asset value from operations

   (.93 )   1.58     .09  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.30 )   (.05 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.32 )   (.05 )   – 0 –
     

Net asset value, end of period

   $  10.37     $  11.62     $  10.09  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.18 )%   15.70  %   .90  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $12,294     $13,764     $11,956  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   1.05  %(g)   1.05  %   1.05  %(g)

Expenses, before waivers/reimbursements(f)

   2.88  %(g)   3.99  %   4.92  %(g)

Net investment income (loss)(c)

   4.04  %(g)   1.05  %   (1.05 )%(g)

Portfolio turnover rate

   3  %   2  %   .34  %

 

See footnote summary on page 26.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   23

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  
     

Net asset value, beginning of period

   $  11.57     $  10.08     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .20     .06     (.04 )

Net realized and unrealized gain (loss) on investment transactions

   (1.14 )   1.45     .12  
     

Net increase (decrease) in net asset value from operations

   (.94 )   1.51     .08  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.02 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.27 )   (.02 )   – 0 –
     

Net asset value, end of period

   $  10.36     $  11.57     $  10.08  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.31 )%   15.01  %   .80  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26     $29     $25  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   1.55  %(g)   1.55  %   1.55  %(g)

Expenses, before waivers/reimbursements(f)

   3.34  %(g)   4.45  %   5.42  %(g)

Net investment income (loss)(c)

   3.53  %(g)   .55  %   (1.55 )%(g)

Portfolio turnover rate

   3  %   2  %   .34  %

See footnote summary on page 26.

 

24   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  
     

Net asset value, beginning of period

   $  11.59     $  10.08     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .22     .09     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.14 )   1.45     .11  
     

Net increase (decrease) in net asset value from operations

   (.92 )   1.54     .08  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.28 )   (.03 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.30 )   (.04 )   – 0 –
     

Net asset value, end of period

   $  10.37     $  11.59     $  10.08  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.15 )%   15.36  %   .80  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26     $29     $25  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   1.30  %(g)   1.30  %   1.30  %(g)

Expenses, before waivers/reimbursements(f)

   3.09  %(g)   4.20  %   5.17  %(g)

Net investment income (loss)(c)

   3.78  %(g)   .80  %   (1.30 )%(g)

Portfolio turnover rate

   3  %   2  %   .34  %
     

 

See footnote summary on page 26.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   25

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year
Ended
August 31,
2007		     June 1,
2006(a) to
August 31,
2006		  
     

Net asset value, beginning of period

   $  11.62     $  10.09     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(b)(c)

   .23     .12     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.15 )   1.46     .12  
     

Net increase (decrease) in net asset value from operations

   (.92 )   1.58     .09  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.31 )   (.05 )   – 0 –

Distributions from net realized gain on investment transactions

   (.02 )   .00 (d)   – 0 –
     

Total dividends and distributions

   (.33 )   (.05 )   – 0 –
     

Net asset value, end of period

   $  10.37     $  11.62     $  10.09  
     

Total Return

      

Total investment return based on net asset value(e)

   (8.15 )%   15.70  %   .90  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26     $29     $25  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(f)

   1.05  %(g)   1.05  %   1.05  %(g)

Expenses, before waivers/reimbursements(f)

   2.86  %(g)   3.95  %   4.92  %(g)

Net investment income (loss)(c)

   4.04  %(g)   1.05  %   (1.05 )%(g)

Portfolio turnover rate

   3  %   2  %   .34  %

 

(a) Commencement of distributions.

 

(b) Based on average shares outstanding method.

 

(c) Net of fees and expenses waived/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 which the Fund invests. The estimated blended expense ratio of the Underlying Portfolios was .15% for the periods ended February 29, 2008, August 31, 2007 and August 31, 2006, respectively.

 

(g) Annualized.

 

26   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Financial Highlights

 

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)   
Garry L. Moody(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

Daniel T. Grasman, 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 and 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 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. Masters, Grasman, Hamilton, Lisser and 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  •   27

 

Board of Directors

 

Pages 28-42 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 February 29, 2008 financial statements. A copy of the underlying Portfolios’ unaudited semi-annual report is available upon request.

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

GLOBAL VALUE PORTFOLIO

LOGO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. “Other” country weightings represent 1.2% or less in the following countries: Australia, Belgium, Brazil, Cayman Islands, China, Finland, Hong Kong, India, Luxembourg, Norway, Singapore, South Africa 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.

 

28   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

GLOBAL RESEARCH GROWTH PORTFOLIO

LOGO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. “Other” country weightings represent 1.3% or less in the following countries: Cayman Islands, China, Finland, Hong Kong, Israel, Italy, Luxembourg, Netherlands, Russia, South Africa, South Korea, Sweden, Taiwan and Turkey.

 

  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 BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   29

 

Portfolio Summary

 

GLOBAL VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 93.6%

     

Financials – 28.8%

     

Capital Markets – 3.9%

     

Credit Suisse Group

    1,500   $ 73,749

Deutsche Bank AG

    600     67,007

The Goldman Sachs Group, Inc.

    100     16,963

Merrill Lynch & Co., Inc.

    1,300     64,428

Morgan Stanley

    500     21,060
        
       243,207
        

Commercial Banks – 7.7%

     

Barclays PLC

    4,900     45,924

BNP Paribas SA

    900     80,460

Canadian Imperial Bank of Commerce/Canada

    201     13,640

Credit Agricole SA

    680     18,445

HBOS PLC

    4,450     52,879

Industrial Bank of Korea

    920     14,833

Kookmin Bank (ADR)

    200     12,246

Royal Bank of Canada

    600     30,108

Royal Bank of Scotland Group PLC (London Virt-X)

    8,522     64,431

Shinhan Financial Group Co. Ltd.

    270     14,544

Standard Bank Group Ltd.

    622     7,763

State Bank of India Ltd. (GDR)(a)

    390     42,434

Sumitomo Mitsui Financial Group, Inc.

    8     57,784

Unibanco - Uniao de Bancos Brasileiros SA (GDR)

    200     27,124
        
       482,615
        

Consumer Finance – 0.7%

     

ORIX Corp.

    300     44,853
        

Diversified Financial Services – 6.3%

     

Bank of America Corp.

    1,600     63,584

Citigroup, Inc.

    2,500     59,275

Fortis (Euronext Brussels)

    3,166     69,944

ING Groep NV

    2,800     93,049

JPMorgan Chase & Co.

    2,600     105,690
        
       391,542
        

Insurance – 9.1%

     

Allianz SE

    500     86,565

American International Group, Inc.

    1,600     74,976

Aviva PLC

    6,306     76,009

Fondiaria-Sai SpA (ordinary shares)

    1,100     48,818

Fondiaria-Sai SpA (saving shares)

    500     15,218

Genworth Financial, Inc. – Class A

    1,500     34,770

MetLife, Inc.

    1,100     64,086

Muenchener Rueckversicherungs AG

    400     70,495

Sanlam Ltd.

    7,300     17,348

The Travelers Cos, Inc.

    900     41,769

XL Capital Ltd. – Class A

    1,000     36,060
        
       566,114
        

 

30   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Thrifts & Mortgage Finance – 1.1%

     

Federal Home Loan Mortgage Corp.

    1,300   $ 32,734

Federal National Mortgage Association

    1,200     33,180
        
       65,914
        
       1,794,245
        

Materials – 13.9%

     

Chemicals – 4.2%

     

BASF SE

    800     101,791

Dow Chemical Co.

    1,600     60,304

E.I. Du Pont de Nemours & Co.

    1,000     46,420

Mitsubishi Chemical Holdings Corp.

    8,500     57,494
        
       266,009
        

Construction Materials – 0.4%

     

Buzzi Unicem SpA

    1,000     24,534
        

Metals & Mining – 8.6%

     

Alcoa, Inc.

    1,300     48,282

Antofagasta PLC

    2,100     33,470

ArcelorMittal

    1,400     107,546

BHP Billiton Ltd.

    500     18,091

Gerdau Ameristeel Corp.

    2,300     34,047

Gerdau SA (ADR)

    1,100     36,047

JFE Holdings, Inc.

    1,400     62,381

Kazakhmys PLC

    1,400     42,645

Nippon Steel Corp.

    8,000     42,090

POSCO (ADR)

    200     27,060

Xstrata PLC

    890     69,429

Zinifex Ltd.

    1,600     16,098
        
       537,186
        

Paper & Forest Products – 0.7%

     

Stora Enso Oyj – Class R

    3,400     42,458
        
       870,187
        

Energy – 13.8%

     

Oil, Gas & Consumable Fuels – 13.8%

     

Chevron Corp.

    1,600     138,656

ConocoPhillips

    1,500     124,065

ENI SpA

    2,000     69,062

Exxon Mobil Corp.

    700     60,907

Marathon Oil Corp.

    1,500     79,740

Nippon Mining Holdings, Inc.

    4,500     26,653

Petro-Canada

    1,300     62,223

PTT PCL

    1,300     14,126

Repsol YPF SA

    2,500     86,242

Royal Dutch Shell PLC (Euronext Amsterdam)

    2,620     93,690

StatoilHydro ASA

    2,300     70,084

Total SA

    500     37,652
        
       863,100
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   31

 

Global Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

Industrials – 9.0%

     

Aerospace & Defense – 1.7%

     

Bombardier, Inc.(b)

    7,100   $ 40,613

Northrop Grumman Corp.

    800     62,888
        
       103,501
        

Airlines – 2.1%

     

Air France-KLM

    1,900     51,191

Deutsche Lufthansa AG

    3,500     81,917
        
       133,108
        

Industrial Conglomerates – 0.5%

     

General Electric Co.

    900     29,826
        

Machinery – 2.4%

     

Parker Hannifin Corp.

    900     58,167

SPX Corp.

    500     51,150

Volvo Ab-b Shs – Class B

    2,900     43,054
        
       152,371
        

Marine – 1.8%

     

Mitsui OSK Lines Ltd.

    6,000     77,927

Neptune Orient Lines Ltd.

    7,000     15,297

Nippon Yusen KK

    2,000     18,481
        
       111,705
        

Trading Companies & Distributors – 0.5%

     

Finning International, Inc.

    1,000     28,194
        
       558,705
        

Consumer Discretionary – 8.7%

     

Auto Components – 0.7%

     

Compagnie Generale des Etablissements Michelin – Class B

    400     39,396

Hyundai Mobis

    90     6,908
        
       46,304
        

Automobiles – 2.4%

     

Hyundai Motor Co.

    340     9,791

Nissan Motor Co. Ltd.

    8,400     75,541

Renault SA

    600     64,108
        
       149,440
        

Household Durables – 1.6%

     

Black & Decker Corp.

    400     27,508

Sharp Corp.

    4,000     72,790
        
       100,298
        

Internet & Catalog Retail – 0.3%

     

Home Retail Group PLC

    3,200     16,346
        

 

32   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

Media – 2.9%

     

CBS Corp. – Class B

    2,700   $ 61,614

Time Warner, Inc.

    4,600     71,806

The Walt Disney Co.

    1,400     45,374
        
       178,794
        

Multiline Retail – 0.7%

     

Macy’s, Inc.

    1,700     41,956
        

Specialty Retail – 0.1%

     

Office Depot, Inc.(b)

    800     9,096
        
       542,234
        

Health Care – 5.9%

     

Health Care Providers & Services – 1.5%

     

AmerisourceBergen Corp. – Class A

    1,100     45,892

McKesson Corp.

    800     47,008
        
       92,900
        

Pharmaceuticals – 4.4%

     

AstraZeneca PLC

    700     26,164

GlaxoSmithKline PLC

    2,300     50,206

Merck & Co., Inc.

    500     22,150

Pfizer, Inc.

    5,200     115,856

Sanofi-Aventis SA

    800     59,130
        
       273,506
        
       366,406
        

Telecommunication Services – 5.1%

     

Diversified Telecommunication Services – 2.8%

     

AT&T, Inc.

    1,600     55,728

China Netcom Group Corp. Ltd.

    10,500     32,368

China Telecom Corp. Ltd. – Class H

    24,420     18,045

Tele2 AB – Class B

    2,100     36,911

Verizon Communications, Inc.

    900     32,688
        
       175,740
        

Wireless Telecommunication Services – 2.3%

     

Sprint Nextel Corp.

    3,600     25,596

Vodafone Group PLC

    36,612     117,871
        
       143,467
        
       319,207
        

Utilities – 3.2%

     

Electric Utilities – 3.2%

     

E.ON AG

    500     93,971

Kyushu Electric Power Co., Inc.

    1,700     42,833

The Tokyo Electric Power Co. Inc

    2,400     61,661
        
       198,465
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   33

 

Global Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

Information Technology – 3.1%

     

Computers & Peripherals – 1.0%

     

Fujitsu Ltd.

    9,000   $ 64,036
        

Electronic Equipment & Instruments – 1.3%

     

AU Optronics Corp. (Sponsored) (ADR)

    1,680     32,055

Flextronics International Ltd.(b)

    2,538     25,735

Tech Data Corp.(b)

    700     23,345
        
       81,135
        

Semiconductors & Semiconductor Equipment – 0.8%

     

Hynix Semiconductor, Inc.(b)

    400     10,286

Samsung Electronics Co. Ltd.

    14     8,207

Siliconware Precision Industries Co. (Sponsored) (ADR)

    3,352     27,419
        
       45,912
        
       191,083
        

Consumer Staples – 2.1%

     

Food & Staples Retailing – 0.3%

     

Supervalu, Inc.

    800     21,000
        

Tobacco – 1.8%

     

Altria Group, Inc.

    1,500     109,710
        
       130,710
        

Total Common Stocks
(cost $6,137,182)

        5,834,342
        
    

WARRANTS – 0.7%

     

Information Technology – 0.7%

     

Computers & Peripherals – 0.2%

     

Compal Electronics, Inc., expiring 1/17/12(a)(b)

    17,974     16,374
        

Semiconductors & Semiconductor Equipment – 0.5%

     

Taiwan Semiconductor Manufacturing Co. Ltd., expiring 1/17/12(a)(b)

    9,346     18,534

United Microelectronics Corp., Deutshe Bank AG London, expiring 1/24/17(a)(b)

    19,638     11,645
        

Total Warrants
(cost $49,988)

        46,553
        

 

34   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

NON-CONVERTIBLE – PREFERRED STOCKS – 0.2%

     

Information Technology – 0.2%

     

Semiconductors & Semiconductor Equipment – 0.2%

     

Samsung Electronics Co. Ltd.
(cost $12,822)

    25   $ 10,732
        
    

SHORT-TERM INVESTMENTS – 1.6%

     

Investment Companies – 1.6%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(c)
(cost $100,396)

    100,396     100,396
        

Total Investments – 96.1%
(cost $6,300,388)

        5,992,023

Other assets less liabilities – 3.9%

        240,022
        

Net Assets – 100.0%

      $ 6,232,045
        

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type    Number of
Contracts		    Expiration
Month		    Original
Value		    Value at
February 29,
2008		    Unrealized
Appreciation/
(Depreciation)

Purchased Contracts

            

EURO STOXX 50

    1    March 2008    $     66,525    $     56,490    $     (10,035)

 

(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 transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2008, the aggregate market value of these securities amounted to $88,987 or 1.4% 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 BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   35

 

Global Value Portfolio—Portfolio of Investments

 

GLOBAL RESEARCH GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    
    

COMMON STOCKS – 90.8%

     

Financials – 19.3%

     

Capital Markets – 12.5%

     

3i Group PLC

    1,804   $ 29,156

The Blackstone Group LP

    5,100     84,150

Credit Suisse Group

    2,834     139,336

Janus Capital Group, Inc.

    1,600     38,752

Lehman Brothers Holdings, Inc.

    3,100     158,069

Macquarie Group Ltd.

    910     45,446

Man Group PLC

    6,193     67,565

Merrill Lynch & Co., Inc.

    1,900     94,164

MF Global Ltd.(a)

    1,200     21,060

UBS AG (Swiss Virt-X)

    3,616     117,985
        
       795,683
        

Commercial Banks – 1.5%

     

Banco Itau Holding Financeira SA (ADR)

    1,425     36,110

Banco Santander Central Hispano SA

    3,250     58,076
        
       94,186
        

Diversified Financial Services – 3.4%

     

Bolsa De Mercadorias E Futuros

    1,100     11,728

CME Group, Inc. – Class A

    109     55,949

JPMorgan Chase & Co.

    2,735     111,178

NYSE Euronext

    600     39,402
        
       218,257
        

Insurance – 1.9%

     

American International Group, Inc.

    1,200     56,232

MBIA, Inc.

    2,000     25,940

QBE Insurance Group Ltd.

    1,790     37,024
        
       119,196
        
       1,227,322
        

Information Technology – 12.4%

     

Communications Equipment – 2.9%

     

Cisco Systems, Inc.(a)

    2,548     62,095

Juniper Networks, Inc.(a)

    900     24,138

Nokia OYJ

    1,705     61,256

Research In Motion Ltd.(a)

    350     36,330
        
       183,819
        

Computers & Peripherals – 2.7%

     

Apple, Inc.(a)

    300     37,506

EMC Corp.(a)

    1,299     20,187

Hewlett-Packard Co.

    1,079     51,544

InnoLux Display Corp.

    3,119     8,606

International Business Machines Corp.

    500     56,930
        
       174,773
        

 

36   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Electronic Equipment & Instruments – 0.4%

     

Amphenol Corp. – Class A

    300   $ 11,091

Tyco Electronics Ltd.

    500     16,450
        
       27,541
        

Internet Software & Services – 1.8%

     

Alibaba.com Ltd.(a)

    2,500     6,059

Ebay, Inc.(a)

    1,600     42,176

Google, Inc. – Class A(a)

    134     63,138
        
       111,373
        

Semiconductors & Semiconductor Equipment – 1.9%

     

Applied Materials, Inc.

    500     9,585

Broadcom Corp. – Class A(a)

    700     13,237

Intel Corp.

    1,700     33,915

Lam Research Corp.(a)

    300     12,072

MEMC Electronic Materials, Inc.(a)

    100     7,628

Nvidia Corp.(a)

    600     12,834

Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)

    1,901     18,516

Tokyo Electron Ltd.

    200     12,396
        
       120,183
        

Software – 2.7%

     

Adobe Systems, Inc.(a)

    795     26,752

Microsoft Corp.

    2,600     70,772

Oracle Corp.(a)

    1,550     29,140

Salesforce.com, Inc.(a)

    400     23,888

Shanda Interactive Entertainment Ltd. (Sponsored) (ADR)(a)

    300     9,924

VMware, Inc. – Class A(a)

    200     11,734
        
       172,210
        
       789,899
        

Industrials – 11.1%

     

Aerospace & Defense – 3.5%

     

BAE Systems PLC

    7,362     70,079

Honeywell International, Inc.

    600     34,524

Lockheed Martin Corp.

    500     51,600

United Technologies Corp.

    900     63,459
        
       219,662
        

Air Freight & Logistics – 0.4%

     

United Parcel Service, Inc. – Class B

    400     28,096
        

Construction & Engineering – 0.4%

     

Fluor Corp.

    200     27,850
        

Electrical Equipment – 1.5%

     

ABB Ltd.

    1,209     30,121

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   37

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Cooper Industries Ltd. – Class A

    300   $ 12,579

Emerson Electric Co.

    1,000     50,960
        
       93,660
        

Industrial Conglomerates – 1.9%

     

General Electric Co.

    1,600     53,024

Siemens AG

    549     70,689
        
       123,713
        

Machinery – 1.3%

     

Atlas Copco AB – Class A

    1,318     20,484

Caterpillar, Inc.

    100     7,233

Danaher Corp.

    200     14,830

Deere & Co.

    300     25,563

Eaton Corp.

    200     16,126
        
       84,236
        

Trading Companies & Distributors – 2.1%

     

Mitsubishi Corp.

    1,700     51,868

Mitsui & Co. Ltd.

    3,000     65,242

Wolseley PLC

    1,236     15,125
        
       132,235
        
       709,452
        

Health Care – 10.3%

     

Biotechnology – 1.6%

     

Amylin Pharmaceuticals, Inc.(a)

    200     5,294

Basilea Pharmaceutica(a)

    50     9,567

Genentech, Inc.(a)

    500     37,875

Gilead Sciences, Inc.(a)

    1,000     47,320
        
       100,056
        

Health Care Equipment & Supplies – 2.0%

     

Alcon, Inc.

    300     43,419

Becton Dickinson & Co.

    400     36,168

Hologic, Inc.(a)

    400     24,124

Nobel Biocare Holding AG

    108     26,119
        
       129,830
        

Health Care Providers & Services – 2.2%

     

Aetna, Inc.

    900     44,640

Medco Health Solutions, Inc.(a)

    600     26,586

WellPoint, Inc.(a)

    1,000     70,080
        
       141,306
        

Pharmaceuticals – 4.5%

     

Abbott Laboratories

    800     42,840

Eli Lilly & Co.

    600     30,012

Merck & Co., Inc.

    800     35,440

Novartis AG

    280     13,830

Roche Holding AG

    329     64,520

 

38   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Schering-Plough Corp.

    1,300   $ 28,210

Teva Pharmaceutical Industries Ltd. (Sponsored) (ADR)

    1,400     68,698
        
       283,550
        
       654,742
        

Consumer Staples – 10.1%

     

Beverages – 1.3%

     

The Coca-Cola Co.

    900     52,614

SABMiller PLC

    1,446     30,042
        
       82,656
        

Food & Staples Retailing – 2.1%

     

Safeway, Inc.

    1,300     37,362

Wal-Mart de Mexico SAB de CV Series V

    16,168     58,936

Wal-Mart Stores, Inc.

    600     29,754

X 5 Retail Group NV (GDR)(a)(b)

    266     8,890
        
       134,942
        

Food Products – 4.3%

     

Archer-Daniels-Midland Co.

    1,300     58,630

Bunge Ltd.

    400     44,336

Nestle SA

    210     100,230

WM Wrigley Jr Co.

    1,200     71,832
        
       275,028
        

Personal Products – 1.1%

     

The Estee Lauder Cos, Inc. – Class A

    400     17,032

L’Oreal SA

    359     42,603

Oriflame Cosmetics SA

    169     11,292
        
       70,927
        

Tobacco – 1.3%

     

Altria Group, Inc.

    1,100     80,454
        
       644,007
        

Energy – 9.1%

     

Energy Equipment & Services – 3.5%

     

Baker Hughes, Inc.

    1,459     98,176

Cameron International Corp.(a)

    1,400     59,472

Technip SA

    811     66,208
        
       223,856
        

Oil, Gas & Consumable Fuels – 5.6%

     

Addax Petroleum Corp.

    1,173     53,629

China Shenhua Energy Co. Ltd. – Class H

    5,500     28,015

EOG Resources, Inc.

    1,000     118,990

Noble Energy, Inc.

    1,300     100,620

Petroleo Brasileiro SA (Sponsored) (ADR)

    300     29,379

Sasol Ltd.

    472     24,139
        
       354,772
        
       578,628
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   39

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Materials – 8.9%

     

Chemicals – 2.9%

     

Air Products & Chemicals, Inc.

    1,000   $ 91,330

Monsanto Co.

    800     92,544
        
       183,874
        

Metals & Mining – 6.0%

     

Cia Vale do Rio Doce (ADR)

    2,900     101,036

Cia Vale do Rio Doce (Sponsored) (ADR)

    1,380     40,462

Rio Tinto PLC

    1,140     128,258

Sterlite Industries India Ltd. (ADR)(a)

    1,400     29,190

Xstrata PLC

    1,043     81,365
        
       380,311
        
       564,185
        

Consumer Discretionary – 5.2%

     

Auto Components – 0.5%

     

Denso Corp.

    800     29,865
        

Automobiles – 0.5%

     

Fiat SpA

    1,649     34,853
        

Diversified Consumer Services – 0.8%

     

Apollo Group, Inc. – Class A(a)

    800     49,104
        

Hotels, Restaurants & Leisure – 0.7%

     

Ctrip.com International Ltd. (ADR)

    200     12,124

Wyndham Worldwide Corp.

    1,600     35,472
        
       47,596
        

Household Durables – 0.2%

     

Garmin Ltd.

    200     11,742
        

Media – 0.3%

     

Eutelsat Communications

    109     2,998

SES (FDR)

    120     2,966

Viacom, Inc. – Class B(a)

    400     15,900
        
       21,864
        

Multiline Retail – 1.0%

     

Kohl’s Corp.(a)

    800     35,552

Lotte Shopping Co. Ltd.

    90     30,461
        
       66,013
        

Specialty Retail – 0.6%

     

Esprit Holdings Ltd.

    1,500     18,719

Lowe’s Cos, Inc.

    700     16,779
        
       35,498
        

Textiles Apparel & Luxury Goods – 0.6%

     

Adidas AG

    583     36,995
        
       333,530
        

 

40   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Utilities – 2.5%

     

Independent Power Producers & Energy Traders – 1.5%

     

Iberdrola Renovables(a)

    7,581   $ 47,187

International Power PLC

    6,581     49,442
        
       96,629
        

Multi-Utilities – 1.0%

     

Veolia Environnement

    701     62,371
        
       159,000
        

Telecommunication Services – 1.9%

     

Diversified Telecommunication Services – 0.7%

     

AT&T, Inc.

    400     13,932

Telefonica SA

    419     12,125

Verizon Communications, Inc.

    600     21,792
        
       47,849
        

Wireless Telecommunication Services – 1.2%

     

America Movil SAB de CV Series L (ADR)

    300     18,138

MTN Group Ltd.

    552     8,644

Turkcell Iletisim Hizmet AS (ADR)

    300     7,569

Vimpel-Communications (ADR)

    500     17,365

Vodafone Group PLC

    7,018     22,594
        
       74,310
        
       122,159
        

Total Common Stocks
(cost $5,676,263)

        5,782,924
        
    

WARRANTS – 1.4%

     

Utilities – 0.8%

     

Independent Power Producers & Energy Traders – 0.8%

     

NTPC Ltd., expiring 2/06/17(a)(b)

    9,923     50,022
        

Financials – 0.4%

     

Thrifts & Mortgage Finance – 0.4%

     

Housing Development Finance Corp.,
expiring 1/18/11(a)

    417     29,277
        

Information Technology – 0.2%

     

Electronic Equipment & Instruments – 0.2%

     

HON HAI Precision Industry Co., Ltd. Citigroup Global Markets, expiring 1/17/12(b)

    1,964     11,886
        

Total Warrants
(cost $64,480)

        91,185
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   41

 

Global Research Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 1.6%

     

Investment Companies – 1.6%

     

AllianceBernstein Fixed-Income Shares, Inc. –
Government STIF Portfolio(c)
(cost $100,139)

    100,139   $ 100,139
        

Total Investments – 93.8%
(cost $5,840,882)

        5,974,248

Other assets less liabilities – 6.2%

        396,149
        

Net Assets – 100.0%

      $ 6,370,397
        

 

(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 transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2008, the aggregate market value of these securities amounted to $70,798 or 1.1% of net assets.

 

(c) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt
FDR – Fiduciary Depositary Receipt
GDR – Global Depositary Receipt

 

  See notes to financial statements.

 

42   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

Global Research Growth Portfolio—Portfolio of Investments

 

THE FOLLOWING SENIOR OFFICER’S FEE SUMMARIES ARE NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENT

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 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;

 

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.”

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   43

 

  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

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

Class B

Class C

Class R

Class K

Class I

Adv. Class

    1.50

2.20

2.20

1.70

1.45

1.20

1.20

 %

%

%

%

%

%

%

    August 31

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

 

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.

 

44   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

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 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.

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   45

 

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: $50m

   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

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 %

 

4 Fund management fee information was provided by Lipper. See Section II for additional discussion.

 

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.

 

46   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

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 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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   47

 

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 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.

 

48   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

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 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 Underlying Portfolios, relative to these fund’s Lipper Performance Groups and Lipper Performance Universes for the periods ended December 31, 2005.11

 

11 The performance rankings are for the Class A shares of the AllianceBernstein Mutual Funds.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO  •   49

 

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

 

12 The performance returns for the Class A shares of the AllianceBernstein Mutual Funds were provided by the Adviser.

 

50   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND 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

Diversified Yield Fund*

Global Bond Fund*

High Income Fund*

Intermediate Bond Portfolio

Short Duration 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

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 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. Prior to November 5, 2007, Diversified Yield Fund was named Global Strategic Income Trust and Global Bond Fund was named Global Government Income Trust. Prior to January 28, 2008, High Income Fund was named Emerging Market Debt 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 GLOBAL BLEND PORTFOLIO  •   51

 

AllianceBernstein Family of Funds

NOTES

 

52   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS GLOBAL BLEND PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800.221.5672

LOGO

 

 

GBB-0152-0208   LOGO

SEMI-ANNUAL REPORT

 

AllianceBernstein Blended Style Funds

U.S. Large Cap Portfolio

 

 

LOGO

 

February 29, 2008

 

Semi-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.

April 7, 2008

 

Semi-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 semi-annual reporting period ended February 29, 2008. 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, the AllianceBernstein U.S. Value Portfolio and the AllianceBernstein U.S. Large Cap Growth Portfolio of the AllianceBernstein Underlying 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. Performance for each of the Underlying Portfolios compared to its benchmark, plus additional performance, may be found on page 9.

 

Investment Results

The table on page 4 shows the Fund’s performance compared to its benchmark, the Standard & Poor’s (S&P) 500 Stock Index, for the six- and 12-month periods ended February 29, 2008.

The Fund’s Class A shares without sales charges underperformed the S&P 500 Stock Index for the six- and 12-month periods ended February 29, 2008. While the growth portion of the Fund (the U.S. Large Cap Growth Underlying Portfolio) outperformed the S&P 500 Stock Index during both periods, the value portion of the Fund (the U.S. Value Underlying Portfolio) underperformed, resulting in total returns for the Fund that lagged the S&P 500 Stock Index. There was no leverage in the Fund during either the six- or 12-month period.

Both sector and security selection contributed to the Fund’s underperformance. For the six-month period ended February 29, 2008, unfavorable stock selection in the consumer staples, consumer discretionary and energy sectors offset the positive contribution to the Fund’s performance from an overweight and favorable stock selection in the materials and health care sectors.

For the 12-month period ended February 29, 2008, financials was the worst performing sector in the S&P 500 Stock Index. The Fund’s overweight in financials and weaker relative performance detracted from performance. Stock selection in the energy, consumer discretionary and consumer


 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   1

 

staples sectors also contributed to the lagging relative performance. An overweight and strong relative stock selection in the materials sector was the largest positive contributor to performance. Favorable stock selection in the technology and industrials sectors also contributed positively to performance during the 12-month period.

Market Review and Investment Strategy

By design, the growth and value components of the Fund are complementary. The growth managers focus on finding companies that may increase earnings faster than the consensus expects, while the value managers concentrate on finding stocks with prices unduly depressed by near-term concerns. Thus, the

blended Fund’s portfolio captures the research-driven stock selections of both the growth and value managers, the Fund’s Blend Investment Policy Team, while mitigating broad risks such as industry sector deviations versus the market.

Valuation spreads between those stocks with the highest and lowest valuations have returned to normal from the compressed levels of recent years. The growth managers see above average opportunity to buy stocks with stable, superior long-term earnings growth potential. The value managers remain cautious, because they find many of the new value opportunities to be fraught with greater risk than their potential returns would justify.


 

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. 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 FEBRUARY 29, 2008

   Returns    
  6 Months      12 Months     

AllianceBernstein Blended Style Funds U.S. Large Cap Portfolio

         

Class A

   -10.84%      -6.35%  
 

Class B

   -11.17%      -7.01%  
 

Class C

   -11.24%      -7.02%  
 

Advisor Class*

   -10.77%      -6.06%  
 

Class R*

   -10.95%      -6.55%  
 

Class K*

   -10.85%      -6.30%  
 

Class I*

   -10.67%      -5.98%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

*  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.

 

 

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 FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -6.35 %      -10.34 %

5 Years

    9.13 %      8.20 %

Since Inception*

    6.76 %      5.95 %
       
Class B Shares        

1 Year

    -7.01 %      -10.48 %

5 Years

    8.36 %      8.36 %

Since Inception*

    6.01 %      6.01 %
       
Class C Shares        

1 Year

    -7.02 %      -7.88 %

5 Years

    8.36 %      8.36 %

Since Inception*

    6.01 %      6.01 %
       
Advisor Class Shares†        

1 Year

    -6.06 %      -6.06 %

5 Years

    9.48 %      9.48 %

Since Inception*

    7.09 %      7.09 %
       
Class R Shares†        

1 Year

    -6.55 %      -6.55 %

Since Inception*

    3.81 %      3.81 %
       
Class K Shares†        

1 Year

    -6.30 %      -6.30 %

Since Inception*

    4.22 %      4.22 %
       
Class I Shares†        

1 Year

    -5.98 %      -5.98 %

Since Inception*

    4.55 %      4.55 %

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.36%, 2.09%, 2.07%, 1.07%, 1.55%, 1.65% and 1.01% 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 1.65%, 2.35%, 2.35%, 1.35%, 1.85%, 1.60% and 1.35% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 (MARCH 31, 2008)

 

 

     SEC Returns  
  
Class A Shares   

1 Year

    -12.57 %

5 Years

    7.49 %

Since Inception*

    5.65 %
  
Class B Shares   

1 Year

    -12.72 %

5 Years

    7.68 %

Since Inception*

    5.71 %
  
Class C Shares   

1 Year

    -10.17 %

5 Years

    7.69 %

Since Inception*

    5.72 %
  
Advisor Class Shares†   

1 Year

    -8.35 %

5 Years

    8.77 %

Since Inception*

    6.79 %
  
Class R Shares†   

1 Year

    -8.82 %

Since Inception*

    3.47 %
  
Class K Shares†   

1 Year

    -8.69 %

Since Inception*

    3.73 %
  
Class I Shares†   

1 Year

    -8.30 %

Since Inception*

    4.08 %

 

* 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
September 1, 2007		    Ending
Account Value
February 29, 2008		    Expenses Paid
During Period*
     Actual    Hypothetical    Actual    Hypothetical**    Actual    Hypothetical
Class A    $   1,000    $   1,000    $   891.59    $   1,018.05    $   6.44    $ 6.87
Class B    $ 1,000    $ 1,000    $ 888.35    $ 1,014.42    $ 9.86    $   10.52
Class C    $ 1,000    $ 1,000    $ 887.65    $ 1,014.52    $ 9.76    $ 10.42
Advisor Class    $ 1,000    $ 1,000    $ 892.28    $ 1,019.54    $ 5.03    $ 5.37
Class R    $ 1,000    $ 1,000    $ 890.53    $ 1,017.35    $ 7.10    $ 7.57
Class K    $ 1,000    $ 1,000    $ 891.48    $ 1,018.05    $ 6.44    $ 6.87
Class I    $ 1,000    $ 1,000    $ 893.31    $ 1,020.14    $ 4.47    $ 4.77
* Expenses are equal to the classes’ annualized expense ratios of 1.37%, 2.10%, 2.08%, 1.07%, 1.51%, 1.37% and 0.95%, respectively, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   7

 

Fund Expenses

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

PORTFOLIO STATISTICS

Net Assets ($mil): $150.7

LOGO

 

 

 

* All data are as of February 29, 2008. The Fund’s holdings breakdown is expressed as a per- centage 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 30-39.

 

8   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Portfolio Summary

 

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

 

      
EACH UNDERLYING PORTFOLIO* VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months    12 Months     

AllianceBernstein U.S. Value Portfolio

   -13.47%    -10.57%  
 

Russell 1000 Value Index

   -10.38%    -7.91%  
 

AllianceBernstein U.S. Large Cap Growth Portfolio

   -7.27%    0.29%  
 

Russell 1000 Growth Index

   -6.56%    0.40%  
 
      

 

AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTFOLIOS* AS OF FEBRUARY 29, 2008   
     NAV/SEC Returns†  
  
AllianceBernstein U.S. Value Portfolio   

1 Year

    -10.57 %

Since Inception^

    5.36 %
  
AllianceBernstein U.S. Large Cap Growth Portfolio   

1 Year

    0.29 %

Since Inception^

    6.61 %
  
SEC AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTFOLIOS* AS OF THE MOST RECENT CALENDAR QUARTER-END (MARCH 31, 2008)   
     SEC Returns  
  
AllianceBernstein U.S. Value Portfolio   

1 Year

    -12.87 %

Since Inception^

    4.80 %
  
AllianceBernstein U.S. Large Cap Growth Portfolio   

1 Year

    -2.04 %

Since Inception^

    6.11 %

 

*

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. These share classes are not currently offered for direct investment from the general public. The Underlying Portfolios do not bear sales charges or management fees.

 

†

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

 

^

Inception date: 5/20/05.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   9

 

The Underlying Portfolios Historical Performance

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Value (shares of 7,388,741)

    $ 75,660,712

AllianceBernstein U.S. Large Cap Growth (shares of 6,707,945)

      75,263,148
      

Total investments (cost $136,101,952)

      150,923,860

Receivable for capital stock sold

      621,407

Receivable for investments sold

      95,686
      

Total assets

      151,640,953
      
Liabilities   

Payable for capital stock redeemed

      622,437

Advisory fee payable

      84,782

Distribution fee payable

      58,822

Transfer Agent fee payable

      13,538

Administrative fee payable

      1,277

Accrued expenses

      116,822
      

Total liabilities

      897,678
      

Net Assets

    $ 150,743,275
      
Composition of Net Assets   

Capital stock, at par

    $ 12,975

Additional paid-in capital

      130,452,975

Undistributed net investment income

      154,538

Accumulated net realized gain on investment transactions

      5,300,879

Net unrealized appreciation on investments

      14,821,908
      
   $     150,743,275
      

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   40,732,854      3,473,244      $   11.73 *
   
B   $ 30,805,074      2,722,130      $ 11.32  
   
C   $ 23,857,282      2,106,883      $ 11.32  
   
Advisor   $ 51,862,290      4,375,540      $ 11.85  
   
R   $ 88,663      7,649      $ 11.59  
   
K   $ 1,050,523      89,821      $ 11.70  
   
I   $ 2,346,589      199,491      $ 11.76  
   

 

* 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.

 

10   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Statement of Net Assets

STATEMENT OF OPERATIONS

Six Months Ended February 29, 2008 (unaudited)

 

Investment Income     

Income distributions from Underlying Portfolios

      $     2,408,619  
Expenses     

Advisory fee (see Note B)

    $ 564,804    

Distribution fee—Class A

      71,997    

Distribution fee—Class B

      191,669    

Distribution fee—Class C

      143,483    

Distribution fee—Class R

      175    

Distribution fee—Class K

      1,462    

Transfer agency—Class A

      34,512    

Transfer agency—Class B

      34,386    

Transfer agency—Class C

      22,798    

Transfer agency—Advisor Class

      39,453    

Transfer agency—Class R

      25    

Transfer agency—Class K

      1,134    

Transfer agency—Class I

      269    

Administrative

      49,689    

Registration fees

      47,621    

Printing

      39,823    

Custodian

      34,224    

Legal

      24,126    

Directors’ fees

      22,315    

Audit

      19,783    

Miscellaneous

      4,562    
          

Total expenses

      1,348,310    

Less: expense offset arrangement
(see Note B)

      (5,560 )  
          

Net expenses

        1,342,750  
          

Net investment income

        1,065,869  
          
Realized and Unrealized Gain (Loss) on Investment Transactions     

Net realized gain on sale of Underlying Portfolio shares

        2,589,313  

Net realized gain distributions from Underlying Portfolios

               4,668,786  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

        (26,923,673 )
          

Net loss on investment transactions

        (19,665,574 )
          

Net Decrease in Net Assets from Operations

      $ (18,599,705 )
          

See notes to financial statements.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   11

 

Statement of Operations

STATEMENT OF CHANGES IN NET ASSETS

 

     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 1,065,869     $ 338,637  

Net realized gain on sale of Underlying Portfolio shares

      2,589,313       8,900,436  

Net realized gain distributions from Underlying Portfolios

      4,668,786       2,145,882  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (26,923,673 )     7,620,560  
                

Net increase (decrease) in net assets from operations

      (18,599,705 )     19,005,515  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (428,422 )     (7,771 )

Class B

      (22,105 )     –0 –

Class C

      (16,796 )     –0 –

Advisor Class

      (676,179 )     (43,252 )

Class R

      (555 )     (82 )

Class K

      (13,440 )     (7 )

Class I

      (36,359 )     (1,199 )

Net realized gain on investment transactions

     

Class A

      (3,029,958 )     (2,948,818 )

Class B

      (2,444,092 )     (2,881,341 )

Class C

      (1,855,890 )     (1,924,664 )

Advisor Class

      (3,495,569 )     (758,348 )

Class R

      (4,228 )     (2,494 )

Class K

      (71,570 )     (647 )

Class I

      (170,967 )     (16,315 )
Capital Stock Transactions     

Net increase (decrease)

      (29,496 )     22,472,974  
                

Total increase (decrease)

      (30,895,331 )     32,893,551  
Net Assets     

Beginning of period

      181,638,606       148,745,055  
                

End of period (including undistributed net investment income of $154,538 and $282,525, respectively)

    $     150,743,275     $     181,638,606  
                

See notes to financial statements.

 

12   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Statement of Changes in Net Assets

NOTES TO FINANCIAL STATEMENTS

February 29, 2008 (unaudited)

 

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   13

 

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 their 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 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.

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 six months ended February 29, 2008, there was no such reimbursement.

 

14   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

Pursuant to the Advisory agreement, the Fund paid $49,689 to the Adviser representing the cost of certain legal and accounting services provided to the Fund by the Adviser for the six months ended February 29, 2008.

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 $63,058 for the six months ended February 29, 2008.

For the six months ended February 29, 2008, the Fund’s expenses were reduced by $5,560 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 $976 from the sale of Class A shares and received $234, $13,018 and $1,383 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the six months ended February 29, 2008.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the average daily net assets attributable to Class A shares, 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 expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $839,740, $994,651, $4,326 and $2,140 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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   15

 

Notes to Financial Statements

 

NOTE D

Investment Transactions

Purchases and sales of investments in the Underlying Portfolios, aggregated $10,900,400 and $17,527,444, respectively, for the six months ended February 29, 2008.

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

 

Gross unrealized appreciation

    $     14,821,908

Gross unrealized depreciation

      –0–
      

Net unrealized appreciation

    $ 14,821,908
      

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      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
Class A             

Shares sold

    133,482     419,412       $ 1,754,187     $ 5,859,227    
     

Shares issued in reinvestment of dividends and distributions

    242,283     197,416         3,142,413       2,698,672    
     

Shares converted from Class B

    83,429     169,013         1,125,746       2,365,282    
     

Shares redeemed

    (516,420 )   (1,101,136 )       (6,803,123 )     (15,348,805 )  
     

Net decrease

    (57,226 )   (315,295 )     $ (780,777 )   $ (4,425,624 )  
     
            
Class B             

Shares sold

    47,678     163,715       $ 610,688     $ 2,207,918    
     

Shares issued in reinvestment of dividends and distributions

    157,455     173,154         1,972,914       2,290,830    
     

Shares converted to Class A

    (86,616 )   (175,077 )       (1,125,746 )     (2,365,282 )  
     

Shares redeemed

    (506,987 )   (1,069,162 )       (6,652,437 )     (14,477,646 )  
     

Net decrease

    (388,470 )   (907,370 )     $ (5,194,581 )   $ (12,344,180 )  
     

 

16   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
Class C             

Shares sold

    101,742     230,664       $ 1,297,720     $ 3,099,252    
     

Shares issued in reinvestment of dividends and distributions

    89,795     93,499         1,126,024       1,236,991    
     

Shares redeemed

    (362,117 )   (591,164 )       (4,697,153 )     (8,003,233 )  
     

Net decrease

    (170,580 )   (267,001 )     $ (2,273,409 )   $ (3,666,990 )  
     
            
Advisor Class             

Shares sold

    980,916     3,798,025       $ 13,088,429     $ 52,834,451    
     

Shares issued in reinvestment of dividends and distributions

    61,215     49,716         801,918       686,077    
     

Shares redeemed

    (427,823 )   (1,008,440 )       (5,808,781 )     (14,382,894 )  
     

Net increase

    614,308     2,839,301       $ 8,081,566     $ 39,137,634    
     
            
Class R             

Shares sold

    3,010     3,384       $ 36,606     $ 46,476    
     

Shares issued in reinvestment of dividends and distributions

    309     141         3,963       1,909    
     

Shares redeemed

    (155 )   (58 )       (1,949 )     (829 )  
     

Net increase

    3,164     3,467       $ 38,620     $ 47,556    
     
            
Class K             

Shares sold

    3,394     90,987       $ 43,138     $ 1,256,239    
     

Shares issued in reinvestment of dividends and distributions

    6,508     –0– (a)       84,152       3    
     

Shares redeemed

    (11,889 )   –0–         (173,527 )     –0–    
     

Net increase (decrease)

    (1,987 )   90,987       $ (46,237 )   $ 1,256,242    
     
            
Class I             

Shares sold

    4,231     167,215       $ 63,000     $ 2,450,826    
     

Shares issued in reinvestment of dividends and distributions

    15,948     1,278         207,322       17,510    
     

Shares redeemed

    (9,859 )   –0–         (125,000 )     –0–    
     

Net increase

    10,320     168,493       $ 145,322     $ 2,468,336    
     

 

(a)

Share amount is less than one full share.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   17

 

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 and 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 six months ended February 29, 2008.

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending August 31, 2008 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended August 31, 2007 and August 31, 2006 were as follows:

 

     2007    2006

Distributions paid from:

      

Ordinary income

    $ 818,294    $ 508,156

Long-term capital gain

      7,766,644      6,403,119
             

Total taxable distributions

      8,584,938      6,911,275
             

Total distributions paid

    $     8,584,938    $     6,911,275
             

 

18   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Notes to Financial Statements

 

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)

      41,744,843 (a)
        

Total accumulated earnings/(deficit)

    $     51,143,160  
        

 

(a)

The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of loss on wash sales.

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. 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 containing their

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   19

 

Notes to Financial Statements

 

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.

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 February 29, 2008, the Fund implemented FIN 48 which supplements FASB 109, “Accounting for Income Taxes”. Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years (tax years ended August 31, 2004-2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Fund’s financial statements.

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

 

On March 19, 2008, Financial Accounting Standards Board released Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 161 and its impact on the financial statements has not yet been determined.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   21

 

Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class A  
   

Six Months
Ended

February 29,

2008
(unaudited)

     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

   $  14.18     $  13.31     $  12.89     $  11.87     $  12.14     $  10.68     $  10.00  
     

Income From Investment Operations

              

Net investment income (loss)(d)

   .10     .07 (e)   (.02 )(e)   .01 (e)   – 0  –(e)(f)   .01 (e)(g)   .02 (e)

Net realized and unrealized gain (loss) on investment transactions

   (1.54 )   1.59     .98     1.44     (.27 )   1.47     .68  
     

Net increase (decrease) in net asset value from operations

   (1.44 )   1.66     .96     1.45     (.27 )   1.48     .70  
     

Less: Dividends and Distributions

              

Dividends from net investment income

   (.13 )   – 0  –(f)   – 0  –   – 0  –   – 0  –   – 0  –   (.02 )

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   – 0  –
     

Total dividends and distributions

   (1.01 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   (.02 )
     

Net asset value, end of period

   $  11.73     $  14.18     $  13.31     $  12.89     $  11.87     $  12.14     $  10.68  
     

Total Return

              

Total investment return based on net asset value(h)

   (10.84 )%   12.70  %   7.47  %   12.35  %   (2.22 )%   13.88  %   6.96  %

Ratios/Supplemental Data

              

Net assets, end of period (000’s omitted)

   $40,733     $50,062     $51,188     $55,567     $52,492     $54,956     $37,789  

Ratio to average net assets of:

              

Expenses, net of waivers/reimbursements

   1.37  %(i)(j)   1.31  %(j)   1.36  %(j)(k)   1.47  %(i)(j)   1.47  %(i)   1.53  %   1.65  %(i)

Expenses, before waivers/reimbursements

   1.37  %(i)(j)   1.34  %(j)   1.41  %(j)(k)   1.52  %(i)(j)   1.74  %(i)   1.76  %   2.62  %(i)

Net investment income (loss)

   1.42  %(i)   .52  %(e)   (.13 )%(e)(k)   .06  %(e)(i)   .01  %(e)(i)   .09  %(e)(g)   .20  %(e)(i)

Portfolio turnover rate

   6  %   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 28.

 

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 B  
   

Six Months
Ended

February 29,

2008

(unaudited)

     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

   $  13.65     $  12.93     $  12.63     $  11.71     $  11.99     $  10.62     $  10.00  
     

Income From Investment Operations

              

Net investment income (loss)(d)

   .04     (.02 )(e)   (.11 )(e)   (.07 )(e)   (.02 )(e)   (.07 )(e)(g)   (.04 )(e)

Net realized and unrealized gain (loss) on investment transactions

   (1.48 )   1.53     .95     1.42     (.26 )   1.46     .67  
     

Net increase (decrease) in net asset value from operations

   (1.44 )   1.51     .84     1.35     (.28 )   1.39     .63  
     

Less: Dividends and Distributions

              

Dividends from net investment income

   (.01 )   – 0  –   – 0  –   – 0  –   – 0  –   – 0  –   (.01 )

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   – 0  –
     

Total dividends and distributions

   (.89 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   (.01 )
     

Net asset value, end of period

   $  11.32     $  13.65     $  12.93     $  12.63     $  11.71     $  11.99     $  10.62  
     

Total Return

              

Total investment
return based on
net asset value(h)

   (11.17 )%   11.86  %   6.65  %   11.64  %   (2.34 )%   13.11  %   6.25  %

Ratios/Supplemental Data

              

Net assets, end of period (000’s omitted)

   $30,805     $42,459     $51,945     $64,829     $64,399     $67,551     $47,963  

Ratio to average net assets of:

              

Expenses, net of waivers/reimbursements

   2.10  %(i)(j)   2.04  %(j)   2.09  %(j)(k)   2.19  %(i)(j)   2.19  %(i)   2.25  %   2.35  %(i)

Expenses, before waivers/reimbursements

   2.10  %(i)(j)   2.07  %(j)   2.14  %(j)(k)   2.24  %(i)(j)   2.46  %(i)   2.48  %   3.28  %(i)

Net investment income (loss)

   .67  %(i)   (.18 )%(e)   (.84 )%(e)(k)   (.66 )%(e)(i)   (.71 )%(e)(i)   (.63 )%(e)(g)   (.50 )%(e)(i)

Portfolio turnover rate

   6  %   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 28.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   23

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class C  
   

Six Months
Ended

February 29,

2008

(unaudited)

     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

   $  13.66     $  12.93     $  12.63     $  11.71     $  11.99     $  10.62     $  10.00  
     

Income From Investment Operations

              

Net investment income (loss)(d)

   .05     (.03 )(e)   (.11 )(e)   (.07 )(e)   (.02 )(e)   (.07 )(e)(g)   (.04 )(e)

Net realized and unrealized gain (loss) on investment transactions

   (1.50 )   1.55     .95     1.42     (.26 )   1.46     .67  
     

Net increase (decrease) in net asset value from operations

   (1.45 )   1.52     .84     1.35     (.28 )   1.39     .63  
     

Less: Dividends and Distributions

              

Dividends from net investment income

   (.01 )   – 0  –   – 0  –   – 0  –   – 0  –   – 0  –   (.01 )

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   – 0  –
     

Total dividends and distributions

   (.89 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   (.01 )
     

Net asset value, end of period

   $  11.32     $  13.66     $  12.93     $  12.63     $  11.71     $  11.99     $  10.62  
     

Total Return

              

Total investment return based on net asset value(h)

   (11.24 )%   11.95  %   6.65  %   11.64  %   (2.34 )%   13.11  %   6.25  %

Ratios/Supplemental Data

              

Net assets, end of period (000’s omitted)

   $23,857     $31,101     $32,904     $36,807     $39,267     $42,854     $28,806  

Ratio to average net assets of:

              

Expenses, net of waivers/reimbursements

   2.08  %(i)(j)   2.02  %(j)   2.07  %(j)(k)   2.17  %(i)(j)   2.18  %(i)   2.24  %   2.35  %(i)

Expenses, before waivers/reimbursements

   2.08  %(i)(j)   2.05  %(j)   2.12  %(j)(k)   2.22  %(i)(j)   2.45  %(i)   2.47  %   3.26  %(i)

Net investment income (loss)

   .69  %(i)   (.19 )%(e)   (.83 )%(e)(k)   (.63 )%(e)(i)   (.71 )%(e)(i)   (.62 )%(e)(g)   (.47 )%(e)(i)

Portfolio turnover rate

   6  %   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 28.

 

24   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Advisor Class  
   

Six Months
Ended

February 29,

2008
(unaudited)

     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

   $  14.35     $  13.46     $  12.99     $  11.92     $  12.18     $  10.71     $  10.00  
     

Income From Investment Operations

              

Net investment income(d)

   .12     .07 (e)   .03 (e)   .04 (e)   .01 (e)   .04 (e)(g)   .04 (e)

Net realized and unrealized gain (loss) on investment transactions

   (1.57 )   1.66     .98     1.46     (.27 )   1.48     .69  
     

Net increase (decrease) in net asset value from operations

   (1.45 )   1.73     1.01     1.50     (.26 )   1.52     .73  
     

Less: Dividends and Distributions

              

Dividends from net investment income

   (.17 )   (.05 )   – 0  –   – 0  –   – 0  –   (.03 )   (.02 )

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   (.43 )   – 0  –   (.02 )   – 0  –
     

Total dividends and distributions

   (1.05 )   (.84 )   (.54 )   (.43 )   – 0  –   (.05 )   (.02 )
     

Net asset value, end of period

   $  11.85     $  14.35     $  13.46     $  12.99     $  11.92     $  12.18     $  10.71  
     

Total Return

              

Total investment return based on net asset value(h)

   (10.77 )%   13.06  %   7.81  %   12.73  %   (2.13 )%   14.20  %   7.32  %

Ratios/Supplemental Data

              

Net assets, end of period (000’s omitted)

   $51,862     $53,956     $12,407     $9,737     $9,251     $9,261     $7,263  

Ratio to average net assets of:

              

Expenses, net of waivers/reimbursements

   1.07  %(i)(j)   1.02  %(j)   1.05  %(j)(k)   1.17  %(i)(j)   1.17  %(i)   1.23  %   1.35  %(i)

Expenses, before waivers/reimbursements

   1.07  %(i)(j)   1.05  %(j)   1.11  %(j)(k)   1.22  %(i)(j)   1.44  %(i)   1.46  %   4.78  %(i)

Net investment income

   1.70  %(i)   .51  %(e)   .20  %(e)(k)   .36  %(e)(i)   .31  %(e)(i)   .39  %(e)(g)   .48  %(e)(i)

Portfolio turnover rate

   6  %   19  %   6  %   44  %   11  %   39  %   25  %

See footnote summary on page 28.

 

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 R  
   

Six Months
Ended

February 29,

2008

(unaudited)

     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

   $  14.03     $  13.22     $  12.85     $  11.86     $  12.13     $  12.27  
     

Income From Investment Operations

            

Net investment income (loss)(d)

   .07     .02 (e)   (.05 )(e)   (.02 )(e)   (.01 )(e)   (.01 )(e)(g)

Net realized and unrealized gain (loss) on investment transactions

   (1.51 )   1.61     .96     1.44     (.26 )   (.13 )
     

Net increase (decrease) in net asset value from operations

   (1.44 )   1.63     .91     1.42     (.27 )   (.14 )
     

Less: Dividends and Distributions

            

Dividends from net investment income

   (.12 )   (.03 )   – 0  –   – 0  –   – 0  –   – 0  –

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   (.43 )   – 0  –   – 0  –
     

Total dividends and distributions

   (1.00 )   (.82 )   (.54 )   (.43 )   – 0  –   – 0  –
     

Net asset value, end of period

   $  11.59     $  14.03     $  13.22     $  12.85     $  11.86     $  12.13  
     

Total Return

            

Total investment return based on net asset value(h)

   (10.95 )%   12.52  %   7.09  %   12.10  %   (2.23 )%   (1.14 )%

Ratios/Supplemental Data

            

Net assets, end of period (000’s omitted)

   $89     $63     $13     $11     $10     $10  

Ratio to average net assets of:

            

Expenses, net of waivers/reimbursements

   1.51  %(i)(j)   1.50  %(j)   1.64  %(j)(k)   1.72  %(i)(j)   1.66  %(i)   1.78  %(i)

Expenses, before waivers/reimbursements

   1.51  %(i)(j)   1.53  %(j)   1.69  %(j)(k)   1.77  %(i)(j)   1.93  %(i)   2.15  %(i)

Net investment income (loss)

   1.05  %(i)   .17  %(e)   (.41 )%(e)(k)   (.20 )%(e)(i)   (.18 )%(e)(i)   (.12 )%(e)(g)(i)

Portfolio turnover rate

   6  %   19  %   6  %   44  %   11  %   39  %

See footnote summary on page 28.

 

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 K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,     March 1,
2005(l) to
August 31,
2005		  
      2007     2006    
     

Net asset value, beginning of period

   $  14.19     $  13.31     $  12.90     $  12.31  
     

Income From Investment Operations

        

Net investment income (loss)(d)

   .09     (.10 )(e)   (.02 )(e)   (.03 )(e)

Net realized and unrealized gain (loss) on investment transactions

   (1.53 )   1.78     .97     .62  
     

Net increase (decrease) in net asset value from operations

   (1.44 )   1.68     .95     .59  
     

Less: Dividends and Distributions

        

Dividends from net investment income

   (.17 )   (.01 )   – 0  –   – 0  –

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   – 0  –
     

Total dividends and distributions

   (1.05 )   (.80 )   (.54 )   – 0  –
     

Net asset value, end of period

   $  11.70     $  14.19     $  13.31     $  12.90  
     

Total Return

        

Total investment return based on net asset value(h)

   (10.85 )%   12.84  %   7.38  %   4.79  %

Ratios/Supplemental Data

        

Net assets, end of period (000’s omitted)

   $1,050     $1,302     $11     $10  

Ratio to average net assets of:

        

Expenses, net of waivers/reimbursements(j)

   1.37  %(i)   1.58  %   1.37  %(k)   1.51  %(i)

Expenses, before waivers/reimbursements(j)

   1.37  %(i)   1.63  %   1.42  %(k)   1.56  %(i)

Net investment income (loss)

   1.37  %(i)   (1.20 )%(e)   (.13 )%(e)(k)   (.50 )%(e)(i)

Portfolio turnover rate

   6  %   19  %   6  %   44  %

See footnote summary on page 28.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   27

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    Class I  
   

Six Months
Ended

February 29,

2008

(unaudited)

     Year Ended August 31,    

March 1,

2005(l) to

August 31,
2005

  
      2007     2006    
     

Net asset value, beginning of period

   $  14.25     $  13.38     $  12.92     $  12.31  
     

Income From Investment Operations

        

Net investment income (loss)(d)

   .13     .08 (e)   (.02 )(e)   (.01 )(e)

Net realized and unrealized gain (loss) on investment transactions

   (1.55 )   1.64     1.02     .62  
     

Net increase (decrease) in net asset value from operations

   (1.42 )   1.72     1.00     .61  
     

Less: Dividends and Distributions

        

Dividends from net investment income

   (.19 )   (.06 )   – 0  –   – 0  –

Distributions from net realized gain on investment transactions

   (.88 )   (.79 )   (.54 )   – 0  –
     

Total dividends and distributions

   (1.07 )   (.85 )   (.54 )   – 0  –
     

Net asset value, end of period

   $  11.76     $  14.25     $  13.38     $  12.92  
     

Total Return

        

Total investment return based on net asset value(h)

   (10.67 )%   13.09  %   7.77  %   4.96  %

Ratios/Supplemental Data

        

Net assets, end of period (000’s omitted)

   $2,347     $2,696     $277     $10  

Ratio to average net assets of:

        

Expenses, net of waivers/reimbursements(j)

   .95  %(i)   .96  %   .97  %(k)   1.19  %(i)

Expenses, before waivers/reimbursements(j)

   .95  %(i)   .99  %   1.02  %(k)   1.24  %(i)

Net investment income (loss)

   1.83  %(i)   .62  %(e)   (.19 )%(e)(k)   (.17 )%(e)(i)

Portfolio turnover rate

   6  %   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) Annualized.

 

(j) Expense ratios do not include expenses of the Underlying Portfolios in which the Fund invests. For the six months ended February 29, 2008 and the years ended August 31, 2007 and August 31, 2006, the estimated annualized blended expense ratios were .02%, .02%, and .04%, respectively.

 

(k) The ratio includes expenses attributable to costs of proxy solicitation.

 

(l) Commencement of distributions.

 

28   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Financial Highlights

 

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)

Garry L. Moody(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

Daniel T. Grasman, 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 and 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 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. Masters, Grasman, Hamilton, Lisser and 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 U.S. LARGE CAP PORTFOLIO  •   29

 

Board of Directors

 

Pages 30-39 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 February 29, 2008 financial statements. A copy of the Underlying Portfolios’ unaudited semi-annual report is available upon request.

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

U.S. VALUE PORTFOLIO

LOGO

U.S. LARGE CAP GROWTH PORTFOLIO

LOGO

 

* All data are as of February 29, 2008. 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.

 

30   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

Portfolio Summary

 

U.S. VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 98.5%

     

Financials – 26.9%

     

Capital Markets – 2.6%

     

Deutsche Bank AG

    114,500   $ 12,704,920

The Goldman Sachs Group, Inc.

    25,000     4,240,750

Merrill Lynch & Co., Inc.

    389,500     19,303,620

Morgan Stanley

    676,000     28,473,120
        
       64,722,410
        

Commercial Banks – 2.8%

     

Comerica, Inc.

    252,300     9,143,352

Fifth Third Bancorp

    430,500     9,858,450

Keycorp

    89,900     1,982,295

National City Corp.

    511,700     8,115,562

SunTrust Banks, Inc.

    79,800     4,638,774

U.S. Bancorp

    299,300     9,583,586

Wachovia Corp.

    395,000     12,094,900

Wells Fargo & Co.

    549,200     16,053,116
        
       71,470,035
        

Consumer Finance – 0.7%

     

Discover Financial Services

    1,137,300     17,161,857
        

Diversified Financial Services – 8.3%

     

Bank of America Corp.

    1,964,800     78,081,152

CIT Group, Inc.

    425,300     9,450,166

Citigroup, Inc.

    2,423,200     57,454,072

JPMorgan Chase & Co.

    1,587,000     64,511,550
        
       209,496,940
        

Insurance – 11.3%

     

ACE Ltd.

    354,700     19,948,328

Allstate Corp.

    488,800     23,330,424

American International Group, Inc.

    1,062,700     49,798,122

Chubb Corp.

    398,500     20,283,650

Everest Re Group Ltd.

    65,500     6,345,640

Fidelity National Financial, Inc. – Class A

    522,500     9,201,225

Genworth Financial, Inc. – Class A

    739,000     17,130,020

Hartford Financial Services Group, Inc.

    299,500     20,935,050

MetLife, Inc.

    365,500     21,294,030

Old Republic International Corp.

    625,200     8,577,744

PartnerRe Ltd.

    66,100     5,082,429

The Progressive Corp.

    883,600     16,196,388

RenaissanceRe Holdings Ltd.

    128,700     7,065,630

Safeco Corp.

    163,500     7,563,510

Torchmark Corp.

    101,400     6,110,364

The Travelers Cos, Inc.

    509,000     23,622,690

Unum Group

    715,800     16,398,978

XL Capital Ltd. – Class A

    204,900     7,388,694
        
       286,272,916
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   31

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Thrifts & Mortgage Finance – 1.2%

     

Federal Home Loan Mortgage Corp.

    330,500   $ 8,321,990

Federal National Mortgage Association

    543,000     15,013,950

Washington Mutual, Inc.

    481,300     7,123,240
        
       30,459,180
        
       679,583,338
        

Energy – 16.0%

     

Oil, Gas & Consumable Fuels – 16.0%

     

Anadarko Petroleum Corp.

    372,300     23,730,402

BP PLC (Sponsored) (ADR)

    170,700     11,073,309

Chevron Corp.

    1,001,700     86,807,322

ConocoPhillips

    786,400     65,043,144

Exxon Mobil Corp.

    1,630,800     141,895,908

Marathon Oil Corp.

    467,000     24,825,720

Occidental Petroleum Corp.

    132,300     10,236,051

Royal Dutch Shell PLC (ADR)

    171,300     12,239,385

Total SA (ADR)

    162,000     12,213,180

Valero Energy Corp.

    267,600     15,459,252
        
       403,523,673
        

Consumer Discretionary – 10.6%

     

Auto Components – 1.1%

     

Autoliv, Inc.

    162,800     8,123,720

BorgWarner, Inc.

    242,200     10,441,242

Lear Corp.(a)

    49,800     1,373,484

Magna International, Inc. – Class A

    109,000     7,979,890
        
       27,918,336
        

Automobiles – 0.7%

     

General Motors Corp.

    778,000     18,111,840
        

Hotels, Restaurants & Leisure – 0.3%

     

McDonald’s Corp.

    143,200     7,748,552
        

Household Durables – 1.0%

     

Black & Decker Corp.

    123,600     8,499,972

Centex Corp.

    218,900     4,857,391

KB Home

    227,500     5,444,075

Newell Rubbermaid, Inc.

    90,900     2,063,430

Pulte Homes, Inc.

    262,000     3,547,480
        
       24,412,348
        

Leisure Equipment & Products – 0.3%

     

Brunswick Corp.

    420,500     6,849,945
        

Media – 3.5%

     

CBS Corp. – Class B

    617,300     14,086,786

Gannett Co., Inc.

    473,300     14,269,995

Idearc, Inc.

    517,200     2,492,904

Time Warner, Inc.

    1,016,500     15,867,565

 

32   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Viacom, Inc. – Class B(a)

    368,800   $ 14,659,800

The Walt Disney Co.

    830,600     26,919,746
        
       88,296,796
        

Multiline Retail – 0.8%

     

Family Dollar Stores, Inc.

    383,000     7,334,450

Macy’s, Inc.

    556,300     13,729,484
        
       21,063,934
        

Specialty Retail – 2.1%

     

AutoNation, Inc.(a)

    175,700     2,559,949

The Gap, Inc.

    655,500     13,221,435

Home Depot, Inc.

    665,700     17,674,335

Lowe’s Cos, Inc.

    246,700     5,913,399

Ltd. Brands, Inc.

    282,000     4,300,500

Office Depot, Inc.(a)

    813,200     9,246,084
        
       52,915,702
        

Textiles, Apparel & Luxury Goods – 0.8%

     

Jones Apparel Group, Inc.

    864,600     12,199,506

VF Corp.

    106,935     8,131,337
        
       20,330,843
        
       267,648,296
        

Health Care – 8.8%

     

Health Care Equipment & Supplies – 0.2%

     

Covidien Ltd.

    95,000     4,065,050
        

Health Care Providers & Services – 1.3%

     

AmerisourceBergen Corp. – Class A

    156,700     6,537,524

Cardinal Health, Inc.

    213,400     12,620,476

McKesson Corp.

    234,800     13,796,848
        
       32,954,848
        

Pharmaceuticals – 7.3%

     

Eli Lilly & Co.

    296,100     14,810,922

GlaxoSmithKline PLC (ADR)

    301,400     13,234,474

Johnson & Johnson

    392,000     24,288,320

Merck & Co., Inc.

    507,800     22,495,540

Pfizer, Inc.

    3,323,600     74,049,808

Sanofi-Aventis SA (ADR)

    324,800     12,046,832

Wyeth

    563,300     24,571,146
        
       185,497,042
        
       222,516,940
        

Industrials – 8.8%

     

Aerospace & Defense – 1.0%

     

Lockheed Martin Corp.

    30,400     3,137,280

Northrop Grumman Corp.

    285,100     22,411,711
        
       25,548,991
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   33

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Commercial Services & Supplies – 0.8%

     

Allied Waste Industries, Inc.(a)

    1,021,400   $ 10,561,276

Pitney Bowes, Inc.

    245,800     8,794,724
        
       19,356,000
        

Industrial Conglomerates – 5.0%

     

3M Co.

    98,900     7,753,760

General Electric Co.

    2,913,700     96,560,018

Tyco International Ltd.

    553,700     22,181,222
        
       126,495,000
        

Machinery – 1.9%

     

Caterpillar, Inc.

    218,100     15,775,173

Cummins, Inc.

    81,000     4,080,780

Eaton Corp.

    26,100     2,104,443

SPX Corp.

    132,300     13,534,290

Terex Corp.(a)

    161,100     10,866,195
        
       46,360,881
        

Road & Rail – 0.1%

     

Avis Budget Group, Inc.(a)

    273,600     3,127,248
        
       220,888,120
        

Consumer Staples – 8.7%

     

Beverages – 1.0%

     

The Coca-Cola Co.

    51,900     3,034,074

Coca-Cola Enterprises, Inc.

    224,800     5,491,864

Molson Coors Brewing Co. – Class B

    308,000     16,619,680
        
       25,145,618
        

Food & Staples Retailing – 1.7%

     

The Kroger Co.

    398,300     9,658,775

Safeway, Inc.

    458,600     13,180,164

Supervalu, Inc.

    557,600     14,637,000

Wal-Mart Stores, Inc.

    100,000     4,959,000
        
       42,434,939
        

Food Products – 2.5%

     

ConAgra Foods, Inc.

    419,900     9,279,790

Del Monte Foods Co.

    590,000     5,298,200

General Mills, Inc.

    198,500     11,114,015

Kellogg Co.

    210,100     10,656,272

Kraft Foods, Inc. – Class A

    173,300     5,401,761

Sara Lee Corp.

    953,700     12,045,231

Tyson Foods, Inc. – Class A

    573,300     8,261,253
        
       62,056,522
        

Household Products – 1.9%

     

Procter & Gamble Co.

    718,900     47,576,802
        

Tobacco – 1.6%

     

Altria Group, Inc.

    560,300     40,980,342
        
       218,194,223
        

 

34   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Telecommunication Services – 7.1%

     

Diversified Telecommunication
Services – 5.8%

     

AT&T, Inc.

    2,769,300   $ 96,454,719

Verizon Communications, Inc.

    1,396,500     50,720,880
        
       147,175,599
        

Wireless Telecommunication
Services – 1.3%

     

Sprint Nextel Corp.

    2,560,100     18,202,311

Vodafone Group PLC (ADR)

    432,800     13,949,144
        
       32,151,455
        
       179,327,054
        

Materials – 6.2%

     

Chemicals – 2.7%

     

Ashland, Inc.

    162,300     7,168,791

Dow Chemical Co.

    718,800     27,091,572

E.I. Du Pont de Nemours & Co.

    585,000     27,155,700

Lubrizol Corp.

    123,500     7,200,050
        
       68,616,113
        

Containers & Packaging – 1.6%

     

Ball Corp.

    309,300     13,640,130

Owens-Illinois, Inc.(a)

    275,200     15,535,040

Smurfit-Stone Container Corp.(a)

    439,600     3,494,820

Sonoco Products Co.

    210,400     5,926,968
        
       38,596,958
        

Metals & Mining – 1.9%

     

Alcoa, Inc.

    784,000     29,117,760

ArcelorMittal

    250,200     19,020,204
        
       48,137,964
        
       155,351,035
        

Information Technology – 4.1%

     

Communications Equipment – 0.5%

     

Nokia OYJ (Sponsored) (ADR)

    379,300     13,658,593
        

Computers & Peripherals – 1.0%

     

Dell, Inc.(a)

    350,000     6,947,500

International Business Machines Corp.

    66,800     7,605,848

Lexmark International, Inc. – Class A(a)

    285,800     9,439,974
        
       23,993,322
        

Electronic Equipment &
Instruments – 2.3%

     

Arrow Electronics, Inc.(a)

    328,700     10,718,907

Avnet, Inc.(a)

    442,200     14,906,562

Flextronics International Ltd.(a)

    1,218,278     12,353,339

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   35

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Ingram Micro, Inc. – Class A(a)

    436,100   $ 6,659,247

Sanmina-SCI Corp.(a)

    599,600     989,340

Tech Data Corp.(a)

    167,500     5,586,125

Tyco Electronics Ltd.

    95,000     3,125,500

Vishay Intertechnology, Inc.(a)

    524,900     4,792,337
        
       59,131,357
        

IT Services – 0.3%

     

Electronic Data Systems Corp.

    441,500     7,646,780
        
       104,430,052
        

Utilities – 1.3%

     

Electric Utilities – 0.6%

     

Entergy Corp.

    143,700     14,763,738
        

Independent Power Producers & Energy Traders – 0.6%

     

Constellation Energy Group, Inc.

    162,700     14,374,545
        

Multi-Utilities – 0.1%

     

Wisconsin Energy Corp.

    85,125     3,713,153
        
       32,851,436
        

Total Common Stocks
(cost $2,626,528,544)

        2,484,314,167
        
    

SHORT-TERM INVESTMENTS – 1.3%

     

Investment Companies – 1.3%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $32,646,709)

    32,646,709     32,646,709
        

Total Investments – 99.8%
(cost $2,659,175,253)

        2,516,960,876

Other assets less liabilities – 0.2%

        4,912,475
        

Net Assets – 100.0%

      $ 2,521,873,351
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

   See notes to financial statements.

 

36   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

U.S. Value Portfolio—Portfolio of Investments

 

U.S. LARGE CAP GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company   

    
Shares

   U.S. $ Value
 
    

COMMON STOCKS – 99.2%

     

Information Technology – 30.8%

     

Communications Equipment – 9.7%

     

Cisco Systems, Inc.(a)

    4,197,900   $ 102,302,823

Nokia OYJ (Sponsored) (ADR)

    1,540,700     55,480,607

Research In Motion Ltd.(a)

    860,600     89,330,280
        
       247,113,710
        

Computers & Peripherals – 9.1%

     

Apple, Inc.(a)

    1,037,935     129,762,634

Hewlett-Packard Co.

    2,136,800     102,074,936
        
       231,837,570
        

Internet Software & Services – 6.0%

     

Google, Inc. – Class A(a)

    324,670     152,978,010
        

Semiconductors & Semiconductor Equipment – 3.6%

     

Broadcom Corp. – Class A(a)

    1,054,100     19,933,031

MEMC Electronic Materials, Inc.(a)

    367,850     28,059,598

Nvidia Corp.(a)

    2,050,600     43,862,334
        
       91,854,963
        

Software – 2.4%

     

Adobe Systems, Inc.(a)

    863,500     29,056,775

Microsoft Corp.

    934,200     25,428,924

VMware, Inc. – Class A(a)

    145,200     8,518,884
        
       63,004,583
        
       786,788,836
        

Health Care – 21.5%

     

Biotechnology – 7.8%

     

Celgene Corp.(a)

    1,006,000     56,708,220

Genentech, Inc.(a)

    628,100     47,578,575

Gilead Sciences, Inc.(a)

    1,977,850     93,591,862
        
       197,878,657
        

Health Care Equipment &
Supplies – 3.9%

     

Alcon, Inc.

    459,250     66,467,253

Hologic, Inc.(a)

    544,400     32,832,764
        
       99,300,017
        

Health Care Providers &
Services – 4.1%

     

Medco Health Solutions, Inc.(a)

    1,274,200     56,459,802

WellPoint, Inc.(a)

    693,100     48,572,448
        
       105,032,250
        

Pharmaceuticals – 5.7%

     

Abbott Laboratories

    1,641,400     87,896,970

Teva Pharmaceutical Industries Ltd. (Sponsored) (ADR)

    1,187,700     58,280,439
        
       146,177,409
        
       548,388,333
        

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   37

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

Company   

    
Shares

   U.S. $ Value
 
    

Consumer Staples – 11.0%

     

Beverages – 2.8%

     

The Coca-Cola Co.

    463,800   $ 27,113,748

PepsiCo, Inc.

    626,400     43,572,384
        
       70,686,132
        

Food & Staples Retailing – 2.0%

     

Costco Wholesale Corp.

    497,000     30,774,240

Wal-Mart Stores, Inc.

    432,600     21,452,634
        
       52,226,874
        

Food Products – 2.3%

     

WM Wrigley Jr Co.

    998,900     59,794,154
        

Household Products – 2.9%

     

Colgate-Palmolive Co.

    493,900     37,580,851

Procter & Gamble Co.

    537,500     35,571,750
        
       73,152,601
        

Tobacco – 1.0%

     

Altria Group, Inc.

    356,850     26,100,009
        
       281,959,770
        

Industrials – 10.6%

     

Aerospace & Defense – 3.7%

     

Honeywell International, Inc.

    1,321,085     76,015,231

Spirit Aerosystems Holdings, Inc. – Class A(a)

    694,200     18,757,284
        
       94,772,515
        

Construction & Engineering – 1.7%

     

Fluor Corp.

    309,600     43,111,800
        

Electrical Equipment – 1.4%

     

ABB Ltd. (Sponsored) (ADR)

    717,450     17,964,948

Emerson Electric Co.

    334,500     17,046,120
        
       35,011,068
        

Industrial Conglomerates – 1.3%

     

Textron, Inc.

    643,400     34,852,978
        

Machinery – 2.5%

     

Deere & Co.

    742,850     63,298,249
        
       271,046,610
        

Financials – 9.8%

     

Capital Markets – 5.0%

     

The Blackstone Group LP

    872,300     14,392,950

Franklin Resources, Inc.

    651,800     61,510,366

The Goldman Sachs Group, Inc.

    152,790     25,917,768

Lehman Brothers Holdings, Inc.

    507,900     25,897,821
        
       127,718,905
        

Diversified Financial Services – 4.8%

     

CME Group, Inc. – Class A

    194,005     99,582,766

NYSE Euronext

    359,800     23,628,066
        
       123,210,832
        
       250,929,737
        

 

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 – 8.0%

     

Energy Equipment & Services – 5.7%

     

Baker Hughes, Inc.

    542,650   $ 36,514,919  

Cameron International Corp.(a)

    519,500     22,068,360  

Schlumberger Ltd.

    1,020,650     88,235,192  
          
       146,818,471  
          

Oil, Gas & Consumable Fuels – 2.3%

     

EOG Resources, Inc.

    483,500     57,531,665  
          
       204,350,136  
          

Materials – 5.5%

     

Chemicals – 5.5%

     

Air Products & Chemicals, Inc.

    490,000     44,751,700  

Monsanto Co.

    814,840     94,260,691  
          
       139,012,391  
          

Consumer Discretionary – 1.5%

     

Hotels, Restaurants & Leisure – 0.9%

     

McDonald’s Corp.

    117,350     6,349,809  

Yum! Brands, Inc.

    502,500     17,311,125  
          
       23,660,934  
          

Multiline Retail – 0.6%

     

Kohl’s Corp.(a)

    150,900     6,705,996  

Target Corp.

    137,150     7,215,461  
          
       13,921,457  
          
       37,582,391  
          

Telecommunication Services – 0.5%

     

Wireless Telecommunication
Services – 0.5%

     

America Movil SAB de CV Series L (ADR)

    220,100     13,307,246  
          

Total Common Stocks
(cost $2,422,442,548)

        2,533,365,450  
          
    

SHORT-TERM INVESTMENTS – 1.1%

     

Investment Companies – 1.1%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $28,557,743)

    28,557,743     28,557,743  
          

Total Investments – 100.3%
(cost $2,451,000,291)

        2,561,923,193  

Other assets less liabilities – (0.3)%

        (8,918,121 )
          

Net Assets – 100.0%

      $ 2,553,005,072  
          

 

(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

 

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.

 

40   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

  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

55 bp on next $2.5 billion

50 bp on the balance

   $192.7   U.S. Large Cap Portfolio

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   41

 

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

Class B

Class C

Class R

Class K

Class I

Advisor

  

1.65%

2.35%

2.35%

1.85%

1.60%

1.35%

1.35%

      1.36%

2.09%

2.07%

1.53%

1.28%

0.96%

1.04%

   August 31

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

 

42   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   43

 

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.

 

44   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP 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 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 Expense Group13 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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   45

 

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

 

46   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   47

 

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 Portfolio 18 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.

 

48   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

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.

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   49

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

Diversified Yield Fund*

Global Bond Fund*

High Income Fund*

Intermediate Bond Portfolio

Short Duration 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

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 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. Prior to November 5, 2007, Diversified Yield Fund was named Global Strategic Income Trust and Global Bond Fund was named Global Government Income Trust. Prior to January 28, 2008, High Income Fund was named Emerging Market Debt 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.

 

50   •  ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO

 

AllianceBernstein Family of Funds

NOTES

 

ALLIANCEBERNSTEIN BLENDED STYLE FUNDS U.S. LARGE CAP PORTFOLIO  •   51

NOTES

 

52   •  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-0152-0208   LOGO

SEMI-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

 

February 29, 2008

 

Semi-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.

April 22, 2008

 

Semi-Annual Report

This report provides management’s discussion of fund performance for the AllianceBernstein Retirement Strategies (collectively, the “Strategies”) for the semi-annual reporting period ended February 29, 2008.

Investment Objective and Strategies

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 Underlying 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 date”). The Strategies’ asset mixes will become more conservative each year until reaching the year approximately fifteen years after the retirement date (the “target year”) at which time the asset allocation mix will become 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 asset 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% other fixed-income securities, 25% equities and 10% Real Estate Investment Trusts (REITs). 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 asset allocation for that 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 6-17 show each individual Retirement Strategy’s (RS) performance compared to its composite benchmark. Additional performance can be found on pages 19-42. 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”) believes 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


 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   1

 

Strategy at any point in time, providing a more accurate measure of each Strategy’s active management performance. Performance for each of the Underlying Portfolios compared to its benchmark may be found on pages 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

Performance was essentially negative for the Retirement Strategies and their benchmarks during both the six- and 12-month periods ended February 29, 2008. Most of the Retirement Strategies’ Class A shares without sales charges underperformed their respective composite benchmarks for the periods under review. Contributing to the underperformance were the value components of the Strategies, which underperformed the growth components of the Strategies. However, underperformance for both the Strategies and the benchmarks resulted from a significant decline in the financial markets. Fear of a meltdown in the financial markets pummeled equity markets and ballooned into a wholesale, often indiscriminate, investor flight from risk that showed little regard for geography, asset class or investment style.

The diversified approach of the Retirement Strategies helped to offset the overall negative performance versus their benchmarks. International stocks, 30% of the Retirement Strategies’ portfolio, provided an important contribution to performance, in particular the International Growth underlying portfolio. For the 12-month period

ended February 29, 2008, the underlying growth components outperformed the underlying value components of the Strategies. However, as all major equity indices declined during the latter half of this time period, the Retirement Strategies designed for young savers—RS 2035, 2040, 2045, 2050, 2055—posted negative returns. These Strategies have target allocations of 90% in equities, 5% in global REITs and 5% in bonds. On December 24, 2007, a change was made to this allocation to satisfy the Department of Labor’s requirements for retirement-plan default options. So, a 5% bond allocation was added to the 2030-2055 Strategies, with an increase in the Intermediate Duration Bond allocation for the 2025 Strategy from 2% to 5%. The global REIT allocation was reduced, as REITs have some bond-like characteristics.

While the Strategies created for mid-life savers—RS 2010, 2015, 2020, 2025, and 2030—also posted negative returns, the inclusion of bonds helped offset the negative performance by the equity pools, with positive performance posted by Intermediate Duration Bond. These Strategies have target allocations of 72%-90% in equities, 5%-28% in bonds and 5%-10% in global REITs. As a hedge against inflation, the RS 2010 and 2015 vintages include Inflation-Protected Securities, which contributed to returns as investors fled to less volatile asset classes.

The vintages intended for early savers—RS 2000 and 2005—have


 

2   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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. These two Strategies also underperformed their compositive benchmarks for both the six- and 12-month periods. However, these vintages benefited from the performance of the Strategies’ underlying bond components, particularly the Inflation-Protected Securities and Intermediate Duration Bond underlying Portfolios, which helped offset the negative performance by the Strategies’ underlying equity portfolios.

Market Review and Investment Strategy

The six- and 12-month periods ended February 29, 2008, were volatile for the global capital markets. U.S. stocks declined in the latter half of the 12-month period in the face of con-

tinued concerns about the economy, inflation and the credit market. Growth stocks outperformed value stocks during this time frame, as measured by the MSCI World Growth and the MSCI World Value Indices. In 2008, the bond market faced its own share of uncertainty, causing a broad gap between the safest and riskiest sectors. Investors flocked to the perceived safety of Treasuries as the threat of a possible recession grew, while the speculative high-yield sector—high-quality corporate bonds—suffered from the continuing volatility.

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 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 (RE) 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 U.S. 1-10 Year TIPS Index; for high yield bonds, LB U.S. High Yield 2% Issuer Cap 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.

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

(Historical Performance continued on next page)

 

4   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

HISTORICAL PERFORMANCE

(continued from previous page)

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 FTSE EPRA/NAREIT Global RE 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 U.S. 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 U.S. High Yield 2% Issuer Cap 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 FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2000 Retirement Strategy

         

Class A

   -2.11%      0.29%  
 

Class B

   -2.42%      -0.45%  
 

Class C

   -2.42%      -0.45%  
 

Advisor Class*

   -2.00%      0.47%  
 

Class R*

   -2.18%      -0.01%  
 

Class K*

   -2.05%      0.30%  
 

Class I*

   -1.83%      0.51%  
 

Composite Benchmark**

   -0.51%      1.92%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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

 

2005 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2005 Retirement Strategy

         

Class A

   -3.45%      -1.19%  
 

Class B

   -3.76%      -1.73%  
 

Class C

   -3.76%      -1.83%  
 

Advisor Class*

   -3.24%      -0.81%  
 

Class R*

   -3.57%      -1.38%  
 

Class K*

   -3.36%      -1.09%  
 

Class I*

   -3.25%      -0.81%  
 

Composite Benchmark**

   -2.04%      0.47%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   7

 

Historical Performance

 

2010 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

   
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2010 Retirement Strategy

         

Class A

   -4.57%      -2.04%  
 

Class B

   -4.81%      -2.60%  
 

Class C

   -4.89%      -2.68%  
 

Advisor Class*

   -4.43%      -1.66%  
 

Class R*

   -4.70%      -2.25%  
 

Class K*

   -4.55%      -1.94%  
 

Class I*

   -4.45%      -1.68%  
 

Composite Benchmark**

   -3.45%      -0.86%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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

 

2015 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

   
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2015 Retirement Strategy

         

Class A

   -5.96%      -3.27%  
 

Class B

   -6.25%      -3.96%  
 

Class C

   -6.25%      -3.87%  
 

Advisor Class*

   -5.80%      -2.97%  
 

Class R*

   -6.02%      -3.41%  
 

Class K*

   -5.87%      -3.19%  
 

Class I*

   -5.74%      -2.82%  
 

Composite Benchmark**

   -4.66%      -1.94%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   9

 

Historical Performance

 

2020 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2020 Retirement Strategy

         

Class A

   -7.06%      -4.36%  
 

Class B

   -7.42%      -5.10%  
 

Class C

   -7.33%      -5.01%  
 

Advisor Class*

   -6.99%      -4.07%  
 

Class R*

   -7.23%      -4.61%  
 

Class K*

   -7.03%      -4.34%  
 

Class I*

   -7.02%      -4.10%  
 

Composite Benchmark**

   -5.81%      -2.97%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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

 

2025 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

   
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2025 Retirement Strategy

         

Class A

   -7.97%      -4.78%  
 

Class B

   -8.31%      -5.55%  
 

Class C

   -8.37%      -5.55%  
 

Advisor Class*

   -7.89%      -4.56%  
 

Class R*

   -8.06%      -4.95%  
 

Class K*

   -7.96%      -4.76%  
 

Class I*

   -7.90%      -4.49%  
 

Composite Benchmark**

   -6.72%      -3.68%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   11

 

Historical Performance

 

2030 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        
THE STRATEGY VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		   Returns    
  6 Months      12 Months     

AllianceBernstein 2030 Retirement Strategy

         

Class A

   -8.50%      -5.06%  
 

Class B

   -8.84%      -5.69%  
 

Class C

   -8.91%      -5.68%  
 

Advisor Class*

   -8.29%      -4.62%  
 

Class R*

   -8.62%      -5.18%  
 

Class K*

   -8.48%      -4.96%  
 

Class I*

   -8.38%      -4.72%  
 

Composite Benchmark**

   -7.21%      -3.86%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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

 

2035 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED FEBRUARY 29, 2008

   Returns    
  6 Months      12 Months     

AllianceBernstein 2035 Retirement Strategy

         

Class A

   -8.80%      -5.17%  
 

Class B

   -9.16%      -5.88%  
 

Class C

   -9.08%      -5.73%  
 

Advisor Class*

   -8.65%      -4.79%  
 

Class R*

   -8.82%      -5.25%  
 

Class K*

   -8.72%      -5.08%  
 

Class I*

   -8.70%      -4.84%  
 

Composite Benchmark**

   -7.46%      -3.96%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   13

 

Historical Performance

 

2040 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

        

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED FEBRUARY 29, 2008

   Returns    
  6 Months      12 Months     

AllianceBernstein 2040 Retirement Strategy

         

Class A

   -8.66%      -5.12%  
 

Class B

   -8.93%      -5.76%  
 

Class C

   -8.93%      -5.76%  
 

Advisor Class*

   -8.47%      -4.80%  
 

Class R*

   -8.76%      -5.29%  
 

Class K*

   -8.67%      -5.06%  
 

Class I*

   -8.53%      -4.77%  
 

Composite Benchmark**

   -7.46%      -3.96%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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

 

2045 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED FEBRUARY 29, 2008

   Returns    
  6 Months      12 Months     

AllianceBernstein 2045 Retirement Strategy

         

Class A

   -8.86%      -5.03%  
 

Class B

   -9.06%      -5.59%  
 

Class C

   -9.14%      -5.67%  
 

Advisor Class*

   -8.64%      -4.67%  
 

Class R*

   -8.93%      -5.24%  
 

Class K*

   -8.75%      -4.91%  
 

Class I*

   -8.65%      -4.75%  
 

Composite Benchmark**

   -7.46%      -3.96%  
 

S&P 500 Stock Index

   -8.79%      -3.60%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%      7.30%  
 

*    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)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   15

 

Historical Performance

 

2050 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

      

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED FEBRUARY 29, 2008

   Returns    
  6 Months    Since Inception†     

AllianceBernstein 2050 Retirement Strategy

       

Class A

   -6.07%    -7.38%  
 

Class B

   -6.36%    -7.77%  
 

Class C

   -6.36%    -7.77%  
 

Advisor Class*

   -6.00%    -7.22%  
 

Class R*

   -6.12%    -7.44%  
 

Class K*

   -5.96%    -7.28%  
 

Class I*

   -6.00%    -7.22%  
 

Composite Benchmark**

   -8.79%    -9.58%  
 

S&P 500 Stock Index

   5.67%    -10.30%  
 

Lehman Brothers U.S. Aggregate Index

   -7.46%    7.86%  
 

*    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.

 

†    The since inception date for all of the 2050 Strategy’s share classes is 6/29/07. Returns for each share class and the indices are as of 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)

 

16   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2055 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

      

THE STRATEGY VS. ITS BENCHMARK

PERIODS ENDED FEBRUARY 29, 2008

   Returns    
  6 Months    Since Inception†     

AllianceBernstein 2055 Retirement Strategy

       

Class A

   -5.48%    -6.90%  
 

Class B

   -5.91%    -7.42%  
 

Class C

   -5.91%    -7.42%  
 

Advisor Class*

   -5.49%    -6.81%  
 

Class R*

   -5.64%    -7.06%  
 

Class K*

   -5.46%    -6.87%  
 

Class I*

   -5.49%    -6.81%  
 

Composite Benchmark**

   -8.79%    -9.58%  
 

S&P 500 Stock Index

   5.67%    -10.30%  
 

Lehman Brothers U.S. Aggregate Index

   -7.46%    7.86%  
 

*    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.

 

†    The since inception date for all of the 2055 Strategy’s share classes is 6/29/07. Returns for each share class and the indices are as of 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)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   17

 

Historical Performance

 

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

     
EACH UNDERLYING PORTFOLIO*† VS. ITS BENCHMARK
PERIODS ENDED FEBRUARY 29, 2008		        
  Returns    
  6 Months   12 Months     

AllianceBernstein Global Real Estate Investment Portfolio

   -9.87%   -16.70%  
 

FTSE EPRA/NAREIT Global RE Index

   -10.59%   -17.15%  
 

AllianceBernstein High-Yield Portfolio

   -1.93%   -3.43%  
 

Lehman Brothers U.S. High Yield 2% Issuer Cap Index

   -1.39%   -3.08%  
 

AllianceBernstein Inflation-Protected Securities Portfolio

   11.71%   15.17%  
 

Lehman Brothers U.S. 1-10 Year TIPS Index

   11.79%   15.24%  
 

AllianceBernstein Intermediate Duration Bond Portfolio

   4.34%   5.76%  
 

Lehman Brothers U.S. Aggregate Index

   5.67%   7.30%  
 

AllianceBernstein International Growth Portfolio

   -0.19%   7.48%  
 

MSCI EAFE Growth Index (net)

   -1.20%   6.92%  
 

MSCI AC World ex-U.S. Index (net)

   -1.63%   7.34%  
 

AllianceBernstein International Value Portfolio

   -10.03%   -4.53%  
 

MSCI EAFE Value Index (net)

   -8.25%   -5.07%  
 

AllianceBernstein Short Duration Bond Portfolio

   1.64%   3.27%  
 

Merrill Lynch 1-3 Year Treasury Index

   5.93%   9.17%  
 

AllianceBernstein Small-Mid Cap Growth Portfolio

   -11.50%   -0.75%  
 

Russell 2500 Growth Index

   -8.82%   -4.27%  
 

AllianceBernstein Small-Mid Cap Value Portfolio

   -8.47%   -5.48%  
 

Russell 2500 Value Index

   -12.63%   -15.50%  
 

AllianceBernstein U.S. Large Cap Growth Portfolio

   -7.27%   0.29%  
 

Russell 1000 Growth Index

   -6.56%   0.40%  
 

AllianceBernstein U.S. Value Portfolio

   -13.47%   -10.57%  
 

Russell 1000 Value Index

   -10.38%   -7.91%  
 

*  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)

 

18   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2000 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
Class A Shares        

1 Year

    0.29 %      -3.99 %

Since Inception*

    6.68 %      4.86 %
       
Class B Shares        

1 Year

    -0.45 %      -4.26 %

Since Inception*

    5.93 %      5.19 %
       
Class C Shares        

1 Year

    -0.45 %      -1.40 %

Since Inception*

    5.93 %      5.93 %
       
Advisor Class Shares†        

1 Year

    0.47 %      0.47 %

Since Inception*

    6.96 %      6.96 %
       
Class R Shares†        

1 Year

    -0.01 %      -0.01 %

Since Inception*

    6.43 %      6.43 %
       
Class K Shares†        

1 Year

    0.30 %      0.30 %

Since Inception*

    6.74 %      6.74 %
       
Class I Shares†        

1 Year

    0.51 %      0.51 %

Since Inception*

    7.00 %      7.00 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 8.90%, 7.67%, 9.13%, 10.00%, 6.91%, 4.44% and 7.96% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   19

 

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 (MARCH 31, 2008)   
     SEC Returns  
  
Class A Shares   

1 Year

    -5.13 %

Since Inception*

    4.58 %
  
Class B Shares   

1 Year

    -5.44 %

Since Inception*

    4.90 %
  
Class C Shares   

1 Year

    -2.71 %

Since Inception*

    5.58 %
  
Advisor Class Shares†   

1 Year

    -0.75 %

Since Inception*

    6.65 %
  
Class R Shares†   

1 Year

    -1.34 %

Since Inception*

    6.10 %
  
Class K Shares†   

1 Year

    -0.95 %

Since Inception*

    6.40 %
  
Class I Shares†   

1 Year

    -0.74 %

Since Inception*

    6.65 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

20   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2005 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -1.19 %      -5.38 %

Since Inception*

    6.39 %      4.57 %
       
Class B Shares        

1 Year

    -1.73 %      -5.47 %

Since Inception*

    5.68 %      4.94 %
       
Class C Shares        

1 Year

    -1.83 %      -2.76 %

Since Inception*

    5.60 %      5.60 %
       
Advisor Class Shares†        

1 Year

    -0.81 %      -0.81 %

Since Inception*

    6.70 %      6.70 %
       
Class R Shares†        

1 Year

    -1.38 %      -1.38 %

Since Inception*

    6.14 %      6.14 %
       
Class K Shares†        

1 Year

    -1.09 %      -1.09 %

Since Inception*

    6.45 %      6.45 %
       
Class I Shares†        

1 Year

    -0.81 %      -0.81 %

Since Inception*

    6.69 %      6.69 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 3.20%, 4.07%, 3.87%, 2.51%, 3.28%, 2.49% and 2.88% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   21

 

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 (MARCH 31, 2008)   
     SEC Returns  
  
Class A Shares   

1 Year

    -6.64 %

Since Inception*

    4.34 %
  
Class B Shares   

1 Year

    -6.89 %

Since Inception*

    4.62 %
  
Class C Shares   

1 Year

    -4.13 %

Since Inception*

    5.30 %
  
Advisor Class Shares†   

1 Year

    -2.27 %

Since Inception*

    6.36 %
  
Class R Shares†   

1 Year

    -2.76 %

Since Inception*

    5.81 %
  
Class K Shares†   

1 Year

    -2.37 %

Since Inception*

    6.16 %
  
Class I Shares†   

1 Year

    -2.19 %

Since Inception*

    6.39 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

22   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2010 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -2.04 %      -6.21 %

Since Inception*

    6.57 %      4.75 %
       
Class B Shares        

1 Year

    -2.60 %      -6.36 %

Since Inception*

    5.85 %      5.11 %
       
Class C Shares        

1 Year

    -2.68 %      -3.62 %

Since Inception*

    5.85 %      5.85 %
       
Advisor Class Shares†        

1 Year

    -1.66 %      -1.66 %

Since Inception*

    6.89 %      6.89 %
       
Class R Shares†        

1 Year

    -2.25 %      -2.25 %

Since Inception*

    6.37 %      6.37 %
       
Class K Shares†        

1 Year

    -1.94 %      -1.94 %

Since Inception*

    6.64 %      6.64 %
       
Class I Shares†        

1 Year

    -1.68 %      -1.68 %

Since Inception*

    6.89 %      6.89 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 1.69%, 2.46%, 2.39%, 1.40%, 1.91%, 1.63% and 1.33% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   23

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -7.59 %

Since Inception*

         4.51 %
       
Class B Shares        

1 Year

         -7.73 %

Since Inception*

         4.83 %
       
Class C Shares        

1 Year

         -5.03 %

Since Inception*

         5.54 %
       
Advisor Class Shares†        

1 Year

         -3.08 %

Since Inception*

         6.58 %
       
Class R Shares†        

1 Year

         -3.67 %

Since Inception*

         6.04 %
       
Class K Shares†        

1 Year

         -3.35 %

Since Inception*

         6.34 %
       
Class I Shares†        

1 Year

         -3.10 %

Since Inception*

         6.58 %

 

 

* 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 page 4.

(Historical Performance continued on next page)

 

24   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2015 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -3.27 %      -7.39 %

Since Inception*

    6.71 %      4.89 %
       
Class B Shares        

1 Year

    -3.96 %      -7.69 %

Since Inception*

    6.01 %      5.28 %
       
Class C Shares        

1 Year

    -3.87 %      -4.81 %

Since Inception*

    6.01 %      6.01 %
       
Advisor Class Shares†        

1 Year

    -2.97 %      -2.97 %

Since Inception*

    7.08 %      7.08 %
       
Class R Shares†        

1 Year

    -3.41 %      -3.41 %

Since Inception*

    6.54 %      6.54 %
       
Class K Shares†        

1 Year

    -3.19 %      -3.19 %

Since Inception*

    6.80 %      6.80 %
       
Class I Shares†        

1 Year

    -2.82 %      -2.82 %

Since Inception*

    7.10 %      7.10 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 1.46%, 2.16%, 2.09%, 1.03%, 1.80%, 1.42% and 1.11% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   25

 

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 (MARCH 31, 2008)   
     SEC Returns  
  
Class A Shares   

1 Year

    -8.89 %

Since Inception*

    4.61 %
  
Class B Shares   

1 Year

    -9.17 %

Since Inception*

    4.95 %
  
Class C Shares   

1 Year

    -6.42 %

Since Inception*

    5.66 %
  
Advisor Class Shares†   

1 Year

    -4.50 %

Since Inception*

    6.72 %
  
Class R Shares†   

1 Year

    -5.03 %

Since Inception*

    6.17 %
  
Class K Shares†   

1 Year

    -4.73 %

Since Inception*

    6.46 %
  
Class I Shares†   

1 Year

    -4.44 %

Since Inception*

    6.74 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

26   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2020 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -4.36 %      -8.46 %

Since Inception*

    6.73 %      4.90 %
       
Class B Shares        

1 Year

    -5.10 %      -8.79 %

Since Inception*

    5.96 %      5.22 %
       
Class C Shares        

1 Year

    -5.01 %      -5.94 %

Since Inception*

    6.00 %      6.00 %
       
Advisor Class Shares†        

1 Year

    -4.07 %      -4.07 %

Since Inception*

    7.05 %      7.05 %
       
Class R Shares†        

1 Year

    -4.61 %      -4.61 %

Since Inception*

    6.51 %      6.51 %
       
Class K Shares†        

1 Year

    -4.34 %      -4.34 %

Since Inception*

    6.80 %      6.80 %
       
Class I Shares†        

1 Year

    -4.10 %      -4.10 %

Since Inception*

    7.01 %      7.01 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 1.45%, 2.14%, 2.11%, 1.02%, 1.81%, 1.44% and 1.12% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   27

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -10.07 %

Since Inception*

         4.59 %
       
Class B Shares        

1 Year

         -10.40 %

Since Inception*

         4.86 %
       
Class C Shares        

1 Year

         -7.60 %

Since Inception*

         5.61 %
       
Advisor Class Shares†        

1 Year

         -5.81 %

Since Inception*

         6.66 %
       
Class R Shares†        

1 Year

         -6.28 %

Since Inception*

         6.14 %
       
Class K Shares†        

1 Year

         -6.09 %

Since Inception*

         6.38 %
       
Class I Shares†        

1 Year

         -5.85 %

Since Inception*

         6.63 %
       

 

* 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 page 4.

(Historical Performance continued on next page)

 

28   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2025 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -4.78 %      -8.83 %

Since Inception*

    7.68 %      5.83 %
       
Class B Shares        

1 Year

    -5.55 %      -9.23 %

Since Inception*

    6.85 %      6.12 %
       
Class C Shares        

1 Year

    -5.55 %      -6.47 %

Since Inception*

    6.89 %      6.89 %
       
Advisor Class Shares†        

1 Year

    -4.56 %      -4.56 %

Since Inception*

    7.95 %      7.95 %
       
Class R Shares†        

1 Year

    -4.95 %      -4.95 %

Since Inception*

    7.46 %      7.46 %
       
Class K Shares†        

1 Year

    -4.76 %      -4.76 %

Since Inception*

    7.69 %      7.69 %
       
Class I Shares†        

1 Year

    -4.49 %      -4.49 %

Since Inception*

    7.97 %      7.97 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 1.45%, 2.14%, 2.13%, 1.13%, 1.80%, 1.45% and 1.12% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   29

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -10.69 %

Since Inception*

         5.42 %
       
Class B Shares        

1 Year

         -11.01 %

Since Inception*

         5.69 %
       
Class C Shares        

1 Year

         -8.30 %

Since Inception*

         6.44 %
       
Advisor Class Shares†        

1 Year

         -6.40 %

Since Inception*

         7.50 %
       
Class R Shares†        

1 Year

         -6.87 %

Since Inception*

         6.99 %
       
Class K Shares†        

1 Year

         -6.61 %

Since Inception*

         7.24 %
       
Class I Shares†        

1 Year

         -6.41 %

Since Inception*

         7.51 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

30   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2030 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -5.06 %      -9.07 %

Since Inception*

    6.99 %      5.16 %
       
Class B Shares        

1 Year

    -5.69 %      -9.39 %

Since Inception*

    6.18 %      5.44 %
       
Class C Shares        

1 Year

    -5.68 %      -6.61 %

Since Inception*

    6.21 %      6.21 %
       
Advisor Class Shares†        

1 Year

    -4.62 %      -4.62 %

Since Inception*

    7.34 %      7.34 %
       
Class R Shares†        

1 Year

    -5.18 %      -5.18 %

Since Inception*

    6.86 %      6.86 %
       
Class K Shares†        

1 Year

    -4.96 %      -4.96 %

Since Inception*

    7.07 %      7.07 %
       
Class I Shares†        

1 Year

    -4.72 %      -4.72 %

Since Inception*

    7.30 %      7.30 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 1.76%, 2.42%, 2.30%, 1.52%, 2.04%, 1.64% and 1.30% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   31

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -11.01 %

Since Inception*

         4.77 %
       
Class B Shares        

1 Year

         -11.41 %

Since Inception*

         5.00 %
       
Class C Shares        

1 Year

         -8.69 %

Since Inception*

         5.75 %
       
Advisor Class Shares†        

1 Year

         -6.80 %

Since Inception*

         6.83 %
       
Class R Shares†        

1 Year

         -7.28 %

Since Inception*

         6.37 %
       
Class K Shares†        

1 Year

         -7.07 %

Since Inception*

         6.57 %
       
Class I Shares†        

1 Year

         -6.82 %

Since Inception*

         6.83 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

32   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2035 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -5.17 %      -9.23 %

Since Inception*

    7.08 %      5.25 %
       
Class B Shares        

1 Year

    -5.88 %      -9.58 %

Since Inception*

    6.31 %      5.57 %
       
Class C Shares        

1 Year

    -5.73 %      -6.65 %

Since Inception*

    6.34 %      6.34 %
       
Advisor Class Shares†        

1 Year

    -4.79 %      -4.79 %

Since Inception*

    7.40 %      7.40 %
       
Class R Shares†        

1 Year

    -5.25 %      -5.25 %

Since Inception*

    6.84 %      6.84 %
       
Class K Shares†        

1 Year

    -5.08 %      -5.08 %

Since Inception*

    7.15 %      7.15 %
       
Class I Shares†        

1 Year

    -4.84 %      -4.84 %

Since Inception*

    7.38 %      7.38 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 2.00%, 2.69%, 2.67%, 1.67%, 2.31%, 1.79% and 1.47% 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 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   33

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -11.24 %

Since Inception*

         4.82 %
       
Class B Shares        

1 Year

         -11.59 %

Since Inception*

         5.12 %
       
Class C Shares        

1 Year

         -8.88 %

Since Inception*

         5.83 %
       
Advisor Class Shares†        

1 Year

         -7.04 %

Since Inception*

         6.89 %
       
Class R Shares†        

1 Year

         -7.51 %

Since Inception*

         6.31 %
       
Class K Shares†        

1 Year

         -7.25 %

Since Inception*

         6.65 %
       
Class I Shares†        

1 Year

         -7.01 %

Since Inception*

         6.91 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

34   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2040 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF MARCH 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -5.12 %      -9.15 %

Since Inception*

    7.54 %      5.70 %
       
Class B Shares        

1 Year

    -5.76 %      -9.47 %

Since Inception*

    6.83 %      6.10 %
       
Class C Shares        

1 Year

    -5.76 %      -6.69 %

Since Inception*

    6.83 %      6.83 %
       
Advisor Class Shares†        

1 Year

    -4.80 %      -4.80 %

Since Inception*

    7.87 %      7.87 %
       
Class R Shares†        

1 Year

    -5.29 %      -5.29 %

Since Inception*

    7.36 %      7.36 %
       
Class K Shares†        

1 Year

    -5.06 %      -5.06 %

Since Inception*

    7.64 %      7.64 %
       
Class I Shares†        

1 Year

    -4.77 %      -4.77 %

Since Inception*

    7.88 %      7.88 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 2.98%, 4.19%, 3.98%, 3.10%, 3.11%, 2.50% and 1.96% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   35

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -11.21 %

Since Inception*

         5.26 %
       
Class B Shares        

1 Year

         -11.54 %

Since Inception*

         5.60 %
       
Class C Shares        

1 Year

         -8.82 %

Since Inception*

         6.31 %
       
Advisor Class Shares†        

1 Year

         -7.02 %

Since Inception*

         7.31 %
       
Class R Shares†        

1 Year

         -7.52 %

Since Inception*

         6.82 %
       
Class K Shares†        

1 Year

         -7.21 %

Since Inception*

         7.13 %
       
Class I Shares†        

1 Year

         -6.99 %

Since Inception*

         7.36 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

36   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2045 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

1 Year

    -5.03 %      -9.07 %

Since Inception*

    7.42 %      5.58 %
       
Class B Shares        

1 Year

    -5.59 %      -9.27 %

Since Inception*

    6.69 %      5.96 %
       
Class C Shares        

1 Year

    -5.67 %      -6.59 %

Since Inception*

    6.65 %      6.65 %
       
Advisor Class Shares†        

1 Year

    -4.67 %      -4.67 %

Since Inception*

    7.72 %      7.72 %
       
Class R Shares†        

1 Year

    -5.24 %      -5.24 %

Since Inception*

    7.18 %      7.18 %
       
Class K Shares†        

1 Year

    -4.91 %      -4.91 %

Since Inception*

    7.48 %      7.48 %
       
Class I Shares†        

1 Year

    -4.75 %      -4.75 %

Since Inception*

    7.72 %      7.72 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 2.95%, 4.01%, 4.08%, 3.17%, 3.22%, 2.66% and 2.17% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   37

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

1 Year

         -11.20 %

Since Inception*

         5.14 %
       
Class B Shares        

1 Year

         -11.43 %

Since Inception*

         5.46 %
       
Class C Shares        

1 Year

         -8.74 %

Since Inception*

         6.13 %
       
Advisor Class Shares†        

1 Year

         -6.90 %

Since Inception*

         7.20 %
       
Class R Shares†        

1 Year

         -7.40 %

Since Inception*

         6.68 %
       
Class K Shares†        

1 Year

         -7.15 %

Since Inception*

         6.97 %
       
Class I Shares†        

1 Year

         -6.91 %

Since Inception*

         7.20 %

 

* 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 page 4.

(Historical Performance continued on next page)

 

38   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2050 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

CUMULATIVE RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

Since Inception*

    -7.38 %      -11.29 %
       
Class B Shares        

Since Inception*

    -7.77 %      -11.41 %
       
Class C Shares        

Since Inception*

    -7.77 %      -8.68 %
       
Advisor Class Shares†        

Since Inception*

    -7.22 %      -7.22 %
       
Class R Shares†        

Since Inception*

    -7.44 %      -7.44 %
       
Class K Shares†        

Since Inception*

    -7.28 %      -7.28 %
       
Class I Shares†        

Since Inception*

    -7.22 %      -7.22 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 649.79%, 649.82%, 649.76%, 648.85%, 596.26%, 596.03% and 595.90% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   39

 

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 (MARCH 31, 2008)   
            SEC Returns  
       
Class A Shares        

Since Inception*

         -11.68 %
       
Class B Shares        

Since Inception*

         -11.80 %
       
Class C Shares        

Since Inception*

         -9.08 %
       
Advisor Class Shares†        

Since Inception*

         -7.52 %
       
Class R Shares†        

Since Inception*

         -7.84 %
       
Class K Shares†        

Since Inception*

         -7.58 %
       
Class I Shares†        

Since Inception*

         -7.52 %

 

 

* 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 page 4.

(Historical Performance continued on next page)

 

40   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

2055 RETIREMENT STRATEGY

HISTORICAL PERFORMANCE

(continued from previous page)

 

CUMULATIVE RETURNS AS OF FEBRUARY 29, 2008  
     NAV Returns        SEC Returns  
       
Class A Shares        

Since Inception*

    -6.90 %      -10.83 %
       
Class B Shares        

Since Inception*

    -7.42 %      -10.98 %
       
Class C Shares        

Since Inception*

    -7.42 %      -8.31 %
       
Advisor Class Shares†        

Since Inception*

    -6.81 %      -6.81 %
       
Class R Shares†        

Since Inception*

    -7.06 %      -7.06 %
       
Class K Shares†        

Since Inception*

    -6.87 %      -6.87 %
       
Class I Shares†        

Since Inception*

    -6.81 %      -6.81 %

The Strategy’s current prospectus fee table shows the Strategy’s total annual operating expense ratios as 643.46%, 638.70%, 638.70%, 637.97%, 586.75%, 586.45% and 586.29% 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. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

 

* 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 page 4.

(Historical Performance continued on next page)

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   41

 

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 (MARCH 31, 2008)   
            SEC Returns  
Class A Shares        

Since Inception*

         -11.52 %
       
Class B Shares        

Since Inception*

         -11.68 %
       
Class C Shares        

Since Inception*

         -9.03 %
       
Advisor Class Shares†        

Since Inception*

         -7.44 %
       
Class R Shares†        

Since Inception*

         -7.78 %
       
Class K Shares†        

Since Inception*

         -7.60 %
       
Class I Shares†        

Since Inception*

         -7.44 %

 

 

* 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 page 4.

(Historical Performance continued on next page)

 

42   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Historical Performance

 

THE UNDERLYING PORTFOLIOS

HISTORICAL PERFORMANCE

(continued from previous page)

 

AVERAGE ANNUAL RETURNS FOR THE UNDERLYING PORTFOLIOS^~ AS OF FEBRUARY 29, 2008   
     NAV/SEC Returns†  
  
AllianceBernstein Global Real Estate Investment Portfolio   

1 Year

    -16.70 %

Since Inception*

    13.24 %
  
AllianceBernstein High-Yield Portfolio   

1 Year

    -3.43 %

Since Inception*

    4.54 %
  
AllianceBernstein Inflation-Protected Securities Portfolio   

1 Year

    15.17 %

Since Inception*

    6.86 %
  
AllianceBernstein Intermediate Duration Bond Portfolio   

1 Year

    5.76 %

Since Inception*

    4.87 %
  
AllianceBernstein International Growth Portfolio   

1 Year

    7.48 %

Since Inception*

    15.97 %
  
AllianceBernstein International Value Portfolio   

1 Year

    -4.53 %

Since Inception*

    17.73 %
  
AllianceBernstein Short Duration Bond Portfolio   

1 Year

    3.27 %

Since Inception*

    3.73 %
  
AllianceBernstein Small-Mid Cap Growth Portfolio   

1 Year

    -0.75 %

Since Inception*

    11.12 %
  
AllianceBernstein Small-Mid Cap Value Portfolio   

1 Year

    -5.48 %

Since Inception*

    7.41 %
  
AllianceBernstein U.S. Large Cap Growth Portfolio   

1 Year

    0.29 %

Since Inception*

    6.61 %
  
AllianceBernstein U.S. Value Portfolio   

1 Year

    -10.57 %

Since Inception*

    5.36 %

 

* Inception dates: 5/20/05 for all Portfolios.

 

† 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 may be sales charges in connection with purchases of other AllianceBernstein funds which invest 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. The Underlying Portfolios are not currently offered for direct investment from the general public.

 

~ The Underlying Portfolios do not bear sales charges or management fees.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   43

 

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 (MARCH 31, 2008)   
     NAV/SEC Returns†  
  
AllianceBernstein Global Real Estate Investment Portfolio   

1 Year

    -15.36 %

Since Inception*

    13.72 %
  
AllianceBernstein High-Yield Portfolio   

1 Year

    -3.94 %

Since Inception*

    4.30 %
  
AllianceBernstein Inflation-Protected Securities Portfolio   

1 Year

    14.78 %

Since Inception*

    6.79 %
  
AllianceBernstein Intermediate Duration Bond Portfolio   

1 Year

    5.64 %

Since Inception*

    4.72 %
  
AllianceBernstein International Growth Portfolio   

1 Year

    1.37 %

Since Inception*

    14.29 %
  
AllianceBernstein International Value Portfolio   

1 Year

    -5.40 %

Since Inception*

    17.52 %
  
AllianceBernstein Short Duration Bond Portfolio   

1 Year

    1.42 %

Since Inception*

    3.12 %
  
AllianceBernstein Small-Mid Cap Growth Portfolio   

1 Year

    -3.12 %

Since Inception*

    10.56 %
  
AllianceBernstein Small-Mid Cap Value Portfolio   

1 Year

    -7.16 %

Since Inception*

    7.59 %
  
AllianceBernstein U.S. Large Cap Growth Portfolio   

1 Year

    -2.04 %

Since Inception*

    6.11 %
  
AllianceBernstein U.S. Value Portfolio   

1 Year

    -12.87 %

Since Inception*

    4.80 %

 

* Inception dates: 5/20/05 for all Portfolios.

 

† 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.

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

 

44   •  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  •   45

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2000 Retirement Strategy

 

     Beginning
Account Value
September 1, 2007		    Ending
Account Value
February 29, 2008		    Expenses
Paid During
Period*		    Annualized
Expense
Ratio*		  

Class A

            

Actual

    $   1,000    $ 978.92    $   4.03    0.82 %
Hypothetical**    $ 1,000    $   1,020.79    $ 4.12    0.82 %

Class B

            

Actual

    $ 1,000    $ 975.75    $ 7.47    1.52 %
Hypothetical**    $ 1,000    $ 1,017.30    $ 7.62    1.52 %

Class C

            

Actual

    $ 1,000    $ 975.75    $ 7.47    1.52 %
Hypothetical**    $ 1,000    $ 1,017.30    $ 7.62    1.52 %

Advisor Class

            

Actual

    $ 1,000    $ 979.96    $ 2.56    0.52 %
Hypothetical**    $ 1,000    $ 1,022.28    $ 2.61    0.52 %

Class R

            

Actual

    $ 1,000    $ 978.20    $ 5.02    1.02 %
Hypothetical**    $ 1,000    $ 1,019.79    $ 5.12    1.02 %

Class K

            

Actual

    $ 1,000    $ 979.54    $ 3.79    0.77 %
Hypothetical**    $ 1,000    $ 1,021.03    $ 3.87    0.77 %

Class I

            

Actual

    $ 1,000    $ 981.68    $ 2.56    0.52 %
Hypothetical**    $ 1,000    $ 1,022.28    $ 2.61    0.52 %

2005 Retirement Strategy

 

     Beginning
Account Value
September 1, 2007		    Ending
Account Value
February 29, 2008		    Expenses
Paid During
Period*		    Annualized
Expense
Ratio*		  

Class A

            

Actual

    $   1,000    $ 965.47    $   4.30    0.88 %
Hypothetical**    $ 1,000    $   1,020.49    $ 4.42    0.88 %

Class B

            

Actual

    $ 1,000    $ 962.45    $ 7.71    1.58 %
Hypothetical**    $ 1,000    $ 1,017.01    $ 7.92    1.58 %

Class C

            

Actual

    $ 1,000    $ 962.35    $ 7.71    1.58 %
Hypothetical**    $ 1,000    $ 1,017.01    $ 7.92    1.58 %

Advisor Class

            

Actual

    $ 1,000    $ 967.60    $ 2.84    0.58 %
Hypothetical**    $ 1,000    $ 1,021.98    $ 2.92    0.58 %

Class R

            

Actual

    $ 1,000    $ 964.34    $ 5.27    1.08 %
Hypothetical**    $ 1,000    $ 1,019.49    $ 5.42    1.08 %

Class K

            

Actual

    $ 1,000    $ 966.42    $ 4.06    0.83 %
Hypothetical**    $ 1,000    $ 1,020.74    $ 4.17    0.83 %

Class I

            

Actual

    $ 1,000    $ 967.49    $ 2.84    0.58 %
Hypothetical**    $ 1,000    $ 1,021.98    $ 2.92    0.58 %

 

46   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2010 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 954.32   $   4.37   0.90 %
Hypothetical**   $ 1,000   $   1,020.39   $ 4.52   0.90 %

Class B

        

Actual

   $ 1,000   $ 951.89   $ 7.76   1.60 %
Hypothetical**   $ 1,000   $ 1,016.91   $ 8.02   1.60 %

Class C

        

Actual

   $ 1,000   $ 951.09   $ 7.76   1.60 %
Hypothetical**   $ 1,000   $ 1,016.91   $ 8.02   1.60 %

Advisor Class

        

Actual

   $ 1,000   $ 955.67   $ 2.92   0.60 %
Hypothetical**   $ 1,000   $ 1,021.88   $ 3.02   0.60 %

Class R

        

Actual

   $ 1,000   $ 953.03   $ 5.34   1.10 %
Hypothetical**   $ 1,000   $ 1,019.39   $ 5.52   1.10 %

Class K

        

Actual

   $ 1,000   $ 954.51   $ 4.13   0.85 %
Hypothetical**   $ 1,000   $ 1,020.64   $ 4.27   0.85 %

Class I

        

Actual

   $ 1,000   $ 955.48   $ 2.92   0.60 %
Hypothetical**   $ 1,000   $ 1,021.88   $ 3.02   0.60 %

2015 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 940.43   $   4.54   0.94 %
Hypothetical**   $ 1,000   $   1,020.19   $ 4.72   0.94 %

Class B

        

Actual

   $ 1,000   $ 937.50   $ 7.90   1.64 %
Hypothetical**   $ 1,000   $ 1,016.71   $ 8.22   1.64 %

Class C

        

Actual

   $ 1,000   $ 937.50   $ 7.90   1.64 %
Hypothetical**   $ 1,000   $ 1,016.71   $ 8.22   1.64 %

Advisor Class

        

Actual

   $ 1,000   $ 941.99   $ 3.09   0.64 %
Hypothetical**   $ 1,000   $ 1,021.68   $ 3.22   0.64 %

Class R

        

Actual

   $ 1,000   $ 939.85   $ 5.50   1.14 %
Hypothetical**   $ 1,000   $ 1,019.19   $ 5.72   1.14 %

Class K

        

Actual

   $ 1,000   $ 941.29   $ 4.30   0.89 %
Hypothetical**   $ 1,000   $ 1,020.44   $ 4.47   0.89 %

Class I

        

Actual

   $ 1,000   $ 942.61   $ 3.09   0.64 %
Hypothetical**   $ 1,000   $ 1,021.68   $ 3.22   0.64 %

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   47

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2020 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 929.43   $   4.70   0.98 %
Hypothetical**   $ 1,000   $   1,019.99   $ 4.92   0.98 %

Class B

        

Actual

   $ 1,000   $ 925.83   $ 8.04   1.68 %
Hypothetical**   $ 1,000   $ 1,016.51   $ 8.42   1.68 %

Class C

        

Actual

   $ 1,000   $ 926.66   $ 8.05   1.68 %
Hypothetical**   $ 1,000   $ 1,016.51   $ 8.42   1.68 %

Advisor Class

        

Actual

   $ 1,000   $ 930.12   $ 3.26   0.68 %
Hypothetical**   $ 1,000   $ 1,021.48   $ 3.42   0.68 %

Class R

        

Actual

   $ 1,000   $ 927.67   $ 5.66   1.18 %
Hypothetical**   $ 1,000   $ 1,019.00   $ 5.92   1.18 %

Class K

        

Actual

   $ 1,000   $ 929.70   $ 4.46   0.93 %
Hypothetical**   $ 1,000   $ 1,020.24   $ 4.67   0.93 %

Class I

        

Actual

   $ 1,000   $ 929.76   $ 3.26   0.68 %
Hypothetical**   $ 1,000   $ 1,021.48   $ 3.42   0.68 %

2025 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 920.25   $   4.77   1.00 %
Hypothetical**   $ 1,000   $   1,019.89   $ 5.02   1.00 %

Class B

        

Actual

   $ 1,000   $ 916.92   $ 8.10   1.70 %
Hypothetical**   $ 1,000   $ 1,016.41   $ 8.52   1.70 %

Class C

        

Actual

   $ 1,000   $ 916.26   $ 8.10   1.70 %
Hypothetical**   $ 1,000   $ 1,016.41   $ 8.52   1.70 %

Advisor Class

        

Actual

   $ 1,000   $ 921.08   $ 3.34   0.70 %
Hypothetical**   $ 1,000   $ 1,021.38   $ 3.52   0.70 %

Class R

        

Actual

   $ 1,000   $ 919.37   $ 5.73   1.20 %
Hypothetical**   $ 1,000   $ 1,018.90   $ 6.02   1.20 %

Class K

        

Actual

   $ 1,000   $ 920.44   $ 4.54   0.95 %
Hypothetical**   $ 1,000   $ 1,020.14   $ 4.77   0.95 %

Class I

        

Actual

   $ 1,000   $ 921.01   $ 3.34   0.70 %
Hypothetical**   $ 1,000   $ 1,021.38   $ 3.52   0.70 %

 

48   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2030 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 915.02   $   4.86   1.02 %
Hypothetical**   $ 1,000   $   1,019.79   $ 5.12   1.02 %

Class B

        

Actual

   $ 1,000   $ 911.58   $ 8.17   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Class C

        

Actual

   $ 1,000   $ 910.92   $ 8.17   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Advisor Class

        

Actual

   $ 1,000   $ 917.15   $ 3.43   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

Class R

        

Actual

   $ 1,000   $ 913.81   $ 5.81   1.22 %
Hypothetical**   $ 1,000   $ 1,018.80   $ 6.12   1.22 %

Class K

        

Actual

   $ 1,000   $ 915.24   $ 4.62   0.97 %
Hypothetical**   $ 1,000   $ 1,020.04   $ 4.87   0.97 %

Class I

        

Actual

   $ 1,000   $ 916.17   $ 3.43   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

2035 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 911.96   $   4.85   1.02 %
Hypothetical**   $ 1,000   $   1,019.79   $ 5.12   1.02 %

Class B

        

Actual

   $ 1,000   $ 908.42   $ 8.16   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Class C

        

Actual

   $ 1,000   $ 909.20   $ 8.16   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Advisor Class

        

Actual

   $ 1,000   $ 913.50   $ 3.43   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

Class R

        

Actual

   $ 1,000   $ 911.76   $ 5.80   1.22 %
Hypothetical**   $ 1,000   $ 1,018.80   $ 6.12   1.22 %

Class K

        

Actual

   $ 1,000   $ 912.75   $ 4.61   0.97 %
Hypothetical**   $ 1,000   $ 1,020.04   $ 4.87   0.97 %

Class I

        

Actual

   $ 1,000   $ 912.98   $ 3.42   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   49

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2040 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $ 1,000   $ 913.44   $ 4.85   1.02 %
Hypothetical**   $ 1,000   $ 1,019.79   $ 5.12   1.02 %

Class B

        

Actual

   $ 1,000   $ 910.66   $ 8.17   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Class C

        

Actual

   $ 1,000   $ 910.66   $ 8.17   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Advisor Class

        

Actual

   $ 1,000   $ 915.29   $ 3.43   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

Class R

        

Actual

   $ 1,000   $ 912.40   $ 5.80   1.22 %
Hypothetical**   $ 1,000   $ 1,018.80   $ 6.12   1.22 %

Class K

        

Actual

   $ 1,000   $ 913.32   $ 4.61   0.97 %
Hypothetical**   $ 1,000   $ 1,020.04   $ 4.87   0.97 %

Class I

        

Actual

   $ 1,000   $ 914.73   $ 3.43   0.72 %
Hypothetical**   $   1,000   $   1,021.28   $   3.62   0.72 %

2045 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 911.43   $ 4.85   1.02 %
Hypothetical**   $ 1,000   $   1,019.79   $   5.12   1.02 %

Class B

        

Actual

   $ 1,000   $ 909.36   $ 8.17   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Class C

        

Actual

   $ 1,000   $ 908.57   $ 8.16   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Advisor Class

        

Actual

   $ 1,000   $ 913.57   $ 3.43   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

Class R

        

Actual

   $ 1,000   $ 910.73   $ 5.80   1.22 %
Hypothetical**   $ 1,000   $ 1,018.80   $ 6.12   1.22 %

Class K

        

Actual

   $ 1,000   $ 912.51   $ 4.61   0.97 %
Hypothetical**   $ 1,000   $ 1,020.04   $ 4.87   0.97 %

Class I

        

Actual

   $ 1,000   $ 913.46   $ 3.43   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

 

50   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Fund Expenses

FUND EXPENSES

(continued from previous page)

 

2050 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 939.30   $ 4.92   1.02 %
Hypothetical**   $ 1,000   $   1,019.79   $   5.12   1.02 %

Class B

        

Actual

   $ 1,000   $ 936.38   $ 8.28   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Class C

        

Actual

   $ 1,000   $ 936.38   $ 8.28   1.72 %
Hypothetical**   $ 1,000   $ 1,016.31   $ 8.62   1.72 %

Advisor Class

        

Actual

   $ 1,000   $ 940.02   $ 3.47   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

Class R

        

Actual

   $ 1,000   $ 938.79   $ 5.88   1.22 %
Hypothetical**   $ 1,000   $ 1,018.80   $ 6.12   1.22 %

Class K

        

Actual

   $ 1,000   $ 940.40   $ 4.68   0.97 %
Hypothetical**   $ 1,000   $ 1,020.04   $ 4.87   0.97 %

Class I

        

Actual

   $ 1,000   $ 940.02   $ 3.47   0.72 %
Hypothetical**   $ 1,000   $ 1,021.28   $ 3.62   0.72 %

2055 Retirement Strategy

 

    Beginning
Account Value
September 1, 2007		   Ending
Account Value
February 29, 2008		   Expenses
Paid During
Period*		   Annualized
Expense
Ratio*		  

Class A

        

Actual

   $   1,000   $ 945.15   $   5.08   1.05 %
Hypothetical**   $ 1,000   $   1,019.64   $ 5.27   1.05 %

Class B

        

Actual

   $ 1,000   $ 940.85   $ 8.49   1.76 %
Hypothetical**   $ 1,000   $ 1,016.11   $ 8.82   1.76 %

Class C

        

Actual

   $ 1,000   $ 940.89   $ 8.44   1.75 %
Hypothetical**   $ 1,000   $ 1,016.16   $ 8.77   1.75 %

Advisor Class

        

Actual

   $ 1,000   $ 945.11   $ 3.63   0.75 %
Hypothetical**   $ 1,000   $ 1,021.13   $ 3.77   0.75 %

Class R

        

Actual

   $ 1,000   $ 943.60   $ 5.99   1.24 %
Hypothetical**   $ 1,000   $ 1,018.70   $ 6.22   1.24 %

Class K

        

Actual

   $ 1,000   $ 945.44   $ 4.79   0.99 %
Hypothetical**   $ 1,000   $ 1,019.94   $ 4.97   0.99 %

Class I

        

Actual

   $ 1,000   $ 945.11   $ 3.58   0.74 %
Hypothetical**   $ 1,000   $ 1,021.18   $ 3.72   0.74 %
* Expenses are equal to each Class’ annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   51

 

Fund Expenses

 

2000 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $16,156

LOGO

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 1.40%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on page 43-44.

 

52   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

2005 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $32,110

LOGO

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.66%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on page 43-44.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   53

 

Portfolio Summary

 

2010 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $153,813

LOGO

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.21%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on page 43-44.

 

54   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

2015 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $217,039

LOGO

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.18%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on page 43-44.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   55

 

Portfolio Summary

 

2020 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $264,251

LOGO

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.14%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on page 43-44.

 

56   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

2025 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $214,375

LOGO

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.10%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on page 43-44.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   57

 

Portfolio Summary

 

2030 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $167,093

LOGO

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.08%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

 

58   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

2035 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $108,492

LOGO

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.08%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   59

 

Portfolio Summary

 

2040 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $82,217

LOGO

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.08%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

 

60   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

2045 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $48,804

LOGO

 

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.08%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   61

 

Portfolio Summary

 

2050 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $642

LOGO

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.08%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

 

62   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

2055 RETIREMENT STRATEGY

PORTFOLIO SUMMARY

February 29, 2008

PORTFOLIO STATISTICS

Net Assets ($thousand): $329

LOGO

 

 

* All data are as of February 29, 2008. 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 February 29, 2008, the Strategy’s total exposure to subprime investments was 0.08%. 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 216-307. Performance for each of the Underlying Portfolios compared to its benchmark may be found on page 18. Additional performance for the Underlying Portfolios may be found on pages 43-44.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   63

 

Portfolio Summary

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2000 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein Intermediate Duration Bond (shares of 296,869)

    $ 2,974,630  

AllianceBernstein Inflation Protected Securities (shares of 231,777)

      2,473,057  

AllianceBernstein Short Duration Bond (shares of 239,916)

      2,343,979  

AllianceBernstein U.S. Large Cap Growth (shares of 161,882)

      1,816,314  

AllianceBernstein U.S. Value (shares of 174,232)

      1,784,131  

AllianceBernstein Global Real Estate Investment (shares of 150,705)

      1,605,003  

AllianceBernstein International Value (shares of 79,344)

      960,059  

AllianceBernstein International Growth (shares of 73,146)

      953,087  

AllianceBernstein High Yield (shares of 59,980)

      559,010  

AllianceBernstein Small-Mid Cap Value (shares of 32,875)

      361,959  

AllianceBernstein Small-Mid Cap Growth (shares of 30,211)

      359,509  
        

Total investments (cost $17,217,900)

      16,190,738  

Receivable due from Adviser

      29,541  

Receivable for capital stock sold

      26,695  
        

Total assets

      16,246,974  
        
Liabilities   

Audit fee payable

      21,549  

Registration fee payable

      18,452  

Payable for capital stock redeemed

      16,749  

Transfer Agent fee payable

      7,471  

Printing fee payable

      6,522  

Custody fee payable

      6,043  

Distribution fee payable

      4,505  

Payable for investments purchased

      4,487  

Accrued expenses

      4,992  
        

Total liabilities

      90,770  
        

Net Assets

    $ 16,156,204  
        
Composition of Net Assets   

Capital stock, at par

    $ 1,487  

Additional paid-in capital

      16,953,277  

Distributions in excess of net investment income

      (10,622 )

Accumulated net realized gain on investment transactions

      239,224  

Net unrealized depreciation on investments

      (1,027,162 )
        
   $     16,156,204  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   5,681,635      517,819      $   10.97 *
   
B   $ 141,209      13,035      $ 10.83  
   
C   $ 1,399,518      129,206      $ 10.83  
   
Advisor   $ 575,580      52,257      $ 11.01  
   
R   $ 644,162      59,295      $ 10.86  
   
K   $ 6,909,574      641,069      $ 10.78  
   
I   $ 804,526      74,383      $ 10.82  
   

 

* The maximum offering price per share for Class A shares was $11.46 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

64   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2005 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein Intermediate Duration Bond (shares of 492,908)

    $ 4,938,935  

AllianceBernstein Inflation Protected Securities (shares of 446,393)

      4,763,008  

AllianceBernstein U.S. Large Cap Growth (shares of 390,920)

      4,386,122  

AllianceBernstein U.S. Value (shares of 424,067)

      4,342,445  

AllianceBernstein Global Real Estate Investment (shares of 295,568)

      3,147,804  

AllianceBernstein International Growth (shares of 178,799)

      2,329,746  

AllianceBernstein International Value (shares of 192,105)

      2,324,470  

AllianceBernstein High Yield (shares of 197,025)

      1,836,277  

AllianceBernstein Short Duration Bond (shares of 176,611)

      1,725,493  

AllianceBernstein Small-Mid Cap Growth (shares of 81,049)

      964,486  

AllianceBernstein Small-Mid Cap Value (shares of 87,376)

      962,014  
        

Total investments (cost $34,604,974)

      31,720,800  

Receivable for capital stock sold

      518,822  

Receivable due from Adviser

      16,283  
        

Total assets

      32,255,905  
        
Liabilities   

Payable for capital stock redeemed

      39,992  

Payable for investments purchased

      37,071  

Audit fee payable

      21,549  

Registration fee payable

      18,076  

Distribution fee payable

      9,484  

Transfer Agent fee payable

      4,378  

Accrued expenses

      14,892  
        

Total liabilities

      145,442  
        

Net Assets

    $ 32,110,463  
        
Composition of Net Assets   

Capital stock, at par

    $ 2,982  

Additional paid-in capital

      34,218,748  

Distributions in excess of net investment income

      (40,081 )

Accumulated net realized gain on investment transactions

      812,988  

Net unrealized depreciation on investments

      (2,884,174 )
        
   $     32,110,463  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   16,008,432      1,483,127      $   10.79 *
   
B   $ 651,231      61,004      $ 10.68  
   
C   $ 1,954,254      183,278      $ 10.66  
   
Advisor   $ 277,355      25,614      $ 10.83  
   
R   $ 3,980,297      371,197      $ 10.72  
   
K   $ 7,539,775      700,036      $ 10.77  
   
I   $ 1,699,119      157,457      $ 10.79  
   

 

* The maximum offering price per share for Class A shares was $11.27 which reflects a sales charge of 4.25%.

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   65

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2010 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 2,179,828)

    $ 24,457,674  

AllianceBernstein U.S. Value (shares of 2,352,529)

      24,089,902  

AllianceBernstein Intermediate Duration Bond (shares of 2,056,736)

      20,608,496  

AllianceBernstein Inflation Protected Securities (shares of 1,760,667)

      18,786,312  

AllianceBernstein Global Real Estate Investment (shares of 1,429,766)

      15,227,010  

AllianceBernstein International Value (shares of 1,095,723)

      13,258,250  

AllianceBernstein International Growth (shares of 1,014,435)

      13,218,093  

AllianceBernstein High Yield (shares of 1,148,284)

      10,702,011  

AllianceBernstein Small-Mid Cap Value (shares of 567,004)

      6,242,712  

AllianceBernstein Small-Mid Cap Growth (shares of 519,432)

      6,181,235  
        

Total investments (cost $168,083,085)

      152,771,695  

Receivable for capital stock sold

      1,394,460  
        

Total assets

      154,166,155  
        
Liabilities   

Payable for investments purchased

      113,263  

Payable for capital stock redeemed

      89,199  

Advisory fee payable

      41,332  

Distribution fee payable

      34,548  

Audit fee payable

      21,549  

Transfer Agent fee payable

      17,879  

Accrued expenses

      35,064  

Total liabilities

      352,834  
        

Net Assets

    $ 153,813,321  
        
Composition of Net Assets   

Capital stock, at par

    $ 13,996  

Additional paid-in capital

      164,594,357  

Distributions in excess of net investment income

      (203,982 )

Accumulated net realized gain on investment transactions

      4,720,340  

Net unrealized depreciation on investments

      (15,311,390 )
        
   $     153,813,321  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   61,507,188      5,599,550      $   10.98 *
   
B   $ 1,267,888      116,196      $ 10.91  
   
C   $ 2,412,991      221,222      $ 10.91  
   
Advisor   $ 8,943,641      810,762      $ 11.03  
   
R   $ 11,323,456      1,033,454      $ 10.96  
   
K   $ 54,376,923      4,945,959      $ 10.99  
   
I   $ 13,981,234      1,268,497      $ 11.02  
   

 

* The maximum offering price per share for Class A shares was $11.47 which reflects a sales charge of 4.25%.

See notes to financial statements.

 

66   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2015 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 3,374,885)

    $ 37,866,206  

AllianceBernstein U.S. Value (shares of 3,632,809)

      37,199,966  

AllianceBernstein Intermediate Duration Bond (shares of 2,470,983)

      24,759,251  

AllianceBernstein Global Real Estate Investment (shares of 2,023,189)

      21,546,967  

AllianceBernstein International Value (shares of 1,738,518)

      21,036,070  

AllianceBernstein International Growth (shares of 1,613,547)

      21,024,513  

AllianceBernstein Inflation Protected Securities (shares of 1,450,861)

      15,480,685  

AllianceBernstein High Yield (shares of 1,621,580)

      15,113,123  

AllianceBernstein Small-Mid Cap Value (shares of 987,979)

      10,877,649  

AllianceBernstein Small-Mid Cap Growth (shares of 896,458)

      10,667,852  
        

Total investments (cost $238,356,711)

      215,572,282  

Receivable for capital stock sold

      1,852,109  
        

Total assets

      217,424,391  
        
Liabilities   

Payable for capital stock redeemed

      116,357  

Advisory fee payable

      72,370  

Payable for investments purchased

      70,493  

Distribution fee payable

      47,716  

Audit fee payable

      21,549  

Transfer Agent fee payable

      21,292  

Accrued expenses

      35,298  
        

Total liabilities

      385,075  
        

Net Assets

    $ 217,039,316  
        
Composition of Net Assets   

Capital stock, at par

    $ 19,490  

Additional paid-in capital

      232,830,622  

Distributions in excess of net investment income

      (322,180 )

Accumulated net realized gain on investment transactions

      7,295,813  

Net unrealized depreciation on investments

      (22,784,429 )
        
   $     217,039,316  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   75,946,915      6,826,810      $   11.12 *
   
B   $ 3,563,956      322,402      $ 11.05  
   
C   $ 2,195,370      198,724      $ 11.05  
   
Advisor   $ 2,235,129      199,877      $ 11.18  
   
R   $ 15,742,240      1,418,347      $ 11.10  
   
K   $ 85,563,144      7,680,281      $ 11.14  
   
I   $ 31,792,562      2,843,843      $ 11.18  
   

 

* The maximum offering price per share for Class A shares was $11.61 which reflects a sales charge of 4.25%.

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   67

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2020 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 4,524,661)

    $ 50,766,692  

AllianceBernstein U.S. Value (shares of 4,861,389)

      49,780,628  

AllianceBernstein International Value (shares of 2,401,310)

      29,055,846  

AllianceBernstein International Growth (shares of 2,204,702)

      28,727,269  

AllianceBernstein Global Real Estate Investment (shares of 2,454,678)

      26,142,317  

AllianceBernstein Intermediate Duration Bond (shares of 2,378,367)

      23,831,242  

AllianceBernstein High Yield (shares of 1,985,818)

      18,507,828  

AllianceBernstein Small-Mid Cap Value (shares of 1,362,923)

      15,005,783  

AllianceBernstein Small-Mid Cap Growth (shares of 1,228,394)

      14,617,884  

AllianceBernstein Inflation Protected Securities (shares of 613,009)

      6,540,806  
        

Total investments (cost $295,675,313)

      262,976,295  

Receivable for capital stock sold

      2,199,994  
        

Total assets

      265,176,289  
        
Liabilities   

Payable for capital stock redeemed

      524,793  

Payable for investments purchased

      156,696  

Advisory fee payable

      94,596  

Distribution fee payable

      60,639  

Transfer Agent fee payable

      29,826  

Dividends payable

      614  

Accrued expenses

      57,689  
        

Total liabilities

      924,853  
        

Net Assets

    $ 264,251,436  
        
Composition of Net Assets   

Capital stock, at par

    $ 23,665  

Additional paid-in capital

      287,351,217  

Distributions in excess of net investment income

      (434,959 )

Accumulated net realized gain on investment transactions

      10,010,531  

Net unrealized depreciation on investments

      (32,699,018 )
        
   $     264,251,436  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $     87,749,899      7,863,219      $   11.16 *
   
B   $ 3,189,563      288,093      $ 11.07  
   
C   $ 3,260,768      294,377      $ 11.08  
   
Advisor   $ 2,940,273      262,210      $ 11.21  
   
R   $ 25,538,432      2,298,283      $ 11.11  
   
K   $ 108,734,646      9,727,989      $ 11.18  
   
I   $ 32,837,855      2,930,712      $ 11.20  
   

 

* The maximum offering price per share for Class A shares was $11.66 which reflects a sales charge of 4.25%.

 

   See notes to financial statements.

 

68   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

 

     2025 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares
of 4,039,890)

    $ 45,327,560  

AllianceBernstein U.S. Value (shares of 4,337,436)

      44,415,349  

AllianceBernstein International Value (shares of 2,122,472)

      25,681,907  

AllianceBernstein International Growth (shares
of 1,946,960)

      25,368,886  

AllianceBernstein Global Real Estate Investment (shares
of 1,756,328)

      18,704,894  

AllianceBernstein Small-Mid Cap Value (shares
of 1,246,502)

      13,723,985  

AllianceBernstein Intermediate Duration Bond (shares
of 1,355,238)

      13,579,484  

AllianceBernstein High Yield (shares of 1,425,740)

      13,287,896  

AllianceBernstein Small-Mid Cap Growth (shares
of 1,105,722)

      13,158,097  
        

Total investments (cost $240,051,077)

      213,248,058  

Receivable for capital stock sold

      1,818,471  
        

Total assets

      215,066,529  
        
Liabilities   

Payable for capital stock redeemed

      432,273  

Advisory fee payable

      77,315  

Payable for investments purchased

      67,858  

Distribution fee payable

      49,254  

Transfer Agent fee payable

      11,910  

Accrued expenses

      52,444  
        

Total liabilities

      691,054  
        

Net Assets

    $ 214,375,475  
        
Composition of Net Assets   

Capital stock, at par

    $ 18,750  

Additional paid-in capital

      232,892,890  

Distributions in excess of net investment income

      (380,398 )

Accumulated net realized gain on investment transactions

      8,647,252  

Net unrealized depreciation on investments

      (26,803,019 )
        
   $     214,375,475  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   78,702,624      6,888,591      $   11.43 *
   
B   $ 1,786,852      157,962      $ 11.31  
   
C   $ 2,585,225      228,370      $ 11.32  
   
Advisor   $ 1,284,011      111,913      $ 11.47  
   
R   $ 17,510,058      1,533,706      $ 11.42  
   
K   $ 89,743,264      7,845,582      $ 11.44  
   
I   $ 22,763,441      1,984,243      $ 11.47  
   

 

* The maximum offering price per share for Class A shares was $11.94 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   69

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

 

     2030 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares
of 3,411,784)

    $ 38,280,220  

AllianceBernstein U.S. Value (shares of 3,657,439)

      37,452,170  

AllianceBernstein International Value (shares of 1,798,842)

      21,765,994  

AllianceBernstein International Growth (shares
of 1,655,288)

      21,568,396  

AllianceBernstein Small-Mid Cap Value (shares
of 1,056,300)

      11,629,865  

AllianceBernstein Small-Mid Cap Growth (shares
of 961,254)

      11,438,926  

AllianceBernstein Global Real Estate Investment (shares
of 1,007,195)

      10,726,632  

AllianceBernstein Intermediate Duration Bond (shares
of 844,405)

      8,460,939  

AllianceBernstein High Yield (shares of 522,635)

      4,870,959  
        

Total investments (cost $187,990,320)

      166,194,101  

Receivable for capital stock sold

      1,313,277  

Receivable for investments sold

      25,297  
        

Total assets

      167,532,675  
        
Liabilities   

Payable for capital stock redeemed

      276,977  

Advisory fee payable

      56,229  

Distribution fee payable

      41,082  

Transfer Agent fee payable

      10,723  

Accrued expenses

      54,376  
        

Total liabilities

      439,387  
        

Net Assets

    $ 167,093,288  
        
Composition of Net Assets   

Capital stock, at par

    $ 14,744  

Additional paid-in capital

      182,933,478  

Distributions in excess of net investment income

      (369,276 )

Accumulated net realized gain on investment transactions

      6,310,561  

Net unrealized depreciation on investments

      (21,796,219 )
        
   $     167,093,288  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   55,272,067      4,876,529      $   11.33 *
   
B   $ 1,646,594      146,718      $ 11.22  
   
C   $ 2,540,518      226,175      $ 11.23  
   
Advisor   $ 867,670      76,210      $ 11.39  
   
R   $ 21,157,319      1,870,679      $ 11.31  
   
K   $ 71,061,799      6,268,332      $ 11.34  
   
I   $ 14,547,321      1,279,529      $ 11.37  
   

 

* The maximum offering price per share for Class A shares was $11.83 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

70   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2035 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares
of 2,310,337)

    $ 25,921,976  

AllianceBernstein U.S. Value (shares of 2,491,193)

      25,509,818  

AllianceBernstein International Value (shares of 1,209,690)

      14,637,249  

AllianceBernstein International Growth (shares
of 1,110,501)

      14,469,833  

AllianceBernstein Small-Mid Cap Value (shares of 726,766)

      8,001,695  

AllianceBernstein Small-Mid Cap Growth (shares
of 654,566)

      7,789,333  

AllianceBernstein Global Real Estate Investment (shares
of 599,831)

      6,388,204  

AllianceBernstein Intermediate Duration Bond (shares
of 537,914)

      5,389,899  
        

Total investments (cost $121,793,902)

      108,108,007  

Receivable for capital stock sold

      883,809  
        

Total assets

      108,991,816  
        
Liabilities   

Payable for capital stock redeemed

      207,849  

Payable for investments purchased

      174,802  

Advisory fee payable

      27,131  

Distribution fee payable

      25,386  

Transfer Agent fee payable

      7,069  

Accrued expenses

      57,208  
        

Total liabilities

      499,445  
        

Net Assets

    $ 108,492,371  
        
Composition of Net Assets   

Capital stock, at par

    $ 9,554  

Additional paid-in capital

      118,317,177  

Distributions in excess of net investment income

      (258,843 )

Accumulated net realized gain on investment transactions

      4,110,378  

Net unrealized depreciation on investments

      (13,685,895 )
        
   $     108,492,371  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   39,708,662      3,495,108      $   11.36 *
   
B   $ 1,086,291      96,349      $ 11.27  
   
C   $ 1,579,723      140,044      $ 11.28  
   
Advisor   $ 1,034,262      90,669      $ 11.41  
   
R   $ 9,652,784      853,834      $ 11.31  
   
K   $ 45,177,001      3,977,646      $ 11.36  
   
I   $ 10,253,648      899,968      $ 11.39  
   

 

* The maximum offering price per share for Class A shares was $11.86 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   71

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2040 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 1,758,527)

    $ 19,730,669  

AllianceBernstein U.S. Value (shares of 1,894,420)

      19,398,858  

AllianceBernstein International Value (shares of 915,391)

      11,076,233  

AllianceBernstein International Growth (shares of 847,530)

      11,043,312  

AllianceBernstein Small-Mid Cap Value (shares of 545,991)

      6,011,358  

AllianceBernstein Small-Mid Cap Growth (shares
of 503,930)

      5,996,766  

AllianceBernstein Global Real Estate Investment (shares
of 435,227)

      4,635,164  

AllianceBernstein Intermediate Duration Bond (shares
of 416,821)

      4,176,549  
        

Total investments (cost $93,133,811)

      82,068,909  

Receivable for capital stock sold

      410,640  
        

Total assets

      82,479,549  
        
Liabilities   

Payable for investments purchased

      95,116  

Payable for capital stock redeemed

      69,841  

Audit fee payable

      21,549  

Distribution fee payable

      20,422  

Advisory fee payable

      16,470  

Registration fee payable

      14,996  

Transfer Agent fee payable

      4,677  

Accrued expenses

      19,806  
        

Total liabilities

      262,877  
        

Net Assets

    $ 82,216,672  
        
Composition of Net Assets   

Capital stock, at par

    $ 7,146  

Additional paid-in capital

      90,654,927  

Distributions in excess of net investment income

      (204,395 )

Accumulated net realized gain on investment transactions

      2,823,896  

Net unrealized depreciation on investments

      (11,064,902 )
        
   $     82,216,672  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   31,482,005      2,732,322      $   11.52 *
   
B   $ 1,004,222      87,743      $ 11.45  
   
C   $ 1,003,187      87,640      $ 11.45  
   
Advisor   $ 515,517      44,533      $ 11.58  
   
R   $ 12,794,894      1,116,659      $ 11.46  
   
K   $ 26,893,588      2,338,226      $ 11.50  
   
I   $ 8,523,259      738,535      $ 11.54  
   

 

* The maximum offering price per share for Class A shares was $12.03 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

72   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2045 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares
of 1,048,394)

    $ 11,762,984  

AllianceBernstein U.S. Value (shares of 1,130,217)

      11,573,417  

AllianceBernstein International Value (shares of 549,297)

      6,646,496  

AllianceBernstein International Growth (shares of 506,386)

      6,598,213  

AllianceBernstein Small-Mid Cap Growth (shares
of 301,537)

      3,588,293  

AllianceBernstein Small-Mid Cap Value (shares of 325,389)

      3,582,535  

AllianceBernstein Intermediate Duration Bond (shares
of 250,447)

      2,509,477  

AllianceBernstein Global Real Estate Investment (shares
of 235,480)

      2,507,862  
        

Total investments (cost $54,625,698)

      48,769,277  

Receivable for capital stock sold

      258,246  

Receivable due from Adviser

      3,569  
        

Total assets

      49,031,092  
        
Liabilities   

Payable for capital stock redeemed

      92,007  

Payable for investments purchased

      64,613  

Audit fee payable

      21,549  

Registration fee payable

      17,783  

Distribution fee payable

      11,926  

Transfer Agent fee payable

      2,265  

Accrued expenses

      17,305  
        

Total liabilities

      227,448  
        

Net Assets

    $ 48,803,644  
        
Composition of Net Assets   

Capital stock, at par

    $ 4,278  

Additional paid-in capital

      53,116,858  

Distributions in excess of net investment income

      (111,703 )

Accumulated net realized gain on investment transactions

      1,650,632  

Net unrealized depreciation on investments

      (5,856,421 )
        
   $     48,803,644  
        

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

 

Class   Net Assets      Shares
Outstanding		      Net Asset
Value		  
A   $   24,194,389      2,117,792      $   11.42 *
   
B   $ 328,715      29,022      $ 11.33  
   
C   $ 623,983      55,113      $ 11.32  
   
Advisor   $ 646,856      56,396      $ 11.47  
   
R   $ 5,489,481      483,080      $ 11.36  
   
K   $ 14,227,012      1,248,042      $ 11.40  
   
I   $ 3,293,208      288,157      $ 11.43  
   

 

* The maximum offering price per share for Class A shares was $11.93 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   73

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2050 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares
of 13,612)

    $ 152,721  

AllianceBernstein U.S. Value (shares of 14,817)

      151,730  

AllianceBernstein International Value (shares of 7,095)

      85,853  

AllianceBernstein International Growth (shares of 6,582)

      85,762  

AllianceBernstein Small-Mid Cap Value (shares of 4,319)

      47,552  

AllianceBernstein Small-Mid Cap Growth (shares of 3,977)

      47,322  

AllianceBernstein Intermediate Duration Bond (shares
of 3,270)

      32,762  

AllianceBernstein Global Real Estate Investment (shares
of 2,990)

      31,841  
        

Total investments (cost $699,645)

      635,543  

Prepaid expenses

      71,822  

Receivable due from Adviser

      43,413  

Receivable for capital stock sold

      5,461  
        

Total assets

      756,239  
        
Liabilities   

Custody fee payable

      35,547  

Registration fee payable

      33,670  

Audit fee payable

      28,174  

Payable for investments purchased

      4,187  

Transfer Agent fee payable

      3,753  

Distribution fee payable

      129  

Accrued expenses

      8,417  
        

Total liabilities

      113,877  
        

Net Assets

    $ 642,362  
        
Composition of Net Assets   

Capital stock, at par

    $ 70  

Additional paid-in capital

      713,078  

Distributions in excess of net investment income

      (1,024 )

Accumulated net realized loss on investment transactions

      (5,660 )

Net unrealized depreciation on investments

      (64,102 )
        
   $     642,362  
        

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

 

Class   Net
Assets		      Shares
Outstanding		      Net Asset
Value		  
A   $   343,877      37,717      $   9.12 *
   
B   $ 13,760      1,509      $ 9.12  
   
C   $ 9,640      1,057      $ 9.12  
   
Advisor   $ 109,224      11,958      $ 9.13  
   
R   $ 52,196      5,713      $ 9.14  
   
K   $ 56,257      6,162      $ 9.13  
   
I   $ 57,408      6,286      $ 9.13  
   

 

* The maximum offering price per share for Class A shares was $9.52 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

74   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Net Assets

STATEMENT OF NET ASSETS

February 29, 2008 (unaudited)

 

     2055 Retirement
Strategy		  
Assets   

Investments in Underlying Portfolios, at value:

   

AllianceBernstein U.S. Large Cap Growth (shares of 6,722)

    $ 75,425  

AllianceBernstein U.S. Value (shares of 7,264)

      74,382  

AllianceBernstein International Value (shares of 3,567)

      43,155  

AllianceBernstein International Growth (shares of 3,272)

      42,632  

AllianceBernstein Small-Mid Cap Growth (shares of 1,952)

      23,227  

AllianceBernstein Small-Mid Cap Value (shares of 2,100)

      23,120  

AllianceBernstein Intermediate Duration Bond (shares
of 1,603)

      16,059  

AllianceBernstein Global Real Estate Investment (shares
of 1,473)

      15,690  
        

Total investments (cost $326,842)

      313,690  

Prepaid expenses

      72,517  

Receivable due from Adviser

      42,915  

Receivable for capital stock sold

      8,507  
        

Total assets

      437,629  
        
Liabilities   

Custody fee payable

      35,548  

Registration fee payable

      32,546  

Audit fee payable

      28,174  

Transfer Agent fee payable

      3,858  

Payable for investments purchased

      450  

Distribution fee payable

      17  

Accrued expenses

      8,536  
        

Total liabilities

      109,129  
        

Net Assets

    $ 328,500  
        
Composition of Net Assets   

Capital stock, at par

    $ 37  

Additional paid-in capital

      345,766  

Distributions in excess of net investment income

      (293 )

Accumulated net realized loss on investment transactions

      (3,858 )

Net unrealized depreciation on investments

      (13,152 )
        
   $     328,500  
        

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

 

Class   Net
Assets		      Shares
Outstanding		      Net Asset
Value		  
A   $   215,014      24,063      $   8.94 *
   
B   $ 13,794      1,548      $ 8.91  
   
C   $ 32,475      3,645      $ 8.91  
   
Advisor   $ 17,495      1,956      $ 8.94  
   
R   $ 10,541      1,179      $ 8.94  
   
K   $ 29,942      3,343      $ 8.96  
   
I   $ 9,239      1,033      $ 8.94  
   

 

* The maximum offering price per share for Class A shares was $9.34 which reflects a sales charge of 4.25%.

 

     See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   75

 

Statement of Net Assets

STATEMENT OF OPERATIONS

Six Months Ended February 29, 2008 (unaudited)

 

    2000 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 506,554  
         
Expenses    

Advisory fee (see Note B)

   $ 46,025    

Distribution fee—Class A

     9,117    

Distribution fee—Class B

     890    

Distribution fee—Class C

     6,638    

Distribution fee—Class R

     3,782    

Distribution fee—Class K

     7,979    

Transfer agency—Class A

     10,940    

Transfer agency—Class B

     333    

Transfer agency—Class C

     2,327    

Transfer agency—Advisor Class

     579    

Transfer agency—Class R

     1,930    

Transfer agency—Class K

     5,502    

Transfer agency—Class I

     367    

Custodian

     34,368    

Registration fees

     33,001    

Legal

     19,418    

Administrative

     18,500    

Audit

     17,776    

Printing

     2,439    

Directors’ fees

     2,130    

Miscellaneous

     2,575    
         

Total expenses

         226,616    

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

     (154,567 )  

Less: expense offset arrangement
(see Note B)

     (129 )  
         

Net expenses

       71,920  
         

Net investment income

       434,634  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain on:

    

Sale of Underlying Portfolio shares

       35,130  

Net realized gain distributions from Underlying Portfolios

       382,712  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (1,180,414 )
         

Net loss on investment transactions

       (762,572 )
         

Net Decrease in Net Assets from Operations

     $     (327,938 )
         

See notes to financial statements.

 

76   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2005
Retirement Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 993,719  
         
Expenses    

Advisory fee (see Note B)

   $ 88,877    

Distribution fee—Class A

     24,930    

Distribution fee—Class B

     3,310    

Distribution fee—Class C

     11,150    

Distribution fee—Class R

     9,266    

Distribution fee—Class K

     8,810    

Transfer agency—Class A

     13,242    

Transfer agency—Class B

     541    

Transfer agency—Class C

     1,822    

Transfer agency—Advisor Class

     191    

Transfer agency—Class R

     2,012    

Transfer agency—Class K

     6,149    

Transfer agency—Class I

     811    

Custodian

     34,368    

Registration fees

     33,003    

Administrative

     18,500    

Legal

     18,158    

Audit

     17,776    

Printing

     4,424    

Directors’ fees

     2,130    

Miscellaneous

     2,772    
         

Total expenses

     302,242    

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

         (150,864)    

Less: expense offset arrangement
(see Note B)

     (188 )  
         

Net expenses

       151,190  
         

Net investment income

       842,529  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain on:

    

Sale of Underlying Portfolio shares

       24,467  

Net realized gain distributions from Underlying Portfolios

       973,149  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (3,135,908 )
         

Net loss on investment transactions

       (2,138,292 )
         

Net Decrease in Net Assets from Operations

     $     (1,295,763 )
         

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   77

 

Statement of Operations

 

    2010 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 4,141,256  
         
Expenses    

Advisory fee (see Note B)

   $ 434,275    

Distribution fee—Class A

     89,084    

Distribution fee—Class B

     5,954    

Distribution fee—Class C

     12,025    

Distribution fee—Class R

     23,466    

Distribution fee—Class K

     62,075    

Transfer agency—Class A

     12,824    

Transfer agency—Class B

     263    

Transfer agency—Class C

     529    

Transfer agency—Advisor Class

     2,093    

Transfer agency—Class R

     10,399    

Transfer agency—Class K

     43,340    

Transfer agency—Class I

     6,396    

Custodian

     34,368    

Registration fees

     33,016    

Legal

     18,870    

Administrative

     18,500    

Audit

     17,776    

Printing

     7,918    

Directors’ fees

     2,130    

Miscellaneous

     2,623    
         

Total expenses

     837,924    

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

         (210,664)    

Less: expense offset arrangement
(see Note B)

     (380 )  
         

Net expenses

       626,880  
         

Net investment income

       3,514,376  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain on:

    

Sale of Underlying Portfolio shares

       425,464  

Net realized gain distributions from Underlying Portfolios

       4,859,063  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (16,964,996 )
         

Net loss on investment transactions

       (11,680,469 )
         

Net Decrease in Net Assets from Operations

     $     (8,166,093 )
         

See notes to financial statements.

 

78   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2015 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 5,507,195  
         
Expenses    

Advisory fee (see Note B)

   $ 613,650    

Distribution fee—Class A

     117,494    

Distribution fee—Class B

     18,293    

Distribution fee—Class C

     12,490    

Distribution fee—Class R

     28,969    

Distribution fee—Class K

     94,989    

Transfer agency—Class A

     12,929    

Transfer agency—Class B

     723    

Transfer agency—Class C

     463    

Transfer agency—Advisor Class

     284    

Transfer agency—Class R

     13,203    

Transfer agency—Class K

     66,327    

Transfer agency—Class I

     14,463    

Custodian

     34,368    

Registration fees

     33,060    

Administrative

     18,500    

Legal

     18,342    

Audit

     17,776    

Printing

     12,877    

Directors’ fees

     2,130    

Miscellaneous

     2,941    
         

Total expenses

         1,134,271    

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

     (206,866 )  

Less: expense offset arrangement
(see Note B)

     (593 )  
         

Net expenses

       926,812  
         

Net investment income

       4,580,383  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       63,889  

Net realized gain distributions from Underlying Portfolios

       7,579,485  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (25,951,656 )
         

Net loss on investment transactions

       (18,308,282 )
         

Net Decrease in Net Assets from Operations

     $     (13,727,899 )
         

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   79

 

Statement of Operations

 

    2020 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 6,220,860  
         
Expenses    

Advisory fee (see Note B)

   $ 796,492    

Distribution fee—Class A

     137,633    

Distribution fee—Class B

     16,926    

Distribution fee—Class C

     14,105    

Distribution fee—Class R

     51,656    

Distribution fee—Class K

     113,641    

Transfer agency—Class A

     17,444    

Transfer agency—Class B

     766    

Transfer agency—Class C

     652    

Transfer agency—Advisor Class

     584    

Transfer agency—Class R

     23,787    

Transfer agency—Class K

     79,831    

Transfer agency—Class I

     15,652    

Custodian

     34,368    

Registration fees

     33,024    

Administrative

     18,500    

Legal

     18,209    

Audit

     17,776    

Printing

     15,950    

Directors’ fees

     2,130    

Miscellaneous

     2,926    
         

Total expenses

         1,412,052    

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

     (244,131 )  

Less: expense offset arrangement
(see Note B)

     (705 )  
         

Net expenses

       1,167,216  
         

Net investment income

       5,053,644  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       75,579  

Net realized gain distributions from Underlying Portfolios

       10,103,985  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (35,906,925 )
         

Net loss on investment transactions

       (25,727,361 )
         

Net Decrease in Net Assets from Operations

     $     (20,673,717 )
         

See notes to financial statements.

 

80   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2025 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 4,851,449  
         
Expenses    

Advisory fee (see Note B)

   $ 667,079    

Distribution fee—Class A

     131,609    

Distribution fee—Class B

     8,989    

Distribution fee—Class C

     10,785    

Distribution fee—Class R

     33,634    

Distribution fee—Class K

     95,610    

Transfer agency—Class A

     20,699    

Transfer agency—Class B

     525    

Transfer agency—Class C

     618    

Transfer agency—Advisor Class

     283    

Transfer agency—Class R

     10,226    

Transfer agency—Class K

     66,846    

Transfer agency—Class I

     10,635    

Custodian

     34,368    

Registration fees

     32,969    

Administrative

     18,500    

Legal

     18,208    

Audit

     17,776    

Printing

     13,609    

Directors’ fees

     2,130    

Miscellaneous

     2,865    
         

Total expenses

         1,197,963    

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

     (198,242 )  

Less: expense offset arrangement
(see Note B)

     (702 )  
         

Net expenses

       999,019  
         

Net investment income

       3,852,430  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (106,249 )

Net realized gain distributions from Underlying Portfolios

       8,952,625  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (31,108,476 )
         

Net loss on investment transactions

       (22,262,100 )
         

Net Decrease in Net Assets from Operations

     $     (18,409,670 )
         

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   81

 

Statement of Operations

 

    2030 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 3,401,268  
         
Expenses    

Advisory fee (see Note B)

   $ 499,058    

Distribution fee—Class A

     87,990    

Distribution fee—Class B

     8,351    

Distribution fee—Class C

     11,902    

Distribution fee—Class R

     40,486    

Distribution fee—Class K

     74,253    

Transfer agency—Class A

     17,591    

Transfer agency—Class B

     596    

Transfer agency—Class C

     825    

Transfer agency—Advisor Class

     230    

Transfer agency—Class R

     12,148    

Transfer agency—Class K

     51,866    

Transfer agency—Class I

     6,912    

Custodian

     34,368    

Registration fees

     33,035    

Administrative

     18,500    

Legal

     18,208    

Audit

     17,776    

Printing

     13,328    

Directors’ fees

     2,130    

Miscellaneous

     2,645    
         

Total expenses

     952,198    

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

         (175,780)    

Less: expense offset arrangement
(see Note B)

     (633 )  
         

Net expenses

       775,785  
         

Net investment income

       2,625,483  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (648,461 )

Net realized gain distributions from Underlying Portfolios

       7,042,857  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (24,745,224 )
         

Net loss on investment transactions

       (18,350,828 )
         

Net Decrease in Net Assets from Operations

     $     (15,725,345 )
         

See notes to financial statements.

 

82   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2035 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 2,151,092  
         
Expenses    

Advisory fee (see Note B)

   $ 326,174    

Distribution fee—Class A

     61,541    

Distribution fee—Class B

     5,443    

Distribution fee—Class C

     6,749    

Distribution fee—Class R

     15,675    

Distribution fee—Class K

     48,910    

Transfer agency—Class A

     17,622    

Transfer agency—Class B

     498    

Transfer agency—Class C

     618    

Transfer agency—Advisor Class

     469    

Transfer agency—Class R

     4,328    

Transfer agency—Class K

     34,188    

Transfer agency—Class I

     4,883    

Custodian

     34,368    

Registration fees

     32,974    

Administrative

     18,500    

Legal

     18,209    

Audit

     17,776    

Printing

     13,637    

Directors’ fees

     2,130    

Miscellaneous

     2,752    
         

Total expenses

     667,444    

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

         (167,194)    

Less: expense offset arrangement
(see Note B)

     (630 )  
         

Net expenses

       499,620  
         

Net investment income

       1,651,472  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (582,073 )

Net realized gain distributions from Underlying Portfolios

       4,785,061  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (16,075,933 )
         

Net loss on investment transactions

       (11,872,945 )
         

Net Decrease in Net Assets from Operations

     $     (10,221,473 )
         

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   83

 

Statement of Operations

 

    2040 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 1,491,220  
         
Expenses    

Advisory fee (see Note B)

   $ 230,926    

Distribution fee—Class A

     41,251    

Distribution fee—Class B

     5,263    

Distribution fee—Class C

     3,953    

Distribution fee—Class R

     25,447    

Distribution fee—Class K

     29,124    

Transfer agency—Class A

     15,228    

Transfer agency—Class B

     601    

Transfer agency—Class C

     445    

Transfer agency—Advisor Class

     220    

Transfer agency—Class R

     7,675    

Transfer agency—Class K

     20,453    

Transfer agency—Class I

     3,804    

Custodian

     34,368    

Registration fees

     32,905    

Administrative

     18,500    

Legal

     18,208    

Audit

     17,776    

Printing

     11,898    

Directors’ fees

     2,130    

Miscellaneous

     2,615    
         

Total expenses

     522,790    

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

         (161,396)    

Less: expense offset arrangement
(see Note B)

     (561 )  
         

Net expenses

       360,833  
         

Net investment income

       1,130,387  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (464,381 )

Net realized gain distributions from Underlying Portfolios

       3,347,115  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (12,015,871 )
         

Net loss on investment transactions

       (9,133,137 )
         

Net Decrease in Net Assets from Operations

     $     (8,002,750 )
         

See notes to financial statements.

 

84   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2045 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 920,167  
         
Expenses    

Advisory fee (see Note B)

   $ 141,398    

Distribution fee—Class A

     33,832    

Distribution fee—Class B

     1,721    

Distribution fee—Class C

     2,506    

Distribution fee—Class R

     8,940    

Distribution fee—Class K

     16,005    

Transfer agency—Class A

     17,349    

Transfer agency—Class B

     266    

Transfer agency—Class C

     393    

Transfer agency—Advisor Class

     551    

Transfer agency—Class R

     2,844    

Transfer agency—Class K

     11,180    

Transfer agency—Class I

     1,362    

Custodian

     34,368    

Registration fees

     32,933    

Administrative

     18,500    

Legal

     18,209    

Audit

     17,776    

Printing

     12,024    

Directors’ fees

     2,130    

Miscellaneous

     2,591    
         

Total expenses

     376,878    

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

         (156,717)    

Less: expense offset arrangement
(see Note B)

     (530 )  
         

Net expenses

       219,631  
         

Net investment income

       700,536  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (337,836 )

Net realized gain distributions from Underlying Portfolios

       2,043,107  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (6,896,640 )
         

Net loss on investment transactions

       (5,191,369 )
         

Net Decrease in Net Assets from Operations

     $     (4,490,833 )
         

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   85

 

Statement of Operations

 

    2050 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 6,981  
         
Expenses    

Advisory fee (see Note B)

   $ 1,245    

Distribution fee—Class A

     378    

Distribution fee—Class B

     62    

Distribution fee—Class C

     50    

Distribution fee—Class R

     50    

Distribution fee—Class K

     34    

Transfer agency—Class A

     5,238    

Transfer agency—Class B

     1,312    

Transfer agency—Class C

     1,300    

Transfer agency—Advisor Class

     1,478    

Transfer agency—Class K

     4    

Transfer agency—Class I

     1    

Custodian

     34,384    

Registration fees

     82,186    

Administrative

     18,500    

Legal

     36,554    

Audit

     19,190    

Directors’ fees

     1,660    

Printing

     508    

Miscellaneous

     4,036    
         

Total expenses

     208,170    

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

         (206,200 )  

Less: expense offset arrangement
(see Note B)

     (17 )  
         

Net expenses

       1,953  
         

Net investment income

       5,028  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (25,608 )

Net realized gain distributions from Underlying Portfolios

       20,277  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (63,239 )
         

Net loss on investment transactions

       (68,570 )
         

Net Decrease in Net Assets from Operations

     $     (63,542 )
         

See notes to financial statements.

 

86   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Operations

 

    2055 Retirement
Strategy		  
Investment Income    

Income distributions from Underlying Portfolios

     $ 3,296  
         
Expenses    

Advisory fee (see Note B)

   $ 420    

Distribution fee—Class A

     54    

Distribution fee—Class B

     50    

Distribution fee—Class C

     139    

Distribution fee—Class R

     25    

Distribution fee—Class K

     30    

Transfer agency—Class A

     3,112    

Transfer agency—Class B

     1,919    

Transfer agency—Class C

     2,418    

Transfer agency—Advisor Class

     1,979    

Transfer agency—Class K

     6    

Custodian

     34,384    

Registration fees

     82,116    

Administrative

     18,500    

Legal

     36,553    

Audit

     19,190    

Directors’ fees

     1,660    

Printing

     508    

Miscellaneous

     4,036    
         

Total expenses

     207,099    

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

         (206,320 )  

Less: expense offset arrangement
(see Note B)

     (17 )  
         

Net expenses

       762  
         

Net investment income

       2,534  
         
Realized and Unrealized Gain (Loss) on Investment Transactions    

Net realized gain (loss) on:

    

Sale of Underlying Portfolio shares

       (10,092 )

Net realized gain distributions from Underlying Portfolios

       7,800  

Net change in unrealized
appreciation/depreciation of
investments in Underlying Portfolios

       (12,279 )
         

Net loss on investment transactions

       (14,571 )
         

Net Decrease in Net Assets from Operations

     $     (12,037 )
         

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   87

 

Statement of Operations

STATEMENT OF CHANGES IN NET ASSETS

 

     2000 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 434,634     $ 124,323  

Net realized gain on sale of Underlying Portfolio shares

      35,130       17,401  

Net realized gain distributions from Underlying Portfolios

      382,712       28,043  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (1,180,414 )     126,439  
                

Net increase (decrease) in net assets from operations

      (327,938 )     296,206  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (202,065 )     (34,838 )

Class B

      (5,359 )     (875 )

Class C

      (41,645 )     (1,271 )

Advisor Class

      (14,534 )     (248 )

Class R

      (10,671 )     (439 )

Class K

      (212,731 )     (20,172 )

Class I

      (30,069 )     (412 )

Net realized gain on investment transactions

     

Class A

      (84,879 )     (4,336 )

Class B

      (2,408 )     (131 )

Class C

      (18,710 )     (190 )

Advisor Class

      (5,776 )     (29 )

Class R

      (5,845 )     (36 )

Class K

      (84,547 )     (1,409 )

Class I

      (10,992 )     (29 )
Capital Stock Transactions     

Net increase

      5,027,786       10,900,946  
                

Total increase

      3,969,617       11,132,737  
Net Assets     

Beginning of period

      12,186,587       1,053,850  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($10,622) and $71,818, respectively)

    $     16,156,204     $     12,186,587  
                

See notes to financial statements.

 

88   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2005 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 842,529     $ 293,684  

Net realized gain on sale of Underlying Portfolio shares

      24,467       461,518  

Net realized gain distributions from Underlying Portfolios

      973,149       116,448  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (3,135,908 )     25,079  
                

Net increase (decrease) in net assets from operations

      (1,295,763 )     896,729  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (530,409 )     (197,038 )

Class B

      (17,450 )     (10,075 )

Class C

      (60,418 )     (3,550 )

Advisor Class

      (7,033 )     (286 )

Class R

      (107,886 )     (850 )

Class K

      (206,448 )     (16,627 )

Class I

      (57,274 )     (481 )

Net realized gain on investment transactions

     

Class A

      (387,138 )     (21,401 )

Class B

      (14,485 )     (1,287 )

Class C

      (50,151 )     (454 )

Advisor Class

      (4,802 )     (29 )

Class R

      (78,971 )     (92 )

Class K

      (149,822 )     (1,602 )

Class I

      (38,082 )     (44 )
Capital Stock Transactions     

Net increase

      6,622,991       23,213,639  
                

Total increase

      3,616,859       23,856,552  
Net Assets     

Beginning of period

      28,493,604       4,637,052  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($40,081) and $104,308, respectively)

    $     32,110,463     $     28,493,604  
                

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   89

 

Statement of Changes in Net Assets

 

     2010 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 3,514,376     $ 955,888  

Net realized gain on sale of Underlying Portfolio shares

      425,464       1,037,429  

Net realized gain distributions from Underlying Portfolios

      4,859,063       431,603  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (16,964,996 )     1,211,323  
                

Net increase (decrease) in net assets from operations

      (8,166,093 )     3,636,243  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (1,708,541 )     (502,242 )

Class B

      (25,818 )     (14,242 )

Class C

      (52,333 )     (20,611 )

Advisor Class

      (277,927 )     (7,684 )

Class R

      (251,808 )     (4,055 )

Class K

      (1,369,229 )     (111,506 )

Class I

      (385,742 )     (12,045 )

Net realized gain on investment transactions

     

Class A

      (838,738 )     (31,762 )

Class B

      (16,466 )     (1,128 )

Class C

      (33,378 )     (1,633 )

Advisor Class

      (127,187 )     (461 )

Class R

      (129,502 )     (278 )

Class K

      (668,118 )     (6,862 )

Class I

      (177,529 )     (691 )
Capital Stock Transactions     

Net increase

      63,199,381       88,637,656  
                

Total increase

      48,970,972       91,558,699  
Net Assets     

Beginning of period

      104,842,349       13,283,650  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($203,982) and $353,040, respectively)

    $     153,813,321     $     104,842,349  
                

See notes to financial statements.

 

90   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2015 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 4,580,383     $ 1,390,995  

Net realized gain on sale of Underlying Portfolio shares

      63,889       753,362  

Net realized gain distributions from Underlying Portfolios

      7,579,485       648,415  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (25,951,656 )     2,730,943  
                

Net increase (decrease) in net assets from operations

      (13,727,899 )     5,523,715  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (2,131,105 )     (612,760 )

Class B

      (75,280 )     (32,173 )

Class C

      (55,616 )     (10,195 )

Advisor Class

      (62,600 )     (3,919 )

Class R

      (299,153 )     (17,773 )

Class K

      (2,009,173 )     (158,489 )

Class I

      (864,409 )     (9,629 )

Net realized gain on investment transactions

     

Class A

      (646,589 )     (31,832 )

Class B

      (29,392 )     (2,157 )

Class C

      (21,715 )     (683 )

Advisor Class

      (17,578 )     (192 )

Class R

      (95,495 )     (978 )

Class K

      (609,594 )     (8,128 )

Class I

      (244,127 )     (458 )
Capital Stock Transactions     

Net increase

      64,995,979       153,252,616  
                

Total increase

      44,106,254       157,886,965  
Net Assets     

Beginning of period

      172,933,062       15,046,097  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($322,180) and $594,773, respectively)

    $     217,039,316     $     172,933,062  
                

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   91

 

Statement of Changes in Net Assets

 

     2020 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 5,053,644     $ 1,470,023  

Net realized gain on sale of Underlying Portfolio shares

      75,579       1,195,706  

Net realized gain distributions from Underlying Portfolios

      10,103,985       761,490  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (35,906,925 )     2,773,925  
                

Net increase (decrease) in net assets from operations

      (20,673,717 )     6,201,144  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (2,298,343 )     (657,355 )

Class B

      (63,765 )     (24,023 )

Class C

      (52,169 )     (10,834 )

Advisor Class

      (91,286 )     (7,155 )

Class R

      (530,900 )     (20,159 )

Class K

      (2,252,449 )     (129,404 )

Class I

      (838,817 )     26,871  

Net realized gain on investment transactions

     

Class A

      (784,232 )     (29,216 )

Class B

      (28,371 )     (1,397 )

Class C

      (23,212 )     (630 )

Advisor Class

      (28,722 )     (299 )

Class R

      (186,832 )     (892 )

Class K

      (763,414 )     (5,803 )

Class I

      (267,257 )     (1,101 )
Capital Stock Transactions     

Net increase

      100,986,944       169,748,958  
                

Total increase

      72,103,458       175,034,963  
Net Assets     

Beginning of period

      192,147,978       17,113,015  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($434,959) and $639,126, respectively)

    $     264,251,436     $     192,147,978  
                

See notes to financial statements.

 

92   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2025 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 3,852,430     $ 1,396,884  

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

      (106,249 )     748,694  

Net realized gain distributions from Underlying Portfolios

      8,952,625       940,304  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (31,108,476 )     3,969,602  
                

Net increase (decrease) in net assets from operations

      (18,409,670 )     7,055,484  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (2,023,440 )     (714,899 )

Class B

      (32,597 )     (13,948 )

Class C

      (38,148 )     (9,307 )

Advisor Class

      (31,175 )     (5,776 )

Class R

      (289,764 )     (9,334 )

Class K

      (1,740,125 )     (187,573 )

Class I

      (561,656 )     (17,630 )

Net realized gain on investment transactions

     

Class A

      (800,797 )     (21,949 )

Class B

      (16,671 )     (539 )

Class C

      (19,508 )     (360 )

Advisor Class

      (11,227 )     (169 )

Class R

      (119,314 )     (346 )

Class K

      (683,839 )     (5,995 )

Class I

      (202,921 )     (506 )
Capital Stock Transactions     

Net increase

      66,739,452       149,972,896  
                

Total increase

      41,758,600       156,040,049  
Net Assets     

Beginning of period

      172,616,875       16,576,826  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($380,398) and $484,077, respectively)

    $     214,375,475     $     172,616,875  
                

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   93

 

Statement of Changes in Net Assets

 

     2030 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 2,625,483     $ 641,590  

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

      (648,461 )     248,343  

Net realized gain distributions from Underlying Portfolios

      7,042,857       525,701  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (24,745,224 )     2,688,882  
                

Net increase (decrease) in net assets from operations

      (15,725,345 )     4,104,516  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (1,260,513 )     (337,619 )

Class B

      (24,630 )     (9,380 )

Class C

      (35,082 )     (3,734 )

Advisor Class

      (16,193 )     (5,633 )

Class R

      (332,502 )     (12,693 )

Class K

      (1,193,059 )     (97,721 )

Class I

      (298,341 )     (19,861 )

Net realized gain on investment transactions

     

Class A

      (329,049 )     (24,348 )

Class B

      (8,748 )     (908 )

Class C

      (12,461 )     (361 )

Advisor Class

      (3,870 )     (382 )

Class R

      (88,576 )     (966 )

Class K

      (308,960 )     (6,786 )

Class I

      (71,558 )     (1,290 )
Capital Stock Transactions     

Net increase

      70,277,747       103,875,240  
                

Total increase

      50,568,860       107,458,074  
Net Assets     

Beginning of period

      116,524,428       9,066,354  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($369,276) and $165,561, respectively)

    $     167,093,288     $     116,524,428  
                

See notes to financial statements.

 

94   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2035 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 1,651,472     $ 446,246  

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

      (582,073 )     171,078  

Net realized gain distributions from Underlying Portfolios

      4,785,061       443,069  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (16,075,933 )     2,209,210  
                

Net increase (decrease) in net assets from operations

      (10,221,473 )     3,269,603  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (810,740 )     (296,414 )

Class B

      (13,483 )     (6,625 )

Class C

      (16,934 )     (7,110 )

Advisor Class

      (23,713 )     (6,663 )

Class R

      (108,356 )     (12,025 )

Class K

      (780,375 )     (42,075 )

Class I

      (224,125 )     (12,144 )

Net realized gain on investment transactions

     

Class A

      (280,510 )     (17,609 )

Class B

      (6,998 )     (527 )

Class C

      (8,788 )     (565 )

Advisor Class

      (7,393 )     (374 )

Class R

      (38,800 )     (755 )

Class K

      (258,027 )     (2,415 )

Class I

      (68,576 )     (645 )
Capital Stock Transactions     

Net increase

      42,796,470       68,797,986  
                

Total increase

      29,928,179       71,661,643  
Net Assets     

Beginning of period

      78,564,192       6,902,549  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($258,843) and $67,411, respectively)

    $     108,492,371     $     78,564,192  
                

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   95

 

Statement of Changes in Net Assets

 

     2040 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 1,130,387     $ 198,305  

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

      (464,381 )     103,651  

Net realized gain distributions from Underlying Portfolios

      3,347,115       187,067  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (12,015,871 )     870,406  
                

Net increase (decrease) in net assets from operations

      (8,002,750 )     1,359,429  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (550,258 )     (114,491 )

Class B

      (12,882 )     (7,189 )

Class C

      (9,291 )     (2,352 )

Advisor Class

      (7,711 )     (3,386 )

Class R

      (194,921 )     (4,493 )

Class K

      (434,801 )     (24,338 )

Class I

      (159,738 )     (8,354 )

Net realized gain on investment transactions

     

Class A

      (131,368 )     (8,892 )

Class B

      (4,521 )     (799 )

Class C

      (3,261 )     (261 )

Advisor Class

      (1,689 )     (249 )

Class R

      (46,326 )     (333 )

Class K

      (99,329 )     (1,589 )

Class I

      (34,138 )     (518 )
Capital Stock Transactions     

Net increase

      43,237,067       44,017,149  
                

Total increase

      33,544,083       45,199,334  
Net Assets     

Beginning of period

      48,672,589       3,473,255  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($204,395) and $34,820, respectively)

    $     82,216,672     $     48,672,589  
                

See notes to financial statements.

 

96   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2045 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income

    $ 700,536     $ 222,177  

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

      (337,836 )     205,051  

Net realized gain distributions from Underlying Portfolios

      2,043,107       243,913  

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (6,896,640 )     972,977  
                

Net increase (decrease) in net assets from operations

      (4,490,833 )     1,644,118  
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (428,991 )     (159,167 )

Class B

      (4,497 )     (2,727 )

Class C

      (6,671 )     (2,297 )

Advisor Class

      (15,094 )     (4,568 )

Class R

      (62,447 )     (5,068 )

Class K

      (255,636 )     (18,983 )

Class I

      (64,422 )     (4,716 )

Net realized gain on investment transactions

     

Class A

      (254,770 )     (11,728 )

Class B

      (3,822 )     (271 )

Class C

      (5,670 )     (228 )

Advisor Class

      (8,082 )     (320 )

Class R

      (37,746 )     (378 )

Class K

      (141,327 )     (1,260 )

Class I

      (32,937 )     (289 )
Capital Stock Transactions     

Net increase

      20,356,553       30,466,026  
                

Total increase

      14,543,608       31,898,144  
Net Assets     

Beginning of period

      34,260,036       2,361,892  
                

End of period (including undistributed/(distributions in excess of) net investment income of ($111,703) and $25,519, respectively)

    $     48,803,644     $     34,260,036  
                

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   97

 

Statement of Changes in Net Assets

 

     2050 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income (loss)

    $ 5,028     $ (134 )

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

      (25,608 )     – 0 –

Net realized gain distributions from Underlying Portfolios

      20,277       – 0 –

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (63,239 )     (863 )
                

Net decrease in net assets from operations

      (63,542 )     (997 )
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (4,459 )     – 0 –

Class B

      (133 )     – 0 –

Class C

      (108 )     – 0 –

Advisor Class

      (303 )     – 0 –

Class R

      (121 )     – 0 –

Class K

      (482 )     – 0 –

Class I

      (446 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (151 )     – 0 –

Class B

      (6 )     – 0 –

Class C

      (5 )     – 0 –

Advisor Class

      (10 )     – 0 –

Class R

      (5 )     – 0 –

Class K

      (16 )     – 0 –

Class I

      (14 )     – 0 –
Capital Stock Transactions     

Net increase

      643,141       70,019  
                

Total increase

      573,340       69,022  
Net Assets     

Beginning of period

      69,022       – 0 –
                

End of period (including undistributed/(distributions in excess of) net investment income of ($1,024) and $0, respectively)

    $     642,362     $     69,022  
                

 

(a) Commencement of operations.

See notes to financial statements.

 

98   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Statement of Changes in Net Assets

 

     2055 Retirement Strategy  
     Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		  
Increase (Decrease) in Net Assets from Operations     

Net investment income (loss)

    $ 2,534     $ (135 )

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

      (10,092 )     13  

Net realized gain distributions from Underlying Portfolios

      7,800       – 0 –

Net change in unrealized appreciation/depreciation of investments in Underlying Portfolios

      (12,279 )     (873 )
                

Net decrease in net assets from operations

      (12,037 )     (995 )
Dividends and Distributions to Shareholders from     

Net investment income

     

Class A

      (649 )     – 0 –

Class B

      (242 )     – 0 –

Class C

      (855 )     – 0 –

Advisor Class

      (302 )     – 0 –

Class R

      (249 )     – 0 –

Class K

      (252 )     – 0 –

Class I

      (278 )     – 0 –

Net realized gain on investment transactions

     

Class A

      (322 )     – 0 –

Class B

      (131 )     – 0 –

Class C

      (463 )     – 0 –

Advisor Class

      (144 )     –0 –

Class R

      (132 )     – 0 –

Class K

      (134 )     – 0 –

Class I

      (133 )     – 0 –
Capital Stock Transactions     

Net increase

      273,255       72,563  
                

Total increase

      256,932       71,568  
Net Assets     

Beginning of period

      71,568       – 0 –
                

End of period (including undistributed/(distributions in excess of) net investment income of ($293) and $0, respectively)

    $     328,500     $     71,568  
                

 

(a) Commencement of operations.

See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   99

 

Statement of Changes in Net Assets

NOTES TO FINANCIAL STATEMENTS

February 29, 2008 (unaudited)

 

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, AllianceBernstein 2045 Retirement Strategy, AllianceBernstein 2050 Retirement Strategy and AllianceBernstein 2055 Retirement Strategy (each a “Strategy” together, the “Strategies”). The AllianceBernstein 2050 Retirement Strategy and 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 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 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

 

100   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

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 Strategies.

1. Security Valuation

Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. 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 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 Strategies are borne on a pro-rata basis by each settled class of shares, based on 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 their 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 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  •   101

 

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, 2015 and 2020

    0.60 %   0.50 %   0.45 %

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

    0.65 %   0.55 %   0.50 %

Such fees are accrued daily and paid monthly.

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:

 

     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 %

2050(a)

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

2055(a)

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

 

(a)

Effective June 29, 2007.

 

    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 %

 

102   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

For the six months ended February 29, 2008, such waivers amounted to:

 

Strategy   Waivers   Strategy   Waivers
2000   $     136,067   2030   $     157,280
2005     132,364   2035     148,694
2010     192,164   2040     142,896
2015     188,366   2045     138,217
2020     225,631   2050     187,371
2025     179,742   2055     187,655

Pursuant to the Advisory agreement, the Adviser provides certain legal and accounting services for the Strategies. For the six months ended February 29, 2008 the Adviser voluntarily agreed to waive its fees. Such waivers amounted to:

 

Strategy   Administrative
Fees		   Strategy   Administrative
Fees
2000   $     18,500   2030   $     18,500
2005     18,500   2035     18,500
2010     18,500   2040     18,500
2015     18,500   2045     18,500
2020     18,500   2050     18,500
2025     18,500   2055     18,500

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 six months ended February 29, 2008, such compensation retained by ABIS was as follows:

 

Strategy   Amount   Strategy   Amount
2000   $ 9,541   2030   $     32,091
2005     9,932   2035     22,270
2010         24,562   2040     19,464
2015     35,845   2045     13,583
2020     43,876   2050     9,000
2025     36,484   2055     9,000

For the six months ended February 29, 2008, the Strategies’ expenses were reduced under an expense offset arrangement with ABIS as follows:

 

Strategy   Reduction   Strategy   Reduction
2000   $     129   2030   $     633
2005     188   2035     630
2010     380   2040     561
2015     593   2045     530
2020     705   2050     17
2025     702   2055     17

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   103

 

Notes to Financial Statements

 

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 sale 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 six months ended February 29, 2008 as follows:

 

     Front-End Sales
Charges		    Contingent Deferred Sales
Charges

Strategy

    Class A    Class A    Class B    Class C

2000

    $ 151    $ 4    $ 22    $ –0–

2005

      441          237      112          1,610

2010

      691      993          1,279      715

2015

          2,139      542      3,709      292

2020

      1,731      265      2,335      627

2025

      2,085      270      373      275

2030

      2,690      181      2,923      307

2035

      1,946      498      1,458      470

2040

      1,054      309      689      138

2045

      256      496      336      35

2050

      3      –0–      –0–      –0–

2055

      2      –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, the 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. For the period November 1, 2007 through January 31, 2008, the Adviser voluntarily waived the distribution and servicing fees for the Retirement Strategy 2050 and 2055 Portfolios. Such waivers amounted to:

 

Strategy

    Class A    Class B    Class C    Class R    Class K

2050

    $     230    $     32    $     25    $     22    $     20

2055

      19      25      88      12      21

 

104   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

The Distributor has incurred expenses in excess of the distribution costs reimbursed by each Strategy for Class B, Class C, Class R and Class K as follows:

 

Strategy

    Class B    Class C    Class R    Class K

2000

    $ 59,124    $     107,987    $     174,187    $     540,037

2005

      87,604      120,781      189,027      251,909

2010

      79,027      97,800      233,490      548,655

2015

          146,145      82,398      203,692      643,906

2020

      150,137      90,555      254,219      723,731

2025

      98,786      78,202      233,558      738,459

2030

      103,358      89,645      259,228      644,707

2035

      97,793      88,068      195,687      584,126

2040

      134,208      63,783      253,351      462,239

2045

      80,540      71,049      231,796      421,509

2050

      6,246      10,054      60,707      18,491

2055

      21,650      59,557      38,838      68,441

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 six months ended February 29, 2008 were as follows:

 

Strategy

    Purchases    Sales

2000

    $ 10,813,424    $ 5,610,807

2005

      10,663,264      4,247,916

2010

      76,693,450          12,201,688

2015

      73,471,679      4,923,420

2020

          110,280,190      3,872,946

2025

      76,256,762      4,507,689

2030

      79,088,577      3,962,147

2035

      49,294,622      3,091,476

2040

      47,962,495      2,013,259

2045

      23,511,046      1,688,503

2050

      835,931      206,623

2055

      347,342      108,887

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   105

 

Notes to Financial Statements

 

The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:

 

     Gross Unrealized    Net
Unrealized
Appreciation
(Depreciation)

Strategy

    Appreciation    (Depreciation)   

2000

    $     262,243    $     (1,289,405)    $     (1,027,162)

2005

      456,556      (3,340,730)      (2,884,174)

2010

      1,583,899      (16,895,289)      (15,311,390)

2015

      1,576,073      (24,360,502)      (22,784,429)

2020

      818,291      (33,517,309)      (32,699,018)

2025

      199,462      (27,002,481)      (26,803,019)

2030

      62,081      (21,858,300)      (21,796,219)

2035

      38,473      (13,724,368)      (13,685,895)

2040

      24,665      (11,089,567)      (11,064,902)

2045

      16,099      (5,872,520)      (5,856,421)

2050

      129      (64,231)      (64,102)

2055

      152      (13,304)      (13,152)

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 shares for each class were as follows:

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2000 Retirement Strategy             
Class A             

Shares sold

    168,934     804,684       $ 1,973,447     $ 9,403,480    
     

Shares issued in reinvestment of dividends and distributions

    25,428     3,281         285,050       36,939    
     

Shares converted from Class B

    1,434     – 0 –       16,084       – 0 –  
     

Shares redeemed

    (143,803 )   (428,328 )       (1,595,552 )     (5,011,907 )  
     

Net increase

    51,993     379,637       $ 679,029     $ 4,428,512    
     

 

106   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2000 Retirement Strategy             
Class B             

Shares sold

    5,239     13,494       $ 56,845     $ 155,314    
     

Shares issued in reinvestment of dividends and distributions

    626     79         6,936       880    
     

Shares converted to Class A

    (1,452 )   – 0 –       (16,084 )     – 0 –  
     

Shares redeemed

    (7,251 )   (405 )       (77,626 )     (4,658 )  
     

Net increase (decrease)

    (2,838 )   13,168       $ (29,929 )   $ 151,536    
     
            
Class C             

Shares sold

    87,863     34,541       $ 1,026,332     $ 393,749    
     

Shares issued in reinvestment of dividends and distributions

    4,738     130         52,497       1,461    
     

Shares redeemed

    (3 )   (1,198 )       (35 )     (13,757 )  
     

Net increase

    92,598     33,473       $ 1,078,794     $ 381,453    
     
            
Advisor Class             

Shares sold

    74,810     44       $ 900,918     $ 522    
     

Shares issued in reinvestment of dividends and distributions

    1,757     25         19,752       277    
     

Shares redeemed

    (25,372 )   (7 )       (303,921 )     (75 )  
     

Net increase

    51,195     62       $ 616,749     $ 724    
     
            
Class R             

Shares sold

    367,029     32,246       $ 4,223,626     $ 372,238    
     

Shares issued in reinvestment of dividends and distributions

    1,409     43         15,643       474    
     

Shares redeemed

    (342,139 )   (386 )       (4,079,194 )     (4,481 )  
     

Net increase

    26,299     31,903       $ 160,075     $ 368,231    
     
            
Class K             

Shares sold

    314,672     501,985       $ 3,606,463     $ 5,684,221    
     

Shares issued in reinvestment of dividends and distributions

    26,949     1,946         296,711       21,582    
     

Shares redeemed

    (137,185 )   (69,062 )       (1,568,453 )     (795,509 )  
     

Net increase

    204,436     434,869       $ 2,334,721     $ 4,910,294    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   107

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2000 Retirement Strategy             
Class I             

Shares sold

    26,266     57,977       $ 305,341     $ 663,107    
     

Shares issued in reinvestment of dividends and distributions

    3,614     39         39,890       441    
     

Shares redeemed

    (14,221 )   (292 )       (156,884 )     (3,352 )  
     

Net increase

    15,659     57,724       $ 188,347     $ 660,196    
     

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2005 Retirement Strategy             
Class A             

Shares sold

    706,290     1,275,223       $ 8,328,631     $ 14,710,972    
     

Shares issued in reinvestment of dividends and distributions

    82,091     19,172         914,493       217,220    
     

Shares converted from Class B

    97     – 0 –       1,054       – 0 –  
     

Shares redeemed

    (474,728 )   (481,977 )       (5,355,811 )     (5,596,264 )  
     

Net increase

    313,750     812,418       $ 3,888,367     $ 9,331,928    
     
            
Class B             

Shares sold

    8,335     25,956       $ 96,881     $ 296,634    
     

Shares issued in reinvestment of dividends and distributions

    2,672     971         29,479       10,938    
     

Shares converted to Class A

    (98 )   – 0 –       (1,054 )     – 0 –  
     

Shares redeemed

    (1,735 )   (7,996 )       (19,743 )     (91,581 )  
     

Net increase

    9,174     18,931       $ 105,563     $ 215,991    
     
            
Class C             

Shares sold

    11,525     175,864       $ 132,862     $ 2,015,276    
     

Shares issued in reinvestment of dividends and distributions

    9,168     278         101,038       3,134    
     

Shares redeemed

    (28,769 )   (215 )       (320,021 )     (2,506 )  
     

Net increase (decrease)

    (8,076 )   175,927       $ (86,121 )   $ 2,015,904    
     

 

108   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2005 Retirement Strategy             
Advisor Class             

Shares sold

    11,026     12,677       $ 129,739     $ 150,856    
     

Shares issued in reinvestment of dividends and distributions

    1,002     28         11,192       315    
     

Shares redeemed

    (112 )   (7 )       (1,254 )     (75 )  
     

Net increase

    11,916     12,698       $ 139,677     $ 151,096    
     
            
Class R             

Shares sold

    83,848     318,825       $ 927,595     $ 3,792,764    
     

Shares issued in reinvestment of dividends and distributions

    16,315     84         180,604       942    
     

Shares redeemed

    (35,557 )   (14,897 )       (407,377 )     (175,295 )  
     

Net increase

    64,606     304,012       $ 700,822     $ 3,618,411    
     
            
Class K             

Shares sold

    177,984     621,722       $ 1,983,325     $ 7,229,835    
     

Shares issued in reinvestment of dividends and distributions

    32,012     1,613         355,648       18,229    
     

Shares redeemed

    (82,865 )   (65,475 )       (943,292 )     (760,647 )  
     

Net increase

    127,131     557,860       $ 1,395,681     $ 6,487,417    
     
            
Class I             

Shares sold

    73,979     225,675       $ 878,839     $ 2,662,360    
     

Shares issued in reinvestment of dividends and distributions

    8,503     46         94,637       524    
     

Shares redeemed

    (43,582 )   (108,284 )       (494,474 )     (1,269,992 )  
     

Net increase

    38,900     117,437       $ 479,002     $ 1,392,892    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   109

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2010 Retirement Strategy             

Class A

             

Shares sold

    2,842,456     4,452,176       $ 33,773,178     $ 52,461,744    
     

Shares issued in reinvestment of dividends and distributions

    221,414     46,213         2,535,197       532,377    
     

Shares converted from Class B

    1,667     – 0 –       19,726       – 0 –  
     

Shares redeemed

    (1,398,248 )   (1,400,997 )       (15,902,819 )     (16,554,465 )  
     

Net increase

    1,667,289     3,097,392       $ 20,425,282     $ 36,439,656    
     
            
Class B             

Shares sold

    36,682     51,361       $ 427,672     $ 594,388    
     

Shares issued in reinvestment of dividends and distributions

    3,403     1,189         38,761       13,622    
     

Shares converted to Class A

    (1,680 )   – 0 –       (19,726 )     – 0 –  
     

Shares redeemed

    (10,002 )   (21,701 )       (115,839 )     (253,272 )  
     

Net increase

    28,403     30,849       $ 330,868     $ 354,738    
     
            
Class C             

Shares sold

    41,903     127,954       $ 492,781     $ 1,498,131    
     

Shares issued in reinvestment of dividends and distributions

    5,420     1,686         61,739       19,317    
     

Shares redeemed

    (15,057 )   (23,034 )       (174,376 )     (272,948 )  
     

Net increase

    32,266     106,606       $ 380,144     $ 1,244,500    
     
            
Advisor Class             

Shares sold

    838,968     33,567       $ 10,181,980     $ 397,846    
     

Shares issued in reinvestment of dividends and distributions

    35,258     706         405,114       8,144    
     

Shares redeemed

    (122,404 )   (13 )       (1,473,595 )     (154 )  
     

Net increase

    751,822     34,260       $ 9,113,499     $ 405,836    
     
            
Class R             

Shares sold

    1,073,589     697,513       $ 12,969,446     $ 8,242,613    
     

Shares issued in reinvestment of dividends and distributions

    31,567     369         360,814       4,244    
     

Shares redeemed

    (524,855 )   (257,615 )       (6,377,030 )     (3,058,780 )  
     

Net increase

    580,301     440,267       $ 6,953,230     $ 5,188,077    
     

 

110   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
                                  
2010 Retirement Strategy             
Class K             

Shares sold

    2,378,942     3,207,870       $ 28,087,475     $ 37,884,851    
     

Shares issued in reinvestment of dividends and distributions

    177,779     10,275         2,037,347       118,368    
     

Shares redeemed

    (695,814 )   (313,774 )       (8,261,753 )     (3,728,930 )  
     

Net increase

    1,860,907     2,904,371       $ 21,863,069     $ 34,274,289    
     
            
Class I             

Shares sold

    595,313     1,082,017       $ 7,086,214     $ 12,808,488    
     

Shares issued in reinvestment of dividends and distributions

    44,567     1,104         511,623       12,736    
     

Shares redeemed

    (297,278 )   (173,661 )       (3,464,548 )     (2,090,664 )  
     

Net increase

    342,602     909,460       $ 4,133,289     $ 10,730,560    
     

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2015 Retirement Strategy             
Class A             

Shares sold

    3,450,986     6,503,660       $ 41,576,911     $ 77,791,201    
     

Shares issued in reinvestment of dividends and distributions

    233,481     54,806         2,731,732       642,878    
     

Shares converted from Class B

    3,895     – 0 –       46,045       – 0 –  
     

Shares redeemed

    (2,323,486 )   (1,842,819 )       (27,022,519 )     (22,186,287 )  
     

Net increase

    1,364,876     4,715,647       $ 17,332,169     $ 56,247,792    
     
            
Class B             

Shares sold

    39,969     198,803       $ 473,411     $ 2,345,143    
     

Shares issued in reinvestment of dividends and distributions

    8,364     2,764         97,358       32,282    
     

Shares converted to Class A

    (3,924 )   – 0 –       (46,045 )     – 0 –  
     

Shares redeemed

    (9,156 )   (23,944 )       (107,539 )     (292,329 )  
     

Net increase

    35,253     177,623       $ 417,185     $ 2,085,096    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   111

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2015 Retirement Strategy             
Class C             

Shares sold

    64,991     161,693       $ 773,543     $ 1,948,163    
     

Shares issued in reinvestment of dividends and distributions

    3,805     837         44,285       9,781    
     

Shares redeemed

    (64,160 )   (2,760 )       (731,242 )     (34,318 )  
     

Net increase

    4,636     159,770       $ 86,586     $ 1,923,626    
     
            
Advisor Class             

Shares sold

    143,268     111,942       $ 1,831,560     $ 1,366,453    
     

Shares issued in reinvestment of dividends and distributions

    6,824     350         80,178       4,111    
     

Shares redeemed

    (9,162 )   (64,515 )       (111,463 )     (781,588 )  
     

Net increase

    140,930     47,777       $ 1,800,275     $ 588,976    
     
            
Class R             

Shares sold

    755,769     909,077       $ 8,750,547     $ 11,128,698    
     

Shares issued in reinvestment of dividends and distributions

    31,505     1,600         367,972       18,740    
     

Shares redeemed

    (181,466 )   (135,191 )       (2,122,593 )     (1,647,918 )  
     

Net increase

    605,808     775,486       $ 6,995,926     $ 9,499,520    
     
            
Class K             

Shares sold

    2,955,914     4,880,579       $ 35,009,070     $ 58,808,606    
     

Shares issued in reinvestment of dividends and distributions

    223,444     14,192         2,618,767       166,617    
     

Shares redeemed

    (641,134 )   (143,959 )       (7,770,923 )     (1,761,901 )  
     

Net increase

    2,538,224     4,750,812       $ 29,856,914     $ 57,213,322    
     
            
Class I             

Shares sold

    904,273     2,541,938       $ 11,068,869     $ 30,916,792    
     

Shares issued in reinvestment of dividends and distributions

    91,344     858         1,073,292       10,088    
     

Shares redeemed

    (300,500 )   (421,731 )       (3,635,237 )     (5,232,596 )  
     

Net increase

    695,117     2,121,065       $ 8,506,924     $ 25,694,284    
     

 

112   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2020 Retirement Strategy             
Class A             

Shares sold

    4,692,023     6,839,997       $ 57,278,282     $ 82,785,883    
     

Shares issued in reinvestment of dividends and distributions

    255,260     57,727         3,022,288       686,376    
     

Shares converted from Class B

    3,391     – 0 –       41,555       – 0 –  
     

Shares redeemed

    (2,795,162 )   (2,046,485 )       (32,308,295 )     (25,368,348 )  
     

Net increase

    2,155,512     4,851,239       $ 28,033,830     $ 58,103,911    
     
            
Class B             

Shares sold

    54,544     179,466       $ 676,197     $ 2,156,747    
     

Shares issued in reinvestment of dividends and distributions

    6,928     1,903         81,539       22,505    
     

Shares converted to Class A

    (3,423 )   – 0 –       (41,555 )     – 0 –  
     

Shares redeemed

    (16,370 )   (23,437 )       (189,216 )     (284,026 )  
     

Net increase

    41,679     157,932       $ 526,965     $ 1,895,226    
     
            
Class C             

Shares sold

    104,101     153,103       $ 1,227,520     $ 1,886,661    
     

Shares issued in reinvestment of dividends and distributions

    4,341     875         51,096       10,360    
     

Shares redeemed

    (16,183 )   (4,561 )       (191,824 )     (55,499 )  
     

Net increase

    92,259     149,417       $ 1,086,792     $ 1,841,522    
     
            
Advisor Class             

Shares sold

    166,196     151,521       $ 2,127,901     $ 1,830,101    
     

Shares issued in reinvestment of dividends and distributions

    10,093     625         120,008       7,455    
     

Shares redeemed

    (55,870 )   (14,010 )       (644,227 )     (176,649 )  
     

Net increase

    120,419     138,136       $ 1,603,682     $ 1,660,907    
     
            
Class R             

Shares sold

    1,475,383     1,296,211       $ 17,888,654     $ 16,290,739    
     

Shares issued in reinvestment of dividends and distributions

    55,150     970         650,768       11,505    
     

Shares redeemed

    (489,910 )   (84,517 )       (5,870,675 )     (1,052,943 )  
     

Net increase

    1,040,623     1,212,664       $ 12,668,747     $ 15,249,301    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   113

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2020 Retirement Strategy             
Class K             

Shares sold

    4,544,681     5,750,180       $ 54,568,930     $ 70,255,018    
     

Shares issued in reinvestment of dividends and distributions

    254,289     11,362         3,015,863       135,207    
     

Shares redeemed

    (651,793 )   (565,508 )       (7,908,035 )     (6,985,313 )  
     

Net increase

    4,147,177     5,196,034       $ 49,676,758     $ 63,404,912    
     
            
Class I             

Shares sold

    863,634     2,600,720       $ 10,595,378     $ 32,189,825    
     

Shares issued in reinvestment of dividends and distributions

    86,155     2,349         1,023,518       27,972    
     

Shares redeemed

    (351,664 )   (371,065 )       (4,228,726 )     (4,624,618 )  
     

Net increase

    598,125     2,232,004       $ 7,390,170     $ 27,593,179    
     

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2025 Retirement Strategy             
Class A             

Shares sold

    3,387,916     7,105,940       $ 42,253,152     $ 88,058,514    
     

Shares issued in reinvestment of dividends and distributions

    226,223     60,071         2,778,014       734,062    
     

Shares converted from Class B

    4,190     – 0 –       54,770       – 0 –  
     

Shares redeemed

    (2,828,297 )   (1,708,505 )       (33,793,790 )     (21,636,196 )  
     

Net increase

    790,032     5,457,506       $ 11,292,146     $ 67,156,380    
     
            
Class B             

Shares sold

    34,892     93,869       $ 438,222     $ 1,156,589    
     

Shares issued in reinvestment of dividends and distributions

    3,936     1,135         47,934       13,774    
     

Shares converted to Class A

    (4,239 )   – 0 –       (54,770 )     – 0 –  
     

Shares redeemed

    (2,563 )   (15,296 )       (30,799 )     (192,916 )  
     

Net increase

    32,026     79,708       $ 400,587     $ 977,447    
     

 

114   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2025 Retirement Strategy             
Class C             

Shares sold

    96,797     112,596       $ 1,172,116     $ 1,423,092    
     

Shares issued in reinvestment of dividends and distributions

    3,094     649         37,721       7,885    
     

Shares redeemed

    (15,055 )   (3,674 )       (180,888 )     (47,159 )  
     

Net increase

    84,836     109,571       $ 1,028,949     $ 1,383,818    
     
Advisor Class             

Shares sold

    58,986     41,661       $ 783,709     $ 523,457    
     

Shares issued in reinvestment of dividends and distributions

    3,439     383         42,402       4,692    
     

Shares redeemed

    (3,663 )   (9,513 )       (46,282 )     (120,132 )  
     

Net increase

    58,762     32,531       $ 779,829     $ 408,017    
     
            
Class R             

Shares sold

    818,944     924,490       $ 9,993,275     $ 12,037,155    
     

Shares issued in reinvestment of dividends and distributions

    31,211     791         383,263       9,671    
     

Shares redeemed

    (160,345 )   (123,248 )       (1,964,058 )     (1,575,289 )  
     

Net increase

    689,810     802,033       $ 8,412,480     $ 10,471,537    
     
            
Class K             

Shares sold

    3,398,389     4,349,239       $ 41,604,195     $ 54,685,779    
     

Shares issued in reinvestment of dividends and distributions

    197,070     15,827         2,423,964       193,568    
     

Shares redeemed

    (442,016 )   (283,175 )       (5,440,140 )     (3,613,731 )  
     

Net increase

    3,153,443     4,081,891       $ 38,588,019     $ 51,265,616    
     
            
Class I             

Shares sold

    544,970     1,813,241       $ 6,937,805     $ 23,093,232    
     

Shares issued in reinvestment of dividends and distributions

    60,788     1,482         749,522       18,136    
     

Shares redeemed

    (120,474 )   (371,440 )       (1,449,885 )     (4,801,287 )  
     

Net increase

    485,284     1,443,283       $ 6,237,442     $ 18,310,081    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   115

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2030 Retirement Strategy             
Class A             

Shares sold

    2,875,496     4,346,425       $ 35,886,847     $ 53,663,450    
     

Shares issued in reinvestment of dividends and distributions

    127,841     30,008         1,563,495       361,898    
     

Shares converted from Class B

    1,948     – 0 –       23,873       – 0 –  
     

Shares redeemed

    (1,873,549 )   (1,008,921 )       (21,919,105 )     (12,704,044 )  
     

Net increase

    1,131,736     3,367,512       $ 15,555,110     $ 41,321,304    
     
            
Class B             

Shares sold

    29,911     96,323       $ 370,350     $ 1,189,778    
     

Shares issued in reinvestment of dividends and distributions

    2,543     861         30,848       10,288    
     

Shares converted to Class A

    (1,968 )   – 0 –       (23,873 )     – 0 –  
     

Shares redeemed

    (9,562 )   (4,957 )       (121,278 )     (62,805 )  
     

Net increase

    20,924     92,227       $ 256,047     $ 1,137,261    
     
            
Class C             

Shares sold

    75,623     159,264       $ 919,285     $ 2,027,052    
     

Shares issued in reinvestment of dividends and distributions

    1,792     336         21,760       4,026    
     

Shares redeemed

    (27,552 )   (3,918 )       (341,058 )     (49,475 )  
     

Net increase

    49,863     155,682       $ 599,987     $ 1,981,603    
     
            
Advisor Class             

Shares sold

    44,397     40,145       $ 576,663     $ 479,929    
     

Shares issued in reinvestment of dividends and distributions

    1,493     390         18,319       4,724    
     

Shares redeemed

    (7,291 )   (5,715 )       (93,786 )     (70,460 )  
     

Net increase

    38,599     34,820       $ 501,196     $ 414,193    
     
            
Class R             

Shares sold

    1,384,799     708,888       $ 17,353,597     $ 9,089,870    
     

Shares issued in reinvestment of dividends and distributions

    31,924     1,065         389,793       12,851    
     

Shares redeemed

    (257,315 )   (55,246 )       (3,181,171 )     (699,880 )  
     

Net increase

    1,159,408     654,707       $ 14,562,219     $ 8,402,841    
     

 

116   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31, 2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31, 2007		      
        
2030 Retirement Strategy             
Class K             

Shares sold

    3,212,384     3,232,036       $ 39,220,368     $ 40,247,705    
     

Shares issued in reinvestment of dividends and distributions

    122,714     8,666         1,502,018       104,507    
     

Shares redeemed

    (405,178 )   (151,312 )       (4,956,837 )     (1,917,159 )  
     

Net increase

    2,929,920     3,089,390       $ 35,765,549     $ 38,435,053    
     
            
Class I             

Shares sold

    460,084     1,153,807       $ 5,810,002     $ 14,552,118    
     

Shares issued in reinvestment of dividends and distributions

    27,610     1,751         338,773       21,151    
     

Shares redeemed

    (244,313 )   (186,487 )       (3,111,136 )     (2,390,284 )  
     

Net increase

    243,381     969,071       $ 3,037,639     $ 12,182,985    
     

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2035 Retirement Strategy             
Class A             

Shares sold

    1,833,136     2,948,986       $ 22,795,818     $ 36,148,685    
     

Shares issued in reinvestment of dividends and distributions

    87,265     25,854         1,072,484       313,352    
     

Shares converted from Class B

    450     – 0 –       5,288       – 0 –  
     

Shares redeemed

    (1,125,065 )   (566,778 )       (13,262,055 )     (7,155,616 )  
     

Net increase

    795,786     2,408,062       $ 10,611,535     $ 29,306,421    
     
            
Class B             

Shares sold

    18,041     61,624       $ 219,604     $ 761,140    
     

Shares issued in reinvestment of dividends and distributions

    1,550     568         18,926       6,855    
     

Shares converted to Class A

    (454 )   – 0 –       (5,288 )     – 0 –  
     

Shares redeemed

    (5,857 )   (10,276 )       (77,204 )     (131,692 )  
     

Net increase

    13,280     51,916       $ 156,038     $ 636,303    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   117

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2035 Retirement Strategy             
Class C             

Shares sold

    63,034     63,348       $ 774,337     $ 781,925    
     

Shares issued in reinvestment of dividends and distributions

    1,674     575         20,458       6,927    
     

Shares redeemed

    (19,167 )   (4,917 )       (236,813 )     (61,596 )  
     

Net increase

    45,541     59,006       $ 557,982     $ 727,256    
     
            
Advisor Class             

Shares sold

    28,817     59,643       $ 376,019     $ 740,871    
     

Shares issued in reinvestment of dividends and distributions

    2,513     579         30,987       7,036    
     

Shares redeemed

    (14,050 )   (6,976 )       (174,497 )     (91,496 )  
     

Net increase

    17,280     53,246       $ 232,509     $ 656,411    
     
            
Class R             

Shares sold

    602,351     318,882       $ 7,290,795     $ 4,146,193    
     

Shares issued in reinvestment of dividends and distributions

    11,316     1,056         138,396       12,774    
     

Shares redeemed

    (109,351 )   (22,583 )       (1,357,599 )     (289,278 )  
     

Net increase

    504,316     297,355       $ 6,071,592     $ 3,869,689    
     
            
Class K             

Shares sold

    1,949,246     2,181,084       $ 24,037,896     $ 27,421,467    
     

Shares issued in reinvestment of dividends and distributions

    84,492     3,671         1,038,403       44,490    
     

Shares redeemed

    (239,456 )   (135,093 )       (2,991,358 )     (1,692,885 )  
     

Net increase

    1,794,282     2,049,662       $ 22,084,941     $ 25,773,072    
     
            
Class I             

Shares sold

    362,765     1,004,195       $ 4,647,283     $ 12,790,081    
     

Shares issued in reinvestment of dividends and distributions

    22,515     1,054         277,388       12,789    
     

Shares redeemed

    (150,354 )   (387,791 )       (1,842,798 )     (4,974,036 )  
     

Net increase

    234,926     617,458       $ 3,081,873     $ 7,828,834    
     
            

 

118   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2040 Retirement Strategy             
Class A             

Shares sold

    1,860,567     1,639,465       $ 23,731,016     $ 20,615,878    
     

Shares issued in reinvestment of dividends and distributions

    54,030     10,068         673,211       123,339    
     

Shares converted from Class B

    653     – 0 –       7,744       – 0 –  
     

Shares redeemed

    (682,842 )   (304,552 )       (8,337,373 )     (3,895,292 )  
     

Net increase

    1,232,408     1,344,981       $ 16,074,598     $ 16,843,925    
     
            
Class B             

Shares sold

    18,598     30,347       $ 242,790     $ 381,201    
     

Shares issued in reinvestment of dividends and distributions

    1,396     648         17,313       7,900    
     

Shares converted to Class A

    (657 )   – 0 –       (7,744 )     – 0 –  
     

Shares redeemed

    (3,985 )   (5,478 )       (48,053 )     (71,623 )  
     

Net increase

    15,352     25,517       $ 204,306     $ 317,478    
     
            
Class C             

Shares sold

    47,206     34,420       $ 594,464     $ 445,264    
     

Shares issued in reinvestment of dividends and distributions

    586     191         7,269       2,336    
     

Shares redeemed

    (4,218 )   (4,304 )       (51,925 )     (54,678 )  
     

Net increase

    43,574     30,307       $ 549,808     $ 392,922    
     
            
Advisor Class             

Shares sold

    27,291     22,746       $ 356,884     $ 282,432    
     

Shares issued in reinvestment of dividends and distributions

    751     296         9,400       3,635    
     

Shares redeemed

    (2,224 )   (10,776 )       (29,189 )     (133,568 )  
     

Net increase

    25,818     12,266       $ 337,095     $ 152,499    
     
            
Class R             

Shares sold

    839,200     439,740       $ 10,741,562     $ 5,731,471    
     

Shares issued in reinvestment of dividends and distributions

    18,787     395         232,963       4,826    
     

Shares redeemed

    (156,871 )   (40,142 )       (1,964,384 )     (513,562 )  
     

Net increase

    701,116     399,993       $ 9,010,141     $ 5,222,735    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   119

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2040 Retirement Strategy             
Class K             

Shares sold

    1,214,406     1,278,218       $ 15,273,176     $ 16,205,069    
     

Shares issued in reinvestment of dividends and distributions

    42,936     2,122         534,130       25,928    
     

Shares redeemed

    (175,714 )   (67,674 )       (2,209,606 )     (866,693 )  
     

Net increase

    1,081,628     1,212,666       $ 13,597,700     $ 15,364,304    
     
            
Class I             

Shares sold

    368,589     692,459       $ 4,775,163     $ 8,882,663    
     

Shares issued in reinvestment of dividends and distributions

    14,415     725         179,891       8,872    
     

Shares redeemed

    (115,560 )   (245,965 )       (1,491,635 )     (3,168,249 )  
     

Net increase

    267,444     447,219       $ 3,463,419     $ 5,723,286    
     

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2045 Retirement Strategy             
Class A             

Shares sold

    1,084,292     1,809,614       $ 13,556,199     $ 22,386,006    
     

Shares issued in reinvestment of dividends and distributions

    55,167     13,979         681,313       170,829    
     

Shares converted from Class B

    304     – 0 –       4,185       – 0 –  
     

Shares redeemed

    (472,775 )   (465,269 )       (5,759,077 )     (5,929,992 )  
     

Net increase

    666,988     1,358,324       $ 8,482,620     $ 16,626,843    
     
            
Class B             

Shares sold

    4,549     15,994       $ 58,777     $ 197,966    
     

Shares issued in reinvestment of dividends and distributions

    659     234         8,090       2,839    
     

Shares converted to Class A

    (307 )   – 0 –       (4,185 )     – 0 –  
     

Shares redeemed

    (864 )   (3,625 )       (10,582 )     (45,628 )  
     

Net increase

    4,037     12,603       $ 52,100     $ 155,177    
     

 

120   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     Year Ended
August 31,
2007		      
        
2045 Retirement Strategy             
Class C             

Shares sold

    29,465     17,696       $ 367,128     $ 221,653    
     

Shares issued in reinvestment of dividends and distributions

    735     180         9,011       2,195    
     

Shares redeemed

    (2,060 )   (2,318 )       (26,205 )     (29,458 )  
     

Net increase

    28,140     15,558       $ 349,934     $ 194,390    
     
            
Advisor Class             

Shares sold

    24,027     31,949       $ 309,721     $ 415,119    
     

Shares issued in reinvestment of dividends and distributions

    1,868     399         23,168       4,888    
     

Shares redeemed

    (15,507 )   (7,764 )       (185,788 )     (102,292 )  
     

Net increase

    10,388     24,584       $ 147,101     $ 317,715    
     
            
Class R             

Shares sold

    307,654     216,531       $ 3,728,043     $ 2,798,571    
     

Shares issued in reinvestment of dividends and distributions

    7,565     447         92,966       5,440    
     

Shares redeemed

    (36,188 )   (31,325 )       (447,047 )     (402,054 )  
     

Net increase

    279,031     185,653       $ 3,373,962     $ 2,401,957    
     
            
Class K             

Shares sold

    600,482     718,214       $ 7,563,109     $ 9,095,067    
     

Shares issued in reinvestment of dividends and distributions

    32,195     1,658         396,963       20,242    
     

Shares redeemed

    (118,818 )   (27,997 )       (1,497,908 )     (362,232 )  
     

Net increase

    513,859     691,875       $ 6,462,164     $ 8,753,077    
     
            
Class I             

Shares sold

    156,449     426,728       $ 1,987,054     $ 5,429,774    
     

Shares issued in reinvestment of dividends and distributions

    7,267     410         89,750       5,005    
     

Shares redeemed

    (46,836 )   (264,324 )       (588,132 )     (3,417,912 )  
     

Net increase

    116,880     162,814       $ 1,488,672     $ 2,016,867    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   121

 

Notes to Financial Statements

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		      
        
2050 Retirement Strategy             
Class A             

Shares sold

    48,848     1,000       $ 500,499     $ 10,002    
     

Shares issued in reinvestment of dividends and distributions

    452     – 0 –       4,457       – 0 –  
     

Shares redeemed

    (12,583 )   – 0  –(b)       (120,272 )     (2 )  
     

Net increase

    36,717     1,000       $ 384,684     $ 10,000    
     
            
Class B             

Shares sold

    506     1,000       $ 5,126     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    3     – 0 –       27       – 0 –  
     

Net increase

    509     1,000       $ 5,153     $ 10,000    
     
            
Class C             

Shares sold

    58     1,000       $ 547     $ 10,001    
     

Shares issued in reinvestment of dividends and distributions

    – 0 –(b)   – 0 –       1       – 0 –  
     

Shares redeemed

    (1 )   – 0  –(b)       (15 )     (1 )  
     

Net increase

    57     1,000       $ 533     $ 10,000    
     
            
Advisor Class             

Shares sold

    13,546     1,000       $ 130,327     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    15     – 0 –       152       – 0 –  
     

Shares redeemed

    (2,603 )   – 0 –       (27,651 )     – 0 –  
     

Net increase

    10,958     1,000       $ 102,828     $ 10,000    
     
            
Class R             

Shares sold

    13,529     1,000       $ 134,558     $ 10,001    
     

Shares redeemed

    (8,816 )   – 0  –(b)       (90,834 )     (1 )  
     

Net increase

    4,713     1,000       $ 43,724     $ 10,000    
     
            
Class K             

Shares sold

    5,127     1,000       $ 50,484     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    35     – 0 –       344       – 0 –  
     

Net increase

    5,162     1,000       $ 50,828     $ 10,000    
     

 

122   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		      
        
2050 Retirement Strategy             
Class I             

Shares sold

    8,573     1,002       $ 85,786     $ 10,019    
     

Shares issued in reinvestment of dividends and distributions

    31     – 0 –       301       – 0 –  
     

Shares redeemed

    (3,320 )   – 0 –       (30,696 )     – 0 –  
     

Net increase

    5,284     1,002       $ 55,391     $ 10,019    
     

 

(a)

Commencement of operations.

(b)

Amount is less than one share.

 

            
     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     June 29, 2007(a)
to August 31,
2007		      
        
2055 Retirement Strategy             
Class A             

Shares sold

    23,958     1,253       $ 217,083     $ 12,421    
     

Shares issued in reinvestment of dividends and distributions

    60     – 0 –       575       – 0 –  
     

Shares redeemed

    (1,208 )   – 0  –(b)       (10,895 )     (2 )  
     

Net increase

    22,810     1,253       $ 206,763     $ 12,419    
     
            
Class B             

Shares sold

    548     1,000       $ 5,000     $ 10,000    
     

Net increase

    548     1,000       $ 5,000     $ 10,000    
     
            
Class C             

Shares sold

    2,546     1,000       $ 26,605     $ 10,001    
     

Shares issued in reinvestment of dividends and distributions

    99     – 0 –       945       – 0 –  
     

Shares redeemed

    – 0 –   – 0  –(b)       – 0 –     (1 )  
     

Net increase

    2,645     1,000       $ 27,550     $ 10,000    
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   123

 

Notes to Financial Statements

 

     Shares         Amount      
     Six Months Ended
February 29, 2008
(unaudited)		     June 29,
2007(a) to
August 31,
2007		         Six Months Ended
February 29, 2008
(unaudited)		     June 29,
2007(a) to
August 31,
2007		      
        
2055 Retirement Strategy             
Advisor Class             

Shares sold

    942     1,012       $ 8,663     $ 10,125    
     

Shares issued in reinvestment of dividends and distributions

    5     – 0 –       40       – 0 –  
     

Shares redeemed

    (3 )   – 0 –       (25 )     – 0 –  
     

Net increase

    944     1,012       $ 8,678     $ 10,125    
     
    
Class R             

Shares sold

    194     1,000       $ 1,749     $ 10,001    
     

Shares redeemed

    (15 )   – 0  –(b)       (136 )     (1 )  
     

Net increase

    179     1,000       $ 1,613     $ 10,000    
     
            
Class K             

Shares sold

    8,197     1,000       $ 81,773     $ 10,000    
     

Shares issued in reinvestment of dividends and distributions

    1     – 0 –       9       – 0 –  
     

Shares redeemed

    (5,855 )   – 0 –       (58,433 )     – 0 –  
     

Net increase

    2,343     1,000       $ 23,349     $ 10,000    
     
            
Class I             

Shares sold

    43     1,002       $ 414     $ 10,019    
     

Shares issued in reinvestment of dividends and distributions

    1     – 0 –       6       – 0 –  
     

Shares redeemed

    (13 )   – 0 –       (118 )     – 0 –  
     

Net increase

    31     1,002       $ 302     $ 10,019    
     

 

(a)

Commencement of operations.

 

(b)

Amount is less than one share.

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

 

124   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

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 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 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 thereunder 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 six months ended February 29, 2008.

NOTE H

Distributions to Shareholders

The tax character of distributions to be paid for the year ending August 31, 2008 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended August 31, 2007 and August 31, 2006 were as follows:

 

2000 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 59,742    $ – 0  –

Long-term capital gain

      4,673      – 0  –
               

Total distributions paid

    $ 64,415    $  – 0  –
               
     
2005 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $   243,509    $   – 0  –

Long-term capital gain

      10,307      – 0  –
               

Total distributions paid

    $ 253,816    $  – 0  –
               
     

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   125

 

Notes to Financial Statements

 

2010 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $   685,765    $   – 0  –

Long-term capital gain

      29,435      – 0  –
               

Total distributions paid

    $ 715,200    $  – 0  –
               
     
2015 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 844,938    $  – 0  –

Long-term capital gain

      44,428      – 0  –
               

Total distributions paid

    $ 889,366    $  – 0  –
               
     
2020 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 883,669    $  – 0  –

Long-term capital gain

      31,470      – 0  –
               

Total distributions paid

    $ 915,139    $ – 0  –
               
     
2025 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 967,000    $  – 0  –

Long-term capital gain

      21,331      – 0  –
               

Total distributions paid

    $ 988,331    $  – 0  –
               
     
2030 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 493,649    $  – 0  –

Long-term capital gain

      28,033      – 0  –
               

Total distributions paid

    $ 521,682    $  – 0  –
               
     
2035 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 386,871    $  – 0  –

Long-term capital gain

      19,075      – 0  –
               

Total distributions paid

    $ 405,946    $  – 0  –
               
     
2040 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 166,973    $  – 0  –

Long-term capital gain

      10,271      – 0  –
               

Total distributions paid

    $ 177,244    $  – 0  –
               
     
2045 Retirement Strategy    2007    2006  

Distributions paid from:

      

Ordinary income

    $ 200,630    $ – 0  –

Long-term capital gain

      11,370      – 0  –
               

Total distributions paid

    $ 212,000    $ – 0  –
               

 

126   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

2050 Retirement Strategy    2007      

Distributions paid from:

     

Ordinary income

    $   – 0  –  

Long-term capital gain

      – 0  –  
          

Total distributions paid

    $ – 0  –  
          
    
2055 Retirement Strategy    2007      

Distributions paid from:

     

Ordinary income

    $  – 0  –  

Long-term capital gain

      – 0  –  
          

Total distributions paid

    $  – 0  –  
          

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   $ 0   $ 92,216     $ 259,609  

2005

     104,308     581,953     0     208,604       894,865  

2010

     353,040     1,470,558     0     1,609,779       3,433,377  

2015

         594,773         1,384,713         0         3,099,443           5,078,929  

2020

     639,126     1,952,386     0     3,168,528       5,760,040  

2025

     484,077     1,711,493     0     4,249,117       6,444,687  

2030

     165,561     753,769     0     2,934,623       3,853,953  

2035

     67,411     597,169     0     2,369,351       3,033,931  

2040

     34,820     284,033     0     928,730       1,247,583  

2045

     25,516     444,163     0     1,025,774       1,495,453  

2050

     0     0     0     (985 )     (985 )

2055

     0     0     0     (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.

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

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   127

 

Notes to Financial Statements

 

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. 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 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.

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

 

128   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Notes to Financial Statements

 

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 February 29, 2008, the Strategies implemented FIN 48 which supplements FASB 109, “Accounting for Income Taxes”. Management has analyzed the Strategies’ tax positions taken on federal income tax returns for all open tax years (tax years ended August 31, 2004-2006) for purposes of implementing FIN 48, and has concluded that no provision for income tax is required in the Strategies’ financial statements.

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.

On March 19, 2008, Financial Accounting Standards Board released Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. The application of FAS 161 is required for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 161 and its impact on the financial statements has not yet been determined.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   129

 

Notes to Financial Statements

 

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.73     $  10.88     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .32     .31     .15  

Net realized and unrealized gain (loss) on investment transactions

   (.55 )   .80     .73  
     

Net increase (decrease) in net asset value from operations

   (.23 )   1.11     .88  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.37 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.53 )   (.26 )   – 0 –
     

Net asset value, end of period

   $  10.97     $  11.73     $  10.88  
     

Total Return

      

Total investment return based on net asset value(c)

   (2.11 )%   10.32  %   8.80 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $5,682     $5,462     $938  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .82  %(e)   .92  %(f)   1.05 %(f)

Expenses, before waivers/reimbursements(d)

   2.80  %(e)   8.86  %(f)   104.94 %(f)

Net investment income(b)

   5.39  %(e)   2.82  %   1.73 %

Portfolio turnover rate

   35  %   99  %   51 %

 

See footnote summary on page 214.

 

130   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.60     $  10.81     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .28     .20     .14  

Net realized and unrealized gain (loss) on investment transactions

   (.54 )   .81     .67  
     

Net increase (decrease) in net asset value from operations

   (.26 )   1.01     .81  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.51 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  10.83     $  11.60     $  10.81  
     

Total Return

      

Total investment return based on net asset value(c)

   (2.42 )%   9.45  %   8.10 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $141     $184     $29  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.52  %(e)   1.59  %(f)   1.75 %(f)

Expenses, before waivers/reimbursements(d)

   3.52  %(e)   7.63  %(f)   169.75 %(f)

Net investment income(b)

   4.80  %(e)   1.74  %   1.40 %

Portfolio turnover rate

   35  %   99  %   51 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   131

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.60     $  10.81     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .29     .19     .11  

Net realized and unrealized gain (loss) on investment transactions

   (.55 )   .82     .70  
     

Net increase (decrease) in net asset value from operations

   (.26 )   1.01     .81  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.51 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  10.83     $  11.60     $  10.81  
     

Total Return

      

Total investment return based on net asset value(c)

   (2.42 )%   9.45  %   8.10 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,399     $425     $34  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.52  %(e)   1.60  %(f)   1.75 %(f)

Expenses, before waivers/reimbursements(d)

   3.40  %(e)   9.09  %(f)   172.05 %(f)

Net investment income(b)

   4.71  %(e)   1.86  %   1.10 %

Portfolio turnover rate

   35  %   99  %   51 %

See footnote summary on page 214.

 

132   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.78     $  10.92     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .35     .38     .27  

Net realized and unrealized gain (loss) on investment transactions

   (.57 )   .76     .65  
     

Net increase (decrease) in net asset value from operations

   (.22 )   1.14     .92  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.39 )   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.55 )   (.28 )   – 0 –
     

Net asset value, end of period

   $  11.01     $  11.78     $  10.92  
     

Total Return

      

Total investment return based on net asset value(c)

   (2.00 )%   10.52  %   9.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $576     $13     $11  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .52  %(e)   .65  %(f)   .75 %(f)

Expenses, before waivers/reimbursements(d)

   2.28  %(e)   9.96  %(f)   189.29 %(f)

Net investment income(b)

   5.30  %(e)   3.32  %   2.61 %

Portfolio turnover rate

   35  %   99  %   51 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   133

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.54     $  10.87     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .31     .17     .22  

Net realized and unrealized gain (loss) on investment transactions

   (.55 )   .89     .65  
     

Net increase (decrease) in net asset value from operations

   (.24 )   1.06     .87  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.28 )   (.36 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.44 )   (.39 )   – 0 –
     

Net asset value, end of period

   $  10.86     $  11.54     $  10.87  
     

Total Return

      

Total investment return based on net asset value(c)

   (2.18 )%   9.85  %   8.70 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $644     $381     $12  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.02  %(e)   1.06  %(f)   1.25 %(f)

Expenses, before waivers/reimbursements(d)

   2.70  %(e)   6.87  %(f)   180.27 %(f)

Net investment income(b)

   3.58  %(e)   1.85  %   2.10 %

Portfolio turnover rate

   35  %   99  %   51 %

See footnote summary on page 214.

 

134   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.55     $  10.89     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .32     .20     .23  

Net realized and unrealized gain (loss) on investment transactions

   (.54 )   .91     .66  
     

Net increase (decrease) in net asset value from operations

   (.22 )   1.11     .89  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.39 )   (.42 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.55 )   (.45 )   – 0 –
     

Net asset value, end of period

   $  10.78     $  11.55     $  10.89  
     

Total Return

      

Total investment return based on net asset value(c)

   (2.05 )%   10.31  %   8.90 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $6,910     $5,041     $19  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .77  %(e)   .83  %(f)   1.00 %(f)

Expenses, before waivers/reimbursements(d)

   2.55  %(e)   4.40  %(f)   167.47 %(f)

Net investment income(b)

   5.43  %(e)   1.83  %   2.27 %

Portfolio turnover rate

   35  %   99  %   51 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   135

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2000 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.60     $  10.92     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .34     .22     .27  

Net realized and unrealized gain (loss) on investment transactions

   (.54 )   .90     .65  
     

Net increase (decrease) in net asset value from operations

   (.20 )   1.12     .92  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.42 )   (.41 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.58 )   (.44 )   – 0 –
     

Net asset value, end of period

   $  10.82     $  11.60     $  10.92  
     

Total Return

      

Total investment return based on net asset value(c)

   (1.83 )%   10.43  %   9.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $804     $681     $11  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .52  %(e)   .55  %(f)   .75 %(f)

Expenses, before waivers/reimbursements(d)

   2.22  %(e)   7.92  %(f)   180.50 %(f)

Net investment income(b)

   5.73  %(e)   2.09  %   2.61 %

Portfolio turnover rate

   35  %   99  %   51 %

See footnote summary on page 214.

 

136   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.78     $  10.92     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .32     .29     .13  

Net realized and unrealized gain (loss) on investment transactions

   (.71 )   .87     .79  
     

Net increase (decrease) in net asset value from operations

   (.39 )   1.16     .92  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.60 )   (.30 )   – 0 –
     

Net asset value, end of period

   $  10.79     $  11.78     $  10.92  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.45 )%   10.69  %   9.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $16,009     $13,775     $3,898  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .88  %(e)   .95  %   1.03 %

Expenses, before waivers/reimbursements(d)

   1.82  %(e)   3.16  %   13.72 %

Net investment income(b)

   5.39  %(e)   2.45  %   1.36 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   137

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.66     $  10.84     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .26     .23     .05  

Net realized and unrealized gain (loss) on investment transactions

   (.68 )   .85     .79  
     

Net increase (decrease) in net asset value from operations

   (.42 )   1.08     .84  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.31 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.56 )   (.26 )   – 0 –
     

Net asset value, end of period

   $  10.68     $  11.66     $  10.84  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.76 )%   10.01  %   8.40 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $651     $604     $357  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.58  %(e)   1.66  %   1.73 %

Expenses, before waivers/reimbursements(d)

   2.52  %(e)   4.03  %   19.10 %

Net investment income(b)

   4.44  %(e)   2.01  %   .49 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

138   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.64     $  10.83     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .27     .10     .07  

Net realized and unrealized gain (loss) on investment transactions

   (.69 )   .97     .76  
     

Net increase (decrease) in net asset value from operations

   (.42 )   1.07     .83  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.31 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.56 )   (.26 )   – 0 –
     

Net asset value, end of period

   $  10.66     $  11.64     $  10.83  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.76 )%   9.92  %   8.30 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,954     $2,228     $167  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.58  %(e)   1.63  %   1.73 %

Expenses, before waivers/reimbursements(d)

   2.52  %(e)   3.83  %   22.53 %

Net investment income(b)

   4.61  %(e)   1.01  %   .73 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   139

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.82     $  10.95     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .30     .15     .20  

Net realized and unrealized gain (loss) on investment transactions

   (.67 )   1.04     .75  
     

Net increase (decrease) in net asset value from operations

   (.37 )   1.19     .95  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.37 )   (.29 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.62 )   (.32 )   – 0 –
     

Net asset value, end of period

   $  10.83     $  11.82     $  10.95  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.24 )%   10.94  %   9.50 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $277     $162     $11  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .58  %(e)   .61  %   .73 %

Expenses, before waivers/reimbursements(d)

   1.52  %(e)   2.47  %   45.94 %

Net investment income(b)

   5.06  %(e)   1.49  %   1.87 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

140   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.72     $  10.89     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .28     .08     .13  

Net realized and unrealized gain (loss) on investment transactions

   (.68 )   1.05     .76  
     

Net increase (decrease) in net asset value from operations

   (.40 )   1.13     .89  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.60 )   (.30 )   – 0 –
     

Net asset value, end of period

   $  10.72     $  11.72     $  10.89  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.57 )%   10.46  %   8.90 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $3,980     $3,593     $28  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.08  %(e)   1.09  %   1.23 %

Expenses, before waivers/reimbursements(d)

   1.97  %(e)   3.24  %   34.65 %

Net investment income(b)

   4.89  %(e)   .63  %   1.26 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   141

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.75     $  10.91     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .30     .14     .18  

Net realized and unrealized gain (loss) on investment transactions

   (.68 )   1.03     .73  
     

Net increase (decrease) in net asset value from operations

   (.38 )   1.17     .91  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.30 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.60 )   (.33 )   – 0 –
     

Net asset value, end of period

   $  10.77     $  11.75     $  10.91  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.36 )%   10.85  %   9.10 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $7,540     $6,734     $164  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .83  %(e)   .87  %   .98 %

Expenses, before waivers/reimbursements(d)

   1.79  %(e)   2.45  %   16.01 %

Net investment income(b)

   5.14  %(e)   1.27  %   1.80 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

142   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2005 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.79     $  10.95     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .34     .22     .19  

Net realized and unrealized gain (loss) on investment transactions

   (.71 )   .97     .76  
     

Net increase (decrease) in net asset value from operations

   (.37 )   1.19     .95  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.38 )   (.32 )   – 0 –

Distributions from net realized gain on investment transactions

   (.25 )   (.03 )   – 0 –
     

Total dividends and distributions

   (.63 )   (.35 )   – 0 –
     

Net asset value, end of period

   $  10.79     $  11.79     $  10.95  
     

Total Return

      

Total investment return based on net asset value(c)

   (3.25 )%   10.94  %   9.50 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,699     $1,398     $12  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .58  %(e)   .58  %   .73 %

Expenses, before waivers/reimbursements(d)

   1.43  %(e)   2.84  %   45.07 %

Net investment income(b)

   5.58  %(e)   1.48  %   1.86 %

Portfolio turnover rate

   13  %   45  %   44 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   143

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.00     $  11.00     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .29     .27     .13  

Net realized and unrealized gain (loss) on investment transactions

   (.82 )   1.00     .87  
     

Net increase (decrease) in net asset value from operations

   (.53 )   1.27     1.00  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.33 )   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.49 )   (.27 )   – 0 –
     

Net asset value, end of period

   $  10.98     $  12.00     $  11.00  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.57 )%   11.64  %   10.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $61,507     $47,201     $9,180  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .90  %(e)   .99  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.13  %(e)   1.65  %   8.18 %

Net investment income(b)

   4.88  %(e)   2.28  %   1.39 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214.

 

144   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.88     $  10.92     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .23     .19     .05  

Net realized and unrealized gain (loss) on investment transactions

   (.79 )   .99     .87  
     

Net increase (decrease) in net asset value from operations

   (.56 )   1.18     .92  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.41 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  10.91     $  11.88     $  10.92  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.81 )%   10.86  %   9.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,268     $1,043     $622  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.60  %(e)   1.71  %   1.83 %

Expenses, before waivers/reimbursements(d)

   1.83  %(e)   2.42  %   9.35 %

Net investment income(b)

   4.00  %(e)   1.58  %   .47 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   145

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  11.89     $  10.92     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .25     .18     .03  

Net realized and unrealized gain (loss) on investment transactions

   (.82 )   1.01     .89  
     

Net increase (decrease) in net asset value from operations

   (.57 )   1.19     .92  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.41 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  10.91     $  11.89     $  10.92  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.89 )%   10.95  %   9.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $2,413     $2,247     $899  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.60  %(e)   1.69  %   1.83 %

Expenses, before waivers/reimbursements(d)

   1.83  %(e)   2.35  %   8.39 %

Net investment income(b)

   4.17  %(e)   1.50  %   .28 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214.

 

146   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.06     $  11.02     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .35     .29     .19  

Net realized and unrealized gain (loss) on investment transactions

   (.87 )   1.04     .83  
     

Net increase (decrease) in net asset value from operations

   (.52 )   1.33     1.02  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.51 )   (.29 )   – 0 –
     

Net asset value, end of period

   $  11.03     $  12.06     $  11.02  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.43 )%   12.12  %   10.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $8,944     $710     $272  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .60  %(e)   .69  %   .83 %

Expenses, before waivers/reimbursements(d)

   .82  %(e)   1.36  %   9.17 %

Net investment income(b)

   5.25  %(e)   2.44  %   1.93 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   147

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  11.98     $  10.98     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .26     .11     .09  

Net realized and unrealized gain (loss) on investment transactions

   (.80 )   1.14     .89  
     

Net increase (decrease) in net asset value from operations

   (.54 )   1.25     .98  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.32 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.48 )   (.25 )   – 0 –
     

Net asset value, end of period

   $  10.96     $  11.98     $  10.98  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.70 )%   11.47  %   9.80 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $11,323     $5,428     $142  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.10  %(e)   1.15  %   1.33 %

Expenses, before waivers/reimbursements(d)

   1.50  %(e)   1.87  %   11.87 %

Net investment income(b)

   4.35  %(e)   .90  %   1.01 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214.

 

148   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.01     $  11.00     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .29     .18     .13  

Net realized and unrealized gain (loss) on investment transactions

   (.82 )   1.11     .87  
     

Net increase (decrease) in net asset value from operations

   (.53 )   1.29     1.00  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.33 )   (.26 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.49 )   (.28 )   – 0 –
     

Net asset value, end of period

   $  10.99     $  12.01     $  11.00  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.55 )%   11.80  %   10.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $54,377     $37,059     $1,988  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .85  %(e)   .93  %   1.08 %

Expenses, before waivers/reimbursements(d)

   1.21  %(e)   1.59  %   7.99 %

Net investment income(b)

   4.85  %(e)   1.75  %   1.28 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   149

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2010 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.05     $  11.03     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .30     .18     .11  

Net realized and unrealized gain (loss) on investment transactions

   (.82 )   1.14     .92  
     

Net increase (decrease) in net asset value from operations

   (.52 )   1.32     1.03  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.28 )   – 0 –

Distributions from net realized gain on investment transactions

   (.16 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.51 )   (.30 )   – 0 –
     

Net asset value, end of period

   $  11.02     $  12.05     $  11.03  
     

Total Return

      

Total investment return based on net asset value(c)

   (4.45 )%   12.04  %   10.30 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $13,981     $11,154     $181  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .60  %(e)   .64  %   .83 %

Expenses, before waivers/reimbursements(d)

   .88  %(e)   1.29  %   13.40 %

Net investment income(b)

   5.05  %(e)   1.56  %   1.21 %

Portfolio turnover rate

   9  %   25  %   7 %

See footnote summary on page 214

 

150   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.25     $  11.09     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .27     .26     .11  

Net realized and unrealized gain (loss) on investment transactions

   (.98 )   1.14     .98  
     

Net increase (decrease) in net asset value from operations

   (.71 )   1.40     1.09  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.32 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.42 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.12     $  12.25     $  11.09  
     

Total Return

      

Total investment return based on net asset value(c)

   (5.96 )%   12.75  %   10.90 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $75,947     $66,921     $8,277  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .94  %(e)   1.02  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.07  %(e)   1.42  %   8.93 %

Net investment income(b)

   4.49  %(e)   2.12  %   1.12 %

Portfolio turnover rate

   2  %   13  %   12 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   151

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.14     $  11.02     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .22     .18     .05  

Net realized and unrealized gain (loss) on investment transactions

   (.96 )   1.13     .97  
     

Net increase (decrease) in net asset value from operations

   (.74 )   1.31     1.02  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.35 )   (.19 )   – 0 –
     

Net asset value, end of period

   $  11.05     $  12.14     $  11.02  
     

Total Return

      

Total investment return based on net asset value(c)

   (6.25 )%   11.96  %   10.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $3,564     $3,487     $1,207  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.64  %(e)   1.72  %   1.83 %

Expenses, before waivers/reimbursements(d)

   1.78  %(e)   2.12  %   10.01 %

Net investment income(b)

   3.73  %(e)   1.49  %   .48 %

Portfolio turnover rate

   2  %   13  %   12 %

See footnote summary on page 214.

 

152   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.14     $  11.02     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .23     .13     .07  

Net realized and unrealized gain (loss) on investment transactions

   (.97 )   1.18     .95  
     

Net increase (decrease) in net asset value from operations

   (.74 )   1.31     1.02  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.35 )   (.19 )   – 0 –
     

Net asset value, end of period

   $  11.05     $  12.14     $  11.02  
     

Total Return

      

Total investment return based on net asset value(c)

   (6.25 )%   11.96  %   10.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $2,195     $2,356     $378  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.64  %(e)   1.70  %   1.83 %

Expenses, before waivers/reimbursements(d)

   1.77  %(e)   2.05  %   10.90 %

Net investment income(b)

   3.87  %(e)   1.06  %   .68 %

Portfolio turnover rate

   2  %   13  %   12 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   153

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.32     $  11.13     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .32     .28     .07  

Net realized and unrealized gain (loss) on investment transactions

   (1.01 )   1.17     1.06  
     

Net increase (decrease) in net asset value from operations

   (.69 )   1.45     1.13  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.45 )   (.26 )   – 0 –
     

Net asset value, end of period

   $  11.18     $  12.32     $  11.13  
     

Total Return

      

Total investment return based on net asset value(c)

   (5.80 )%   13.11  %   11.30 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $2,235     $726     $124  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .64  %(e)   .69  %   .83 %

Expenses, before waivers/reimbursements(d)

   .76  %(e)   .99  %   24.93 %

Net investment income(b)

   5.11  %(e)   2.15  %   .90 %

Portfolio turnover rate

   2  %   13  %   12 %

 

See footnote summary on page 214.

 

154   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.22     $  11.07     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .25     .14     .10  

Net realized and unrealized gain (loss) on investment transactions

   (.96 )   1.24     .97  
     

Net increase (decrease) in net asset value from operations

   (.71 )   1.38     1.07  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.31 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.41 )   (.23 )   – 0 –
     

Net asset value, end of period

   $  11.10     $  12.22     $  11.07  
     

Total Return

      

Total investment return based on net asset value(c)

   (6.02 )%   12.56  %   10.70 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $15,742     $9,928     $410  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.14  %(e)   1.18  %   1.33 %

Expenses, before waivers/reimbursements(d)

   1.47  %(e)   1.76  %   9.30 %

Net investment income(b)

   4.23  %(e)   1.21  %   .98 %

Portfolio turnover rate

   2  %   13  %   12 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   155

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.26     $  11.10     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .27     .17     .09  

Net realized and unrealized gain (loss) on investment transactions

   (.97 )   1.23     1.01  
     

Net increase (decrease) in net asset value from operations

   (.70 )   1.40     1.10  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.32 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.42 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.14     $  12.26     $  11.10  
     

Total Return

      

Total investment return based on net asset value(c)

   (5.87 )%   12.77  %   11.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $85,563     $63,056     $4,342  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .89  %(e)   .95  %   1.08 %

Expenses, before waivers/reimbursements(d)

   1.16  %(e)   1.38  %   8.55 %

Net investment income(b)

   4.47  %(e)   1.55  %   .96 %

Portfolio turnover rate

   2  %   13  %   12 %

See footnote summary on page 214.

 

156   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2015 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.31     $  11.13     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .28     .18     .10  

Net realized and unrealized gain (loss) on investment transactions

   (.96 )   1.26     1.03  
     

Net increase (decrease) in net asset value from operations

   (.68 )   1.44     1.13  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.35 )   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.45 )   (.26 )   – 0 –
     

Net asset value, end of period

   $  11.18     $  12.31     $  11.13  
     

Total Return

      

Total investment return based on net asset value(c)

   (5.74 )%   13.09  %   11.30 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $31,793     $26,459     $308  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .64  %(e)   .66  %   .83 %

Expenses, before waivers/reimbursements(d)

   .83  %(e)   1.07  %   11.87 %

Net investment income(b)

   4.67  %(e)   1.46  %   1.10 %

Portfolio turnover rate

   2  %   13  %   12 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   157

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.41     $  11.18     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .25     .26     .09  

Net realized and unrealized gain (loss) on investment transactions

   (1.10 )   1.21     1.09  
     

Net increase (decrease) in net asset value from operations

   (.85 )   1.47     1.18  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.30 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.40 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.16     $  12.41     $  11.18  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.06 )%   13.20  %   11.80 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $87,750     $70,858     $9,573  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .98  %(e)   1.06  %   1.18 %

Expenses, before waivers/reimbursements(d)

   1.10  %(e)   1.41  %   8.52 %

Net investment income(b)

   4.06  %(e)   2.02  %   .93 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

158   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.29     $  11.10     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .21     .16     .04  

Net realized and unrealized gain (loss) on investment transactions

   (1.10 )   1.21     1.06  
     

Net increase (decrease) in net asset value from operations

   (.89 )   1.37     1.10  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.23 )   (.17 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.33 )   (.18 )   – 0 –
     

Net asset value, end of period

   $  11.07     $  12.29     $  11.10  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.42 )%   12.42  %   11.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $3,190     $3,029     $982  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.68  %(e)   1.76  %   1.88 %

Expenses, before waivers/reimbursements(d)

   1.81  %(e)   2.10  %   9.59 %

Net investment income(b)

   3.40  %(e)   1.31  %   .41 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   159

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.29     $  11.10     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .20     .13     .03  

Net realized and unrealized gain (loss) on investment transactions

   (1.08 )   1.24     1.07  
     

Net increase (decrease) in net asset value from operations

   (.88 )   1.37     1.10  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.23 )   (.17 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.33 )   (.18 )   – 0 –
     

Net asset value, end of period

   $  11.08     $  12.29     $  11.10  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.33 )%   12.42  %   11.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $3,261     $2,484     $585  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.68  %(e)   1.74  %   1.88 %

Expenses, before waivers/reimbursements(d)

   1.81  %(e)   2.07  %   9.83 %

Net investment income(b)

   3.27  %(e)   1.09  %   .32 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

160   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.48     $  11.21     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .31     .25     .10  

Net realized and unrealized gain (loss) on investment transactions

   (1.16 )   1.27     1.11  
     

Net increase (decrease) in net asset value from operations

   (.85 )   1.52     1.21  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.32 )   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.42 )   (.25 )   – 0 –
     

Net asset value, end of period

   $  11.21     $  12.48     $  11.21  
     

Total Return

      

Total investment return based on net asset value(c)

   (6.99 )%   13.66  %   12.10 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $2,940     $1,769     $41  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .68  %(e)   .71  %   .88 %

Expenses, before waivers/reimbursements(d)

   .80  %(e)   .98  %   29.32 %

Net investment income(b)

   4.75  %(e)   1.94  %   1.14 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   161

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.37     $  11.16     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .24     .08     .03  

Net realized and unrealized gain (loss) on investment transactions

   (1.11 )   1.37     1.13  
     

Net increase (decrease) in net asset value from operations

   (.87 )   1.45     1.16  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.29 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.39 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.11     $  12.37     $  11.16  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.23 )%   13.05  %   11.60 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $25,538     $15,551     $502  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.18  %(e)   1.21  %   1.38 %

Expenses, before waivers/reimbursements(d)

   1.50  %(e)   1.77  %   9.73 %

Net investment income(b)

   4.06  %(e)   .69  %   .28 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

162   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.43     $  11.18     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .25     .15     .09  

Net realized and unrealized gain (loss) on investment transactions

   (1.10 )   1.33     1.09  
     

Net increase (decrease) in net asset value from operations

   (.85 )   1.48     1.18  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.30 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.40 )   (.23 )   – 0 –
     

Net asset value, end of period

   $  11.18     $  12.43     $  11.18  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.03 )%   13.36  %   11.80 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $108,735     $69,380     $4,303  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .93  %(e)   .99  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.19  %(e)   1.40  %   7.64 %

Net investment income(b)

   4.14  %(e)   1.41  %   .96 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   163

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2020 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.47     $  11.21     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .27     .19     .09  

Net realized and unrealized gain (loss) on investment transactions

   (1.12 )   1.32     1.12  
     

Net increase (decrease) in net asset value from operations

   (.85 )   1.51     1.21  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.32 )   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.10 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.42 )   (.25 )   – 0 –
     

Net asset value, end of period

   $  11.20     $  12.47     $  11.21  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.02 )%   13.61  %   12.10 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $32,838     $29,077     $1,127  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .68  %(e)   .70  %   .88 %

Expenses, before waivers/reimbursements(d)

   .86  %(e)   1.08  %   8.67 %

Net investment income(b)

   4.39  %(e)   1.46  %   .98 %

Portfolio turnover rate

   2  %   16  %   5 %

See footnote summary on page 214.

 

164   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.82       $  11.44     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .24       .25     .08  

Net realized and unrealized gain (loss) on investment transactions

   (1.24 )     1.37     1.36  
     

Net increase (decrease) in net asset value from operations

   (1.00 )     1.62     1.44  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.28 )     (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.11 )     (.01 )   – 0 –
     

Total dividends and distributions

   (.39 )     (.24 )   – 0 –
     

Net asset value, end of period

   $  11.43       $  12.82     $  11.44  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.97 )%     14.22  %   14.40 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $78,703       $78,182     $7,332  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.00  %(e)   1.08    %   1.18 %

Expenses, before waivers/reimbursements(d)

   1.13  %(e)     1.41  %   8.73 %

Net investment income(b)

   3.76  %(e)     1.92  %   .79 %

Portfolio turnover rate

   2  %     11  %   6 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   165

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.67     $  11.35     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .19     .15     .01  

Net realized and unrealized gain (loss) on investment transactions

   (1.22 )   1.36     1.34  
     

Net increase (decrease) in net asset value from operations

   (1.03 )   1.51     1.35  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.22 )   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.11 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.33 )   (.19 )   – 0 –
     

Net asset value, end of period

   $  11.31     $  12.67     $  11.35  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.31 )%   13.36  %   13.50 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,787     $1,596     $525  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.70  %(e)   1.78  %   1.88 %

Expenses, before waivers/reimbursements(d)

   1.84  %(e)   2.10  %   10.10 %

Net investment income(b)

   3.07  %(e)   1.17  %   .06 %

Portfolio turnover rate

   2  %   11  %   6 %

See footnote summary on page 214.

 

166   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.69     $  11.36     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .18     .12     .00  

Net realized and unrealized gain (loss) on investment transactions

   (1.22 )   1.40     1.36  
     

Net increase (decrease) in net asset value from operations

   (1.04 )   1.52     1.36  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.22 )   (.18 )   – 0 –

Distributions from net realized gain on investment transactions

   (.11 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.33 )   (.19 )   – 0 –
     

Net asset value, end of period

   $  11.32     $  12.69     $  11.36  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.37 )%   13.44  %   13.60 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $2,585     $1,821     $386  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.70  %(e)   1.76  %   1.88 %

Expenses, before waivers/reimbursements(d)

   1.84  %(e)   2.09  %   9.47 %

Net investment income(b)

   3.00  %(e)   .95  %   .04 %

Portfolio turnover rate

   2  %   11  %   6 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   167

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.88     $  11.47     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .26     .27     .12  

Net realized and unrealized gain (loss) on investment transactions

   (2.09 )   1.39     1.35  
     

Net increase (decrease) in net asset value from operations

   (1.83 )   1.66     1.47  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   .31     (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   .11     (.01 )   – 0 –
     

Total dividends and distributions

   .42     (.25 )   – 0 –
     

Net asset value, end of period

   $  11.47     $  12.88     $  11.47  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.89 )%   14.55  %   14.70 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,284     $684     $236  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .70  %(e)   .77  %   .88 %

Expenses, before waivers/reimbursements(d)

   .83  %(e)   1.09  %   9.42 %

Net investment income(b)

   4.03  %(e)   2.12  %   1.09 %

Portfolio turnover rate

   2  %   11  %   6 %

See footnote summary on page 214.

 

168   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.81     $  11.41     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .20     .07     .07  

Net realized and unrealized gain (loss) on investment transactions

   (1.21 )   1.53     1.34  
     

Net increase (decrease) in net asset value from operations

   (1.01 )   1.60     1.41  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.27 )   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.11 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.38 )   (.20 )   – 0 –
     

Net asset value, end of period

   $  11.42     $  12.81     $  11.41  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.06 )%   14.07  %   14.10 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $17,510     $10,812     $478  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.20  %(e)   1.23  %   1.38 %

Expenses, before waivers/reimbursements(d)

   1.44  %(e)   1.76  %   7.73 %

Net investment income(b)

   3.30  %(e)   .57  %   .69 %

Portfolio turnover rate

   2  %   11  %   6 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   169

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.83     $  11.44     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .24     .17     .10  

Net realized and unrealized gain (loss) on investment transactions

   (1.23 )   1.45     1.34  
     

Net increase (decrease) in net asset value from operations

   (.99 )   1.62     1.44  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.29 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.11 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.40 )   (.23 )   – 0 –
     

Net asset value, end of period

   $  11.44     $  12.83     $  11.44  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.96 )%   14.22  %   14.40 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $89,743     $60,216     $6,981  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .95  %(e)   1.01  %   1.13 %

Expenses, before waivers/reimbursements(d)

   1.21  %(e)   1.41  %   6.67 %

Net investment income(b)

   3.77  %(e)   1.44  %   .96 %

Portfolio turnover rate

   2  %   11  %   6 %

See footnote summary on page 214.

 

170   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2025 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.88     $  11.47     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .26     .17     .07  

Net realized and unrealized gain (loss) on investment transactions

   (1.25 )   1.49     1.40  
     

Net increase (decrease) in net asset value from operations

   (.99 )   1.66     1.47  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.31 )   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.11 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.42 )   (.25 )   – 0 –
     

Net asset value, end of period

   $  11.47     $  12.88     $  11.47  
     

Total Return

      

Total investment return based on net asset value(c)

   (7.90 )%   14.60  %   14.70 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $22,763     $19,306     $639  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .70  %(e)   .72  %   .88 %

Expenses, before waivers/reimbursements(d)

   .88  %(e)   1.08  %   7.62 %

Net investment income(b)

   4.07  %(e)   1.27  %   .79 %

Portfolio turnover rate

   2  %   11  %   6 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   171

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.70     $  11.24     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .22     .19     .03  

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.50     1.21  
     

Net increase (decrease) in net asset value from operations

   (1.05 )   1.69     1.24  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.32 )   (.23 )   – 0 –
     

Net asset value, end of period

   $  11.33     $  12.70     $  11.24  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.50 )%   15.08  %   12.40 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $55,272     $47,575     $4,240  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.02  %(e)   1.09  %   1.19 %(f)

Expenses, before waivers/reimbursements(d)

   1.19  %(e)   1.72  %   13.11 %(f)

Net investment income(b)

   3.50  %(e)   1.54  %   .35 %

Portfolio turnover rate

   3  %   6  %   7 %

See footnote summary on page 214.

 

172   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.56     $  11.14     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .18     .11     (.01 )

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.49     1.15  
     

Net increase (decrease) in net asset value from operations

   (1.09 )   1.60     1.14  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.18 )   (.16 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.25 )   (.18 )   – 0 –
     

Net asset value, end of period

   $  11.22     $  12.56     $  11.14  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.84 )%   14.35  %   11.40  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,647     $1,580     $374  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.78  %   1.89  %(f)

Expenses, before waivers/reimbursements(d)

   1.90  %(e)   2.38  %   16.08  %(f)

Net investment income (loss)(b)

   2.85  %(e)   .89  %   (.14 )%

Portfolio turnover rate

   3  %   6  %   7  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   173

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.58     $  11.15     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .17     .03     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.58     1.18  
     

Net increase (decrease) in net asset value from operations

   (1.10 )   1.61     1.15  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.18 )   (.16 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.25 )   (.18 )   – 0 –
     

Net asset value, end of period

   $  11.23     $  12.58     $  11.15  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.91 )%   14.42  %   11.50  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $2,540     $2,217     $230  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.76  %   1.89  %(f)

Expenses, before waivers/reimbursements(d)

   1.90  %(e)   2.26  %   15.16  %(f)

Net investment income (loss)(b)

   2.78  %(e)   .26  %   (.26 )%

Portfolio turnover rate

   3  %   6  %   7  %

See footnote summary on page 214.

 

174   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.76     $  11.26     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .22     .27     .09  

Net realized and unrealized gain (loss) on investment transactions

   (1.25 )   1.47     1.17  
     

Net increase (decrease) in net asset value from operations

   (1.03 )   1.74     1.26  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.27 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.34 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.39     $  12.76     $  11.26  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.29 )%   15.53  %   12.60 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $868     $480     $31  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .80  %   .89 %(f)

Expenses, before waivers/reimbursements(d)

   .89  %(e)   1.48  %   22.50 %(f)

Net investment income(b)

   3.52  %(e)   2.06  %   .88 %

Portfolio turnover rate

   3  %   6  %   7 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   175

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.69     $  11.24     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .20     .06     (.01 )

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.61     1.25  
     

Net increase (decrease) in net asset value from operations

   (1.07 )   1.67     1.24  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.24 )   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.31 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.31     $  12.69     $  11.24  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.62 )%   14.88  %   12.40  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $21,157     $9,026     $636  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.22  %(e)   1.26  %   1.39  %(f)

Expenses, before waivers/reimbursements(d)

   1.48  %(e)   2.00  %   13.25  %(f)

Net investment income (loss)(b)

   3.20  %(e)   .54  %   (.10 )%

Portfolio turnover rate

   3  %   6  %   7  %

See footnote summary on page 214.

 

176   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.71     $  11.24     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .22     .12     .04  

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.59     1.20  
     

Net increase (decrease) in net asset value from operations

   (1.05 )   1.71     1.24  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.32 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.34     $  12.71     $  11.24  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.48 )%   15.24  %   12.40 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $71,062     $42,433     $2,800  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .97  %(e)   1.02  %   1.14 %(f)

Expenses, before waivers/reimbursements(d)

   1.26  %(e)   1.60  %   10.94 %(f)

Net investment income(b)

   3.42  %(e)   1.07  %   .43 %

Portfolio turnover rate

   3  %   6  %   7 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   177

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2030 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.75     $  11.26     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .22     .14     .09  

Net realized and unrealized gain (loss) on investment transactions

   (1.26 )   1.60     1.17  
     

Net increase (decrease) in net asset value from operations

   (1.04 )   1.74     1.26  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.27 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.07 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.34 )   (.25 )   – 0 –
     

Net asset value, end of period

   $  11.37     $  12.75     $  11.26  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.38 )%   15.54 %   12.60 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $14,547     $13,213     $755  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .75  %   .89 %(f)

Expenses, before waivers/reimbursements(d)

   .93  %(e)   1.26  %   14.42 %(f)

Net investment income(b)

   3.53  %(e)   1.08  %   .88 %

Portfolio turnover rate

   3  %   6  %   7 %

See footnote summary on page 214.

 

178   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.78     $  11.30     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .21     .19     .03  

Net realized and unrealized gain (loss) on investment transactions

   (1.31 )   1.50     1.27  
     

Net increase (decrease) in net asset value from operations

   (1.10 )   1.69     1.30  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.24 )   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.32 )   (.21 )   – 0 –
     

Net asset value, end of period

   $  11.36     $  12.78     $  11.30  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.80 )%   15.09  %   13.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $39,709     $34,491     $3,290  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.02  %(e)   1.09  %   1.20 %(f)

Expenses, before waivers/reimbursements(d)

   1.31  %(e)   1.96  %   17.78 %(f)

Net investment income(b)

   3.37  %(e)   1.48  %   .35 %

Portfolio turnover rate

   3  %   5  %   10 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   179

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.65     $  11.22     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .16     .10     (.05 )

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.49     1.27  
     

Net increase (decrease) in net asset value from operations

   (1.14 )   1.59     1.22  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.16 )   (.15 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   (.16 )   – 0 –
     

Net asset value, end of period

   $  11.27     $  12.65     $  11.22  
     

Total Return

      

Total investment return based on net asset value(c)

   (9.16 )%   14.27  %   12.20  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,086     $1,051     $350  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.78  %   1.90  %(f)

Expenses, before waivers/reimbursements(d)

   2.02  %(e)   2.65  %   20.23  %(f)

Net investment income (loss)(b)

   2.54  %(e)   .79  %   (.47 )%

Portfolio turnover rate

   3  %   5  %   10  %

See footnote summary on page 214.

 

180   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.65     $  11.21     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .16     .08     (.04 )

Net realized and unrealized gain (loss) on investment transactions

   (1.29 )   1.52     1.25  
     

Net increase (decrease) in net asset value from operations

   (1.13 )   1.60     1.21  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.16 )   (.15 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.24 )   (.16 )   – 0 –
     

Net asset value, end of period

   $  11.28     $  12.65     $  11.21  
     

Total Return

      

Total investment return based on net asset value(c)

   (9.08 )%   14.37  %   12.10  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,580     $1,196     $398  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.78  %   1.90  %(f)

Expenses, before waivers/reimbursements(d)

   2.02  %(e)   2.63  %   19.62  %(f)

Net investment income (loss)(b)

   2.53  %(e)   .61  %   (.38 )%

Portfolio turnover rate

   3  %   5  %   10  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   181

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
      2007     2006  
     

Net asset value, beginning of period

   $  12.84     $  11.32     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .24     .22     .05  

Net realized and unrealized gain (loss) on investment transactions

   (1.33 )   1.52     1.27  
     

Net increase (decrease) in net asset value from operations

   (1.09 )   1.74     1.32  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.26 )   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.34 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.41     $  12.84     $  11.32  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.65 )%   15.54  %   13.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,034     $942     $228  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .78  %   .90 %(f)

Expenses, before waivers/reimbursements(d)

   1.01  %(e)   1.63  %   19.84 %(f)

Net investment income(b)

   3.75  %(e)   1.68  %   .54 %

Portfolio turnover rate

   3  %   5  %   10 %

See footnote summary on page 214.

 

182   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.72     $  11.26     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .16     .07     (.02 )

Net realized and unrealized gain (loss) on investment transactions

   (1.26 )   1.59     1.28  
     

Net increase (decrease) in net asset value from operations

   (1.10 )   1.66     1.26  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.23 )   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.31 )   (.20 )   – 0 –
     

Net asset value, end of period

   $  11.31     $  12.72     $  11.26  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.82 )%   14.86  %   12.60  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $9,653     $4,446     $587  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.22  %(e)   1.27  %   1.40  %(f)

Expenses, before waivers/reimbursements(d)

   1.57  %(e)   2.27  %   17.88  %(f)

Net investment income (loss)(b)

   2.67  %(e)   .56  %   (.25 )%

Portfolio turnover rate

   3  %   5  %   10  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   183

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.78     $  11.30     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .21     .09     .03  

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.61     1.27  
     

Net increase (decrease) in net asset value from operations

   (1.09 )   1.70     1.30  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.33 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.36     $  12.78     $  11.30  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.72 )%   15.16  %   13.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $45,177     $27,908     $1,511  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .97  %(e)   1.02  %   1.15 %(f)

Expenses, before waivers/reimbursements(d)

   1.36  %(e)   1.75  %   18.95 %(f)

Net investment income(b)

   3.28  %(e)   .86  %   .28 %

Portfolio turnover rate

   3  %   5  %   10 %

See footnote summary on page 214.

 

184   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2035 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.83     $  11.32     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .23     .11     .05  

Net realized and unrealized gain (loss) on investment transactions

   (1.32 )   1.64     1.27  
     

Net increase (decrease) in net asset value from operations

   (1.09 )   1.75     1.32  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.27 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.08 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.35 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.39     $  12.83     $  11.32  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.70 )%   15.56  %   13.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $10,253     $8,530     $539  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .74  %   .90 %(f)

Expenses, before waivers/reimbursements(d)

   1.02  %(e)   1.43  %   16.65 %(f)

Net investment income(b)

   3.53  %(e)   .81  %   .54 %

Portfolio turnover rate

   3  %   5  %   10 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   185

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.89     $  11.38     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .20     .17     .02  

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.57     1.36  
     

Net increase (decrease) in net asset value from operations

   (1.10 )   1.74     1.38  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.22 )   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.27 )   (.23 )   – 0 –
     

Net asset value, end of period

   $  11.52     $  12.89     $  11.38  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.66 )%   15.32  %   13.80 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $31,482     $19,340     $1,764  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.02  %(e)   1.10  %(f)   1.21 %(f)

Expenses, before waivers/reimbursements(d)

   1.45  %(e)   2.94  %(f)   32.68 %(f)

Net investment income(b)

   3.09  %(e)   1.32  %   .20 %

Portfolio turnover rate

   3  %   7  %   20 %

See footnote summary on page 214.

 

186   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.78     $  11.31     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .17     .11     (.05 )

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.52     1.36  
     

Net increase (decrease) in net asset value from operations

   (1.13 )   1.63     1.31  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.15 )   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.20 )   (.16 )   – 0 –
     

Net asset value, end of period

   $  11.45     $  12.78     $  11.31  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.93 )%   14.48  %   13.10  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,004     $925     $530  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.82  %(f)   1.91  %(f)

Expenses, before waivers/reimbursements(d)

   2.16  %(e)   4.15  %(f)   35.10  %(f)

Net investment income (loss)(b)

   2.61  %(e)   .91  %   (.50 )%

Portfolio turnover rate

   3  %   7  %   20  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   187

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.78     $  11.31     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .14     .08     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.55     1.34  
     

Net increase (decrease) in net asset value from operations

   (1.13 )   1.63     1.31  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.15 )   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.20 )   (.16 )   – 0 –
     

Net asset value, end of period

   $  11.45     $  12.78     $  11.31  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.93 )%   14.48  %   13.10  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $1,003     $563     $155  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.80  %(f)   1.91  %(f)

Expenses, before waivers/reimbursements(d)

   2.15  %(e)   3.94  %(f)   42.81  %(f)

Net investment income (loss)(b)

   2.28  %(e)   .63  %   (.32 )%

Portfolio turnover rate

   3  %   7  %   20  %

See footnote summary on page 214.

 

188   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.95     $  11.42     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .22     .31     .10  

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.46     1.32  
     

Net increase (decrease) in net asset value from operations

   (1.08 )   1.77     1.42  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.24 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.29 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.58     $  12.95     $  11.42  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.47 )%   15.56  %   14.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $516     $242     $74  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .81  %(f)   .91 %(f)

Expenses, before waivers/reimbursements(d)

   1.14  %(e)   3.06  %(f)   55.18 %(f)

Net investment income(b)

   3.36  %(e)   2.37  %   .97 %

Portfolio turnover rate

   3  %   7  %   20 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   189

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.84     $  11.37     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .20     .00 (g)   .01  

Net realized and unrealized gain (loss) on investment transactions

   (1.31 )   1.71     1.36  
     

Net increase (decrease) in net asset value from operations

   (1.11 )   1.71     1.37  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.22 )   (.22 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.27 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.46     $  12.84     $  11.37  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.76 )%   15.08  %   13.70 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $12,795     $5,335     $177  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.22  %(e)   1.26  %(f)   1.41 %(f)

Expenses, before waivers/reimbursements(d)

   1.68  %(e)   3.07  %(f)   36.08 %(f)

Net investment income(b)

   3.10  %(e)   .01  %   .06 %

Portfolio turnover rate

   3  %   7  %   20 %

See footnote summary on page 214.

 

190   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.88     $  11.40     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .21     .09     .05  

Net realized and unrealized gain (loss) on investment transactions

   (1.31 )   1.66     1.35  
     

Net increase (decrease) in net asset value from operations

   (1.10 )   1.75     1.40  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.23 )   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.28 )   (.27 )   – 0 –
     

Net asset value, end of period

   $  11.50     $  12.88     $  11.40  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.67 )%   15.40 %   14.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $26,894     $16,181     $501  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .97  %(e)   1.03  %(f)   1.16 %(f)

Expenses, before waivers/reimbursements(d)

   1.47  %(e)   2.46  %(f)   33.28 %(f)

Net investment income(b)

   3.25  %(e)   .85  %   .53 %

Portfolio turnover rate

   3  %   7  %   20 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   191

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2040 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.92     $  11.42     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .23     .11     .05  

Net realized and unrealized gain (loss) on investment transactions

   (1.31 )   1.67     1.37  
     

Net increase (decrease) in net asset value from operations

   (1.08 )   1.78     1.42  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.26 )   – 0 –

Distributions from net realized gain on investment transactions

   (.05 )   (.02 )   – 0 –
     

Total dividends and distributions

   (.30 )   (.28 )   – 0 –
     

Net asset value, end of period

   $  11.54     $  12.92     $  11.42  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.53 )%   15.67  %   14.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $8,523     $6,087     $272  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .76  %(f)   .91 %(f)

Expenses, before waivers/reimbursements(d)

   1.14  %(e)   1.92  %(f)   29.45 %(f)

Net investment income(b)

   3.58  %(e)   .86  %   .48 %

Portfolio turnover rate

   3  %   7  %   20 %

See footnote summary on page 214.

 

192   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.90     $  11.42     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .21     .19     .04  

Net realized and unrealized gain on investment transactions

   (1.32 )   1.49     1.38  
     

Net increase in net asset value from
operations

   (1.11 )   1.68     1.42  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.23 )   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.37 )   (.20 )   – 0 –
     

Net asset value, end of period

   $  11.42     $  12.90     $  11.42  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.86 )%   14.85  %   14.20 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $24,194     $18,710     $1,057  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.02  %(e)   1.11  %(f)   1.23 %(f)

Expenses, before waivers/reimbursements(d)

   1.74  %(e)   2.91  %(f)   44.80 %(f)

Net investment income(b)

   3.26  %(e)   1.49  %   .44 %

Portfolio turnover rate

   4  %   13  %   13 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   193

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.76     $  11.34     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .16     .10     (.03 )

Net realized and unrealized gain (loss) on investment transactions

   (1.29 )   1.47     1.37  
     

Net increase (decrease) in net asset value from operations

   (1.13 )   1.57     1.34  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.16 )   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.30 )   (.15 )   – 0 –
     

Net asset value, end of period

   $  11.33     $  12.76     $  11.34  
     

Total Return

      

Total investment return based on net asset value(c)

   (9.06 )%   13.96  %   13.40  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $329     $319     $140  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.81  %(f)   1.93  %(f)

Expenses, before waivers/reimbursements(d)

   2.44  %(e)   3.97  %(f)   54.54  %(f)

Net investment income (loss)(b)

   2.61  %(e)   .77  %   (.28 )%

Portfolio turnover rate

   4  %   13  %   13  %

See footnote summary on page 214.

 

194   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.76     $  11.34     $  10.00  
     

Income From Investment Operations

      

Net investment income (loss)(a)(b)

   .16     .11     (.07 )

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.46     1.41  
     

Net increase (decrease) in net asset value from operations

   (1.14 )   1.57     1.34  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.16 )   (.14 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.30 )   (.15 )   – 0 –
     

Net asset value, end of period

   $  11.32     $  12.76     $  11.34  
     

Total Return

      

Total investment return based on net asset value(c)

   (9.14 )%   13.96  %   13.40  %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $624     $344     $129  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.72  %(e)   1.81  %(f)   1.93  %(f)

Expenses, before waivers/reimbursements(d)

   2.44  %(e)   4.04  %(f)   66.89  %(f)

Net investment income (loss)(b)

   2.54  %(e)   .91  %   (.73 )%

Portfolio turnover rate

   4  %   13  %   13  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   195

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.95     $  11.45     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .23     .24     .09  

Net realized and unrealized gain (loss) on investment transactions

   (1.32 )   1.47     1.36  
     

Net increase (decrease) in net asset value from operations

   (1.09 )   1.71     1.45  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.20 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.39 )   (.21 )   – 0 –
     

Net asset value, end of period

   $  11.47     $  12.95     $  11.45  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.64 )%   15.08  %   14.50 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $647     $596     $245  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .80  %(f)   .93 %(f)

Expenses, before waivers/reimbursements(d)

   1.43  %(e)   3.13  %(f)   52.18 %(f)

Net investment income(b)

   3.51  %(e)   1.85  %   .85 %

Portfolio turnover rate

   4  %   13  %   13 %

See footnote summary on page 214.

 

196   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.84     $  11.40     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .16     .05     .02  

Net realized and unrealized gain (loss) on investment transactions

   (1.27 )   1.59     1.38  
     

Net increase (decrease) in net asset value from operations

   (1.11 )   1.64     1.40  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.23 )   (.19 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.37 )   (.20 )   – 0 –
     

Net asset value, end of period

   $  11.36     $  12.84     $  11.40  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.93 )%   14.50  %   14.00 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $5,489     $2,620     $210  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   1.22  %(e)   1.27  %(f)   1.43 %(f)

Expenses, before waivers/reimbursements(d)

   1.95  %(e)   3.18  %(f)   45.90 %(f)

Net investment income(b)

   2.58  %(e)   .40  %   .17 %

Portfolio turnover rate

   4  %   13  %   13 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   197

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.88     $  11.43     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .21     .11     .04  

Net realized and unrealized gain (loss) on investment transactions

   (1.30 )   1.56     1.39  
     

Net increase (decrease) in net asset value from operations

   (1.09 )   1.67     1.43  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.25 )   (.21 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.39 )   (.22 )   – 0 –
     

Net asset value, end of period

   $  11.40     $  12.88     $  11.43  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.75 )%   14.76  %   14.30 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $14,227     $9,458     $484  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .97  %(e)   1.04  %(f)   1.18 %(f)

Expenses, before waivers/reimbursements(d)

   1.71  %(e)   2.62  %(f)   44.54 %(f)

Net investment income(b)

   3.29  %(e)   1.04  %   .43 %

Portfolio turnover rate

   4  %   13  %   13 %

See footnote summary on page 214.

 

198   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

    2045 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     Year Ended August 31,  
    2007     2006  
     

Net asset value, beginning of period

   $  12.92     $  11.45     $  10.00  
     

Income From Investment Operations

      

Net investment income(a)(b)

   .23     .12     .04  

Net realized and unrealized gain (loss) on investment transactions

   (1.31 )   1.59     1.41  
     

Net increase (decrease) in net asset value from operations

   (1.08 )   1.71     1.45  
     

Less: Dividends and Distributions

      

Dividends from net investment income

   (.27 )   (.23 )   – 0 –

Distributions from net realized gain on investment transactions

   (.14 )   (.01 )   – 0 –
     

Total dividends and distributions

   (.41 )   (.24 )   – 0 –
     

Net asset value, end of period

   $  11.43     $  12.92     $  11.45  
     

Total Return

      

Total investment return based on net asset value(c)

   (8.65 )%   15.08  %   14.50 %

Ratios/Supplemental Data

      

Net assets, end of period (000’s omitted)

   $3,293     $2,213     $97  

Ratio to average net assets of:

      

Expenses, net of waivers/reimbursements(d)

   .72  %(e)   .75  %(f)   .93 %(f)

Expenses, before waivers/reimbursements(d)

   1.35  %(e)   2.13  %(f)   52.64 %(f)

Net investment income(b)

   3.51  %(e)   .78  %   .39 %

Portfolio turnover rate

   4  %   13  %   13 %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   199

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.86     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .13     (.02 )

Net realized and unrealized loss on investment transactions

   (.71 )   (.12 )
     

Net decrease in net asset value from operations

   (.58 )   (.14 )
     

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

   $  9.12     $  9.86  
     

Total Return

    

Total investment return based on net asset value(c)

   (6.07 )%   (1.40 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $344     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   1.03  %   1.09  %

Expenses, before waivers/reimbursements(d)(e)(f)

   102.61  %   649.75  %

Net investment income (loss)(b)(e)

   2.46  %   (1.02 )%

Portfolio turnover rate

   56  %   8  %

See footnote summary on page 214.

 

200   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.85     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .10     (.03 )

Net realized and unrealized loss on investment transactions

   (.71 )   (.12 )
     

Net decrease in net asset value from operations

   (.61 )   (.15 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.11 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.12 )   – 0 –
     

Net asset value, end of period

   $  9.12     $  9.85  
     

Total Return

    

Total investment return based on net asset value(c)

   (6.36 )%   (1.50 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $14     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   1.73  %   1.79  %

Expenses, before waivers/reimbursements(d)(e)(f)

   148.34  %   649.78  %

Net investment income (loss)(b)(e)

   1.94  %   (1.72 )%

Portfolio turnover rate

   56  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   201

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.85     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .11     (.03 )

Net realized and unrealized loss on investment transactions

   (.72 )   (.12 )
     

Net decrease in net asset value from operations

   (.61 )   (.15 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.11 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.12 )   – 0 –
     

Net asset value, end of period

   $  9.12     $  9.85  
     

Total Return

    

Total investment return based on net asset value(c)

   (6.36 )%   (1.50 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $10     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   1.73  %   1.79  %

Expenses, before waivers/reimbursements(d)(e)(f)

   159.56  %   649.72  %

Net investment income (loss)(b)(e)

   2.11  %   (1.72 )%

Portfolio turnover rate

   56  %   8  %

See footnote summary on page 214.

 

202   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.87     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .06     (.01 )

Net realized and unrealized loss on investment transactions

   (.63 )   (.12 )
     

Net decrease in net asset value from operations

   (.57 )   (.13 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.16 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.17 )   – 0 –
     

Net asset value, end of period

   $  9.13     $  9.87  
     

Total Return

    

Total investment return based on net asset value(c)

   (6.00 )%   (1.30 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $109     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   .73  %   .79  %

Expenses, before waivers/reimbursements(d)(e)(f)

   121.50  %   648.81  %

Net investment income (loss)(b)(e)

   1.39  %   (.72 )%

Portfolio turnover rate

   56  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   203

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.86     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .43     (.02 )

Net realized and unrealized loss on investment transactions

   (1.02 )   (.12 )
     

Net decrease in net asset value from operations

   (.59 )   (.14 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.12 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.13 )   – 0 –
     

Net asset value, end of period

   $  9.14     $  9.86  
     

Total Return

    

Total investment return based on net asset value(c)

   (6.12 )%   (1.40 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $52     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.22  %   1.29  %(f)

Expenses, before waivers/reimbursements(d)(e)

   117.66  %   596.22  %(f)

Net investment income (loss)(b)(e)

   9.17  %   (1.22 )%

Portfolio turnover rate

   56  %   8  %

 

See footnote summary on page 214.

 

204   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.86     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .14     (.02 )

Net realized and unrealized loss on investment transactions

   (.71 )   (.12 )
     

Net decrease in net asset value from operations

   (.57 )   (.14 )
     

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

   $  9.13     $  9.86  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.96 )%   (1.40 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $56     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .97  %   1.04  %(f)

Expenses, before waivers/reimbursements(d)(e)

   111.89  %   595.99  %(f)

Net investment income (loss)(b)(e)

   2.86  %   (.97 )%

Portfolio turnover rate

   56  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   205

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2050 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.87     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .07     (.01 )

Net realized and unrealized loss on investment transactions

   (.64 )   (.12 )
     

Net decrease in net asset value from operations

   (.57 )   (.13 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.16 )   – 0 –

Distributions from net realized gain on investment transactions

   (.01 )   – 0 –
     

Total dividends and distributions

   (.17 )   – 0 –
     

Net asset value, end of period

   $  9.13     $  9.87  
     

Total Return

    

Total investment return based on net asset value(c)

   (6.00 )%   (1.30 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $57     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .72  %   .79  %(f)

Expenses, before waivers/reimbursements(d)(e)

   104.91  %   595.86  %(f)

Net investment income (loss)(b)(e)

   1.20  %   (.72 )%

Portfolio turnover rate

   56  %   8  %

See footnote summary on page 214.

 

206   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Class A  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.85     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .06     (.02 )

Net realized and unrealized loss on investment transactions

   (.58 )   (.13 )
     

Net decrease in net asset value from operations

   (.52 )   (.15 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.26 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.39 )   – 0 –
     

Net asset value, end of period

   $  8.94     $  9.85  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.48 )%   (1.50 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $215     $12  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   1.06  %   1.03  %

Expenses, before waivers/reimbursements(d)(e)(f)

   306.87  %   643.42  %

Net investment income (loss)(b)(e)

   1.68  %   (1.02 ) %

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   207

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Class B  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.84     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .13     (.03 )

Net realized and unrealized loss on investment transactions

   (.69 )   (.13 )
     

Net decrease in net asset value from operations

   (.56 )   (.16 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.37 )   – 0 –
     

Net asset value, end of period

   $  8.91     $  9.84  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.91 )%   (1.60 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $14     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   1.76  %   1.73  %

Expenses, before waivers/reimbursements(d)(e)(f)

   356.76  %   638.66  %

Net investment income (loss)(b)(e)

   2.75  %   (1.72 )%

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

208   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Class C  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.84     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .15     (.03 )

Net realized and unrealized loss on investment transactions

   (.71 )   (.13 )
     

Net decrease in net asset value from operations

   (.56 )   (.16 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.24 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.37 )   – 0 –
     

Net asset value, end of period

   $  8.91     $  9.84  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.91 )%   (1.60 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $32     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   1.76  %   1.73  %

Expenses, before waivers/reimbursements(d)(e)(f)

   340.57  %   638.66  %

Net investment income (loss)(b)(e)

   3.05  %   (1.72 )%

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   209

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Advisor Class  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.86     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .16     (.01 )

Net realized and unrealized loss on investment transactions

   (.68 )   (.13 )
     

Net decrease in net asset value from operations

   (.52 )   (.14 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.40 )   – 0 –
     

Net asset value, end of period

   $  8.94     $  9.86  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.49 )%   (1.40 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $18     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)(f)

   .76  %   .73  %

Expenses, before waivers/reimbursements(d)(e)(f)

   345.53  %   637.93  %

Net investment income (loss)(b)(e)

   3.41  %   (.72 )%

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

210   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Class R  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.85     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .16     (.02 )

Net realized and unrealized loss on investment transactions

   (.69 )   (.13 )
     

Net decrease in net asset value from operations

   (.53 )   (.15 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.38 )   – 0 –
     

Net asset value, end of period

   $  8.94     $  9.85  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.64 )%   (1.50 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $11     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   1.22  %   1.23  %(f)

Expenses, before waivers/reimbursements(d)(e)

   315.82  %   586.71  %(f)

Net investment income (loss)(b)(e)

   3.15  %   (1.22 )%

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   211

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Class K  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.85     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .52     (.02 )

Net realized and unrealized loss on investment transactions

   (1.03 )   (.13 )
     

Net decrease in net asset value from operations

   (.51 )   (.15 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.25 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.38 )   – 0 –
     

Net asset value, end of period

   $  8.96     $  9.85  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.46 )%   (1.50 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $30     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .97  %   .98  %(f)

Expenses, before waivers/reimbursements(d)(e)

   294.38  %   586.41  %(f)

Net investment income (loss)(b)(e)

   9.39  %   (.97 )%

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

212   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

 

      2055 Retirement Strategy  
    Class I  
    Six Months
Ended
February 29,
2008
(unaudited)		     June 29,
2007(h) to
August 31,
2007		  
     

Net asset value, beginning of period

   $  9.86     $  10.00  
     

Income From Investment Operations

    

Net investment income (loss)(a)(b)

   .19     (.01 )

Net realized and unrealized loss on investment transactions

   (.71 )   (.13 )
     

Net decrease in net asset value from operations

   (.52 )   (.14 )
     

Less: Dividends and Distributions

    

Dividends from net investment income

   (.27 )   – 0 –

Distributions from net realized gain on investment transactions

   (.13 )   – 0 –
     

Total dividends and distributions

   (.40 )   – 0 –
     

Net asset value, end of period

   $  8.94     $  9.86  
     

Total Return

    

Total investment return based on net asset value(c)

   (5.49 )%   (1.40 )%

Ratios/Supplemental Data

    

Net assets, end of period (000’s omitted)

   $9     $10  

Ratio to average net assets of:

    

Expenses, net of waivers/reimbursements(d)(e)

   .72  %   .73  %(f)

Expenses, before waivers/reimbursements(d)(e)

   315.70  %   586.25  %(f)

Net investment income (loss)(b)(e)

   3.75  %   (.72 )%

Portfolio turnover rate

   76  %   8  %

See footnote summary on page 214.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   213

 

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 six months ended February 29, 2008 and the years ended August 31, 2007 and August 31, 2006, the estimated annualized blended expense ratios were .04%, .04% and .07%, respectively, for each of the Strategies.

 

(e) Annualized.

 

(f) Ratios reflect expenses grossed up, where applicable, for expense offset arrangement with the Transfer Agent. For the periods shown below, the net expense ratios were as follows:

 

     Six Months Ended
February 29, 2008
(unaudited)		  
     2050
Retirement
Strategy		     2055
Retirement
Strategy		  

Class A

    1.02 %   1.02 %

Class B

    1.72 %   1.72 %

Class C

    1.72 %   1.72 %

Advisor Class

    .72 %   .72 %

Class R

    —     —  

Class K

    —     —  

Class I

    —     —  

 

     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 %

 

(g) Amount is less than $.005.

 

(h) Commencement of operations.

 

214   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Financial Highlights

 

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)

Garry L. Moody(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

Daniel T. Grasman, 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 and 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 management of and investment decisions for each of the Strategies 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. Masters, Grasman, Hamilton, Lisser and Nikolich, members of the Blend Investment Policy Team are primarily responsible for the day-to-day management of the Strategies.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   215

 

Board of Directors

 

Pages 216-307 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 February 29, 2008 financial statements. A copy of the underlying Portfolios’ unaudited semi-annual report is available upon request.

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

U.S. VALUE PORTFOLIO

LOGO

 

 

* All data are as of February 29, 2008. 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.

 

216   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

U.S. LARGE CAP GROWTH PORTFOLIO

LOGO

 

 

* All data are as of February 29, 2008. 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  •   217

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

GLOBAL REAL ESTATE INVESTMENT PORTFOLIO

LOGO

LOGO

 

 

* All data are as of February 29, 2008. 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.

 

218   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

INTERNATIONAL VALUE PORTFOLIO

LOGO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s sector and country breakdowns are expressed as percentage of total investments and may vary over time. “Other” country weightings represents 1.3% or less in the following countries: Canada, China, Finland, Israel, Russia 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  •   219

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

INTERNATIONAL GROWTH PORTFOLIO

LOGO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s sector and country breakdowns are expressed as a percentage of total investments and may vary over time. “Other” country weightings represents 1.0% or less in the following countries: Czech Republic, Hong Kong, Italy, Luxembourg, Russia and Turkey.

 

  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.

 

220   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

SMALL-MID CAP VALUE PORTFOLIO

LOGO

 

 

* All data are as of February 29, 2008. 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  •   221

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

SMALL-MID CAP GROWTH PORTFOLIO

LOGO

 

* All data are as of February 29, 2008. 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.

 

222   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

SHORT DURATION BOND PORTFOLIO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   223

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

INTERMEDIATE DURATION BOND PORTFOLIO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.

 

224   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

INFLATION-PROTECTED SECURITIES PORTFOLIO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s security type breakdown is expressed as a percentage of total investments and may vary over time.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   225

 

Portfolio Summary

PORTFOLIO SUMMARY

February 29, 2008 (unaudited)

 

HIGH-YIELD PORTFOLIO

LOGO

 

* All data are as of February 29, 2008. The Portfolio’s sector breakdown is expressed as a percentage of total investments and may vary over time.

 

226   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Portfolio Summary

 

U.S. VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 98.5%

     

Financials – 26.9%

     

Capital Markets – 2.6%

     

Deutsche Bank AG

    114,500   $ 12,704,920

The Goldman Sachs Group, Inc.

    25,000     4,240,750

Merrill Lynch & Co., Inc.

    389,500     19,303,620

Morgan Stanley

    676,000     28,473,120
        
       64,722,410
        

Commercial Banks – 2.8%

     

Comerica, Inc.

    252,300     9,143,352

Fifth Third Bancorp

    430,500     9,858,450

Keycorp

    89,900     1,982,295

National City Corp.

    511,700     8,115,562

SunTrust Banks, Inc.

    79,800     4,638,774

U.S. Bancorp

    299,300     9,583,586

Wachovia Corp.

    395,000     12,094,900

Wells Fargo & Co.

    549,200     16,053,116
        
       71,470,035
        

Consumer Finance – 0.7%

     

Discover Financial Services

    1,137,300     17,161,857
        

Diversified Financial Services – 8.3%

     

Bank of America Corp.

    1,964,800     78,081,152

CIT Group, Inc.

    425,300     9,450,166

Citigroup, Inc.

    2,423,200     57,454,072

JPMorgan Chase & Co.

    1,587,000     64,511,550
        
       209,496,940
        

Insurance – 11.3%

     

ACE Ltd.

    354,700     19,948,328

Allstate Corp.

    488,800     23,330,424

American International Group, Inc.

    1,062,700     49,798,122

Chubb Corp.

    398,500     20,283,650

Everest Re Group Ltd.

    65,500     6,345,640

Fidelity National Financial, Inc. – Class A

    522,500     9,201,225

Genworth Financial, Inc. – Class A

    739,000     17,130,020

Hartford Financial Services Group, Inc.

    299,500     20,935,050

MetLife, Inc.

    365,500     21,294,030

Old Republic International Corp.

    625,200     8,577,744

PartnerRe Ltd.

    66,100     5,082,429

The Progressive Corp.

    883,600     16,196,388

RenaissanceRe Holdings Ltd.

    128,700     7,065,630

Safeco Corp.

    163,500     7,563,510

Torchmark Corp.

    101,400     6,110,364

The Travelers Cos, Inc.

    509,000     23,622,690

Unum Group

    715,800     16,398,978

XL Capital Ltd. – Class A

    204,900     7,388,694
        
       286,272,916
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   227

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Thrifts & Mortgage Finance – 1.2%

     

Federal Home Loan Mortgage Corp.

    330,500   $ 8,321,990

Federal National Mortgage Association

    543,000     15,013,950

Washington Mutual, Inc.

    481,300     7,123,240
        
       30,459,180
        
       679,583,338
        

Energy – 16.0%

     

Oil, Gas & Consumable Fuels – 16.0%

     

Anadarko Petroleum Corp.

    372,300     23,730,402

BP PLC (Sponsored) (ADR)

    170,700     11,073,309

Chevron Corp.

    1,001,700     86,807,322

ConocoPhillips

    786,400     65,043,144

Exxon Mobil Corp.

    1,630,800     141,895,908

Marathon Oil Corp.

    467,000     24,825,720

Occidental Petroleum Corp.

    132,300     10,236,051

Royal Dutch Shell PLC (ADR)

    171,300     12,239,385

Total SA (ADR)

    162,000     12,213,180

Valero Energy Corp.

    267,600     15,459,252
        
       403,523,673
        

Consumer Discretionary – 10.6%

     

Auto Components – 1.1%

     

Autoliv, Inc.

    162,800     8,123,720

BorgWarner, Inc.

    242,200     10,441,242

Lear Corp.(a)

    49,800     1,373,484

Magna International, Inc. – Class A

    109,000     7,979,890
        
       27,918,336
        

Automobiles – 0.7%

     

General Motors Corp.

    778,000     18,111,840
        

Hotels, Restaurants & Leisure – 0.3%

     

McDonald’s Corp.

    143,200     7,748,552
        

Household Durables – 1.0%

     

Black & Decker Corp.

    123,600     8,499,972

Centex Corp.

    218,900     4,857,391

KB Home

    227,500     5,444,075

Newell Rubbermaid, Inc.

    90,900     2,063,430

Pulte Homes, Inc.

    262,000     3,547,480
        
       24,412,348
        

Leisure Equipment & Products – 0.3%

     

Brunswick Corp.

    420,500     6,849,945
        

Media – 3.5%

     

CBS Corp. – Class B

    617,300     14,086,786

Gannett Co., Inc.

    473,300     14,269,995

Idearc, Inc.

    517,200     2,492,904

Time Warner, Inc.

    1,016,500     15,867,565

 

228   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Viacom, Inc. – Class B(a)

    368,800   $ 14,659,800

The Walt Disney Co.

    830,600     26,919,746
        
       88,296,796
        

Multiline Retail – 0.8%

     

Family Dollar Stores, Inc.

    383,000     7,334,450

Macy’s, Inc.

    556,300     13,729,484
        
       21,063,934
        

Specialty Retail – 2.1%

     

AutoNation, Inc.(a)

    175,700     2,559,949

The Gap, Inc.

    655,500     13,221,435

Home Depot, Inc.

    665,700     17,674,335

Lowe’s Cos, Inc.

    246,700     5,913,399

Ltd. Brands, Inc.

    282,000     4,300,500

Office Depot, Inc.(a)

    813,200     9,246,084
        
       52,915,702
        

Textiles, Apparel & Luxury Goods – 0.8%

     

Jones Apparel Group, Inc.

    864,600     12,199,506

VF Corp.

    106,935     8,131,337
        
       20,330,843
        
       267,648,296
        

Health Care – 8.8%

     

Health Care Equipment & Supplies – 0.2%

     

Covidien Ltd.

    95,000     4,065,050
        

Health Care Providers & Services – 1.3%

     

AmerisourceBergen Corp. – Class A

    156,700     6,537,524

Cardinal Health, Inc.

    213,400     12,620,476

McKesson Corp.

    234,800     13,796,848
        
       32,954,848
        

Pharmaceuticals – 7.3%

     

Eli Lilly & Co.

    296,100     14,810,922

GlaxoSmithKline PLC (ADR)

    301,400     13,234,474

Johnson & Johnson

    392,000     24,288,320

Merck & Co., Inc.

    507,800     22,495,540

Pfizer, Inc.

    3,323,600     74,049,808

Sanofi-Aventis SA (ADR)

    324,800     12,046,832

Wyeth

    563,300     24,571,146
        
       185,497,042
        
       222,516,940
        

Industrials – 8.8%

     

Aerospace & Defense – 1.0%

     

Lockheed Martin Corp.

    30,400     3,137,280

Northrop Grumman Corp.

    285,100     22,411,711
        
       25,548,991
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   229

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Commercial Services & Supplies – 0.8%

     

Allied Waste Industries, Inc.(a)

    1,021,400   $ 10,561,276

Pitney Bowes, Inc.

    245,800     8,794,724
        
       19,356,000
        

Industrial Conglomerates – 5.0%

     

3M Co.

    98,900     7,753,760

General Electric Co.

    2,913,700     96,560,018

Tyco International Ltd.

    553,700     22,181,222
        
       126,495,000
        

Machinery – 1.9%

     

Caterpillar, Inc.

    218,100     15,775,173

Cummins, Inc.

    81,000     4,080,780

Eaton Corp.

    26,100     2,104,443

SPX Corp.

    132,300     13,534,290

Terex Corp.(a)

    161,100     10,866,195
        
       46,360,881
        

Road & Rail – 0.1%

     

Avis Budget Group, Inc.(a)

    273,600     3,127,248
        
       220,888,120
        

Consumer Staples – 8.7%

     

Beverages – 1.0%

     

The Coca-Cola Co.

    51,900     3,034,074

Coca-Cola Enterprises, Inc.

    224,800     5,491,864

Molson Coors Brewing Co. – Class B

    308,000     16,619,680
        
       25,145,618
        

Food & Staples Retailing – 1.7%

     

The Kroger Co.

    398,300     9,658,775

Safeway, Inc.

    458,600     13,180,164

Supervalu, Inc.

    557,600     14,637,000

Wal-Mart Stores, Inc.

    100,000     4,959,000
        
       42,434,939
        

Food Products – 2.5%

     

ConAgra Foods, Inc.

    419,900     9,279,790

Del Monte Foods Co.

    590,000     5,298,200

General Mills, Inc.

    198,500     11,114,015

Kellogg Co.

    210,100     10,656,272

Kraft Foods, Inc. – Class A

    173,300     5,401,761

Sara Lee Corp.

    953,700     12,045,231

Tyson Foods, Inc. – Class A

    573,300     8,261,253
        
       62,056,522
        

Household Products – 1.9%

     

Procter & Gamble Co.

    718,900     47,576,802
        

Tobacco – 1.6%

     

Altria Group, Inc.

    560,300     40,980,342
        
       218,194,223
        

 

230   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Telecommunication Services – 7.1%

     

Diversified Telecommunication
Services – 5.8%

     

AT&T, Inc.

    2,769,300   $ 96,454,719

Verizon Communications, Inc.

    1,396,500     50,720,880
        
       147,175,599
        

Wireless Telecommunication
Services – 1.3%

     

Sprint Nextel Corp.

    2,560,100     18,202,311

Vodafone Group PLC (ADR)

    432,800     13,949,144
        
       32,151,455
        
       179,327,054
        

Materials – 6.2%

     

Chemicals – 2.7%

     

Ashland, Inc.

    162,300     7,168,791

Dow Chemical Co.

    718,800     27,091,572

E.I. Du Pont de Nemours & Co.

    585,000     27,155,700

Lubrizol Corp.

    123,500     7,200,050
        
       68,616,113
        

Containers & Packaging – 1.6%

     

Ball Corp.

    309,300     13,640,130

Owens-Illinois, Inc.(a)

    275,200     15,535,040

Smurfit-Stone Container Corp.(a)

    439,600     3,494,820

Sonoco Products Co.

    210,400     5,926,968
        
       38,596,958
        

Metals & Mining – 1.9%

     

Alcoa, Inc.

    784,000     29,117,760

ArcelorMittal

    250,200     19,020,204
        
       48,137,964
        
       155,351,035
        

Information Technology – 4.1%

     

Communications Equipment – 0.5%

     

Nokia OYJ (Sponsored) (ADR)

    379,300     13,658,593
        

Computers & Peripherals – 1.0%

     

Dell, Inc.(a)

    350,000     6,947,500

International Business Machines Corp.

    66,800     7,605,848

Lexmark International, Inc. – Class A(a)

    285,800     9,439,974
        
       23,993,322
        

Electronic Equipment &
Instruments – 2.3%

     

Arrow Electronics, Inc.(a)

    328,700     10,718,907

Avnet, Inc.(a)

    442,200     14,906,562

Flextronics International Ltd.(a)

    1,218,278     12,353,339

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   231

 

U.S. Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Ingram Micro, Inc. – Class A(a)

    436,100   $ 6,659,247

Sanmina-SCI Corp.(a)

    599,600     989,340

Tech Data Corp.(a)

    167,500     5,586,125

Tyco Electronics Ltd.

    95,000     3,125,500

Vishay Intertechnology, Inc.(a)

    524,900     4,792,337
        
       59,131,357
        

IT Services – 0.3%

     

Electronic Data Systems Corp.

    441,500     7,646,780
        
       104,430,052
        

Utilities – 1.3%

     

Electric Utilities – 0.6%

     

Entergy Corp.

    143,700     14,763,738
        

Independent Power Producers & Energy Traders – 0.6%

     

Constellation Energy Group, Inc.

    162,700     14,374,545
        

Multi-Utilities – 0.1%

     

Wisconsin Energy Corp.

    85,125     3,713,153
        
       32,851,436
        

Total Common Stocks
(cost $2,626,528,544)

        2,484,314,167
        
    

SHORT-TERM INVESTMENTS – 1.3%

     

Investment Companies – 1.3%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $32,646,709)

    32,646,709     32,646,709
        

Total Investments – 99.8%
(cost $2,659,175,253)

        2,516,960,876

Other assets less liabilities – 0.2%

        4,912,475
        

Net Assets – 100.0%

      $ 2,521,873,351
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt

 

   See notes to financial statements.

 

232   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Value Portfolio—Portfolio of Investments

 

U.S. LARGE CAP GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
    
 
    

COMMON STOCKS – 99.2%

     

Information Technology – 30.8%

     

Communications Equipment – 9.7%

     

Cisco Systems, Inc.(a)

    4,197,900   $ 102,302,823

Nokia OYJ (Sponsored) (ADR)

    1,540,700     55,480,607

Research In Motion Ltd.(a)

    860,600     89,330,280
        
       247,113,710
        

Computers & Peripherals – 9.1%

     

Apple, Inc.(a)

    1,037,935     129,762,634

Hewlett-Packard Co.

    2,136,800     102,074,936
        
       231,837,570
        

Internet Software & Services – 6.0%

     

Google, Inc. – Class A(a)

    324,670     152,978,010
        

Semiconductors & Semiconductor Equipment – 3.6%

     

Broadcom Corp. – Class A(a)

    1,054,100     19,933,031

MEMC Electronic Materials, Inc.(a)

    367,850     28,059,598

Nvidia Corp.(a)

    2,050,600     43,862,334
        
       91,854,963
        

Software – 2.4%

     

Adobe Systems, Inc.(a)

    863,500     29,056,775

Microsoft Corp.

    934,200     25,428,924

VMware, Inc. – Class A(a)

    145,200     8,518,884
        
       63,004,583
        
       786,788,836
        

Health Care – 21.5%

     

Biotechnology – 7.8%

     

Celgene Corp.(a)

    1,006,000     56,708,220

Genentech, Inc.(a)

    628,100     47,578,575

Gilead Sciences, Inc.(a)

    1,977,850     93,591,862
        
       197,878,657
        

Health Care Equipment &
Supplies – 3.9%

     

Alcon, Inc.

    459,250     66,467,253

Hologic, Inc.(a)

    544,400     32,832,764
        
       99,300,017
        

Health Care Providers &
Services – 4.1%

     

Medco Health Solutions, Inc.(a)

    1,274,200     56,459,802

WellPoint, Inc.(a)

    693,100     48,572,448
        
       105,032,250
        

Pharmaceuticals – 5.7%

     

Abbott Laboratories

    1,641,400     87,896,970

Teva Pharmaceutical Industries Ltd. (Sponsored) (ADR)

    1,187,700     58,280,439
        
       146,177,409
        
       548,388,333
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   233

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

 

Company        
    
Shares		   U.S. $ Value
 
    

Consumer Staples – 11.0%

     

Beverages – 2.8%

     

The Coca-Cola Co.

    463,800   $ 27,113,748

PepsiCo, Inc.

    626,400     43,572,384
        
       70,686,132
        

Food & Staples Retailing – 2.0%

     

Costco Wholesale Corp.

    497,000     30,774,240

Wal-Mart Stores, Inc.

    432,600     21,452,634
        
       52,226,874
        

Food Products – 2.3%

     

WM Wrigley Jr Co.

    998,900     59,794,154
        

Household Products – 2.9%

     

Colgate-Palmolive Co.

    493,900     37,580,851

Procter & Gamble Co.

    537,500     35,571,750
        
       73,152,601
        

Tobacco – 1.0%

     

Altria Group, Inc.

    356,850     26,100,009
        
       281,959,770
        

Industrials – 10.6%

     

Aerospace & Defense – 3.7%

     

Honeywell International, Inc.

    1,321,085     76,015,231

Spirit Aerosystems Holdings, Inc. – Class A(a)

    694,200     18,757,284
        
       94,772,515
        

Construction & Engineering – 1.7%

     

Fluor Corp.

    309,600     43,111,800
        

Electrical Equipment – 1.4%

     

ABB Ltd. (Sponsored) (ADR)

    717,450     17,964,948

Emerson Electric Co.

    334,500     17,046,120
        
       35,011,068
        

Industrial Conglomerates – 1.3%

     

Textron, Inc.

    643,400     34,852,978
        

Machinery – 2.5%

     

Deere & Co.

    742,850     63,298,249
        
       271,046,610
        

Financials – 9.8%

     

Capital Markets – 5.0%

     

The Blackstone Group LP

    872,300     14,392,950

Franklin Resources, Inc.

    651,800     61,510,366

The Goldman Sachs Group, Inc.

    152,790     25,917,768

Lehman Brothers Holdings, Inc.

    507,900     25,897,821
        
       127,718,905
        

Diversified Financial Services – 4.8%

     

CME Group, Inc. – Class A

    194,005     99,582,766

NYSE Euronext

    359,800     23,628,066
        
       123,210,832
        
       250,929,737
        

 

234   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

 

Company        
    
Shares		   U.S. $ Value  
   
    

Energy – 8.0%

     

Energy Equipment & Services – 5.7%

     

Baker Hughes, Inc.

    542,650   $ 36,514,919  

Cameron International Corp.(a)

    519,500     22,068,360  

Schlumberger Ltd.

    1,020,650     88,235,192  
          
       146,818,471  
          

Oil, Gas & Consumable Fuels – 2.3%

     

EOG Resources, Inc.

    483,500     57,531,665  
          
       204,350,136  
          

Materials – 5.5%

     

Chemicals – 5.5%

     

Air Products & Chemicals, Inc.

    490,000     44,751,700  

Monsanto Co.

    814,840     94,260,691  
          
       139,012,391  
          

Consumer Discretionary – 1.5%

     

Hotels, Restaurants & Leisure – 0.9%

     

McDonald’s Corp.

    117,350     6,349,809  

Yum! Brands, Inc.

    502,500     17,311,125  
          
       23,660,934  
          

Multiline Retail – 0.6%

     

Kohl’s Corp.(a)

    150,900     6,705,996  

Target Corp.

    137,150     7,215,461  
          
       13,921,457  
          
       37,582,391  
          

Telecommunication Services – 0.5%

     

Wireless Telecommunication
Services – 0.5%

     

America Movil SAB de CV Series L (ADR)

    220,100     13,307,246  
          

Total Common Stocks
(cost $2,422,442,548)

        2,533,365,450  
          
    

SHORT-TERM INVESTMENTS – 1.1%

     

Investment Companies – 1.1%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $28,557,743)

    28,557,743     28,557,743  
          

Total Investments – 100.3%
(cost $2,451,000,291)

        2,561,923,193  

Other assets less liabilities – (0.3)%

        (8,918,121 )
          

Net Assets – 100.0%

      $ 2,553,005,072  
          

 

(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  •   235

 

U.S. Large Cap Growth Portfolio—Portfolio of Investments

 

GLOBAL REAL ESTATE INVESTMENT PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 98.1%

     

Equity: Other – 45.0%

     

Diversified/Specialty – 39.7%

     

Alexandria Real Estate Equities, Inc.

    102,100   $ 9,372,780

British Land Co. PLC

    1,156,226     21,688,997

Canadian Real Estate Investment Trust

    561,062     15,391,084

DB RREEF Trust

    18,518,133     28,483,661

Digital Realty Trust, Inc.

    480,300     17,242,770

Entertainment Properties Trust

    174,300     8,169,441

Forest City Enterprises, Inc. – Class A

    87,673     3,081,706

General Property Group

    2,118,883     6,215,148

Hang Lung Properties Ltd.

    8,908,000     31,987,173

Henderson Land Development Co., Ltd.

    402,000     3,121,042

Kerry Properties Ltd.

    5,155,191     34,377,811

Land Securities Group PLC

    836,482     26,079,533

Lend Lease Corp. Ltd.

    1,889,000     24,129,233

Mitsubishi Estate Co., Ltd.

    1,068,000     26,027,668

Mitsui Fudosan Co., Ltd.

    916,000     18,598,432

Morguard Real Estate Investment Trust

    196,700     2,464,121

New World Development Co., Ltd.

    7,523,338     20,222,688

Plum Creek Timber Co., Inc. (REIT)

    57,100     2,323,399

Rayonier, Inc.

    389,922     16,591,181

Sino Land Co.

    3,119,018     7,801,373

Stockland

    1,178,272     7,625,251

Sumitomo Realty & Development

    367,000     6,263,240

Sun Hung Kai Properties Ltd.

    2,990,600     52,303,023

Tokyu Land Corp.

    889,000     5,991,919

Unibail

    218,718     53,251,556

Vornado Realty Trust

    227,900     19,043,324
        
       467,847,554
        

Health Care – 4.5%

     

HCP, Inc.

    256,900     7,496,342

Health Care REIT, Inc.

    234,500     9,652,020

Nationwide Health Properties, Inc.

    350,100     10,618,533

Omega Healthcare Investors, Inc.

    392,400     6,655,104

Ventas, Inc.

    439,500     18,379,890
        
       52,801,889
        

Triple Net – 0.8%

     

National Retail Properties, Inc.

    438,300     9,072,810
        
       529,722,253
        

Retail – 21.8%

     

Regional Mall – 8.9%

     

General Growth Properties, Inc.

    478,100     16,881,711

Macerich Co.

    137,400     8,793,600

Simon Property Group, Inc.

    436,600     36,587,080

 

236   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Taubman Centers, Inc.

    241,900   $ 11,792,625

Westfield Group

    1,896,464     30,401,533
        
       104,456,549
        

Shopping Center/Other Retail – 12.9%

     

CapitaMall Trust

    10,524,800     24,138,213

Citycon Oyj

    2,289,271     13,648,823

Federal Realty Investment Trust

    72,200     5,175,296

Hammerson PLC

    772,800     16,850,588

Kimco Realty Corp.

    258,000     8,712,660

Klepierre

    611,900     35,734,083

Liberty International PLC

    647,000     12,301,593

Macquarie CountryWide Trust

    4,042,700     4,620,371

New World Department Store China Ltd.(a)

    53,722     69,509

Primaris Retail Real Estate Investment Trust

    461,599     7,227,067

RioCan Real Estate Investment Trust(b)

    132,100     2,754,068

RioCan Real Estate Investment Trust

    435,159     9,072,352

Tanger Factory Outlet Centers

    343,600     12,197,800
        
       152,502,423
        
       256,958,972
        

Office – 16.0%

     

Allied Properties Real Estate Investment Trust

    569,532     10,872,752

Beni Stabili Spa

    5,350,000     6,018,393

Boston Properties, Inc.

    109,900     9,470,083

Brookfield Properties Corp.

    365,724     6,817,095

Cominar Real Estate Investment Trust

    431,714     8,570,680

Derwent Valley Holdings PLC

    494,710     13,992,417

Dundee Real Estate Investment Trust

    230,500     8,020,955

Great Portland Estates PLC

    1,185,600     11,706,074

Highwoods Properties, Inc.

    207,500     6,117,100

ING Office Fund

    8,019,300     9,812,684

IVG Immobilien AG

    272,237     9,504,568

Japan Real Estate Investment Corp. – Class A

    1,220     13,576,264

Nippon Building Fund, Inc. – Class A

    721     8,870,454

Nomura Real Estate Office Fund, Inc. – Class A

    1,235     10,364,535

Norwegian Property ASA

    1,267,800     12,322,274

NTT Urban Development Corp.

    21,200     26,277,593

SL Green Realty Corp.

    55,200     5,050,800

Sponda OYJ

    854,562     11,001,183
        
       188,365,904
        

Residential – 7.7%

     

Multi-Family – 6.2%

     

Apartment Investment & Management Co. – Class A

    147,924     5,095,982

AvalonBay Communities, Inc.

    58,950     5,448,748

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   237

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

 

    
    
Company		    Shares   U.S. $ Value  
   
    

Boardwalk Real Estate Investment Trust

    296,528   $ 11,080,823  

Equity Residential

    402,284     15,359,203  

Essex Property Trust, Inc.

    48,200     5,062,928  

Home Properties, Inc.

    104,900     4,827,498  

Mid-America Apartment Communities, Inc.

    178,300     8,645,767  

Mirvac Group

    2,678,063     9,493,036  

UDR, Inc.

    351,750     7,861,612  
          
       72,875,597  
          

Self Storage – 1.5%

     

Extra Space Storage, Inc.

    115,600     1,742,092  

Public Storage

    191,400     15,572,304  
          
       17,314,396  
          
       90,189,993  
          

Industrial – 3.9%

     

Industrial Warehouse Distribution – 3.9%

     

Ascendas Real Estate Investment Trust

    6,780,000     10,715,822  

First Industrial Realty Trust, Inc.

    189,600     5,760,048  

Prologis

    403,300     21,729,804  

Segro PLC

    810,323     8,284,974  
          
       46,490,648  
          

Lodging – 3.7%

     

Ashford Hospitality Trust, Inc.

    802,100     5,333,965  

DiamondRock Hospitality Co.

    476,500     5,951,485  

FelCor Lodging Trust, Inc.

    237,000     2,990,940  

Fonciere Des Murs

    198,200     7,390,043  

Host Hotels & Resorts, Inc.

    751,357     12,164,470  

Starwood Hotels & Resorts Worldwide, Inc.

    39,900     1,888,467  

Strategic Hotels & Resorts, Inc.

    324,800     4,625,152  

Sunstone Hotel Investors, Inc.

    240,600     3,767,796  
          
       44,112,318  
          

Total Common Stocks
(cost $1,180,625,976)

        1,155,840,088  
          
    

SHORT-TERM INVESTMENTS – 2.2%

     

Investment Companies – 2.2%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(c)
(cost $25,501,191)

    25,501,191     25,501,191  
          

Total Investments – 100.3%
(cost $1,206,127,167)

       1,181,341,279  

Other assets less liabilities – (0.3)%

        (3,615,484 )
          

Net Assets – 100.0%

      $ 1,177,725,795  
          

 

238   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

(a) Non-income producing security.

 

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2008, the market value of this security amounted to $2,754,068 or 0.2% of net assets.

 

(c) Investment in affiliated money market mutual fund.

 

  See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   239

 

Global Real Estate Investment Portfolio—Portfolio of Investments

 

INTERNATIONAL VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 95.9%

     

Financials – 31.8%

     

Capital Markets – 3.4%

     

Credit Suisse Group

    394,500   $ 19,396,005

Deutsche Bank AG

    218,200     24,368,297
        
       43,764,302
        

Commercial Banks – 16.5%

     

Bank Hapoalim BM

    1,664,800     7,113,230

Bank Leumi Le-Israel

    736,900     3,385,749

Barclays PLC

    2,319,600     21,739,990

BNP Paribas SA

    296,200     26,480,264

Credit Agricole SA

    731,161     19,832,635

HBOS PLC

    2,457,560     29,203,153

Kookmin Bank

    164,700     10,150,392

Mitsubishi UFJ Financial Group, Inc.

    2,959,500     26,083,117

Royal Bank of Scotland Group PLC (London Virt-X)

    3,574,571     27,025,596

Societe Generale

    168,381     18,016,648

Sumitomo Mitsui Financial Group, Inc.

    3,692     26,667,167
        
       215,697,941
        

Consumer Finance – 1.6%

     

ORIX Corp.

    140,810     21,052,347
        

Diversified Financial Services – 4.4%

     

Fortis(a)

    344,798     5,231

Fortis (Euronext Amsterdam)

    9,832     216,749

Fortis (Euronext Brussels)

    1,228,466     27,139,717

ING Groep NV

    922,011     30,640,001
        
       58,001,698
        

Insurance – 5.8%

     

Allianz SE

    166,300     28,791,504

Aviva PLC

    1,294,995     15,609,108

Fondiaria-Sai SpA (ordinary shares)

    207,700     9,217,728

Fondiaria-Sai SpA (saving shares)

    19,000     578,277

Muenchener Rueckversicherungs AG

    126,300     22,258,748
        
       76,455,365
        

Real Estate Management &
Development – 0.1%

     

Leopalace21 Corp.

    44,000     899,071
        
       415,870,724
        

Materials – 17.5%

     

Chemicals – 5.1%

     

BASF SE

    349,500     44,470,102

Mitsubishi Chemical Holdings Corp.

    2,029,000     13,724,043

Mitsui Chemicals, Inc.

    1,280,000     9,076,017
        
       67,270,162
        

 

240   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Construction Materials – 0.4%

     

Buzzi Unicem SpA

    194,400   $ 4,769,371

Italcementi SpA

    27,800     565,505
        
       5,334,876
        

Metals & Mining – 10.5%

     

Antofagasta PLC

    308,300     4,913,776

ArcelorMittal (Euronext Paris)

    377,132     28,635,051

Cia Vale do Rio Doce (Sponsored) (ADR)

    471,700     13,830,244

JFE Holdings, Inc.

    656,000     29,229,903

Kazakhmys PLC

    405,200     12,342,666

Nippon Steel Corp.

    2,213,000     11,643,029

POSCO

    23,500     12,925,533

Xstrata PLC

    296,960     23,165,947
        
       136,686,149
        

Paper & Forest Products – 1.5%

     

Stora Enso Oyj – Class R

    727,900     9,089,797

Svenska Cellulosa AB – Class B

    643,200     10,557,937
        
       19,647,734
        
       228,938,921
        

Energy – 11.5%

     

International – 0.9%

     

LUKOIL (ADR)

    162,250     12,071,400
        

Oil, Gas & Consumable Fuels – 10.6%

     

China Petroleum & Chemical Corp. – Class H

    10,768,500     11,728,978

ENI SpA

    800,400     27,638,762

Petro-Canada

    284,000     13,593,335

Petroleo Brasileiro SA (Sponsored) (ADR)

    43,900     4,299,127

Royal Dutch Shell PLC (Euronext Amsterdam)

    1,079,952     38,618,602

StatoilHydro ASA

    903,150     27,520,142

Total SA

    190,800     14,368,013
        
       137,766,959
        
       149,838,359
        

Consumer Discretionary – 9.7%

     

Auto Components – 2.1%

     

Compagnie Generale des Etablissements Michelin – Class B

    167,400     16,487,276

Hyundai Mobis

    148,510     11,399,478
        
       27,886,754
        

Automobiles – 4.8%

     

Nissan Motor Co. Ltd.

    3,605,700     32,425,960

Renault SA

    285,900     30,547,408
        
       62,973,368
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   241

 

International Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Household Durables – 1.8%

     

Sharp Corp.

    935,000   $ 17,014,721

Taylor Wimpey PLC

    1,752,944     5,931,682
        
       22,946,403
        

Media – 1.0%

     

Lagardere SCA

    174,400     13,702,207
        
       127,508,732
        

Information Technology – 7.5%

     

Computers & Peripherals – 3.8%

     

Asustek Computer, Inc.

    2,249,000     6,208,916

Compal Electronics, Inc. (GDR)(b)

    2,179,452     9,698,562

Fujitsu Ltd.

    2,558,000     18,200,461

Toshiba Corp.

    2,116,000     15,871,544
        
       49,979,483
        

Electronic Equipment & Instruments – 1.0%

     

AU Optronics Corp.

    6,923,006     13,204,857
        

Semiconductors & Semiconductor Equipment – 2.7%

     

Hynix Semiconductor, Inc.(a)

    433,500     11,147,602

Samsung Electronics Co. Ltd.

    12,150     7,121,988

United Microelectronics Corp.

    27,215,479     16,154,101
        
       34,423,691
        
       97,608,031
        

Utilities – 4.5%

     

Electric Utilities – 3.3%

     

E.ON AG

    112,800     21,199,956

The Tokyo Electric Power Co. Inc

    871,100     22,380,343
        
       43,580,299
        

Multi-Utilities – 1.2%

     

RWE AG

    125,140     15,134,956
        
       58,715,255
        

Industrials – 4.2%

     

Aerospace & Defense – 1.1%

     

BAE Systems PLC

    1,488,100     14,165,190
        

Airlines – 1.6%

     

Air France-KLM

    298,000     8,028,837

Deutsche Lufthansa AG

    547,700     12,818,879
        
       20,847,716
        

 

242   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Marine – 1.5%

     

Mitsui OSK Lines Ltd.

    968,000   $ 12,572,263

Nippon Yusen KK

    820,000     7,577,146
        
       20,149,409
        
       55,162,315
        

Telecommunication Services – 4.0%

     

Diversified Telecommunication Services – 2.0%

     

China Netcom Group Corp. Ltd.

    5,620,000     17,324,627

Nippon Telegraph & Telephone Corp.

    2,031     8,856,650
        
       26,181,277
        

Wireless Telecommunication Services – 2.0%

     

Vodafone Group PLC

    7,993,937     25,736,173
        
       51,917,450
        

Health Care – 2.9%

     

Pharmaceuticals – 2.9%

     

AstraZeneca PLC

    152,800     5,711,261

GlaxoSmithKline PLC

    652,100     14,234,432

Sanofi-Aventis SA

    249,319     18,427,814
        
       38,373,507
        

Consumer Staples – 2.3%

     

Food & Staples Retailing – 1.5%

     

Koninklijke Ahold NV

    1,526,340     20,058,264
        

Food Products – 0.8%

     

Associated British Foods PLC

    634,800     10,636,737
        
       30,695,001
        

Total Common Stocks
(cost $1,214,234,922)

        1,254,628,295
        
    

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     4,936,721
        
    

RIGHTS – 0.4%

     

Financials – 0.4%

     

Commercial Banks – 0.4%

     

Societe Generale(a)
(cost $3,035,461)

    42,095     4,625,558
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   243

 

International Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 2.3%

     

Investment Companies – 2.3%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(c)
(cost $30,589,333)

    30,589,333   $ 30,589,333
        

Total Investments – 99.0%
(cost $1,253,349,727)

       1,294,779,907

Other assets less liabilities – 1.0%

        13,539,512
        

Net Assets – 100.0%

      $ 1,308,319,419
        

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type   Number of
Contracts		   Expiration
Month		   Original
Value		   Value at
February 29,
2008		   Unrealized
Appreciation/
(Depreciation)

Purchased Contracts

        

EURO STOXX 50

   204   March 2008   $     13,571,177   $     11,524,041   $    (2,047,136)

 

 

(a) Non-income producing security.

 

(b) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2008, the market value of this security amounted to $9,698,562 or 0.7% 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.

 

244   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Value Portfolio—Portfolio of Investments

 

INTERNATIONAL GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    
    

COMMON STOCKS – 98.5%

     

Materials – 20.5%

     

Chemicals – 6.5%

     

Bayer AG

    639,603   $ 49,252,520

Incitec Pivot Ltd.

    111,900     15,198,497

Syngenta AG

    77,605     22,312,164
        
       86,763,181
        

Metals & Mining – 14.0%

     

Anglo American PLC

    500,575     31,773,149

BHP Billiton PLC

    748,392     23,941,147

Cia Vale do Rio Doce (ADR)

    818,600     28,520,024

Rio Tinto PLC

    537,786     60,504,937

Xstrata PLC

    559,764     43,667,373
        
       188,406,630
        
       275,169,811
        

Industrials – 14.0%

     

Aerospace & Defense – 1.7%

     

BAE Systems PLC

    2,336,362     22,239,777
        

Commercial Services & Supplies – 0.4%

     

The Capita Group PLC

    456,965     5,921,048
        

Electrical Equipment – 2.9%

     

ABB Ltd.

    1,555,315     38,749,570
        

Industrial Conglomerates – 2.5%

     

Siemens AG

    261,850     33,715,837
        

Machinery – 0.7%

     

NGK Insulators Ltd.

    427,000     9,696,278
        

Trading Companies &
Distributors – 5.8%

     

Mitsubishi Corp.

    826,300     25,210,795

Mitsui & Co. Ltd.

    2,441,000     53,085,475
        
       78,296,270
        
       188,618,780
        

Consumer Staples – 12.3%

     

Food & Staples Retailing – 1.5%

     

Tesco PLC

    2,469,490     19,514,849
        

Food Products – 5.9%

     

Nestle SA

    100,508     47,971,290

Unilever PLC

    1,004,415     31,645,337
        
       79,616,627
        
    

Household Products – 2.1%

     

Reckitt Benckiser PLC

    521,414     28,125,656
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   245

 

International Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

Personal Products – 1.2%

     

L’Oreal SA

    139,496   $ 16,554,242
        

Tobacco – 1.6%

     

British American Tobacco PLC

    554,179     20,779,894
        
       164,591,268
        

Financials – 10.5%

     

Capital Markets – 4.1%

     

3i Group PLC

    709,235     11,462,477

ICAP PLC

    1,060,239     13,201,540

Man Group PLC

    2,808,114     30,636,235
        
       55,300,252
        

Commercial Banks – 1.1%

     

Banco Santander Central Hispano SA

    340,714     6,088,401

China Construction Bank Corp. – Class H

    10,781,000     8,168,290
        
       14,256,691
        

Diversified Financial Services – 2.9%

     

Deutsche Boerse AG

    247,224     39,186,340
        

Insurance – 2.4%

     

Assicurazioni Generali SpA

    233,164     10,021,615

QBE Insurance Group Ltd.

    1,048,413     21,685,097
        
       31,706,712
        
       140,449,995
        

Telecommunication Services – 8.0%

     

Diversified Telecommunication Services – 2.9%

     

Telefonica SA

    1,346,028     38,949,454
        

Wireless Telecommunication
Services – 5.1%

     

America Movil SAB de CV Series L (ADR)

    225,400     13,627,684

Turkcell Iletisim Hizmet AS (ADR)

    424,500     10,710,135

Vodafone Group PLC

    13,509,693     43,493,937
        
       67,831,756
        
       106,781,210
        

Health Care – 7.8%

     

Biotechnology – 1.0%

     

CSL Ltd./Australia

    416,979     13,985,232
        

Health Care Equipment & Supplies – 3.6%

     

Alcon, Inc.

    102,500     14,834,825

Essilor International SA

    323,986     19,237,571

Smith & Nephew PLC

    1,064,264     13,828,115
        
       47,900,511
        

 

246   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    
    

Pharmaceuticals – 3.2%

     

Roche Holding AG

    93,157   $ 18,268,868

Teva Pharmaceutical Industries Ltd. (Sponsored) (ADR)

    515,200     25,280,864
        
       43,549,732
        
       105,435,475
        

Energy – 7.1%

     

Energy Equipment & Services – 1.5%

     

Technip SA

    111,261     9,083,032

WorleyParsons Ltd.

    325,976     11,158,187
        
       20,241,219
        

Oil, Gas & Consumable Fuels – 5.6%

     

China Shenhua Energy Co. Ltd. – Class H

    2,362,000     12,031,084

Gazprom OAO (Sponsored) (ADR)

    251,125     12,757,150

Petroleo Brasileiro SA (ADR)

    154,300     18,105,562

Royal Dutch Shell PLC (Euronext Amsterdam) – Class A

    389,719     13,934,938

Total SA

    237,462     17,881,850
        
       74,710,584
        
       94,951,803
        

Utilities – 6.9%

     

Electric Utilities – 2.2%

     

CEZ

    98,620     7,225,631

E.ON AG

    120,006     22,554,272
        
       29,779,903
        

Independent Power Producers & Energy Traders – 1.5%

     

Iberdrola Renovables(a)

    1,118,219     6,960,264

International Power PLC

    1,671,777     12,559,768
        
       19,520,032
        

Multi-Utilities – 3.2%

     

Suez SA

    338,055     21,491,146

Veolia Environnement

    240,588     21,405,981
        
       42,897,127
        
       92,197,062
        

Information Technology – 6.4%

     

Communications Equipment – 3.8%

     

Nokia OYJ

    1,435,273     51,565,892
        

Office Electronics – 0.9%

     

Konica Minolta Holdings, Inc.

    887,500     12,573,344
        

Software – 1.7%

     

Nintendo Co. Ltd.

    44,600     22,206,128
        
       86,345,364
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   247

 

International Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value  
   
    

Consumer Discretionary – 5.0%

     

Auto Components – 1.0%

     

Denso Corp.

    337,500   $ 12,599,385  
          

Automobiles – 1.7%

     

Porsche Automobil Holding SE

    13,294     22,785,672  
          

Media – 1.4%

     

Eutelsat Communications

    487,591     13,410,145  

SES (FDR)

    228,493     5,647,516  
          
       19,057,661  
          

Specialty Retail – 0.9%

     

Esprit Holdings Ltd.

    990,300     12,358,182  
          
       66,800,900  
          

Total Common Stocks
(cost $1,165,579,536)

        1,321,341,668  
          
    

SHORT-TERM INVESTMENTS – 1.7%

     

Investment Companies – 1.7%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $23,016,609)

    23,016,609     23,016,609  
          

Total Investments – 100.2%
(cost $1,188,596,145)

       1,344,358,277  

Other assets less liabilities – (0.2)%

        (2,464,987 )
          

Net Assets – 100.0%

      $ 1,341,893,290  
          

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

Glossary:

 

ADR – American Depositary Receipt
FDR – Fiduciary Depositary Receipt

 

  See notes to financial statements.

 

248   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

International Growth Portfolio—Portfolio of Investments

 

SMALL-MID CAP VALUE PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 94.5%

     

Industrials – 23.3%

     

Aerospace & Defense – 0.8%

     

Goodrich Corp.

    92,300   $ 5,466,929
        

Airlines – 2.2%

     

Alaska Air Group, Inc.(a)

    212,200     5,177,680

Continental Airlines, Inc. – Class B(a)

    181,300     4,383,834

Skywest, Inc.

    202,500     4,479,300
        
       14,040,814
        

Commercial Services & Supplies – 2.8%

     

IKON Office Solutions, Inc.

    645,300     4,594,536

Kelly Services, Inc. – Class A

    276,200     5,305,802

United Stationers, Inc.(a)

    176,800     8,726,848
        
       18,627,186
        

Electrical Equipment – 3.9%

     

Acuity Brands, Inc.

    103,600     4,600,876

Cooper Industries Ltd. – Class A

    127,200     5,333,496

EnerSys(a)

    334,800     7,697,052

Regal-Beloit Corp.

    215,300     7,948,876
        
       25,580,300
        

Machinery – 7.0%

     

AGCO Corp.(a)

    115,100     7,465,386

Briggs & Stratton Corp.

    284,300     5,080,441

Kennametal, Inc.

    261,300     7,935,681

Mueller Industries, Inc.

    245,000     7,038,850

SPX Corp.

    73,100     7,478,130

Terex Corp.(a)

    156,200     10,535,690
        
       45,534,178
        

Road & Rail – 5.3%

     

Arkansas Best Corp.

    232,800     6,218,088

Avis Budget Group, Inc.(a)

    492,900     5,633,847

Con-way, Inc.

    147,800     6,696,818

Ryder System, Inc.

    167,900     9,672,719

Werner Enterprises, Inc.

    359,500     6,395,505
        
       34,616,977
        

Trading Companies & Distributors – 1.3%

     

GATX Corp.

    238,700     8,588,426
        
       152,454,810
        

Financials – 18.9%

     

Commercial Banks – 5.7%

     

Central Pacific Financial Corp.

    328,500     6,073,965

The South Financial Group, Inc.

    452,000     6,522,360

Susquehanna Bancshares, Inc.

    285,000     5,668,650

Trustmark Corp.

    250,261     4,945,157

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   249

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

UnionBanCal Corp.

    64,800   $ 3,017,736

Webster Financial Corp.

    246,800     6,902,996

Whitney Holding Corp.

    162,000     3,889,620
        
       37,020,484
        

Insurance – 8.1%

     

Arch Capital Group Ltd.(a)

    175,000     11,984,000

Aspen Insurance Holdings, Ltd.

    343,500     9,940,890

Fidelity National Financial, Inc. – Class A

    305,000     5,371,050

Old Republic International Corp.

    376,000     5,158,720

PartnerRe Ltd.

    14,800     1,137,972

Platinum Underwriters Holdings, Ltd.

    289,800     9,998,100

RenaissanceRe Holdings Ltd.

    35,000     1,921,500

StanCorp Financial Group, Inc.

    157,700     7,741,493
        
       53,253,725
        

Real Estate Investment Trusts (REITs) – 3.6%

     

Ashford Hospitality Trust, Inc.

    270,000     1,795,500

Digital Realty Trust, Inc.

    171,300     6,149,670

FelCor Lodging Trust, Inc.

    308,500     3,893,270

Mid-America Apartment Communities, Inc.

    74,000     3,588,260

Strategic Hotels & Resorts, Inc.

    101,000     1,438,240

Tanger Factory Outlet Centers

    102,800     3,649,400

Taubman Centers, Inc.

    66,300     3,232,125
        
       23,746,465
        

Thrifts & Mortgage Finance – 1.5%

     

Astoria Financial Corp.

    224,900     5,885,633

Provident Financial Services, Inc.

    322,000     3,860,780
        
       9,746,413
        
       123,767,087
        

Materials – 13.0%

     

Chemicals – 6.0%

     

Ashland, Inc.

    179,200     7,915,264

Celanese Corp. – Class A Series A

    84,800     3,298,720

Cytec Industries, Inc.

    152,900     8,758,112

Lubrizol Corp.

    61,900     3,608,770

Methanex Corp.

    170,600     4,914,986

Rockwood Holdings, Inc.(a)

    349,100     10,713,879
        
       39,209,731
        

Containers & Packaging – 2.1%

     

Aptargroup, Inc.

    150,800     5,651,984

Silgan Holdings, Inc.

    112,000     5,234,880

Sonoco Products Co.

    113,300     3,191,661
        
       14,078,525
        

Metals & Mining – 4.9%

     

Cleveland-Cliffs, Inc.

    33,390     3,988,769

Commercial Metals Co.

    263,800     8,035,348

 

250   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Quanex Corp.

    177,600   $ 9,137,520

Reliance Steel & Aluminum Co.

    68,100     3,776,826

Steel Dynamics, Inc.

    118,500     6,903,810
        
       31,842,273
        
       85,130,529
        

Consumer Staples – 10.2%

     

Beverages – 1.7%

     

Molson Coors Brewing Co. – Class B

    210,400     11,353,184
        

Food & Staples Retailing – 4.4%

     

Performance Food Group Co.(a)

    329,900     10,721,750

Ruddick Corp.

    345,710     11,149,148

Supervalu, Inc.

    275,900     7,242,375
        
       29,113,273
        

Food Products – 1.9%

     

Corn Products International, Inc.

    49,700     1,824,487

Del Monte Foods Co.

    409,800     3,680,004

Smithfield Foods, Inc.(a)

    119,600     3,294,980

Tyson Foods, Inc. – Class A

    248,900     3,586,649
        
       12,386,120
        

Tobacco – 2.2%

     

Universal Corp.

    248,400     14,136,444
        
       66,989,021
        

Consumer Discretionary – 7.8%

     

Auto Components – 2.8%

     

ArvinMeritor, Inc.

    618,700     6,985,123

Autoliv, Inc.

    61,500     3,068,850

TRW Automotive Holdings Corp.(a)

    387,100     8,547,168
        
       18,601,141
        

Automobiles – 0.4%

     

Thor Industries, Inc.

    98,200     2,993,136
        

Hotels Restaurants & Leisure – 0.5%

     

Papa John’s International, Inc.(a)

    117,600     3,075,240
        

Household Durables – 0.9%

     

Furniture Brands International, Inc.

    304,500     3,958,500

KB Home

    69,400     1,660,742
        
       5,619,242
        

Leisure Equipment & Products – 0.7%

     

Brunswick Corp.

    301,900     4,917,951
        

Multiline Retail – 0.8%

     

Big Lots, Inc.(a)

    197,450     3,327,032

Dillard’s, Inc. – Class A

    113,300     1,675,707
        
       5,002,739
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   251

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Specialty Retail – 0.9%

     

AutoNation, Inc.(a)

    320,438   $ 4,668,782

Office Depot, Inc.(a)

    84,400     959,628
        
       5,628,410
        

Textiles Apparel & Luxury Goods – 0.8%

     

Jones Apparel Group, Inc.

    240,100     3,387,811

VF Corp.

    21,200     1,612,048
        
       4,999,859
        
       50,837,718
        

Information Technology – 7.4%

     

Communications Equipment – 1.1%

     

CommScope, Inc.(a)

    170,500     7,140,540
        

Electronic Equipment & Instruments – 4.2%

     

Arrow Electronics, Inc.(a)

    225,900     7,366,599

AVX Corp.

    24,375     305,662

Checkpoint Systems, Inc.(a)

    188,400     4,559,280

Flextronics International Ltd.(a)

    46,097     467,424

Ingram Micro, Inc. – Class A(a)

    188,500     2,878,395

Insight Enterprises, Inc.(a)

    191,400     3,355,242

Sanmina-SCI Corp.(a)

    504,600     832,590

Tech Data Corp.(a)

    93,960     3,133,566

Vishay Intertechnology, Inc.(a)

    522,800     4,773,164
        
       27,671,922
        

Semiconductors & Semiconductor
Equipment – 2.1%

     

Amkor Technology, Inc.(a)

    437,800     5,126,638

Spansion, Inc. – Class A(a)

    310,000     852,500

Teradyne, Inc.(a)

    183,000     2,194,170

Zoran Corp.(a)

    387,700     5,323,121
        
       13,496,429
        
       48,308,891
        

Utilities – 6.0%

     

Electric Utilities – 2.9%

     

Allegheny Energy, Inc.

    58,800     2,979,396

Northeast Utilities

    289,500     7,344,615

Reliant Energy, Inc.(a)

    378,000     8,618,400
        
       18,942,411
        

Gas Utilities – 1.0%

     

Atmos Energy Corp.

    253,091     6,580,366
        

Independent Power Producers & Energy
Traders – 0.7%

     

Constellation Energy Group, Inc.

    55,300     4,885,755
        

 

252   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Multi-Utilities – 1.4%

     

Puget Energy, Inc.

    124,600   $ 3,326,820

Wisconsin Energy Corp.

    135,500     5,910,510
        
       9,237,330
        
       39,645,862
        

Health Care – 4.6%

     

Health Care Providers & Services – 3.3%

     

Apria Healthcare Group, Inc.(a)

    155,400     3,373,734

Kindred Healthcare, Inc.(a)

    46,100     972,249

LifePoint Hospitals, Inc.(a)

    174,678     4,377,431

Molina Healthcare, Inc.(a)

    217,925     6,897,326

Omnicare, Inc.

    118,800     2,492,424

Universal Health Services, Inc. – Class B

    60,600     3,237,252
        
       21,350,416
        

Life Sciences Tools & Services – 1.3%

     

PerkinElmer, Inc.

    354,100     8,788,762
        
       30,139,178
        

Energy – 3.3%

     

Energy Equipment & Services – 2.2%

     

Exterran Holdings, Inc.(a)

    40,800     2,841,720

Oil States International, Inc.(a)

    213,100     8,984,296

Rowan Cos., Inc.

    71,000     2,862,010
        
       14,688,026
        

Oil, Gas & Consumable Fuels – 1.1%

     

Hess Corp.

    77,700     7,240,086
        
       21,928,112
        

Total Common Stocks
(cost $650,461,900)

        619,201,208
        
    

SHORT-TERM INVESTMENTS – 5.3%

     

Investment Companies – 5.3%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $35,129,599)

    35,129,599     35,129,599
        

Total Investments – 99.8%
(cost $685,591,499)

        654,330,807

Other assets less liabilities – 0.2%

        1,020,103
        

Net Assets – 100.0%

      $ 655,350,910
        

 

(a) Non-income producing security.

 

(b) Investment in affiliated money market mutual fund.

 

  See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   253

 

Small-Mid Cap Value Portfolio—Portfolio of Investments

 

SMALL-MID CAP GROWTH PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

Company        
    
Shares		   U.S. $ Value
 
    

COMMON STOCKS – 97.2%

     

Industrials – 22.8%

     

Aerospace & Defense – 1.5%

     

Hexcel Corp.(a)

    464,900   $ 9,386,331
        

Air Freight & Logistics – 1.0%

     

CH Robinson Worldwide, Inc.

    120,100     6,097,477
        

Commercial Services & Supplies – 3.7%

     

FTI Consulting, Inc.(a)

    173,900     11,042,650

Stericycle, Inc.(a)

    233,500     12,583,315
        
       23,625,965
        

Construction & Engineering – 2.4%

     

Chicago Bridge & Iron Co. NV

    184,500     8,582,940

Granite Construction, Inc.

    228,200     6,889,358
        
       15,472,298
        

Electrical Equipment – 4.6%

     

Ametek, Inc.

    306,600     13,058,094

Baldor Electric Co.

    404,800     11,605,616

EnerSys(a)

    192,600     4,427,874
        
       29,091,584
        

Machinery – 8.0%

     

Astec Industries, Inc.(a)

    225,600     8,541,216

Bucyrus International, Inc. – Class A

    33,800     3,375,944

IDEX Corp.

    363,575     10,965,422

Joy Global, Inc.

    143,155     9,501,197

Kaydon Corp.

    130,200     5,560,842

Lincoln Electric Holdings, Inc.

    149,300     10,024,002

Valmont Industries, Inc.

    33,100     2,644,690
        
       50,613,313
        

Trading Companies & Distributors – 1.6%

     

MSC Industrial Direct Co. – Class A

    250,400     10,161,232
        
       144,448,200
        

Information Technology – 21.7%

     

Communications Equipment – 3.0%

     

Foundry Networks, Inc.(a)

    856,100     10,161,907

Netgear, Inc.(a)

    407,000     8,880,740
        
       19,042,647
        

Electronic Equipment & Instruments – 1.5%

     

Amphenol Corp. – Class A

    256,580     9,485,763
        

Internet Software & Services – 4.1%

     

DealerTrack Holdings, Inc.(a)

    358,800     7,344,636

Omniture, Inc.(a)

    318,500     7,319,130

VistaPrint Ltd.(a)

    368,600     11,581,412
        
       26,245,178
        

 

254   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

IT Services – 2.8%

     

Global Payments, Inc.

    173,100   $ 6,866,877

Iron Mountain, Inc.(a)

    351,100     10,561,088
        
       17,427,965
        

Semiconductors & Semiconductor Equipment – 6.1%

     

Hittite Microwave Corp.(a)

    276,700     9,161,537

Integrated Device Technology, Inc.(a)

    576,300     4,835,157

Intersil Corp. – Class A

    174,800     4,067,596

Lam Research Corp.(a)

    25,600     1,030,144

Microsemi Corp.(a)

    385,400     8,382,450

On Semiconductor Corp.(a)

    562,700     3,376,200

Verigy Ltd.(a)

    382,600     7,690,260
        
       38,543,344
        

Software – 4.2%

     

Activision, Inc.(a)

    419,154     11,421,946

McAfee, Inc.(a)

    249,700     8,307,519

Synchronoss Technologies, Inc.(a)

    424,700     6,829,176
        
       26,558,641
        
       137,303,538
        

Health Care – 17.4%

     

Biotechnology – 3.7%

     

Alexion Pharmaceuticals, Inc.(a)

    183,800     11,140,118

BioMarin Pharmaceutical, Inc.(a)

    141,300     5,375,052

OSI Pharmaceuticals, Inc.(a)

    128,600     4,623,170

Savient Pharmaceuticals, Inc.(a)

    113,200     2,567,376
        
       23,705,716
        

Health Care Equipment & Supplies – 7.1%

     

ArthroCare Corp.(a)

    266,100     10,683,915

Hologic, Inc.(a)

    222,400     13,412,944

NuVasive, Inc.(a)

    290,700     11,203,578

TomoTherapy, Inc.(a)

    723,200     9,524,544
        
       44,824,981
        

Health Care Providers & Services – 1.5%

     

HealthExtras, Inc.(a)

    337,300     9,292,615
        

Life Sciences Tools & Services – 4.3%

     

AMAG Pharmaceuticals, Inc.(a)

    202,300     8,854,671

Icon PLC SP (ADR)(a)

    200,100     13,226,610

WuXi PharmaTech Cayman, Inc. (ADR)(a)

    228,100     5,474,400
        
       27,555,681
        

Pharmaceuticals – 0.8%

     

Auxilium Pharmaceuticals, Inc.(a)

    66,900     2,143,476

XenoPort, Inc.(a)

    61,200     3,131,604
        
       5,275,080
        
       110,654,073
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   255

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value
 
    

Consumer Discretionary – 13.8%

     

Diversified Consumer Services – 1.7%

     

Strayer Education, Inc.

    69,900   $ 10,883,430
        

Hotels, Restaurants & Leisure – 5.1%

     

Ctrip.com International Ltd. (ADR)

    96,600     5,855,892

Gaylord Entertainment Co.(a)

    78,100     2,350,029

Life Time Fitness, Inc.(a)

    251,600     7,311,496

Orient-Express Hotels Ltd. – Class A

    151,600     8,212,172

Sonic Corp.(a)

    391,300     8,346,429
        
       32,076,018
        

Internet & Catalog Retail – 1.4%

     

NetFlix, Inc.(a)

    284,900     8,997,142
        

Media – 1.5%

     

National CineMedia, Inc.

    434,100     9,354,855
        

Specialty Retail – 3.1%

     

Dick’s Sporting Goods, Inc.(a)

    380,900     10,505,222

GameStop Corp. – Class A(a)

    118,000     4,998,480

J Crew Group, Inc.(a)

    106,000     4,245,300
        
       19,749,002
        

Textiles Apparel & Luxury Goods – 1.0%

     

Lululemon Athletica, Inc.(a)

    241,500     6,496,350
        
       87,556,797
        

Energy – 11.1%

     

Energy Equipment & Services – 6.8%

     

Cameron International Corp.(a)

    223,700     9,502,776

Complete Production Services, Inc.(a)

    431,900     8,387,498

FMC Technologies, Inc.(a)

    116,500     6,600,890

Grant Prideco, Inc.(a)

    132,000     6,662,040

Oceaneering International, Inc.(a)

    87,300     5,238,000

Superior Energy Services, Inc.(a)

    165,100     6,717,919
        
       43,109,123
        

Oil, Gas & Consumable Fuels – 4.3%

     

Bill Barrett Corp.(a)

    164,400     7,618,296

Forest Oil Corp.(a)

    134,100     6,615,153

Newfield Exploration Co.(a)

    151,400     8,384,532

Penn Virginia Corp.

    106,400     4,528,384
        
       27,146,365
        
       70,255,488
        

Financials – 6.8%

     

Capital Markets – 6.5%

     

Affiliated Managers Group, Inc.(a)

    71,450     6,884,208

Greenhill & Co., Inc.

    154,320     10,032,343

Lazard Ltd. – Class A

    239,000     9,127,410

 

256   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

Company        
    
Shares		   U.S. $ Value  
   
    

MF Global Ltd.(a)

    322,300   $ 5,656,365  

OptionsXpress Holdings, Inc.

    265,100     6,139,716  

Pzena Investment Management, Inc. – Class A

    305,000     3,318,400  
          
       41,158,442  
          

Commercial Banks – 0.3%

     

Boston Private Financial Holdings, Inc.

    134,800     1,856,196  
          
       43,014,638  
          

Telecommunication Services – 2.8%

     

Diversified Telecommunication Services – 1.3%

     

Cbeyond, Inc.(a)

    206,000     3,376,340  

Time Warner Telecom, Inc. – Class A(a)

    290,500     4,630,570  
          
       8,006,910  
          

Wireless Telecommunication Services – 1.5%

     

SBA Communications Corp. – Class A(a)

    309,900     9,622,395  
          
       17,629,305  
          

Materials – 0.8%

     

Metals & Mining – 0.8%

     

Allegheny Technologies, Inc.

    66,180     5,119,023  
          

Total Common Stocks
(cost $621,188,291)

        615,981,062  
          
    

SHORT-TERM INVESTMENTS – 3.6%

     

Investment Companies – 3.6%

     

AllianceBernstein Fixed-Income Shares, Inc. – Government STIF Portfolio(b)
(cost $22,820,052)

    22,820,052     22,820,052  
          

Total Investments – 100.8%
(cost $644,008,343)

        638,801,114  

Other assets less liabilities – (0.8)%

        (5,200,942 )
          

Net Assets – 100.0%

      $ 633,600,172  
          

 

(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  •   257

 

Small-Mid Cap Growth Portfolio—Portfolio of Investments

 

SHORT DURATION BOND PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

GOVERNMENTS - TREASURIES – 23.5%

     

Treasuries – 23.5%

     

U.S. Treasury Bonds
4.75%, 8/15/17

    $ 30,915   $ 33,890,569

U.S. Treasury Notes
3.50%, 8/15/09(a)

      50,618     52,021,840

4.50%, 5/15/17

      29,235     31,493,872

4.625%, 11/30/08

      112,681     115,145,897

4.75%, 12/31/08

      51,720     52,992,777

4.875%, 5/31/11

      24,720     26,966,034
        

Total Governments - Treasuries
(cost $301,299,398)

        312,510,989
        
    

CORPORATES - INVESTMENT
GRADES – 21.0%

     

Financial Institutions – 13.2%

     

Banking – 5.7%

     

Bank of America Corp.
3.375%, 2/17/09

      3,010     3,013,145

BB&T Corp.
6.50%, 8/01/11

      3,035     3,250,840

Citigroup, Inc.
3.625%, 2/09/09

      6,640     6,643,074

Comerica, Inc.
4.80%, 5/01/15

      2,380     2,238,669

Compass Bank
6.40%, 10/01/17

      1,615     1,686,662

Credit Suisse USA, Inc.
4.70%, 6/01/09

      6,625     6,725,667

Marshall & Ilsley Corp.
4.375%, 8/01/09

      5,123     5,165,275

Morgan J P & Co., Inc.
6.25%, 1/15/09

      6,120     6,244,261

National City Bank of Pennsylvania
6.25%, 3/15/11

      6,470     6,578,560

NB Capital Trust IV
8.25%, 4/15/27

      3,345     3,478,235

Royal Bank of Scotland Group PLC
7.648%, 9/30/31(b)

      783     807,948

UBS Preferred Funding Trust I
8.622%, 10/01/10(b)

      1,377     1,516,050

Union Planters Corp.
7.75%, 3/01/11

      3,867     4,221,542

UnionBanCal Corp.
5.25%, 12/16/13

      5,212     5,165,785

Royal Bank of Scotland Group PLC
6.40%, 4/01/09

      2,429     2,493,473

 

258   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

US Bancorp
5.30%, 4/28/09

    $ 6,550   $ 6,685,827

Wachovia Corp.
5.625%, 12/15/08

      2,856     2,888,933

Wells Fargo & Co.
3.125%, 4/01/09

      6,700     6,651,284
        
       75,455,230
        

Brokerage – 2.7%

     

The Bear Stearns Co., Inc.
3.25%, 3/25/09

      6,820     6,705,226

7.625%, 12/07/09

      6,475     6,745,357

Lehman Brothers Holdings, Inc.
3.60%, 3/13/09

      6,715     6,600,577

7.875%, 11/01/09

      2,726     2,853,342

Merrill Lynch & Co., Inc.
Series MTNC
4.125%, 1/15/09

      6,760     6,730,418

Morgan Stanley
5.05%, 1/21/11

      6,635     6,791,321
        
       36,426,241
        

Finance – 2.5%

     

American Express Co.
4.75%, 6/17/09

      2,976     2,987,839

American General Finance Corp.
4.625%, 5/15/09

      5,240     5,239,597

Capital One Bank
5.00%, 6/15/09

      4,160     4,133,696

Capital One Financial Corp.
6.75%, 9/15/17

      395     397,165

CIT Group, Inc.
3.375%, 4/01/09

      6,860     6,665,697

General Electric Capital Corp.
3.125%, 4/01/09

      6,730     6,729,172

Household Finance Corp.
4.125%, 12/15/08

      6,690     6,709,548
        
       32,862,714
        

Insurance – 1.1%

     

Allstate Life Global Funding Trust

     

Series 04-1
4.50%, 5/29/09

      2,911     2,951,888

Genworth Financial, Inc.
5.231%, 5/16/09

      2,218     2,250,915

UnitedHealth Group, Inc.
4.125%, 8/15/09

      2,429     2,442,852

WellPoint, Inc.
4.25%, 12/15/09

      6,800     6,867,803
        
       14,513,458
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   259

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Other Finance – 0.2%

     

ORIX Corp.
5.48%, 11/22/11

    $ 3,130   $ 3,126,391
        

REITS – 1.0%

     

Simon Property Group LP
3.75%, 1/30/09

      6,665     6,616,486

5.00%, 3/01/12

      6,630     6,503,380
        
       13,119,866
        
       175,503,900
        

Industrial – 6.3%

     

Basic – 0.2%

     

Celulosa Arauco Y Constitucion
8.625%, 8/15/10

      1,506     1,678,112

United States Steel Corp.
5.65%, 6/01/13

      460     448,258
        
       2,126,370
        

Capital Goods – 0.5%

     

Caterpillar Financial Services
4.50%, 6/15/09

      3,478     3,532,747

Illinois Tool Works, Inc.
5.75%, 3/01/09

      2,624     2,691,062
        
       6,223,809
        

Communications - Media – 0.5%

     

British Sky Broadcasting Group PLC
6.875%, 2/23/09

      6,350     6,564,687
        

Communications -
Telecommunications – 1.7%

     

AT&T, Inc.
4.125%, 9/15/09

      6,670     6,757,144

Nextel Communications, Inc.
Series E
6.875%, 10/31/13

      6,796     5,334,860

Qwest Corp.
8.875%, 3/15/12

      3,930     4,101,937

Vodafone Group PLC
7.75%, 2/15/10

      6,160     6,612,797
        
       22,806,738
        

Consumer Cyclical - Automotive – 0.5%

     

Daimler Finance North America LLC
7.20%, 9/01/09

      5,900     6,191,967
        

Consumer Cyclical - Retailers – 0.0%

     

Limited Brands, Inc.
6.90%, 7/15/17

      846     789,062
        

 

260   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Consumer Non-Cyclical – 1.0%

     

Abbott Laboratories
3.50%, 2/17/09

    $ 3,250   $ 3,261,287

Cia Brasileira De Bebida
8.75%, 9/15/13

      2,274     2,615,100

Kraft Foods, Inc.
4.125%, 11/12/09

      1,639     1,652,710

Baxter FinCo BV
4.75%, 10/15/10

      5,757     6,002,001
        
       13,531,098
        

Energy – 0.7%

     

ConocoPhillips
6.375%, 3/30/09

      2,828     2,913,397

Vastar Resources, Inc.
6.50%, 4/01/09

      6,390     6,609,759
        
       9,523,156
        

Technology – 0.3%

     

Electronic Data Systems Corp.
Series B
6.50%, 8/01/13

      1,550     1,585,258

International Business Machines Corp.
5.375%, 2/01/09

      2,869     2,926,343
        
       4,511,601
        

Transportation - Airlines – 0.2%

     

United Air Lines, Inc.
6.636%, 7/02/22

      2,534     2,388,471
        

Transportation - Railroads – 0.2%

     

Norfolk Southern Corp.
6.20%, 4/15/09

      2,700     2,782,909
        

Transportation - Services – 0.5%

     

FedEx Corp.
3.50%, 4/01/09

      6,715     6,712,186
        
       84,152,054
        

Utility – 1.5%

     

Electric – 1.5%

     

Constellation Energy Group, Inc.
6.125%, 9/01/09

      6,420     6,602,052

Pacific Gas & Electric Co.
3.60%, 3/01/09

      6,660     6,689,517

PPL Electric Utilities Corp.
6.25%, 8/15/09

      6,380     6,648,623
        
       19,940,192
        

Total Corporates - Investment Grades
(cost $278,312,842)

        279,596,146
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   261

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

MORTGAGE PASS-THRU’S – 12.6%

     

Agency ARMS – 9.3%

     

Federal Home Loan Mortgage Corp.
Series 2006
6.158%, 12/01/36(c)

    $ 5,259   $ 5,431,093

Series 2007
5.934%, 11/01/36(c)

      9,288     9,595,731

5.944%, 2/01/37(c)

      6,452     6,660,210

5.975%, 3/01/37(c)

      11,256     11,630,969

6.03%, 10/01/37(c)

      71     72,923

6.044%, 3/01/37(c)

      9,613     9,921,153

6.093%, 1/01/37(c)

      8,034     8,316,243

Federal National Mortgage Association
Series 2006
5.463%, 5/01/36(c)

      3,622     3,749,347

5.759%, 10/01/36(c)

      5,199     5,380,624

5.848%-5.85%, 10/01/36-11/01/36(c)

      19,029     19,730,176

5.912%, 6/01/36(c)

      6,763     7,012,741

5.915%, 6/01/36(c)

      10,644     11,036,001

Series 2007
5.525%, 3/01/37(c)

      5,076     5,194,137

5.744%, 12/01/36(c)

      4,517     4,681,756

5.786%, 8/01/37(c)

      15,053     15,973,816
        
       124,386,920
        

Agency Fixed Rate 30-Year – 2.4%

     

Federal Gold Loan Mortgage Corp.
Series 2007
6.00%, 7/01/37-9/01/37

      15,135     15,465,961

7.00%, 2/01/37

      15,351     16,142,907
        
       31,608,868
        

Agency Fixed Rate 15-Year – 0.9%

     

Federal National Mortgage Association
Series 1996
6.00%, 12/01/09

      1     507

Series 1998
6.00%, 10/01/13-12/01/13

      55     57,479

Series 2001
6.00%, 11/01/16

      205     212,647

Series 2002
6.00%, 12/01/17

      105     108,450

Series 2005
6.00%, 6/01/17-6/01/20

      548     565,139

Series 2006
6.00%, 5/01/21-1/01/22

      8,745     9,050,670

Series 2007
6.00%, 2/01/22

      1,844     1,905,598
        
       11,900,490
        

Total Mortgage Pass-Thru’s
(cost $163,077,264)

        167,896,278
        

 

262   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

COMMERCIAL MORTGAGE-BACKED SECURITIES – 9.7%

     

Non-Agency Fixed Rate CMBS – 7.2%

     

Banc of America Commercial Mortgage, Inc.
Series 2007-5, Class A4
5.492%, 2/10/51

    $ 4,100   $ 3,854,809

Bear Stearns Commercial Mortgage
Securities, Inc.
Series 2002-TOP6, Class A2
6.46%, 10/15/36

      10,615     10,864,556

Series 2007-PW18, Class A4
5.70%, 6/11/50

      3,100     2,939,575

Credit Suisse Mortgage Capital Certificates
Series 2006-C5, Class A3
5.311%, 12/15/39

      3,500     3,296,024

First Union-Lehman Brothers-Bank of America
Series 1998-C2, Class A2
6.56%, 11/18/35

      179     178,305

GE Capital Commercial Mortgage Corp.
Series 2005-C3, Class A3FX
4.863%, 7/10/45

      5,665     5,557,351

Greenwich Capital Commercial Funding Corp.
Series 2005-GG3, Class A2
4.305%, 8/10/42

      8,500     8,314,321

JPMorgan Chase Commercial Mortgage
Securities Corp.
Series 2005-LDP5, Class A2
5.198%, 12/15/44

      5,847     5,739,413

Series 2006-CB17, Class A4
5.429%, 12/12/43

      3,300     3,122,036

Series 2007-LD11, Class C
5.819%, 6/15/49

      7,760     5,655,152

LB Commercial Conduit Mortgage Trust
Series 2007-C3, Class C
5.936%, 7/15/44

      10,000     7,407,822

LB-UBS Commercial Mortgage Trust
Series 2002-C1, Class A4
6.462%, 3/15/31

      5,900     6,046,608

Series 2003-C5, Class A3
4.254%, 7/15/27

      7,435     7,287,020

Series 2004-C7, Class A2
3.992%, 10/15/29

      15,840     15,635,214

Series 2007-C7, Class A3
5.866%, 9/15/45

      3,800     3,670,723

Nomura Asset Securities Corp.
Series 1998-D6, Class A1B
6.59%, 3/15/30

      277     276,833

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   263

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Wachovia Bank Commercial Mortgage Trust
Series 2007-C32, Class C
5.741%, 6/15/49

    $ 7,500   $ 5,439,358
        
       95,285,120
        

Non-Agency Floating Rate CMBS – 2.5%

     

Banc of America Large Loan, Inc.
Series 2005-MIB1, Class C
3.431%, 3/15/22(c)(d)

      2,500     2,375,000

Commercial Mortgage Pass-Through Certificates
Series 2005-F10A, Class A1
3.221%, 4/15/17(c)(d)

      420     419,598

Series 2005-FL11, Class D
3.461%, 11/15/17(c)(d)

      1,808     1,699,056

Series 2007-FL14, Class C
3.435%, 6/15/22(c)(d)

      7,300     6,837,649

Credit Suisse Mortgage Capital Certificates
Series 2006-TF2A, Class SVD
3.591%, 10/15/21(c)(d)

      4,900     4,820,426

Series 2007-TFLA, Class A2
3.241%, 2/15/22(c)(d)

      8,000     7,439,834

Lehman Brothers Floating Rate Commercial Mortgage Trust
Series 2004-LLFA, Class C
3.431%, 10/15/17(c)(d)

      2,400     2,396,084

Morgan Stanley Capital I
Series 2005-XLF, Class G
3.492%, 8/15/19(c)(d)

      2,000     1,900,000

Series 2005-XLF, Class H
3.512%, 8/15/19(c)(d)

      1,000     945,000

Wachovia Bank Commercial Mortgage Trust
Series 2006-WL7A, Class H
3.521%, 9/15/21(c)(d)

      2,600     2,333,333

Series 2007-WHL8, Class E
3.521%, 6/15/20(c)(d)

      2,725     2,402,449
        
       33,568,429
        

Total Commercial Mortgage-Backed Securities
(cost $138,381,356)

        128,853,549
        
    

ASSET-BACKED SECURITIES – 9.6%

     

Home Equity Loans - Floating Rate – 5.1%

     

ACE Securities Corp.
Series 2003-OP1, Class A2
3.495%, 12/25/33(c)

      18     13,032

BNC Mortgage Loan Trust
Series 2007-2, Class M5
4.035%, 5/25/37(c)

      1,200     123,600

 

264   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Countrywide Asset-Backed Certificates
Series 2007-10, Class 2A2
3.255%, 6/25/30(c)

    $ 2,500   $ 2,254,298

First Franklin Mortgage Loan Trust
Series 2004-FF4, Class A2
3.425%, 6/25/34(c)

      83     65,104

Home Equity Mortgage Trust
Series 2005-3, Class M1
3.675%, 11/25/35(c)

      644     579,388

Series 2006-1, Class A2
5.30%, 5/25/36(e)

      4,010     1,406,410

Household Home Equity Loan Trust
Series 2006-1, Class M1
3.394%, 1/20/36(c)

      1,899     1,653,982

Series 2007-2, Class A2V
3.274%, 7/20/36(c)

      2,800     2,621,500

HSI Asset Securitization Corp.
Series 2006-OPT1, Class 2A1
3.215%, 12/25/35(c)

      541     540,120

Indymac Residential Asset Backed Trust
Series 2007-B, Class 2A2
3.295%, 7/25/37(c)

      3,350     3,034,892

Lehman ABS Mortgage Loan Trust
Series 2007-1, Class 2A2
3.335%, 6/25/37(c)(d)

      3,700     3,343,875

Lehman XS Trust
Series 2005-2, Class 1M1
3.635%, 8/25/35(c)(f)

      5,000     3,350,000

Series 2006-1, Class 1M1
3.585%, 2/25/36(c)(f)

      4,000     2,200,000

Master Asset Backed Securities Trust
Series 2006-WMC1, Class A2
3.245%, 2/25/36(c)

      2,000     1,954,811

Merrill Lynch First Franklin Mortgage Loan Trust
Series 2007-1, Class A2A
3.255%, 4/25/37(c)

      5,769     5,671,943

Series 2007-3, Class A2B
3.265%, 6/25/37(c)

      4,060     3,660,346

Series 2007-5, Class 2A1
3.835%, 10/25/37(c)

      4,982     4,938,743

Nationstar Home Equity Loan Trust
Series 2007-C, Class 2AV2
3.265%, 6/25/37(c)

      3,100     2,811,796

Newcastle Mortgage Securities Trust
Series 2006-1, Class A2
3.255%, 3/25/36(c)

      5,800     5,742,000

Series 2007-1, Class 2A1
3.265%, 4/25/37(c)

      3,698     3,574,206

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   265

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Novastar Home Loan Equity
Series 2007-2, Class A2B
3.295%, 9/25/37(c)

    $ 3,125   $ 2,736,937

Series 2007-2, Class M1
3.435%, 9/25/37(c)

      4,935     1,665,316

Option One Mortgage Loan Trust
Series 2006-2, Class 2A2
3.235%, 7/25/36(c)

      4,215     4,110,944

Soundview Home Equity Loan Trust
Series 2007-OPT2, Class 2A2
3.265%, 7/25/37(c)

      4,185     4,077,759

Specialty Underwriting & Residential Finance
Series 2005-AB2, Class M1
3.585%, 6/25/36(c)

      2,000     1,540,387

Wells Fargo Home Equity Trust
Series 2006-1, Class A2
3.225%, 5/25/36(c)

      4,283     4,235,168
        
       67,906,557
        

Home Equity Loans - Fixed Rate – 2.9%

     

American General Mortgage Loan Trust
Series 2003-1, Class A3
4.03%, 4/25/33

      2,901     2,646,610

Citifinancial Mortgage Securities, Inc.
Series 2004-1, Class AF2
2.645%, 4/25/34

      388     375,684

Citigroup Mortgage Loan Trust, Inc.
Series 2005-WF2, Class AF3
4.871%, 8/25/35

      4,484     4,460,533

Countrywide Asset-Backed Certificates
Series 2007-S1, Class A3
5.81%, 11/25/36

      3,500     2,521,495

Credit-Based Asset Servicing & Securities, Inc.
Series 2003-CB1, Class AF
3.45%, 1/25/33(e)

      1,621     1,419,201

Credit-Based Asset Servicing and
Securities Trust
Series 2003-CB3, Class AF1
2.879%, 12/25/32

      2,180     1,524,918

Series 2005-CB4, Class AF2
4.751%, 8/25/35

      1,859     1,672,390

Series 2005-RP2, Class AF2
5.75%, 9/25/35(d)

      1,800     1,751,625

Series 2007-CB4, Class A2A
5.844%, 4/25/37

      2,500     2,490,551

Flagstar Home Equity Loan Trust
Series 2007-1A, Class AF2
5.765%, 1/25/35(d)

      5,500     5,336,717

 

266   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Home Equity Mortgage Trust
Series 2005-4, Class A3
4.742%, 1/25/36

    $ 1,076   $ 1,022,250

Series 2006-5, Class A1
5.50%, 1/25/37

      2,925     1,317,752

Household Home Equity Loan Trust
Series 2007-1, Class A2F
5.60%, 3/20/36

      7,610     7,128,101

Nationstar NIM Trust
Series 2007-A, Class A
9.97%, 3/25/37(d)

      147     109,965

Security National Mortgage Loan Trust
Series 2007-1A, Class 1A1
5.91%, 4/25/37(d)

      2,144     2,149,536

Structured Asset Securities Corp.
Series 2007-RM1, Class AI0
5.00%, 5/25/47(d)(g)

      11,483     2,196,038
        
       38,123,366
        

Autos - Floating Rate – 0.8%

     

Capital Auto Receivables Asset Trust FRN
Series 2007-SN2, Class A2
3.901%, 1/15/10(c)(d)

      7,000     6,978,125

GE Dealer Floorplan Master Note Trust
Series 2006-2, Class A
3.184%, 4/20/13(c)

      4,360     4,257,816
        
       11,235,941
        

Other ABS - Floating Rate – 0.4%

     

Mortgage Equity Conversion Asset Trust
Series 2007-FF2, Class A
3.81%, 2/25/42(c)(d)

      3,600     3,366,000

Neapolitan Segregated Portfolio
Series 2007-1A, Class I
4.122%, 3/30/46(c)(d)(f)

      1,100     77,000

Petra CRE CDO Ltd.
Series 2007-1A, Class C
4.235%, 2/25/47(c)(d)

      1,865     1,433,428

SLM Student Loan Trust
Series 2005-10, Class A2
3.341%, 4/27/15(c)

      163     162,411
        
       5,038,839
        

Credit Cards - Floating Rate – 0.3%

     

Chase Issuance Trust
Series 2006-A1, Class A
3.161%, 4/15/13(c)

      4,000     3,909,376
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   267

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Other ABS - Fixed Rate – 0.1%

     

DB Master Finance, LLC
Series 2006-1, Class A2
5.779%, 6/20/31(d)

    $ 1,600   $ 1,392,000
        

Total Asset-Backed Securities
(cost $148,405,177)

        127,606,079
        
    

CMOS – 5.7%

     

Non-Agency Floating Rate – 2.4%

     

Adjustable Rate Mortgage Trust
Series 2005-11, Class 5M1
3.605%, 2/25/36(c)(f)

      4,155     1,454,250

American Home Mortgage Investment Trust
Series 2005-2, Class 2A1
4.705%, 9/25/45(c)

      127     113,421

Countrywide Alternative Loan Trust
Series 2005-62, Class 2A1
5.522%, 12/25/35(c)

      1,394     1,319,110

Series 2006-OA14, Class 3A1
5.372%, 11/25/46(c)

      2,223     1,967,203

Countrywide Home Loan Mortgage Pass
Through Trust
Series 2004-25, Class 1A6
3.615%, 2/25/35(c)

      167     144,071

Deutsche ALT-A Securities, Inc. Alternate
Loan Trust
Series 2007-OA4, Class 1A1A
3.325%, 8/25/47(c)

      2,940     2,306,611

Deutsche ALT-A Securities, Inc. Mortgage
Loan
Series 2005-AR1, Class 1A1
3.445%, 8/25/35(c)

      146     117,485

Homebanc Mortgage Trust
Series 2005-4, Class A2
3.465%, 10/25/35(c)

      4,409     3,155,539

Lehman XS Trust
Series 2007-2N, Class M1
3.475%, 2/25/37(c)(f)

      3,600     1,427,250

MLCC Mortgage Investors, Inc. FRN
Series 2004-A, Class A1
3.365%, 4/25/29(c)

      127     115,582

MortgageIT Trust
Series 2005-4, Class M1
3.585%, 10/25/35(c)

      1,729     1,062,278

Sequoia Mortgage Trust
Series 2007-3, Class 1A1
3.314%, 7/20/36(c)

      3,998     3,424,258

 

268   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Structured Adjustable Rate Mortgage Loan
Trust
Series 2005-5, Class A3
3.365%, 5/25/35(c)

    $ 216   $ 166,348

Series 2005-9, Class 2A1
5.726%, 5/25/35(c)

      1,222     1,083,642

Structured Asset Mortgage Investment, Inc.
Series 2004-AR5, Class 1A1
3.449%, 10/19/34(c)

      793     675,473

Washington Mutual Mortgage Pass Through
Series 2006-AR11, Class 1A
5.482%, 9/25/46(c)

      3,750     3,220,354

Series 2006-AR11, Class 3A1A
5.442%, 9/25/46(c)

      1,406     1,163,666

Series 2006-AR4, Class 1A1B
5.462%, 5/25/46(c)

      1,615     1,382,583

Series 2006-AR9, Class 1AB2
3.355%, 8/25/46(c)

      4,575     4,359,853

Series 2007-OA1, Class A1A
5.222%, 2/25/47(c)

      3,497     2,887,075
        
       31,546,052
        

Non-Agency ARMS – 1.9%

     

Adjustable Rate Mortgage Trust
Series 2005-4, Class 3A1
4.963%, 8/25/35(b)

      4,133     4,049,189

Bear Stearns Alt-A Trust
Series 2006-1, Class 22A1
5.40%, 2/25/36(b)

      3,643     2,928,631

Series 2007-1, Class 21A1
5.731%, 1/25/47(b)

      7,352     6,118,582

Citigroup Mortgage Loan Trust, Inc.
Series 2005-2, Class 1A4
5.11%, 5/25/35(b)

      3,021     2,968,393

Indymac Index Mortgage Loan Trust
Series 2006-AR7, Class 4A1
6.223%, 5/25/36(b)

      1,628     1,482,567

JPMorgan Alternative Loan Trust
Series 2006-A4, Class A1
5.95%, 9/25/36(b)

      5,522     5,480,129

Residential Funding Mortgage Securities, Inc.
Series 2005-SA3, Class 3A
5.235%, 8/25/35(b)

      2,611     2,563,761
        
       25,591,252
        

Non-Agency Fixed Rate – 0.9%

     

Deutsche ALT-A Securities, Inc. Alternate
Loan Trust
Series 2006-AB2, Class A7
5.961%, 6/25/36

      1,684     1,683,633

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   269

 

Short Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Deutsche Mortgage Securities, Inc.
Series 2005-WF1, Class 1A1
5.077%, 6/26/35(d)

    $ 2,694   $ 2,663,457

Merrill Lynch Mortgage Investors, Inc.
Series 2005-A8, Class A1C1
5.25%, 8/25/36

      1,636     1,614,573

Nomura Asset Acceptance Corp.
Series 2006-WF1, Class A2
5.755%, 6/25/36

      6,125     6,275,282
        
       12,236,945
        

Agency Floating Rate – 0.5%

     

Federal National Mortgage Association
Series 2003-52, Class FV
4.135%, 5/25/31(c)

      3,854     3,897,717

Series 2003-W13, Class AV2
3.415%, 10/25/33(c)

      471     470,807

Freddie Mac Reference REMIC
Series 2006-R008, Class FK
3.521%, 7/15/23(c)

      1,921     1,886,079
        
       6,254,603
        

Total CMOs
(cost $88,333,859)

        75,628,852
        

INFLATION-LINKED SECURITIES – 2.5%

     

U.S. Treasury Notes
3.875%, 1/15/09 (TIPS)
(cost $31,754,192)

      31,491     32,797,552
        

AGENCIES – 1.4%

     

Agency Debentures – 1.4%

     

Federal Home Loan Bank
5.125%, 6/13/08
(cost $18,504,652)

      18,520     18,638,620
        
    

SHORT-TERM INVESTMENTS – 11.1%

     

Time Deposit – 11.1%

     

State Street Euro Dollar
2.35%, 3/03/08
(cost $147,326,782)

      147,327     147,326,782
        

Total Investments – 97.1%
(cost $1,315,395,515)

       1,290,854,847

Other assets less liabilities – 2.9%

        38,785,916
        

Net Assets – 100.0%

      $ 1,329,640,763
        

 

270   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Short Duration Bond Portfolio—Portfolio of Investments

 

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type   Number of
Contracts		   Expiration
Month		   Original
Value		   Value at
February 29,
2008		   Unrealized
Appreciation/
(Depreciation)		  

Purchased Contracts

        

U.S. T-Note 2 Yr Futures

   982   June 2008   $     110,692,660   $     112,193,500   $ 1,500,840  

U.S. T-Note 5 Yr Futures

   1,530   June 2008     326,707,250     328,830,470     2,123,221  

Sold Contracts

        

U.S. T-Note 10 Yr Futures

   903   June 2008     103,245,084     105,904,969         (2,659,884 )
               
          $ 964,177  
               

 

(a) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. The market value of this security amounted to $770,801.

 

(b) Variable rate coupon, rate shown as of February 29, 2008.

 

(c) Floating Rate Security. Stated interest rate was in effect at February 29, 2008.

 

(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 February 29, 2008, the aggregate market value of these securities amounted to $64,366,195 or 4.8% of net assets.

 

(e) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at February 29, 2008.

 

(f) Illiquid security, valued at fair value. (See note A)

 

(g) IO – Interest Only

 

  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 February 29, 2008, the Portfolio’s total exposure to subprime investments was 7.66%. These investments are valued in accordance with the Portfolio’s Valuation Policies.

 

Glossary:

 

TIPS – Treasury Inflation Protected Security

 

  See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   271

 

Short Duration Bond Portfolio—Portfolio of Investments

 

INTERMEDIATE DURATION BOND PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

CORPORATES - INVESTMENT
GRADES – 28.7%

     

Financial Institutions – 14.1%

     

Banking – 5.6%

     

Bank of America Corp.
3.375%, 2/17/09(a)

    $ 1,970   $ 1,972,059

Bank of Tokyo-Mitsubishi UFJ L
7.40%, 6/15/11(a)

      170     186,273

BankAmerica Capital II
Series 2
8.00%, 12/15/26(a)

      1,950     2,024,576

Barclays Bank PLC
8.55%, 6/15/11(a)(b)(c)

      961     1,031,793

Citicorp
Series MTNF
6.375%, 11/15/08(a)

      761     776,393

Citigroup, Inc.
3.625%, 2/09/09(a)

      4,345     4,347,012

4.625%, 8/03/10(a)

      2,357     2,411,944

5.286%, 6/09/09(a)(d)

      421     418,474

Compass Bank
5.50%, 4/01/20(a)

      4,989     4,824,308

Credit Suisse First Boston USA, Inc.
5.50%, 8/15/13(a)

      1,812     1,899,748

Deutsche Bank Ag London
5.00%, 10/12/10(a)

      4,225     4,431,307

Huntington National Bank
4.375%, 1/15/10(a)

      517     511,779

JPMorgan Chase & Co.
6.75%, 2/01/11(a)

      4,225     4,537,806

JPMorgan Chase Capital XXV
Series Y
6.80%, 10/01/37(a)

      733     686,166

KeyBank NA
7.00%, 2/01/11(a)

      3,140     3,347,874

Marshall & Ilsley Bank
5.00%, 1/17/17(a)

      3,700     3,478,751

Marshall & Ilsley Corp.
4.375%, 8/01/09(a)

      3,377     3,404,867

5.626%, 8/17/09(a)

      2,022     2,078,177

MBNA Corp.
4.625%, 9/15/08(a)

      1,362     1,370,470

Morgan J P & Co., Inc.
6.25%, 1/15/09(a)

      3,759     3,835,323

MUFG Capital Finance 1 Ltd.
6.346%, 7/29/49(a)(b)

      770     674,781

National City Bank of Pennsylvania
6.25%, 3/15/11(a)

      4,245     4,316,227

 

272   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

National City Bank/Cleveland OH
6.20%, 12/15/11(a)

    $ 4,225   $ 4,497,382

RBS Capital Trust III
5.512%, 9/30/14(a)(b)

      562     514,926

Regions Financial Corp
6.375%, 5/15/12(a)

      4,250     4,453,358

Resona Bank Ltd.
5.85%, 4/15/16(a)(b)(c)

      330     286,809

Resona Preferred Global Securities
7.191%, 7/30/15(a)(b)(c)

      619     576,388

SouthTrust Corp.
5.80%, 6/15/14(a)

      3,315     3,448,038

Standard Chartered PLC
6.409%, 1/30/17(a)(b)(c)

      4,800     4,241,592

Suntrust Bank
Series CD
5.244%, 6/02/09(a)(d)

      591     577,525

UBS Preferred Funding Trust I
8.622%, 10/01/10(a)(b)

      2,319     2,553,173

UFJ Finance Aruba AEC
6.75%, 7/15/13(a)

      1,913     2,121,414

Union Bank of California
5.95%, 5/11/16(a)

      1,005     983,921

Union Planters Corp.
7.75%, 3/01/11(a)

      2,817     3,075,274

Royal Bank of Scotland Group PLC
6.40%, 4/01/09(a)

      2,824     2,898,957

US Bancorp
5.30%, 4/28/09(a)

      4,260     4,348,340

Wachovia Corp.
5.35%, 3/15/11(a)

      2,205     2,290,133

5.625%, 12/15/08(a)

      1,324     1,339,267

Washington Mutual, Inc.
4.00%, 1/15/09(a)

     2,185     2,118,462

4.20%, 1/15/10(a)

      341     321,939

Wells Fargo & Co.
4.20%, 1/15/10(a)

      1,808     1,839,027

Zions Bancorporation
5.50%, 11/16/15(a)

      1,420     1,329,509
        
       96,381,542
        

Brokerage – 2.2%

     

Bear Stearns Co., Inc.
5.55%, 1/22/17(a)

      4,125     3,584,266

7.625%, 12/07/09(a)

      4,078     4,248,273

The Goldman Sachs Group, Inc.
3.875%, 1/15/09(a)

      3,321     3,326,629

4.75%, 7/15/13(a)

      1,876     1,894,929

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   273

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

5.125%, 1/15/15(a)

    $ 1,590   $ 1,585,734

7.35%, 10/01/09(a)

      899     955,146

Lehman Brothers Holdings, Inc.
5.75%, 1/03/17(a)

      1,564     1,469,983

6.50%, 7/19/17(a)

      1,315     1,299,885

7.875%, 11/01/09(a)

      1,780     1,863,151

Series MTNG
4.80%, 3/13/14(a)

      1,065     1,025,462

Merrill Lynch & Co., Inc.
6.00%, 2/17/09(a)

      4,146     4,206,374

6.05%, 5/16/16(a)

      1,607     1,589,484

Series MTNC
4.125%, 1/15/09-9/10/09(a)

      2,833     2,826,556

Morgan Stanley
5.05%, 1/21/11(a)

      4,375     4,478,075

6.75%, 4/15/11(a)

      4,135     4,424,450
        
       38,778,397
        

Finance – 3.1%

     

American Express Centurion
4.375%, 7/30/09(a)

      2,567     2,588,560

American Express Co.
4.75%, 6/17/09(a)

      1,922     1,929,646

American General Finance Corp.
4.625%, 5/15/09(a)

      2,620     2,619,798

Series MTNG
5.375%, 9/01/09(a)

      1,705     1,743,664

Capital One Bank
4.25%, 12/01/08(a)

      1,515     1,502,789

5.00%, 6/15/09(a)

      4,275     4,247,969

Capital One Financial Corp.
4.80%, 2/21/12(a)

      665     632,396

5.50%, 6/01/15(a)

      484     446,522

6.75%, 9/15/17(a)

      383     385,099

CIT Group, Inc.
3.375%, 4/01/09(a)

      3,725     3,619,493

5.125%, 9/30/14(a)

      1,815     1,538,681

5.85%, 9/15/16(a)

      3,790     3,234,663

Countrywide Financial Corp.
6.25%, 5/15/16(a)

      1,806     1,552,681

Series MTN
5.80%, 6/07/12(a)

      1,272     1,143,289

Countrywide Home Loans, Inc.
Series MTNL
4.00%, 3/22/11(a)

      1,151     1,011,702

General Electric Capital Corp.
4.00%, 2/17/09(a)

      880     888,448

4.375%, 11/21/11(a)

      1,213     1,245,438

6.75%, 3/15/32(a)

      3,134     3,360,112

 

274   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Household Finance Corp.
4.125%, 12/15/08(a)

    $ 1,555   $ 1,559,544

HSBC Finance Corp.
6.50%, 11/15/08(a)

      4,771     4,858,987

7.00%, 5/15/12(a)

      2,095     2,267,069

International Lease Finance Corp.
6.375%, 3/15/09(a)

      4,190     4,297,855

iStar Financial, Inc.
5.15%, 3/01/12(a)

      1,544     1,289,581

5.65%, 9/15/11(a)

      2,350     2,014,733

SLM Corp.
5.375%, 5/15/14(a)

      3,490     2,983,133
        
       52,961,852
        

Insurance – 1.9%

     

Allied World Assurance Co. Holdings Ltd.
7.50%, 8/01/16(a)

      1,820     1,897,394

Allstate Life Global Funding Trust
Series 04-1
4.50%, 5/29/09(a)

      1,884     1,910,463

Assurant, Inc.
5.625%, 2/15/14(a)

      1,028     999,450

Berkshire Hathaway Finance Corp.
4.20%, 12/15/10(a)

      1,656     1,708,980

GE Global Ins
7.00%, 2/15/26(a)

      3,065     3,222,820

Genworth Financial, Inc.
4.75%, 6/15/09(a)

      1,651     1,665,557

5.231%, 5/16/09(a)

      1,462     1,483,696

Humana, Inc.
6.30%, 8/01/18(a)

      1,094     1,120,754

Liberty Mutual Group, Inc.
5.75%, 3/15/14(a)(c)

      993     1,019,307

Prudential Financial, Inc.
5.15%, 1/15/13(a)

      2,545     2,597,452

UnitedHealth Group, Inc.
4.125%, 8/15/09(a)

      1,589     1,598,062

5.25%, 3/15/11(a)

      4,300     4,422,292

WellPoint, Inc.
4.25%, 12/15/09(a)

      4,327     4,370,144

XL Capital Ltd.
5.25%, 9/15/14(a)

      4,520     4,135,936
        
       32,152,307
        

REITS – 1.3%

     

ERP Operating LP
5.25%, 9/15/14(a)

      4,570     4,275,578

HCP, Inc.
6.00%, 1/30/17(a)

      4,630     4,003,510

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   275

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Health Care REIT, Inc.
6.20%, 6/01/16(a)

    $ 3,980   $ 3,577,483

Healthcare Realty Trust, Inc.
5.125%, 4/01/14(a)

      2,373     2,176,774

Mack-Cali Realty LP
7.25%, 3/15/09(a)

      665     686,429

Simon Property Group LP
5.00%, 3/01/12(a)

      4,335     4,252,210

5.625%, 8/15/14(a)

      3,236     3,251,834
        
       22,223,818
        
       242,497,916
        

Industrial – 12.7%

     

Basic – 1.0%

     

BHP Billiton Finance USA Ltd.
7.25%, 3/01/16(a)

      3,132     3,444,235

Celulosa Arauco Y Constitucion
8.625%, 8/15/10(a)

      999     1,113,170

The Dow Chemical Co.
7.375%, 11/01/29(a)

      220     239,742

International Paper Co.
4.25%, 1/15/09(a)

      1,772     1,776,926

5.30%, 4/01/15(a)

      2,625     2,574,624

Lubrizol Corp.
4.625%, 10/01/09(a)

      805     819,511

Packaging Corp. of America
5.75%, 8/01/13(a)

      1,099     1,130,260

United States Steel Corp.
5.65%, 6/01/13(a)

      3,901     3,801,427

7.00%, 2/01/18(a)

      1,260     1,248,036

Westvaco Corp.
8.20%, 1/15/30(a)

      670     683,015

Weyerhaeuser Co.
5.95%, 11/01/08(a)

      1,083     1,099,953
        
       17,930,899
        

Capital Goods – 1.2%

     

Boeing Capital Corp.
4.75%, 8/25/08(a)

      1,615     1,631,576

6.50%, 2/15/12(a)

      205     225,577

Caterpillar Financial Services
4.50%, 6/15/09(a)

      2,246     2,281,354

Hutchison Whampoa International Ltd.
7.45%, 11/24/33(a)(c)

      1,449     1,513,431

Illinois Tool Works, Inc.
5.75%, 3/01/09(a)

      1,727     1,771,137

Lafarge SA
6.15%, 7/15/11(a)

      2,204     2,309,675

 

276   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Masco Corp.
4.80%, 6/15/15(a)

    $ 4,795   $ 4,268,619

Textron Financial Corp.
4.125%, 3/03/08(a)

      2,610     2,610,000

Textron, Inc.
6.375%, 11/15/08(a)

      875     894,015

Tyco International Group SA
6.00%, 11/15/13(a)

      1,250     1,313,391

Waste Management, Inc.
6.875%, 5/15/09(a)

      1,435     1,487,843
        
       20,306,618
        

Communications - Media – 1.2%

     

British Sky Broadcasting Group PLC
6.875%, 2/23/09(a)

      489     505,533

BSKYB Finance UK PLC
5.625%, 10/15/15(a)(c)

      2,325     2,324,130

Comcast Cable Communications Holdings, Inc.
8.375%, 3/15/13(a)

      940     1,055,446

9.455%, 11/15/22(a)

      1,731     2,146,130

Comcast Cable Communications LLC
6.875%, 6/15/09(a)

      1,463     1,515,861

Comcast Cable Communications, Inc.
6.20%, 11/15/08(a)

      859     871,216

Comcast Corp.
5.30%, 1/15/14(a)

      2,253     2,227,194

5.50%, 3/15/11(a)

      2,767     2,837,224

News America, Inc.
6.55%, 3/15/33(a)

      1,383     1,379,653

RR Donnelley & Sons Co.
4.95%, 4/01/14(a)

      710     683,838

Time Warner Entertainment Co.
8.375%, 3/15/23(a)

      3,190     3,609,345

WPP Finance Corp.
5.875%, 6/15/14(a)

      886     981,790
        
       20,137,360
        

Communications - Telecommunications – 3.3%

     

AT&T Corp.
8.00%, 11/15/31(a)

      295     351,680

AT&T, Inc.
4.125%, 9/15/09(a)

      2,135     2,162,894

British Telecommunications PLC
8.625%, 12/15/10(a)

      4,581     5,152,759

Embarq Corp.
6.738%, 6/01/13(a)

      210     216,265

7.082%, 6/01/16(a)

      5,970     5,944,126

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   277

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

New Cingular Wireless Services, Inc.
7.875%, 3/01/11(a)

    $ 3,940   $ 4,351,813

8.75%, 3/01/31(a)

      1,429     1,785,686

Pacific Bell Telephone Co.
6.625%, 10/15/34(a)

      3,900     3,891,248

Qwest Corp.
7.875%, 9/01/11(a)

      3,735     3,800,362

8.875%, 3/15/12(a)

      2,780     2,901,625

Sprint Capital Corp.
7.625%, 1/30/11(a)

      2,660     2,360,750

8.375%, 3/15/12(a)

      3,219     2,832,720

8.75%, 3/15/32(a)

      1,451     1,131,780

Telecom Italia Capital SA
4.00%, 11/15/08-1/15/10(a)

      3,815     3,798,896

6.375%, 11/15/33(a)

      375     359,621

Telefonos de Mexico SAB de CV
4.50%, 11/19/08(a)

      3,828     3,844,078

Verizon Communications, Inc.
4.90%, 9/15/15(a)

      1,590     1,567,393

Verizon New Jersey, Inc.
Series A
5.875%, 1/17/12(a)

      2,200     2,290,917

Vodafone Group PLC
5.50%, 6/15/11(a)

      3,015     3,111,088

7.75%, 2/15/10(a)

      4,075     4,374,537
        
       56,230,238
        

Consumer Cyclical - Automotive – 0.2%

     

Daimler Finance North America
4.875%, 6/15/10(a)

      698     713,000

7.75%, 1/18/11(a)

      2,465     2,683,256
        
       3,396,256
        

Consumer Cyclical - Other – 0.9%

     

MDC Holdings, Inc.
5.50%, 5/15/13(a)

      4,540     4,413,171

Starwood Hotels & Resorts Worldwide, Inc.
7.375%, 11/15/15(a)

      2,676     2,745,704

7.875%, 5/01/12(a)

      2,826     3,002,882

Toll Brothers Finance Corp.
5.15%, 5/15/15(a)

      405     370,644

6.875%, 11/15/12(a)

      1,055     1,058,410

Wyndham Worldwide Corp.
6.00%, 12/01/16(a)

      4,535     4,233,241
        
       15,824,052
        

Consumer Non-Cyclical – 2.4%

     

Abbott Laboratories
3.50%, 2/17/09(a)

      2,124     2,131,377

 

278   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Altria Group, Inc.
7.75%, 1/15/27(a)

    $ 2,120   $ 2,642,241

Bunge Ltd Finance Corp.
5.10%, 7/15/15(a)

      1,711     1,671,271

5.875%, 5/15/13(a)

      2,720     2,829,020

Cadbury Schweppes US Finance LLC
5.125%, 10/01/13(a)(c)

      3,480     3,523,928

ConAgra Foods, Inc.
7.875%, 9/15/10(a)

      641     702,105

Fisher Scientific International, Inc.
6.125%, 7/01/15(a)

      3,241     3,270,396

6.75%, 8/15/14(a)

      1,166     1,189,716

Kraft Foods, Inc.
4.125%, 11/12/09(a)

      3,245     3,272,144

The Kroger Co.
6.80%, 12/15/18(a)

      1,100     1,194,467

Baxter FinCo BV
4.75%, 10/15/10(a)

      3,753     3,912,716

Reynolds American, Inc.
7.25%, 6/01/13(a)

      3,730     3,968,463

7.625%, 6/01/16(a)

      3,655     3,870,586

Safeway, Inc.
4.125%, 11/01/08(a)

      683     684,769

6.50%, 3/01/11(a)

      453     483,278

Tyson Foods, Inc.
6.85%, 4/01/16(a)

      3,785     3,720,515

Wyeth
5.50%, 2/01/14(a)

      2,212     2,311,454
        
       41,378,446
        

Energy – 1.1%

     

Amerada Hess Corp.
7.875%, 10/01/29(a)

      2,273     2,698,040

Canadian Natural Resources Ltd.
5.15%, 2/01/13(a)

      1,220     1,257,648

ConocoPhillips
6.375%, 3/30/09(a)

      1,854     1,909,985

Gaz Capital for Gazprom
6.212%, 11/22/16(a)(c)

      7,890     7,442,637

Statoilhydro Asa
6.36%, 1/15/09(a)

      1,248     1,280,730

The Premcor Refining Group, Inc.
7.50%, 6/15/15(a)

      2,115     2,220,238

Valero Energy Corp.
6.875%, 4/15/12(a)

      2,588     2,789,530
        
       19,598,808
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   279

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

Technology – 1.2%

     

Computer Sciences Corp.
5.50%, 3/15/13(a)(c)

    $ 2,290   $ 2,320,949

Electronic Data Systems Corp.
7.45%, 10/15/29(a)

      1,555     1,481,288

Series B
6.50%, 8/01/13(a)

      3,745     3,830,188

International Business Machines Corp.
4.375%, 6/01/09(a)

      455     465,288

5.375%, 2/01/09(a)

      1,891     1,928,795

Motorola, Inc.
6.50%, 9/01/25(a)

      1,800     1,546,420

7.50%, 5/15/25(a)

      290     256,592

7.625%, 11/15/10(a)

      146     154,505

Xerox Capital Trust I
8.00%, 2/01/27(a)

      4,410     4,482,381

Xerox Corp.
7.625%, 6/15/13(a)

      720     748,043

9.75%, 1/15/09(a)

      2,738     2,862,763
        
       20,077,212
        

Transportation - Airlines – 0.1%

     

United Air Lines, Inc.
6.636%, 7/02/22(a)

      1,800     1,696,227
        

Transportation - Railroads – 0.1%

     

Norfolk Southern Corp.
6.20%, 4/15/09(a)

      1,770     1,824,352
        
       218,400,468
        

Utility – 1.7%

     

Electric – 1.4%

     

Carolina Power & Light Co.
6.50%, 7/15/12(a)

      3,155     3,429,179

Consumers Energy Co.
Series C
4.25%, 4/15/08(a)

      734     734,115

Enersis SA
7.375%, 1/15/14(a)

      4,090     4,452,341

Exelon Corp.
6.75%, 5/01/11(a)

      1,295     1,366,395

FirstEnergy Corp.
Series B
6.45%, 11/15/11(a)

      1,300     1,376,583

Series C
7.375%, 11/15/31(a)

      1,436     1,566,209

FPL Group Capital, Inc.
5.625%, 9/01/11(a)

      2,855     3,010,184

MidAmerican Energy Holdings Co.
5.875%, 10/01/12(a)

      1,763     1,892,811

 

280   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Nisource Finance Corp.
7.875%, 11/15/10(a)

    $ 1,656   $ 1,806,762

Pacific Gas & Electric Co.
4.80%, 3/01/14(a)

      1,700     1,719,387

Progress Energy, Inc.
7.10%, 3/01/11(a)

      574     622,446

Public Service Company of Colorado
Series 10
7.875%, 10/01/12(a)

      874     1,020,478

SPI Electricity & Gas Australia Holdings Pty Ltd.
6.15%, 11/15/13(a)(c)

      1,447     1,536,399
        
       24,533,289
        

Natural Gas – 0.3%

     

Duke Energy Field Services Corp.
7.875%, 8/16/10(a)

      506     546,465

Enterprise Products Operating LP
Series B
5.60%, 10/15/14(a)

      1,278     1,300,392

Williams Cos, Inc.
7.125%, 9/01/11(a)

      2,285     2,416,387
        
       4,263,244
        
       28,796,533
        

Non Corporate Sectors – 0.2%

     

Agencies - Government Sponsored – 0.2%

     

Eksportfinans A/s
5.50%, 5/25/16(a)

      4,075     4,448,718
        

Total Corporates - Investment Grades
(cost $495,378,193)

        494,143,635
        
    

MORTGAGE PASS-THRU’S – 24.6%

     

Agency Fixed Rate 30-Year – 20.7%

     

Federal Gold Loan Mortgage Corp.
Series 2005
4.50%, 9/01/35(a)

      5,950     5,680,560

Series 2005
4.50%, 8/01/35-10/01/35(a)

      12,050     11,503,677

Series 2006
4.50%, 1/01/36-5/01/36(a)

      195     186,077

7.00%, 8/01/36-10/01/36(a)

      1,557     1,637,318

Series 2007
5.50%, 7/01/35(a)

      6,229     6,293,349

7.00%, 2/01/37(a)

      14,427     15,171,616

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   281

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

Federal National Mortgage Association
Series 2003
5.00%, 11/01/33(a)

    $ 16,932   $ 16,753,348

5.50%, 4/01/33-7/01/33(a)

      23,344     23,571,720

Series 2004
5.50%, 4/01/34-11/01/34(a)

      17,874     18,031,124

Series 2005
4.50%, 8/01/35-12/01/35(a)

      27,218     26,070,459

5.50%, 2/01/35(a)

      4,301     4,342,550

6.00%, 4/01/35(a)

      14,310     14,687,571

Series 2006
5.00%, 1/01/36-2/01/36(a)

      25,783     25,453,612

6.50%, 9/01/36(a)

      42,528     44,098,847

Series 2007
4.50%, 9/01/35-8/01/37(a)

      19,574     18,761,628

5.00%, 7/01/36(a)

      6,865     6,785,691

5.50%, 11/01/36-8/01/37(a)

      54,805     55,290,578

6.50%, 11/01/37(a)

      6,054     6,276,740

Series 2008
5.50%, 3/01/37(a)

      56,715     56,793,992
        
       357,390,457
        

Agency ARMS – 3.9%

     

Federal Home Loan Mortgage Corp.
Series 2006
5.825%, 12/01/36(a)(d)

      31,811     32,896,794

Series 2007
5.989%, 2/01/37(a)(d)

      6,270     6,481,885

6.116%, 1/01/37(a)(d)

      8,604     8,907,364

Federal National Mortgage Association
Series 2006
5.463%, 5/01/36(a)(d)

      1,183     1,225,022

5.912%, 6/01/36(a)(d)

      2,978     3,087,997

5.975%, 11/01/36(a)(d)

      6,521     6,761,836

Series 2007
5.786%, 8/01/37(a)(d)

      4,953     5,256,143

6.028%, 11/01/36(a)(d)

      2,719     2,819,271
        
       67,436,312
        

Total Mortgage Pass-Thru’s
(cost $416,673,809)

        424,826,769
        
    

GOVERNMENTS - TREASURIES – 15.2%

     

Treasuries – 15.2%

     

Mexican Bonos
Series MI10
8.00%, 12/19/13(a)

    MXN  354,435     33,831,499

 

282   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

Government of Poland
Series 1110
6.00%, 11/24/10(a)

    PLN  42,900   $ 18,336,618

U.S. Treasury Bonds
4.50%, 2/15/36(a)(e)

    $ 81,875     82,917,597

U.S. Treasury Notes
3.625%, 12/31/12(a)

      86,055     90,472,031

4.25%, 11/15/17(a)

      33,689     35,612,945
        

Total Governments - Treasuries
(cost $251,834,851)

        261,170,690
        
    

COMMERCIAL MORTGAGE-BACKED SECURITIES – 10.6%

     

Non-Agency Fixed Rate CMBS – 10.5%

     

Banc of America Commercial Mortgage, Inc.
Series 2001-PB1, Class A2
5.787%, 5/11/35(a)

      839     844,737

Series 2004-4, Class A3
4.128%, 7/10/42(a)

      1,035     1,035,000

Series 2004-6, Class A2
4.161%, 12/10/42(a)

      3,865     3,776,958

Series 2006-5, Class A4
5.414%, 9/10/47(a)

      7,680     7,302,427

Bear Stearns Commercial Mortgage Securities, Inc.
Series 2005-PWR7, Class A3
5.116%, 2/11/41(a)

      2,500     2,356,487

Series 2005-T18, Class A4
4.933%, 2/13/42(a)

      4,235     3,941,749

Series 2006-PW12, Class A4
5.711%, 9/11/38(a)

      2,285     2,230,653

Series 2007-PW18, Class A4
5.70%, 6/11/50(a)

      8,425     7,989,006

Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-CK2, Class A2
3.861%, 3/15/36(a)

      175     173,069

Series 2004-C1, Class A4
4.75%, 1/15/37(a)

      1,815     1,728,453

Series 2005-C1, Class A4
5.014%, 2/15/38(a)

      1,516     1,362,905

Credit Suisse Mortgage Capital Certificates
Series 2006-C3, Class A3
5.827%, 6/15/38(a)

      2,095     2,059,123

Series 2006-C4, Class A3
5.467%, 9/15/39(a)

      6,475     6,161,321

Series 2006-C5, Class A3
5.311%, 12/15/39(a)

      4,500     4,237,745

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   283

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

 

    

Principal
Amount

(000)

   U.S. $ Value
 
    

GE Capital Commercial Mortgage Corp.
Series 2005-C3, Class A3FX
4.863%, 7/10/45(a)

    $ 3,265   $ 3,202,957

Greenwich Capital Commercial Funding Corp.
Series 2003-C1, Class A4
4.111%, 7/05/35(a)

      1,102     1,032,810

Series 2005-GG3, Class A2
4.305%, 8/10/42(a)

      1,823     1,783,177

Series 2007-GG9, Class A4
5.444%, 3/10/39(a)

      3,800     3,600,802

JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2004-C1, Class A2
4.302%, 1/15/38(a)

      1,720     1,680,615

Series 2005-LDP1, Class A4
5.038%, 3/15/46(a)

      1,846     1,759,961

Series 2005-LDP3, Class A2
4.851%, 8/15/42(a)

      2,810     2,748,651

Series 2005-LDP4, Class A2
4.79%, 10/15/42(a)

      1,420     1,388,238

Series 2006-CB14, Class A4
5.481%, 12/12/44(a)

      1,720     1,656,320

Series 2006-CB15, Class A4
5.814%, 6/12/43(a)

      7,100     6,932,351

Series 2006-CB17, Class A4
5.429%, 12/12/43(a)

      8,580     8,117,294

Series 2007-LD11, Class A2
5.804%, 6/15/49(a)

      9,010     8,862,036

LB-UBS Commercial Mortgage Trust
Series 2003-C3, Class A4
4.166%, 5/15/32(a)

      4,900     4,597,742

Series 2004-C2, Class A4
4.367%, 3/15/36(a)

      7,760     7,221,115

Series 2004-C4, Class A4
5.125%, 6/15/29(a)

      6,015     5,921,094

Series 2004-C8, Class A2
4.201%, 12/15/29(a)

      1,084     1,059,039

Series 2005-C1, Class A4
4.742%, 2/15/30(a)

      4,209     3,902,597

Series 2005-C7, Class A4
5.197%, 11/15/30(a)

      2,380     2,165,932

Series 2006-C1, Class A4
5.156%, 2/15/31(a)

      6,557     6,034,020

Series 2006-C6, Class A4
5.372%, 9/15/39(a)

      8,090     7,650,379

 

284   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

    

Principal
Amount

(000)

   U.S. $ Value
    
 
    

Series 2007-C6, Class A4
5.858%, 7/15/40(a)

    $ 5,725   $ 5,538,712

Series 2007-C7, Class A3
5.866%, 9/15/45(a)

      8,290     8,007,972

Merrill Lynch Mortgage Trust
Series 2005-CKI1, Class A6
5.244%, 11/12/37(a)

      2,100     1,938,140

Series 2005-MKB2, Class A2
4.806%, 9/12/42(a)

      2,230     2,197,458

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2006-1, Class A2
5.439%, 2/12/39(a)(b)

      5,385     5,323,557

Series 2006-2, Class A4
5.909%, 6/12/46(a)

      3,075     3,037,818

Morgan Stanley Capital I
Series 2004-HQ4, Class A5
4.59%, 4/14/40(a)

      6,500     6,372,824

Series 2005-HQ5, Class A4
5.168%, 1/14/42(a)

      5,186     4,927,408

Series 2007-HQ13, Class A3
5.569%, 12/15/44(a)

      8,155     7,702,946

Series 2007-T27, Class A4
5.65%, 6/13/42(a)

      9,860     9,452,140
        
       181,015,738
        

Non-Agency Floating Rate CMBS – 0.1%

     

GS Mortgage Securities Corp. II
Series 2007-EOP, Class E
3.621%, 3/06/20(a)(c)(d)

      1,855     1,706,600
        

Total Commercial Mortgage-Backed Securities
(cost $189,770,744)

        182,722,338
        
    

ASSET-BACKED SECURITIES – 1.9%

     

Home Equity Loans - Floating Rate – 1.7%

     

Asset Backed Funding Certificates
Series 2003-WF1, Class A2
4.126%, 12/25/32(a)(d)

      870     837,193

Bear Stearns Asset Backed Securities, Inc.
Series 2005-SD1, Class 1A1
3.285%, 4/25/22(a)(d)

      18     17,546

Citigroup Mortgage Loan Trust, Inc.
Series 2007-AMC4, Class M1
3.405%, 5/25/37(a)(d)

      3,715     1,384,766

Credit-Based Asset Servicing & Securities, Inc.
Series 2005-CB7, Class AF2
5.147%, 11/25/35(a)(f)

      776     772,411

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   285

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

    

Principal
Amount

(000)

   U.S. $ Value
    
 
    

GE-WMC Mortgage Securities LLC
Series 2005-2, Class A2B
3.305%, 12/25/35(a)(d)

    $ 1,523   $ 1,508,841

HFC Home Equity Loan Asset Backed Certificates
Series 2005-3, Class A1
3.374%, 1/20/35(a)(d)

      1,161     1,046,244

Home Equity Mortgage Trust
Series 2006-1, Class A2
5.30%, 5/25/36(a)(f)

      1,040     364,755

HSI Asset Securitization Corp. Trust
Series 2006-OPT2, Class 2A1
3.215%, 1/25/36(a)(d)

      201     200,202

Lehman XS Trust
Series 2005-4, Class 1M1
3.635%, 10/25/35(d)(g)

      4,865     2,894,675

Merrill Lynch First Franklin Mortgage Loan Trust
Series 2007-1, Class A2A
3.255%, 4/25/37(a)(d)

      5,265     5,176,594

Option One Mortgage Loan Trust
Series 2006-3, Class M1
3.365%, 2/25/37(a)(d)

      1,785     528,360

RAAC Series
Series 2006-SP3, Class A1
3.215%, 8/25/36(a)(d)

      967     947,379

Residential Asset Mortgage Products, Inc.
Series 2005-RS3, Class AIA2
3.305%, 3/25/35(a)(d)

      577     545,904

Series 2005-RZ1, Class A2
3.335%, 4/25/35(a)(d)

      1,082     1,018,595

Residential Funding Mortgage Securities II, Inc.
Series 2005-HI2, Class A3
4.46%, 5/25/35(a)

      622     621,132

Saxon Asset Securities Trust
Series 2005-4, Class A2B
3.315%, 11/25/37(a)(d)

      189     189,038

Specialty Underwriting & Residential Finance
Series 2006-BC1, Class A2A
3.215%, 12/25/36(a)(d)

      238     237,027

Wells Fargo Home Equity Trust
Series 2006-1, Class A2
3.225%, 5/25/36(a)(d)

      10,708     10,587,920
        
       28,878,582
        

 

286   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Other ABS - Floating Rate – 0.1%

     

Neapolitan Segregated Portfolio
Series 2007-1A, Class I
4.122%, 3/30/46(c)(d)(g)

    $ 1,775   $ 124,250

Petra CRE CDO Ltd.
Series 2007-1A, Class C
4.235%, 2/25/47(a)(c)(d)

      2,220     1,706,279

SLM Student Loan Trust
Series 2003-C, Class A1
5.091%, 9/15/16(a)(d)

      517     513,851
        
       2,344,380
        

Home Equity Loans - Fixed Rate – 0.1%

     

Citifinancial Mortgage Securities, Inc.
Series 2003-1, Class AFPT
3.36%, 1/25/33(a)

      818     668,401

Home Equity Mortgage Trust
Series 2005-4, Class A3
4.742%, 1/25/36(a)

      639     607,298
        
       1,275,699
        

Other ABS - Fixed Rate – 0.0%

     

DB Master Finance, LLC
Series 2006-1, Class A2
5.779%, 6/20/31(a)(c)

      1,000     870,000
        

Total Asset-Backed Securities
(cost $42,368,830)

        33,368,661
        
    

CMOS – 1.9%

     

Non-Agency ARMS – 1.2%

     

Bear Stearns Alt-A Trust
Series 2006-1, Class 22A1
5.40%, 2/25/36(a)(b)

      3,874     3,114,341

Series 2006-3, Class 22A1
6.219%, 5/25/36(a)(b)

      1,812     1,531,617

Series 2007-1, Class 21A1
5.731%, 1/25/47(a)(b)

      2,420     2,014,214

Citigroup Mortgage Loan Trust, Inc.
Series 2005-2, Class 1A4
5.11%, 5/25/35(a)(b)

      4,316     4,240,562

Series 2006-AR1, Class 3A1
5.50%, 3/25/36(a)(d)

      4,653     4,637,055

Indymac Index Mortgage Loan Trust
Series 2006-AR7, Class 4A1
6.223%, 5/25/36(a)(b)

      2,176     1,981,473

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   287

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Residential Funding Mortgage Securities, Inc.
Series 2005-SA3, Class 3A
5.235%, 8/25/35(a)(b)

    $ 2,725   $ 2,676,334
        
       20,195,596
        

Non-Agency Floating Rate – 0.5%

     

Countrywide Alternative Loan Trust
Series 2005-62, Class 2A1
5.522%, 12/25/35(a)(d)

      1,664     1,574,064

Series 2006-OA14, Class 3A1
5.372%, 11/25/46(a)(d)

      5,035     4,455,020

Countrywide Home Loan
Series 2004-25, Class M1
3.665%, 2/25/35(d)(g)

      3,079     1,910,167

JP Morgan Alternative Loan Trust
Series 2006-S1, Class 3A1
3.245%, 3/25/36(a)(d)

      552     548,265
        
       8,487,516
        

Non-Agency Fixed Rate – 0.2%

     

Deutsche Mortgage Securities, Inc.
Series 2005-WF1, Class 1A1
5.077%, 6/26/35(a)(c)

      3,361     3,323,571
        

Agency Floating Rate – 0.0%

     

Fannie Mae Grantor Trust
Series 2004-T5, Class AB4
3.768%, 5/28/35(a)(d)

      392     376,309
        

Total CMOs
(cost $35,945,323)

        32,382,992
        
    

GOVERNMENTS - SOVEREIGN BONDS – 1.3%

     

Russian Federation
7.50%, 3/31/30(a)(c)(f)
(cost $21,816,121)

      19,831     22,606,987
        

SUPRANATIONALS – 1.1%

     

Asian Development Bank
5.50%, 6/27/16(a)

      3,810     4,244,687

European Investment Bank
4.875%, 2/15/36(a)

      1,970     1,962,193

Inter-American Development Bank
5.125%, 9/13/16(a)

      4,180     4,545,202

Nordic Investment Bank
5.00%, 2/01/17(a)

      4,180     4,529,536

 

288   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

International Bank for Reconstruction & Development
9.25%, 7/15/17(a)

    $ 2,340   $ 3,212,300
        

Total Supranationals
(cost $17,905,049)

        18,493,918
        
    

GOVERNMENTS - SOVEREIGN AGENCIES – 0.4%

     

Landwirtschaftliche Rentenbank
5.125%, 3/14/16-2/01/17(a)

      5,490     5,961,362

Korea Development Bank
4.625%, 9/16/10(a)

      1,335     1,361,609
        

Total Governments - Sovereign Agencies
(cost $7,025,709)

        7,322,971
        
    

CORPORATES - NON-INVESTMENT GRADES – 0.2%

     

Industrial – 0.2%

     

Consumer Cyclical - Other – 0.2%

     

Centex Corp.
5.45%, 8/15/12(a)
(cost $3,888,095)

      4,085     3,451,825
        
    

SHORT-TERM INVESTMENTS – 13.7%

     

Time Deposit – 13.7%

     

State Street Euro Dollar
2.35%, 3/03/08
(cost $236,014,123)

      236,014     236,014,123
        

Total Investments – 99.6%
(cost $1,718,620,847)

        1,716,504,909

Other assets less liabilities – 0.4%

        7,158,456
        

Net Assets – 100.0%

      $ 1,723,663,365
        

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

   $ 10,000   12/04/11   3 Month LIBOR   4.850 %   $ 632,991

Lehman Brothers

     12,075   2/26/13   3 Month LIBOR   3.746 %     210,492

Lehman Brothers

         171,095   11/28/17   3 Month LIBOR   4.726 %     10,329,810

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   289

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

FINANCIAL FUTURES CONTRACTS (see Note C)

 

Type   Number of
Contracts		   Expiration
Month		   Original
Value		   Value at
February 29,
2008		   Unrealized
Appreciation/
(Depreciation)		  

Sold Contracts

          

U.S T-Bond Futures

   158   June 2008   $ 18,128,808   $ 18,742,750   $ (613,943 )

U.S. T-Note 10 Yr Futures

   267   June 2008     30,527,616     31,314,094     (786,477 )

U.S. T-Note 5 Yr Futures

   312   June 2008     34,968,994     35,646,000     (677,006 )
               
          $     (2,077,426 )
               

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

 

     Contract
Amount
(000)		   U.S. $
Value on
Origination
Date		   U.S. $
Value at
February 29,
2008		   Unrealized
Appreciation/
(Depreciation)		  

Buy Contracts:

        

Japanese Yen settling 3/11/08

   7,977   $ 75,027   $ 76,839   $ 1,812  

Japanese Yen settling 3/11/08

   9,654,864         89,401,029         92,998,484     3,597,455  
       

Sale Contracts:

        

Japanese Yen settling 3/11/08

   9,662,841     89,661,699     93,075,323     (3,413,624 )

Mexican Peso settling 3/31/08

   363,374     33,131,847     33,808,793     (676,946 )

Polish Zloty settling 3/06/08

   42,942     17,171,322     18,473,466         (1,302,144 )

 

(a) Position, or a portion thereof, has been segregated to collateralize forward currency exchange contracts. The aggregate market value of these securities amounted to $1,494,302,625.

 

(b) Variable rate coupon, rate shown as of February 29, 2008.

 

(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 transactions exempt from registration, normally to qualified institutional buyers. At February 29, 2008, the aggregate market value of these securities amounted to $56,155,050 or 3.3% of net assets.

 

(d) Floating Rate Security. Stated interest rate was in effect at February 29, 2008.

 

(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 $1,671,011.

 

(f) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at February 29, 2008.

 

(g) Illiquid security, valued at fair value (see note A).

 

   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 February 29, 2008, the Portfolio’s total exposure to subprime investments was 1.59%. These investments are valued in accordance with the Portfolio’s Valuation Policies.

 

Currency Abbreviations:

 

MXN – Mexican Peso
PLN – Polish Zloty

 

Glossary:

 

LIBOR – London Interbank Offered Rates

 

   See notes to financial statements.

 

290   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

Intermediate Duration Bond Portfolio—Portfolio of Investments

 

INFLATION PROTECTED SECURITIES PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

INFLATION-LINKED SECURITIES – 99.6%

     

U.S. Treasury Notes

     

0.875%, 4/15/10 (TIPS)

    $ 26,746   $ 27,535,779

1.625%, 1/15/15-1/15/18 (TIPS)

      111,250     117,489,304

1.875%, 7/15/13-7/15/15 (TIPS)

      99,180     107,190,864

2.00%, 1/15/14-1/15/16 (TIPS)

      88,315     95,986,470

2.375%, 1/15/17 (TIPS)

      82,168     91,687,588

3.00%, 7/15/12 (TIPS)

      66,444     75,035,083

3.375%, 1/15/12 (TIPS)

      72,770     82,571,269

3.50%, 1/15/11 (TIPS)

      48,816     54,315,756

4.25%, 1/15/10 (TIPS)

      51,773     56,577,920
        

Total Inflation-Linked Securities
(cost $652,334,203)

        708,390,033
        
    

SHORT-TERM INVESTMENTS – 0.1%

     

Time Deposit – 0.1%

     

State Street Euro Dollar
2.35%, 3/03/08
(cost $1,075,083)

      1,075     1,075,083
        

Total Investments – 99.7%
(cost $653,409,286)

        709,465,116

Other assets less liabilities – 0.3%

        1,856,093
        

Net Assets – 100.0%

      $ 711,321,209
        

 

Glossary:

 

TIPS – Treasury Inflation Protected Security

 

   See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   291

 

Inflation Protected Securities Portfolio—Portfolio of Investments

 

HIGH-YIELD PORTFOLIO

PORTFOLIO OF INVESTMENTS

February 29, 2008 (unaudited)

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

CORPORATES - NON-INVESTMENT
GRADES – 83.4%

     

Industrial – 60.4%

     

Basic – 6.0%

     

Arch Western Finance LLC
6.75%, 7/01/13(a)

    $ 670   $ 659,950

Basell AF SCA
8.375%, 8/15/15(a)(b)

      1,445     1,011,500

Citigroup (JSC Severstal)
9.25%, 4/19/14(a)(b)

      1,938     2,066,102

Domtar Corp.
7.125%, 8/15/15(a)

      2,500     2,350,000

Evraz Group SA
8.25%, 11/10/15(a)(b)

      1,369     1,352,572

Freeport-McMoRan Copper & Gold, Inc.
8.375%, 4/01/17(a)

      4,280     4,536,800

Georgia-Pacific Corp.
7.00%, 1/15/15(a)(b)

      905     848,437

7.125%, 1/15/17(a)(b)

      1,095     1,018,350

Hexion US Fin/Nova Scotia
9.75%, 11/15/14(a)

      525     543,375

Hexion US Finance Corp./Hexion Nova
Scotia Finance ULC
7.565%, 11/15/14(a)(c)

      525     469,875

Huntsman International LLC
7.875%, 11/15/14(a)

      1,130     1,169,550

Huntsman LLC
11.50%, 7/15/12(a)

      801     853,065

Ineos Group Holdings PLC
8.50%, 2/15/16(a)(b)

      1,575     1,181,250

Jefferson Smurfit Corp. US
8.25%, 10/01/12(a)

      630     587,475

The Mosaic Co.
7.875%, 12/01/16(a)(b)(d)

      2,875     3,090,625

NewMarket Corp.
7.125%, 12/15/16(a)

      615     602,700

NewPage Corp.
10.00%, 5/01/12(a)

      797     798,993

Novelis, Inc.
7.25%, 2/15/15(a)

      4,070     3,663,000

Peabody Energy Corp.
5.875%, 4/15/16(a)

      900     852,750

7.375%, 11/01/16(a)

      1,095     1,133,325

Series B
6.875%, 3/15/13(a)

      1,815     1,849,031
        
       30,638,725
        

 

292   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Capital Goods – 6.4%

     

Alion Science and Technology Corp.
10.25%, 2/01/15(a)

    $ 270   $ 177,525

Allied Waste North America, Inc.
6.375%, 4/15/11(a)

      1,603     1,570,940

6.875%, 6/01/17(a)

      1,430     1,383,525

Series B
7.125%, 5/15/16(a)

      2,053     2,027,338

7.375%, 4/15/14(a)

      655     630,438

Associated Materials, Inc.
11.25%, 3/01/14(a)(e)

      1,635     1,038,225

Berry Plastics Holding Corp.
8.875%, 9/15/14(a)

      1,580     1,394,350

10.25%, 3/01/16(a)

      555     438,450

Bombardier, Inc.
6.30%, 5/01/14(a)(b)

      3,015     2,864,250

8.00%, 11/15/14(a)(b)

      2,120     2,183,600

Case Corp.
7.25%, 1/15/16(a)

      2,935     2,949,675

Case New Holland, Inc.
7.125%, 3/01/14(a)

      2,990     2,990,000

Crown Americas
7.625%, 11/15/13(a)

      1,500     1,518,750

L-3 Communications Corp.
5.875%, 1/15/15(a)

      1,828     1,777,730

Owens Brockway Glass Container, Inc.
6.75%, 12/01/14(a)

      2,530     2,530,000

Owens Corning, Inc.
6.50%, 12/01/16(a)

      1,210     1,095,126

7.00%, 12/01/36(a)

      1,555     1,173,888

Plastipak Holdings, Inc.
8.50%, 12/15/15(a)(b)

      990     923,175

Russell-Stanley Holdings, Inc.
9.00%, 11/30/08(f)(g)(h)

      453     56,691

Terex Corp.
8.00%, 11/15/17(a)

      786     782,070

Trinity Industries, Inc.
6.50%, 3/15/14(a)

      1,300     1,261,000

United Rentals North America, Inc.
6.50%, 2/15/12(a)

      640     579,200

7.75%, 11/15/13(a)

      2,075     1,691,125
        
       33,037,071
        

Communications - Media –9.6%

     

Allbritton Communications Co.
7.75%, 12/15/12(a)

      1,351     1,344,245

AMC Entertainment, Inc.
11.00%, 2/01/16(a)

      2,250     2,115,000

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   293

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Cablevision Systems Corp.
Series B
8.00%, 4/15/12(a)

    $ 1,637   $ 1,575,613

CCH I Holdings LLC
11.75%, 5/15/14(a)

      7,657     3,905,070

CCH I LLC
11.00%, 10/01/15(a)

      1,000     695,000

Clear Channel Communications, Inc.
5.50%, 9/15/14(a)

      5,809     3,833,940

5.75%, 1/15/13(a)

      1,641     1,181,520

CSC Holdings, Inc.
6.75%, 4/15/12(a)

      2,565     2,475,225

7.625%, 7/15/18(a)

      1,535     1,404,525

7.875%, 2/15/18(a)

      640     590,400

Dex Media West LLC
Series B
8.50%, 8/15/10(a)

      444     415,695

DirecTV Holdings LLC
6.375%, 6/15/15(a)

      3,811     3,534,703

EchoStar DBS Corp.
6.375%, 10/01/11(a)

      1,080     1,063,800

6.625%, 10/01/14(a)

      3,970     3,821,125

7.125%, 2/01/16(a)

      850     835,125

Idearc, Inc.
8.00%, 11/15/16(a)

      1,710     1,008,900

Intelsat Bermuda Ltd.
11.25%, 6/15/16(a)

      2,812     2,801,455

Intelsat Subsidiary Holding Co. Ltd.
8.625%, 1/15/15(a)

      1,274     1,274,000

Lamar Media Corp.
6.625%, 8/15/15(a)

      475     437,000

Liberty Media Corp.
5.70%, 5/15/13(a)

      545     487,330

7.875%, 7/15/09(a)

      350     355,888

8.25%, 2/01/30(a)

      530     441,608

LIN Television Corp.
6.50%, 5/15/13(a)

      725     656,125

Quebecor Media, Inc.
7.75%, 3/15/16(a)

      3,255     2,986,462

Rainbow National Services LLC
8.75%, 9/01/12(a)(b)

      764     783,100

10.375%, 9/01/14(a)(b)

      473     503,745

RH Donnelley Corp.
8.875%, 10/15/17(a)(b)

      1,285     751,725

Series A-1
6.875%, 1/15/13(a)

      705     415,950

 

294   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Series A-2
6.875%, 1/15/13(a)

    $ 748   $ 441,320

Series A-3
8.875%, 1/15/16(a)

      2,740     1,630,300

Sirius Satellite Radio, Inc.
9.625%, 8/01/13(a)

      545     449,625

Univision Communications, Inc.
7.85%, 7/15/11(a)

      1,190     1,100,750

WDAC Subsidiary Corp.
8.375%, 12/01/14(a)(b)

      982     736,500

WMG Holdings Corp.
9.50%, 12/15/14(a)(e)

      3,196     1,661,920

XM Satellite Radio, Inc.
9.75%, 5/01/14(a)

      1,415     1,291,187
        
       49,005,876
        

Communications -
Telecommunications – 5.0%

     

Alltel Corp.
7.875%, 7/01/32(a)

      2,750     1,842,500

American Tower Corp.
7.00%, 10/15/17(a)(b)

      310     308,450

7.125%, 10/15/12(a)

      2,430     2,490,750

Citizens Communications Co.
6.25%, 1/15/13(a)

      1,977     1,818,840

Cricket Communications, Inc.
9.375%, 11/01/14(a)

      2,085     1,855,650

Digicel Ltd.
9.25%, 9/01/12(a)(b)

      2,227     2,238,135

Inmarsat Finance PLC
7.625%, 6/30/12(a)

      1,835     1,848,762

10.375%, 11/15/12(a)(e)

      1,037     1,003,297

Level 3 Financing, Inc.
8.75%, 2/15/17(a)

      835     632,513

9.25%, 11/01/14(a)

      1,200     972,000

Mobile Telesystems Finance SA
8.00%, 1/28/12(a)(b)

      2,858     2,927,875

PanAmSat Corp.
9.00%, 8/15/14(a)

      1,171     1,171,000

Qwest Capital Funding, Inc.
7.25%, 2/15/11(a)

      4,029     3,918,203

Qwest Communications International, Inc.
7.50%, 2/15/14(a)

      350     340,375

Time Warner Telecom Holdings, Inc.
9.25%, 2/15/14(a)

      740     740,000

Windstream Corp.
8.125%, 8/01/13(a)

      714     712,215

8.625%, 8/01/16(a)

      810     824,175
        
       25,644,740
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   295

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Consumer Cyclical - Automotive – 7.3%

     

Affinia Group, Inc.
9.00%, 11/30/14(a)

    $ 45   $ 39,825

Allison Transmission
11.00%, 11/01/15(a)(b)

      235     200,925

Ford Motor Co.
7.45%, 7/16/31(a)

      5,020     3,426,150

Ford Motor Credit Co.
7.00%, 10/01/13(a)

      2,524     2,071,121

7.127%, 1/13/12(a)(c)

      2,785     2,191,611

8.00%, 12/15/16(a)

      1,000     818,967

General Motors Acceptance Corp.
6.75%, 12/01/14(a)

      2,700     2,033,662

6.875%, 9/15/11(a)

      3,570     2,912,859

8.00%, 11/01/31(a)

      2,170     1,640,503

General Motors Corp.
8.25%, 7/15/23(a)

      4,155     3,142,219

8.375%, 7/15/33(a)

      6,705     5,129,325

The Goodyear Tire & Rubber Co.
8.625%, 12/01/11(a)

      550     572,000

9.00%, 7/01/15(a)

      1,307     1,375,617

Keystone Automotive Operations, Inc.
9.75%, 11/01/13(a)

      1,436     875,960

Lear Corp.
Series B
5.75%, 8/01/14(a)

      1,835     1,472,588

8.50%, 12/01/13(a)

      370     333,925

8.75%, 12/01/16(a)

      3,010     2,596,125

Tenneco, Inc.
8.625%, 11/15/14(a)

      465     455,700

TRW Automotive, Inc.
7.25%, 3/15/17(a)(b)

      5,330     4,850,300

Visteon Corp.
7.00%, 3/10/14(a)

      1,795     1,166,750
        
       37,306,132
        

Consumer Cyclical - Other – 7.5%

     

Boyd Gaming Corp.
7.75%, 12/15/12(a)

      737     679,883

Broder Brothers Co.
Series B
11.25%, 10/15/10(a)

      642     449,400

DR Horton, Inc.
4.875%, 1/15/10(a)

      250     230,625

Gaylord Entertainment Co.
8.00%, 11/15/13(a)

      1,307     1,202,440

Greektown Holdings LLC
10.75%, 12/01/13(a)(b)

      550     519,750

 

296   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Harrah’s Operating Co., Inc.
5.625%, 6/01/15(a)

    $ 4,769   $ 2,861,400

5.75%, 10/01/17(a)

      514     292,980

6.50%, 6/01/16(a)

      5,352     3,197,820

Host Hotels & Resorts LP
6.875%, 11/01/14(a)

      385     371,525

Host Marriott LP
Series Q
6.75%, 6/01/16(a)

      2,935     2,780,912

KB Home
6.375%, 8/15/11(a)

      600     567,000

7.75%, 2/01/10(a)

      410     391,037

Levi Strauss & Co.
8.875%, 4/01/16(a)

      742     706,755

MGM Mirage
6.625%, 7/15/15(a)

      3,952     3,532,100

7.50%, 6/01/16(a)

      1,200     1,116,000

7.625%, 1/15/17(a)

      2,080     1,960,400

8.375%, 2/01/11(a)

      2,179     2,189,895

Mohegan Tribal Gaming Auth
7.125%, 8/15/14(a)

      1,245     1,064,475

NCL Corp. Ltd.
10.625%, 7/15/14(a)

      515     520,150

Penn National Gaming, Inc.
6.875%, 12/01/11(a)

      1,496     1,421,200

Six Flags, Inc.
9.625%, 6/01/14(a)

      1,250     775,000

Station Casinos, Inc.
6.625%, 3/15/18(a)

      8,445     5,172,563

Turning Stone Resort Casino Enterprise
9.125%, 12/15/10(a)(b)

      1,097     1,080,545

Universal City Development Partners
11.75%, 4/01/10(a)

      913     941,531

Universal City Florida Holding Co.
8.375%, 5/01/10(a)

      630     618,975

William Lyon Homes, Inc.
10.75%, 4/01/13(a)

      1,107     653,130

Wynn Las Vegas Capital Corp.
6.625%, 12/01/14(a)

      3,435     3,297,600
        
       38,595,091
        

Consumer Cyclical - Restaurants – 0.1%

     

Sbarro, Inc.
10.375%, 2/01/15(a)

      415     340,300
        

Consumer Cyclical - Retailers – 1.6%

     

Autonation, Inc.
6.258%, 4/15/13(a)(c)

      175     143,500

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   297

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Burlington Coat Factory Warehouse Corp.
11.125%, 4/15/14(a)

    $ 555   $ 449,550

Couche-Tard, Inc.
7.50%, 12/15/13(a)

      1,006     1,000,970

GSC Holdings Corp.
8.00%, 10/01/12(a)

      2,070     2,181,262

Michaels Stores, Inc.
10.00%, 11/01/14(a)

      885     773,269

Rite Aid Corp.
6.875%, 8/15/13(a)

      2,400     1,560,000

9.25%, 6/01/13(a)

      870     711,225

9.375%, 12/15/15(a)

      100     77,500

9.50%, 6/15/17(a)

      1,919     1,468,035
        
       8,365,311
        

Consumer Non-Cyclical – 6.0%

     

Albertson’s, Inc.
7.45%, 8/01/29(a)

      2,220     2,009,575

ARAMARK Corp.
8.50%, 2/01/15(a)

      1,710     1,684,350

Community Health Systems, Inc.
8.875%, 7/15/15(a)

      2,266     2,223,513

DaVita, Inc.
7.25%, 3/15/15(a)

      1,219     1,206,810

Dean Foods Co.
7.00%, 6/01/16(a)

      921     805,875

Del Monte Corp.
6.75%, 2/15/15(a)

      395     375,250

Dole Food Co., Inc.
8.625%, 5/01/09(a)

      420     369,600

8.875%, 3/15/11(a)

      718     603,120

Elan Finance PLC/Elan Finance Corp.
7.75%, 11/15/11(a)

      2,825     2,662,563

Hanger Orthopedic Group, Inc.
10.25%, 6/01/14(a)

      670     675,025

HCA, Inc.
6.375%, 1/15/15(a)

      4,848     4,048,080

6.50%, 2/15/16(a)

      1,520     1,284,400

6.75%, 7/15/13(a)

      1,650     1,452,000

9.625%, 11/15/16(a)(i)

      2,665     2,751,612

Healthsouth Corp.
10.75%, 6/15/16(a)

      580     607,550

IASIS Healthcare Corp.
8.75%, 6/15/14(a)

      1,174     1,159,325

Select Medical Corp.
7.625%, 2/01/15(a)

      1,145     938,900

Spectrum Brands, Inc.
7.375%, 2/01/15(a)

      1,180     769,950

 

298   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Stater Brothers Holdings
8.125%, 6/15/12(a)

    $ 594   $ 591,030

Tenet Healthcare Corp.
7.375%, 2/01/13(a)

      1,175     1,019,312

9.875%, 7/01/14(a)

      1,700     1,587,375

Universal Hospital Services, Inc.
8.288%, 6/01/15(a)(c)

      895     841,300

Viant Holdings, Inc.
10.125%, 7/15/17(a)(b)

      567     462,105

Visant Corp.
7.625%, 10/01/12(a)

      883     852,095
        
       30,980,715
        

Energy – 3.8%

     

Chesapeake Energy Corp.
6.50%, 8/15/17(a)

      1,560     1,497,600

6.625%, 1/15/16(a)

      2,195     2,137,381

6.875%, 1/15/16(a)

      270     265,950

7.50%, 9/15/13(a)

      805     827,138

7.75%, 1/15/15(a)

      1,895     1,947,112

CIE Generale De Geophysique
7.50%, 5/15/15(a)

      1,285     1,291,425

7.75%, 5/15/17(a)

      195     196,463

Complete Production Services, Inc.
8.00%, 12/15/16(a)

      650     624,813

Forest Oil Corp.
7.25%, 6/15/19(a)(b)

      1,830     1,843,725

Grant Prideco, Inc.
Series B
6.125%, 8/15/15(a)

      856     881,680

Hilcorp Energy I LP/Hilcorp Finance Co.
7.75%, 11/01/15(a)(b)

      760     716,300

Opti Canada, Inc.
8.25%, 12/15/14(a)(b)

      313     308,305

PetroHawk Energy Corp.
9.125%, 7/15/13(a)

      776     791,520

Plains Exploration & Production Co.
7.75%, 6/15/15(a)

      1,155     1,152,112

Pride International, Inc.
7.375%, 7/15/14(a)

      634     659,360

Range Resources Corp.
7.50%, 5/15/16(a)

      940     970,550

Southwestern Energy Co.
7.50%, 2/01/18(a)(b)

      395     406,850

Tesoro Corp.
6.25%, 11/01/12(a)

      1,180     1,129,850

6.50%, 6/01/17(a)

      2,160     2,008,800
        
       19,656,934
        

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   299

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Other Industrial – 1.0%

     

Central European Distribution Corp.
8.00%, 7/25/12(a)(b)

    EUR 173   $ 240,563

Central European Media Enterprises Ltd.
8.25%, 5/15/12(a)(b)

      398     569,179

Noble Group Ltd.
6.625%, 3/17/15(a)(b)

    $ 2,000     1,777,256

RBS Global, Inc. and Rexnord Corp.
9.50%, 8/01/14(a)

      1,295     1,165,500

11.75%, 8/01/16(a)

      725     623,500

Sensus Metering Systems, Inc.
8.625%, 12/15/13(a)

      655     618,975
        
       4,994,973
        

Services – 0.7%

     

Realogy Corp.
10.50%, 4/15/14(a)

      2,530     1,796,300

Service Corp. International
6.75%, 4/01/16(a)

      1,000     995,000

Travelport LLC
9.875%, 9/01/14(a)

      535     470,800

West Corp.
9.50%, 10/15/14(a)

      500     437,500
        
       3,699,600
        

Technology – 4.1%

     

Amkor Technology, Inc.
9.25%, 6/01/16(a)

      3,480     3,382,142

Avago Technologies Finance
10.125%, 12/01/13(a)

      755     796,525

CA, Inc.
4.75%, 12/01/09(a)(b)

      965     983,818

First Data Corp.
9.875%, 9/24/15(a)(b)

      1,341     1,163,318

Flextronics International Ltd.
6.50%, 5/15/13(a)

      1,418     1,357,735

Freescale Semiconductor, Inc.
8.875%, 12/15/14(a)

      3,530     2,876,950

10.125%, 12/15/16(a)

      910     646,100

Iron Mountain, Inc.
6.625%, 1/01/16(a)

      1,360     1,295,400

Nortel Networks Corp.
6.875%, 9/01/23(a)

      626     450,720

Nortel Networks Ltd.
10.125%, 7/15/13(a)

      1,025     953,250

NXP BV/NXP Funding LLC
7.008%, 10/15/13(a)(c)

      1,000     807,500

9.50%, 10/15/15(a)

      445     369,074

 

300   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Seagate Technology HDD Holding
6.375%, 10/01/11(a)

    $ 2,143   $ 2,121,570

Serena Software, Inc.
10.375%, 3/15/16(a)

      875     831,250

Sungard Data Systems, Inc.
9.125%, 8/15/13(a)

      3,122     3,145,415
        
       21,180,767
        

Transportation - Airlines – 0.6%

     

AMR Corp.
9.00%, 8/01/12(a)

      1,675     1,566,125

Continental Airlines, Inc.
8.75%, 12/01/11(a)

      1,330     1,185,362

Series RJO3
7.875%, 7/02/18(a)

      575     511,744
        
       3,263,231
        

Transportation - Services – 0.7%

     

Avis Budget Car Rental
7.75%, 5/15/16(a)

      1,660     1,386,100

Hertz Corp.
8.875%, 1/01/14(a)

      1,145     1,090,613

10.50%, 1/01/16(a)

      1,175     1,116,250
        
       3,592,963
        
       310,302,429
        

Utility – 10.5%

     

Electric – 9.4%

     

The AES Corp.
7.75%, 3/01/14(a)

      2,430     2,460,375

8.00%, 10/15/17(a)

      3,740     3,814,800

8.75%, 5/15/13(a)(b)

      140     146,300

Allegheny Energy Supply
7.80%, 3/15/11(a)

      1,070     1,127,512

8.25%, 4/15/12(a)(b)

      1,830     1,948,950

Aquila, Inc.
14.875%, 7/01/12(a)

      1,096     1,348,080

CMS Energy Corp.
8.50%, 4/15/11(a)

      835     898,450

Dynegy Holdings, Inc.
7.75%, 6/01/19(a)

      3,360     3,124,800

8.375%, 5/01/16(a)

      3,180     3,108,450

Dynegy-Roseton Danskammer
Series A
7.27%, 11/08/10(a)

      312     312,426

Series B
7.67%, 11/08/16(a)

      1,222     1,221,236

Edison Mission Energy
7.00%, 5/15/17(a)

      3,840     3,772,800

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   301

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

7.50%, 6/15/13(a)

    $ 1,860   $ 1,906,500

7.75%, 6/15/16(a)

      695     715,850

Energy Future Holdings Corp.
10.875%, 11/01/17(a)(b)

      1,545     1,522,752

Mirant Americas Generation LLC
8.50%, 10/01/21(a)

      3,550     3,141,750

NRG Energy, Inc.
7.25%, 2/01/14(a)

      420     410,025

7.375%, 2/01/16-1/15/17(a)

      4,805     4,626,900

Reliant Energy, Inc.
6.75%, 12/15/14(a)

      598     608,465

7.625%, 6/15/14(a)

      1,820     1,797,250

7.875%, 6/15/17(a)

      1,840     1,810,100

Sierra Pacific Resources
8.625%, 3/15/14(a)

      960     1,020,845

Teco Finance, Inc.
6.572%, 11/01/17(a)(b)

      500     500,650

7.00%, 5/01/12(a)(b)

      722     778,545

Texas Competitive Electric Holdings Co. LLC
10.25%, 11/01/15(a)(b)

      2,151     2,097,225

TXU Corp.
Series P
5.55%, 11/15/14(a)

      1,957     1,532,513

Series Q
6.50%, 11/15/24(a)

      3,106     2,229,353
        
       47,982,902
        

Natural Gas – 1.1%

     

El Paso Corp.
7.375%, 12/15/12(a)

      1,245     1,294,534

Enterprise Products Operating LP
8.375%, 8/01/66(a)(j)

      3,450     3,387,655

Regency Energy Partners
8.375%, 12/15/13(a)

      1,089     1,089,000
        
       5,771,189
        
       53,754,091
        

Non Corporate Sectors – 7.0%

     

Derivatives - RACERS – 3.1%

     

Racers
Series 06-6-T
3.179%, 7/01/08(a)(b)(c)

      18,550     16,135,254
        

Derivatives - Total Return Swaps – 3.9%

     

High Yield Total Return Trust
Series 2007-1
4.669%, 7/01/08(a)(b)(c)

      22,505     20,066,133
        
       36,201,387
        

 

302   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Credit Default Index Holdings – 4.2%

     

DJ CDX.NA.HY-100 – 4.2%

     

CDX North America High Yield
Series 8-T1
7.625%, 6/29/12(a)(b)

    $ 18,810   $ 17,117,100

Dow Jones CDX HY
Series 5-T2
7.25%, 12/29/10(a)(b)

      4,312     4,312,196
        
       21,429,296
        

Financial Institutions – 1.3%

     

Finance – 0.7%

     

Residential Capital LLC
8.375%, 6/30/10(a)

      2,355     1,342,350

8.50%, 4/17/13(a)

      2,240     1,209,600

8.875%, 6/30/15(a)

      2,055     1,089,150
        
       3,641,100
        

Insurance – 0.1%

     

Crum & Forster Holdings Corp.
7.75%, 5/01/17(a)

      760     739,100
        

REITS – 0.5%

     

American Real Estate Partners LP
7.125%, 2/15/13(a)

      2,500     2,375,000
        
       6,755,200
        

Total Corporates - Non-Investment Grades
(cost $473,448,353)

        428,442,403
        
    

CORPORATES - INVESTMENT
GRADES – 12.0%

     

Industrial – 5.7%

     

Basic – 1.3%

     

International Steel Group, Inc.
6.50%, 4/15/14(a)

      2,081     2,167,247

United States Steel Corp.
7.00%, 2/01/18(a)

      1,825     1,807,672

Weyerhaeuser Co.
7.375%, 3/15/32(a)

      3,165     2,987,105
        
       6,962,024
        

Communications - Telecommunications – 1.6%

     

Nextel Communications, Inc.
Series D
7.375%, 8/01/15(a)

      2,950     2,286,250

Qwest Corp.
6.875%, 9/15/33(a)

      2,240     1,965,600

8.875%, 3/15/12(a)

      1,115     1,163,781

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   303

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Sprint Capital Corp.
6.875%, 11/15/28(a)

    $ 2,800   $ 1,960,000

8.75%, 3/15/32(a)

      1,180     920,400
        
       8,296,031
        

Consumer Cyclical - Other – 0.1%

     

Starwood Hotels & Resorts Worldwide, Inc.
7.875%, 5/01/12(a)

      539     572,737
        

Consumer Cyclical - Retailers – 0.5%

     

Limited Brands, Inc.
5.25%, 11/01/14(a)

      2,028     1,805,295

6.90%, 7/15/17(a)

      845     788,130
        
       2,593,425
        

Consumer Non-Cyclical – 1.6%

     

Cadbury Schweppes US Finance LLC
5.125%, 10/01/13(a)(b)

      1,080     1,093,633

Coventry Health Care, Inc.
5.875%, 1/15/12(a)

      683     708,022

Reynolds American, Inc.
7.25%, 6/01/12-6/01/13(a)

      3,395     3,611,505

7.625%, 6/01/16(a)

      1,800     1,906,171

Ventas Realty LP/Ventas Capital Corp.
6.75%, 4/01/17(a)

      832     819,520
        
       8,138,851
        

Energy – 0.2%

     

Kerr-McGee Corp.
6.875%, 9/15/11(a)

      894     977,432
        

Technology – 0.4%

     

Computer Sciences Corp.
5.50%, 3/15/13(a)(b)

      1,300     1,317,569

Xerox Corp.
6.40%, 3/15/16(a)

      535     553,279
        
       1,870,848
        
       29,411,348
        

Financial Institutions – 4.3%

     

Banking – 0.1%

     

Royal Bank of Scotland Group PLC
7.648%, 9/30/31(a)(j)

      557     574,747
        

Brokerage – 1.1%

     

Bear Stearns Co., Inc.
5.55%, 1/22/17(a)

      3,540     3,075,952

Lehman Brothers Holdings, Inc.
5.75%, 1/03/17(a)

      2,585     2,429,608
        
       5,505,560
        

 

304   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Finance – 2.2%

     

Capital One Financial Corp.
6.75%, 9/15/17(a)

    $ 663   $ 666,633

CIT Group, Inc.
5.125%, 9/30/14(a)

      2,450     2,077,007

5.40%, 1/30/16(a)

      515     431,714

Countrywide Financial Corp.
6.25%, 5/15/16(a)

      2,221     1,909,472

Series MTN
5.80%, 6/07/12(a)

      515     462,888

Countrywide Home Loans, Inc.
Series MTNL
4.00%, 3/22/11(a)

      56     49,223

iStar Financial, Inc.
5.15%, 3/01/12(a)

      2,890     2,413,789

SLM Corp.
4.50%, 7/26/10(a)

      845     782,370

5.00%, 10/01/13(a)

      2,000     1,698,818

5.125%, 8/27/12(a)

      1,100     962,511
        
       11,454,425
        

Insurance – 0.7%

     

Liberty Mutual Group, Inc.
5.75%, 3/15/14(a)(b)

      950     975,167

7.80%, 3/15/37(a)(b)

      770     638,222

MBIA, Inc.
5.70%, 12/01/34(a)

      3,255     2,236,026
        
       3,849,415
        

Other Finance – 0.2%

     

Aiful Corp.
6.00%, 12/12/11(a)(b)

      921     896,982
        
       22,281,129
        

Utility – 2.0%

     

Electric – 0.6%

     

FPL Group Capital, Inc.
6.35%, 10/01/66(a)(j)

      3,000     2,761,374

Sierra Pacific Power Co.
Series M
6.00%, 5/15/16(a)

      440     443,349
        
       3,204,723
        

Natural Gas – 1.4%

     

Tennessee Gas Pipeline Co.
7.00%, 10/15/28(a)

      570     566,194

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   305

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

Williams Cos, Inc.
7.625%, 7/15/19(a)

    $ 3,744   $ 4,006,080

7.875%, 9/01/21(a)

      2,214     2,413,260
        
       6,985,534
        
       10,190,257
        

Total Corporates - Investment Grades
(cost $63,943,344)

        61,882,734
        
     Shares    

PREFERRED STOCKS – 0.6%

     

Federal Home Loan Mortgage Corp.
8.375%(a)

      36,525     940,519

Federal National Mortgage Association
8.25%(a)

      54,625     1,398,400

Sovereign REIT
12.00%(a)(b)

      624     798,720
        

Total Preferred Stocks
(cost $3,183,550)

        3,137,639
        
     Principal
Amount
(000)		    

EMERGING MARKETS -
CORPORATE BONDS – 0.4%

     

Industrial – 0.4%

     

Consumer Cyclical - Other – 0.2%

     

Royal Caribbean Cruises Ltd.
8.75%, 2/02/11(a)

    $ 846     897,390
        

Consumer Non-Cyclical – 0.2%

     

Foodcorp Ltd.
8.875%, 6/15/12(a)(b)

    EUR 1,128     1,070,297
        

Total Emerging Markets - Corporate Bonds
(cost $2,432,437)

        1,967,687
        
     Shares    

EQUITIES – 0.0%

     

Common Stock – 0.0%

     

Phase Metrics(f)(k)
(cost $904)

      90,400     904
        

 

306   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

High-Yield Portfolio—Portfolio of Investments

 

     Principal
Amount
(000)		   U.S. $ Value
 
    

SHORT-TERM INVESTMENTS – 2.5%

     

Time Deposit - 2.5%

     

State Street Euro Dollar
2.35%, 3/03/08
(cost $12,914,502)

    $ 12,915   $ 12,914,502
        

Total Investments – 98.9%
(cost $555,923,090)

        508,345,869

Other assets less liabilities – 1.1%

        5,610,745
        

Net Assets – 100.0%

      $ 513,956,614
        

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note C)

 

      Contract
Amount
(000)		    U.S. $
Value on
Origination
Date		    U.S. $
Value at
February 29,
2008		    Unrealized
Appreciation/
(Depreciation)

Sale Contracts:

            

Japanese Yen settling 3/11/08

    1,496    $     2,223,862    $     2,269,739    $    (45,877)

 

(a) Position, or a portion thereof, has been segregated to collateralize forward currency exchange contracts. The aggregate market value of these securities amounted to $494,389,890.

 

(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 February 29, 2008, the aggregate market value of these securities amounted to $111,328,025 or 21.7% of net assets.

 

(c) Floating Rate Security. Stated interest rate was in effect at February 29, 2008.

 

(d) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at February 29, 2008.

 

(e) 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.

 

(f) Illiquid security, valued at fair value (see Note A).

 

(g) Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security, which represents 0.0% of net assets as of February 29, 2008, is considered illiquid and restricted (see Note A).

 

Restricted Securities    Acquisition
Date		    Acquisition
Cost		    Market
Value		    Percentage of
Net Assets		  

Russell-Stanley Holdings, Inc.

            

9.00%, 11/30/08

    8/5/2005    $     396,900    $     56,691    0.01 %

 

(h) Security is in default and is non-income producing.

 

(i) Pay-In-Kind Payments (PIK).

 

(j) Variable rate coupon, rate shown as of February 29, 2008.

 

(k) Non-income producing security.

 

Currency Abbreviations:

 

EUR – Euro Dollar

 

   See notes to financial statements.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   307

 

High-Yield 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 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.

 

308   •  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  •   309

 

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 %

 

310   •  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  •   311

 

      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		      
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

The expense limitation undertaking described includes the blended expense ratios of the Pooling Portfolios (i.e., the Strategies’ underlying expense ratios).

 

312   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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 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

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   313

 

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

 %

%

%

%

%

%

%

%

%

%

 

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.

 

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.

 

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.

 

314   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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

 

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.

 

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.

 

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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   315

 

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.

 

316   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   317

 

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.

 

318   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   319

 

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.

 

320   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

     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

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   321

 

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.

 

322   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

  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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   323

 

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

 

324   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   325

 

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.

 

326   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   327

 

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.

 

328   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

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.

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   329

 

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.

 

330   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

THE FOLLOWING IS NOT PART OF THE SHAREHOLDER REPORT OR THE FINANCIAL STATEMENTS

ALLIANCEBERNSTEIN FAMILY OF FUNDS

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   331

 

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

Diversified Yield Fund*

Global Bond Fund*

High Income Fund*

Intermediate Bond Portfolio

Short Duration 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

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 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. Prior to November 5, 2007, Diversified Yield Fund was named Global Strategic Income Trust and Global Bond Fund was named Global Government Income Trust. Prior to January 28, 2008, High Income Fund was named Emerging Market Debt 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.

NOTES

 

332   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

NOTES

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   333

NOTES

 

334   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

NOTES

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES  •   335

NOTES

 

336   •  ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

 

ALLIANCEBERNSTEIN RETIREMENT STRATEGIES

1345 Avenue of the Americas

New York, NY 10105

800.221.5672

LOGO

 

 

RS-00-55-0152-0208   LOGO

ITEM 2. CODE OF ETHICS.

Not applicable when filing a semi-annual report to shareholders.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable when filing a semi-annual report to shareholders.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable when filing a semi-annual report to shareholders.

 

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.

 

3

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 12. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

 

EXHIBIT NO.

   

DESCRIPTION OF EXHIBIT

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

 

4

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:   April 25, 2008

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:   April 25, 2008
By:  

/s/ Joseph J. Mantineo

  Joseph J. Mantineo
  Treasurer and Chief Financial Officer
Date:   April 25, 2008

 

5