-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SHtOaoZYZuCrU3kZ1qKf+45cxsfvbiyuapftWjJt1PbgdsE+T1Ff5NFbj6rsC8mb NBaCEf8fnZqUY4tEAjyh0Q== 0000936772-05-000098.txt : 20050408 0000936772-05-000098.hdr.sgml : 20050408 20050407202407 ACCESSION NUMBER: 0000936772-05-000098 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050131 FILED AS OF DATE: 20050408 DATE AS OF CHANGE: 20050407 EFFECTIVENESS DATE: 20050408 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND INC CENTRAL INDEX KEY: 0000350181 IRS NUMBER: 133056623 STATE OF INCORPORATION: NY FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03131 FILM NUMBER: 05740274 BUSINESS ADDRESS: STREET 1: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2013194105 MAIL ADDRESS: STREET 1: ALLIANCE CAPITAL MANAGEMENT LP STREET 2: 1345 AVENUE OF THE AMERICAS 31ST FL CITY: NEW YORK STATE: NY ZIP: 10105 FORMER COMPANY: FORMER CONFORMED NAME: ALLIANCEBERNSTEIN TECHNOLOGY FUND INC DATE OF NAME CHANGE: 19920703 N-CSRS 1 edg10818_sr.txt 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: 811-03131 ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND, 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) Mark R. Manley Alliance Capital Management 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: July 31, 2005 Date of reporting period: January 31, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. [LOGO] ALLIANCEBERNSTEIN (SM) Investment Research and Management AllianceBernstein Global Technology Fund Specialty Equity Semi-Annual Report--January 31, 2005 - ------------------------------------------------------------------------------- The Fund expects to hold a meeting of shareholders on or about November 15, 2005, at which the election of directors will be considered. For information with respect to submitting a candidate for director for consideration by the Governance and Nominating Committee of the Fund's Board of Directors, please see the Nominating Procedures in the Fund's Statement of Additional Information. - ------------------------------------------------------------------------------- Investment Products Offered - ----------------------------- o Are Not FDIC Insured o May Lose Value o 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 Investment Research and Management, Inc. is an affiliate of Alliance Capital Management L.P., the manager of the funds, and is a member of the NASD. March 28, 2005 Semi-Annual Report This report provides management's discussion of fund performance for AllianceBernstein Global Technology Fund (the "Fund") for the semi-annual reporting period ended January 31, 2005. Prior to December 15, 2004, the Fund was named AllianceBernstein Technology Fund. Investment Objective and Policies This open-end fund emphasizes growth of capital and invests for capital appreciation, and only incidentally for current income. The Fund invests primarily in securities of companies expected to benefit from technological advances and improvements. The Fund normally will have substantially all of its assets invested in equity securities, but it also invests in debt securities offering appreciation potential. The Fund may invest in listed and unlisted U.S. and foreign securities and has the flexibility to invest both in well-known, established companies and in new, unseasoned companies. The Fund's policy is to invest in any company and industry and in any type of security with potential for capital appreciation. Investment Results The table on page 4 shows the Fund's performance compared to its new benchmark, the Morgan Stanley Capital International (MSCI) World Information Technology Index and its prior benchmark, the Goldman Sachs Technology Industry Composite Index for the six- and 12-month periods ended January 31, 2005. The Fund's benchmark was changed because the new benchmark better reflects the Fund's new global investment nature. Also included is the performance of the NASDAQ Composite Index, which measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market, and the Lipper Science and Technology Index (the "Lipper Index"), a performance index of the largest qualifying funds that have a science and technology investment objective. During the six- and 12-month periods ended January 31, 2005, the Fund outperformed both its old and new benchmarks, the Goldman Sachs Technology Industry Composite Index and the MSCI World Information Technology Index. In both cases and for both time periods, relative performance was driven by strong stock selection. During the six-month period ended January 31, 2005 the Fund underperformed the Lipper Science & Technology Index slightly, however, during the 12-month period ended January 31, 2005 the Fund outperformed the Lipper Science & Technology Index. During the six-month period ended January 31, 2005, the Fund's performance versus its old benchmark, the Goldman Sachs Technology Industry Composite Index, was helped by holdings in the semiconductor, communication equipment, cellular communications, and TFT-LCD (Thin-Film Transistor-Liquid Crystal Display) industries, while holdings in the software industry detracted from performance. During the 12-month period, the six-month contributors again played a role, while computer services holdings also helped and contract manufacturing detracted from performance. The Fund's outperformance versus its new benchmark, the MSCI World Information Technology Index, dur- - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 1 ing the six-month period ended January 31, 2005 was driven, in particular, by holdings in semiconductor components, cellular communications and computer services, while an underweighted position in computer hardware/storage hurt relative results. Better performance in the 12-months ended January 31, 2005, was principally caused by holdings in communication equipment, computer services, Internet and cellular communications. Poor stock selection in software and an overweight exposure to contract manufacturing detracted from relative returns. Market Review and Investment Strategy During the six- and 12-month periods ended January 31, 2005, technology stocks, as measured by the MSCI World Information Technology Index, significantly underperformed the broad market, as measured by the MSCI World Index (which rose more than 8% and 10% respectively, during those periods) as technology growth rates peaked while other sectors of the economy, notably energy and industrials, saw earnings growth accelerate. During the period from August 1, 2004 to January 31, 2005, the Fund's positions in cellular communications, computer services and Internet-related names were increased. The Fund's management team also established several positions along the TFT-LCD food chain, believing that marketplace to be a long-term opportunity with the emergence of digital television. Meanwhile, the Fund's exposures to software and semiconductors were lowered. The Fund continues to be managed as a diversified technology portfolio with multiple industry exposures. As previously announced, as of December 15, 2004, all geographic constraints were removed from the Fund, and the benchmark was changed to the MSCI World Information Technology Index to reflect the increasingly global opportunity that the Fund's management team sees in technology investing. Since then, the Fund's positioning has been altered accordingly, broadening the non-U.S. holdings in the Fund with the addition of several new stock positions. The Fund continues to have meaningful investments in Asian technology companies, which stand to benefit from a secular share shift and whose stocks carry attractive valuations. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 2 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 web site at www.alliancebernstein.com or call your financial advisor or AllianceBernstein at (800) 227-4618. You should read the prospectus carefully before you invest. Returns are annualized for periods longer than one year. 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 Class R and Advisor Class shares will vary due to different expenses associated with these classes. Performance assumes reinvestment of distributions and does not account for taxes. Benchmark Disclosure The unmanaged Morgan Stanley Capital International (MSCI) World Information Technology Index, the Goldman Sachs Technology Industry Composite Index, and the NASDAQ Composite Index do not reflect fees and expenses associated with the active management of a mutual fund portfolio. The MSCI World Information Technology Index is a capitalization-weighted index that monitors the performance of technology stocks from around the world. The Goldman Sachs Technology Industry Composite Index measures the performance of over 200 U.S.-based technology companies. The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market. The NASDAQ Composite Index is market-value weighted and includes over 5,000 companies. The unmanaged Lipper Science and Technology Fund Index is an equally-weighted performance index, adjusted for capital gains distributions and income dividends, of the largest qualifying funds that have a science and technology investment objective. (According to Lipper, this investment objective includes those funds that invest at least 65% of their equity portfolios in science and technology stocks.) These funds have generally similar investment objectives to the Fund, although some may have different investment policies and sales and management fees. Investors cannot invest directly in an index, and its results are not indicative of any specific investment, including the Fund. A Word About Risk The Fund concentrates its investments in technology-related stocks and may therefore be subject to greater risks and volatility than a fund with a more diversified portfolio. Technology stocks, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall stock market. The Fund can invest in foreign securities. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments. In addition, because the Fund will invest in foreign currency denominated securities, fluctuations in the value of the Fund's investments may be magnified by changes in foreign exchange rates. 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 GLOBAL TECHNOLOGY FUND 3 HISTORICAL PERFORMANCE (continued from previous page) Returns THE FUND VS. ITS BENCHMARK --------------------------- PERIODS ENDED JANUARY 31, 2005 6 Months 12 Months - ------------------------------------------------------------------------------- AllianceBernstein Global Technology Fund Class A 9.02% -5.50% Class B 8.61% -6.20% Class C 8.63% -6.16% Class R 8.93% -5.65% Advisor Class 9.19% -5.19% MSCI World Information Technology Index 5.58% -7.57% Goldman Sachs Technology Industry Composite Index 5.39% -8.20% NASDAQ Composite Index 9.28% -0.18% Lipper Science and Technology Index 9.29% -6.71% See Historical Performance and Benchmark Disclosures on previous page. (Historical Performance continued on next page) - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 4 HISTORICAL PERFORMANCE (continued from previous page) AVERAGE ANNUAL RETURNS AS OF JANUARY 31, 2005 NAV Returns SEC Returns Class A Shares 1 Year -5.50% -9.53% 5 Years -14.70% -15.43% 10 Years 8.81% 8.34% Class B Shares 1 Year -6.20% -9.95% 5 Years -15.34% -15.34% 10 Years(a) 8.18% 8.18% Class C Shares 1 Year -6.16% -7.10% 5 Years -15.32% -15.32% 10 Years 8.02% 8.02% Class R Shares 1 Year -5.65% Since Inception* -1.06% Advisor Class Shares 1 Year -5.19% 5 Years -14.44% Since Inception* 4.17% SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES) AS OF THE MOST RECENT CALENDAR QUARTER-END (DECEMBER 31, 2004) Class A Shares 1 Year 0.47% 5 Years -14.62% 10 Years 8.75% Class B Shares 1 Year 0.13% 5 Years -14.53% 10 Years(a) 8.59% Class C Shares 1 Year 3.19% 5 Years -14.51% 10 Years 8.43% (a) Assumes conversion of Class B shares into Class A shares after eight years. * Inception Dates: 11/3/03 for Class R shares; 10/1/96 for Advisor Class shares. See Historical Performance disclosures on page 3. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 5 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 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. Hypothetical Example for Comparison Purposes The second line of the table below 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. 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.
Beginning Ending Account Value Account Value Expenses Paid August 1, 2004 January 31, 2005 During Period* - ------------------------------------------------------------------------------------------ Class A Actual $1,000 $1,090.15 $8.80 Hypothetical (5% return before expenses) $1,000 $1,016.79 $8.49 - ------------------------------------------------------------------------------------------ Class B Actual $1,000 $1,086.09 $12.83 Hypothetical (5% return before expenses) $1,000 $1,012.91 $12.38 - ------------------------------------------------------------------------------------------ Class C Actual $1,000 $1,086.28 $12.62 Hypothetical (5% return before expenses) $1,000 $1,013.11 $12.18 - ------------------------------------------------------------------------------------------ Class R Actual $1,000 $1,089.25 $9.79 Hypothetical (5% return before expenses) $1,000 $1,015.83 $9.45 - ------------------------------------------------------------------------------------------ Advisor Class Actual $1,000 $1,091.85 $7.22 Hypothetical (5% return before expenses) $1,000 $1,018.30 $6.97 - ------------------------------------------------------------------------------------------
* Expenses are equal to the classes' annualized expense ratios of 1.67%, 2.44%, 2.40%, 1.86% and 1.37%, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period). - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 6 PORTFOLIO SUMMARY January 31, 2005 (unaudited) PORTFOLIO STATISTICS Net Assets ($mil): $2,484.5 SECTOR BREAKDOWN* Technology o 17.5% Computer Software o 16.6% Communication Equipment o 16.2% Semi-Conductor Components o 9.0% Computer Hardware/Storage o 8.4% Internet o 5.4% Miscellaneous o 5.3% Computer Services o 2.6% Semi-Conductor Capital Equipment [PIE CHART OMITTED] o 2.3% Computer Peripherals o 1.5% Electronic Components o 1.4% Internet Infrastructure o 1.4% Communication Services o 1.0% Contract Manufacturing Consumer Services o 4.7% Cellular Communications o 2.7% Broadcasting & Cable Capital Goods o 1.3% Miscellaneous o 0.1% Electrical Equipment Utilities o 0.7% Telephone Utility o 1.9% Short - Term * All data are as of January 31, 2005. The Fund's sector breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. Please note: The sector classifications presented herein are based on the sector categorization methodology of the Adviser. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 7 TEN LARGEST HOLDINGS January 31, 2005 (unaudited) Percent of Company Value Net Assets - ------------------------------------------------------------------------------- Microsoft Corp. $ 125,518,536 5.1% - ------------------------------------------------------------------------------- QUALCOMM, Inc. 125,167,364 5.0 - ------------------------------------------------------------------------------- Dell, Inc. 120,304,296 4.8 - ------------------------------------------------------------------------------- Intel Corp. 109,681,720 4.4 - ------------------------------------------------------------------------------- Yahoo!, Inc. 102,971,645 4.1 - ------------------------------------------------------------------------------- Juniper Networks, Inc. 99,987,244 4.0 - ------------------------------------------------------------------------------- Oracle Corp. 99,427,662 4.0 - ------------------------------------------------------------------------------- Hoya Corp. 92,162,458 3.8 - ------------------------------------------------------------------------------- Marvell Technology Group, Ltd. (Bermuda) 90,766,575 3.7 - ------------------------------------------------------------------------------- EMC Corp. 74,945,545 3.0 - ------------------------------------------------------------------------------- $1,040,933,045 41.9% - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 8 PORTFOLIO OF INVESTMENTS January 31, 2005 (unaudited) Company Shares U.S. $ Value - ------------------------------------------------------------------------------- COMMON STOCKS & OTHER INVESTMENTS-97.7% Technology-88.1% Communication Equipment-16.5% Cisco Systems, Inc.(a) 2,759,150 $ 49,775,066 Corning, Inc.(a)* 2,718,400 29,739,296 JDS Uniphase Corp.(a) 4,703,700 10,065,918 Juniper Networks, Inc.(a)* 3,978,800 99,987,244 Motorola, Inc.* 1,585,600 24,957,344 Nokia Oyj (Finland) 2,597,823 39,794,305 QUALCOMM, Inc.* 3,361,100 125,167,364 ZTE Corp. Cl.A (China)(a) 9,797,000 31,589,247 --------------- 411,075,784 --------------- Communication Services-1.4% Amdocs, Ltd. (Channel Islands)(a)* 631,700 18,793,075 InPhonic, Inc.(a)* 594,300 14,946,645 --------------- 33,739,720 --------------- Computer Hardware/Storage-8.9% Apple Computer, Inc.(a)* 341,200 26,238,280 Dell, Inc.(a)* 2,880,850 120,304,296 EMC Corp.(a)* 5,721,034 74,945,545 --------------- 221,488,121 --------------- Computer Peripherals-2.3% Network Appliance, Inc.(a)* 1,773,600 56,471,424 --------------- Computer Services-5.3% Alliance Data Systems Corp.(a)* 346,400 15,040,688 Cogent, Inc.(a)* 444,400 13,465,320 First Data Corp.* 660,700 26,916,918 Fiserv, Inc.(a)* 765,150 29,266,988 Infosys Technologies, Ltd. (ADR) (India)* 704,400 46,518,576 --------------- 131,208,490 --------------- Computer Software-17.4% Electronic Arts, Inc.(a)* 438,000 28,180,920 McAfee, Inc.(a)* 987,200 25,519,120 Mercury Interactive Corp.(a)* 474,200 20,755,734 Microsoft Corp. 4,776,200 125,518,536 NAVTEQ(a)* 634,100 24,279,689 Oracle Corp.(a) 7,220,600 99,427,662 SAP AG (ADR) (Germany)* 1,930,400 74,745,088 Symantec Corp.(a)* 1,418,200 33,114,970 ------------ 431,541,719 --------------- Contract Manufacturing-1.0% Hon Hai Precision Industry Co., Ltd. Citigroup Global Markets warrants, expiring 1/17/07 (Taiwan)(a)(b) 5,882,117 25,934,254 --------------- - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 9 Company Shares U.S. $ Value - ------------------------------------------------------------------------------- Electronic Components-1.5% LG Philips LCD Co., Ltd. (ADR) (South Korea)(a)* 1,696,100 $ 36,635,760 --------------- Internet-8.4% Amazon.com, Inc.(a)* 467,500 20,205,350 eBay, Inc.(a)* 449,700 36,650,550 Google, Inc. Cl.A(a)* 189,800 37,130,574 SINA Corp. (ADR) (China)(a)* 405,000 10,732,500 Yahoo!, Inc.(a)* 2,924,500 102,971,645 --------------- 207,690,619 --------------- Internet Infrastructure-1.4% Fastweb (Italy)(a) 510,267 24,742,246 VeriSign, Inc.(a) 423,600 10,945,824 --------------- 35,688,070 --------------- Semi-Conductor Capital Equipment-2.6% ASML Holding N.V. (The Netherlands)(a) 969,200 15,887,794 FormFactor, Inc.(a)* 224,800 5,118,696 KLA-Tencor Corp.(a)* 488,550 22,595,438 Lam Research Corp.(a)* 762,000 20,391,120 --------------- 63,993,048 --------------- Semi-Conductor Components-16.1% Broadcom Corp. Cl.A(a)* 1,251,400 39,832,062 Intel Corp. 4,885,600 109,681,720 Linear Technology Corp. 885,300 33,411,222 Marvell Technology Group, Ltd. (Bermuda)(a)* 2,713,500 90,766,575 Samsung Electronics Co., Ltd. (GDR) (South Korea)(b) 268,616 64,467,840 Taiwan Semiconductor Manufacturing Co., Ltd. ABN Amro Bank warrants, expiring 1/09/06 (Taiwan)(a)(b) 31,433,522 51,550,976 Taiwan Semiconductor Manufacturing Co., Ltd. Merril Lynch International & Co. warrants, expiring 11/21/05 (Taiwan)(a) 5,711,000 10,799,501 --------------- 400,509,896 --------------- Miscellaneous-5.3% Canon, Inc. (Japan) 777,000 40,503,154 Hoya Corp. (Japan) 895,500 92,162,458 --------------- 132,665,612 --------------- 2,188,642,517 --------------- Consumer Services-7.4% Broadcasting & Cable-2.7% News Corp. Cl.A* 1,523,500 25,899,500 Time Warner, Inc.(a)* 2,321,300 41,783,400 --------------- 67,682,900 --------------- - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 10 Shares or Principal Amount Company (000) U.S. $ Value - ------------------------------------------------------------------------------- Cellular Communications-4.7% America Movil S.A. de C.V. (ADR)(Mexico)* 891,600 $ 47,308,296 mm02 Plc (United Kingdom)(a) 10,546,735 24,994,844 Nextel Communications, Inc. Cl.A(a)* 615,100 17,647,219 Vodafone Group Plc (ADR) (United Kingdom)* 1,012,773 26,311,843 --------------- 116,262,202 --------------- 183,945,102 --------------- Capital Goods-1.4% Electrical Equipment-0.1% Funai Electric Co., Ltd. (Japan) 25,500 2,921,034 --------------- Miscellaneous-1.3% Nitto Denko Corp. (Japan) 608,600 32,344,741 --------------- 35,265,775 --------------- Utilities-0.8% Telephone Utility-0.8% Sprint Corp. 767,000 18,277,610 --------------- Total Common Stocks & Other Investments (cost $2,046,835,734) 2,426,131,004 --------------- SHORT-TERM INVESTMENT-1.8% Time Deposit-1.8% State Street Euro Dollar 1.60%, 2/01/05 (cost $45,891,000) $?45,891 45,891,000 --------------- Total Investments Before Security Lending Collateral-99.5% (cost $2,092,726,734) 2,472,022,004 --------------- INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED-29.7% Short-Term Investments ASB Bank 2.32%, 2/02/05 15,000 14,946,100 Credit Suisse 2.29%, 2/01/05 50,000 50,000,000 Deutsche Bank 2.50%, 2/01/05 260,000 259,981,945 Federal Home Loan Bank 1.27%-1.44%, 3/08/05-4/26/05 45,000 45,000,000 Federal Home Loan Mortgage Corp. 2.41%, 9/09/05 25,000 25,000,000 Goldman Sachs 2.60%, 7/15/05 50,000 50,000,000 Gotham 2.43%-2.55%, 2/01/05-2/07/05 78,833 78,802,042 Morgan Stanley 2.53%-2.60%, 2/01/05-6/07/05 135,000 134,995,783 - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 11 Shares or Principal Amount Company (000) U.S. $ Value - ------------------------------------------------------------------------------- Steamboat Funding Corp. 2.50%, 2/03/05 $ ??61,444 $ 61,418,398 Wells Fargo 2.47%, 3/24/05 9,000 9,028,691 --------------- 729,172,959 --------------- UBS Private Money Market Fund, LLC, 2.29% 9,285,937 9,285,937 --------------- Total Investment of Cash Collateral for Securities Loaned (cost $738,458,896) 738,458,896 --------------- Total Investments-129.2% (cost $2,831,185,630) 3,210,480,900 Other assets less liabilities-(29.2%) (725,956,618) --------------- Net Assets-100% $2,484,524,282 =============== * Represents entire or partial securities out on loan. See Note E for securities lending information. (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 January 31, 2005, the aggregate market value of these securities amounted to $141,953,070 or 5.71% of net assets. Glossary of Terms: ADR - American Depositary Receipt. GDR - Global Depositary Receipt. See notes to financial statements. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 12 STATEMENT OF ASSETS & LIABILITIES January 31, 2005 (unaudited) Assets Investments in securities, at value (cost $2,831,185,630--including investment of cash collateral for securities loaned of $738,458,896) $3,210,480,900(a) Cash 95,743 Foreign cash, at value (cost $12,960,687) 12,960,687 Receivable for investment securities sold 82,779,074 Receivable for capital stock sold 12,560,935 Dividends and interest receivable 1,109,443 -------------- Total assets 3,319,986,782 -------------- Liabilities Payable for collateral on securities loaned 738,458,896 Payable for investment securities purchased 66,473,156 Payable for capital stock redeemed 21,967,117 Advisory fee payable 4,666,947 Transfer Agent fee payable 932,340 Distribution fee payable 353,593 Administrative fee payable 31,801 Accrued expenses and other liabilities 2,578,650 -------------- Total liabilities 835,462,500 -------------- Net Assets $2,484,524,282 ============== Composition of Net Assets Capital stock, at par $488,154 Additional paid-in capital 5,003,246,518 Accumulated net investment loss (12,196,523) Accumulated net realized loss on investment and foreign currency transactions (2,886,289,995) Net unrealized appreciation of investments and foreign currency denominated assets and liabilities 379,276,128 -------------- $2,484,524,282 ============== Calculation of Maximum Offering Price Class A Shares Net asset value and redemption price per share ($1,108,099,518 / 20,683,686 shares of capital stock issued and outstanding) $53.57 Sales charge--4.25% of public offering price 2.38 ------ Maximum offering price $55.95 ====== Class B Shares Net asset value and offering price per share ($998,328,751 / 20,560,780 shares of capital stock issued and outstanding) $48.56 ====== Class C Shares Net asset value and offering price per share ($290,948,894 / 5,987,347 shares of capital stock issued and outstanding) $48.59 ====== Class R Shares Net asset value, redemption and offering price per share ($55,247 / 1,033 shares of capital stock issued and outstanding) $53.46 ====== Advisor Class Shares Net asset value, redemption and offering price per share ($87,091,872 / 1,582,532 shares of capital stock issued and outstanding) $55.03 ====== (a) Includes securities on loan with a value of $724,741,741 (see Note E). See notes to financial statements. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 13 STATEMENT OF OPERATIONS Six Months Ended January 31, 2005 (unaudited) Investment Income Dividends (net of foreign taxes withheld of $485,885) $14,361,166 Interest 668,570 $15,029,736 ----------- Expenses Advisory fee 10,188,377 Distribution fee--Class A 1,708,387 Distribution fee--Class B 5,421,848 Distribution fee--Class C 1,554,649 Distribution fee--Class R 116 Transfer agency 7,268,641 Printing 983,212 Custodian 237,453 Directors' fees 59,641 Registration 56,948 Administrative 46,446 Legal 44,457 Audit 35,410 Miscellaneous 92,101 Total expenses 27,697,686 ----------- Less: expenses waived by the Adviser (see Note B) (664,562) Less: expense offset arrangement (see Note B) (1,942) ----------- Net expenses 27,031,182 ------------ Net investment loss (12,001,446) ------------ Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions Net realized gain (loss) on: Investment transactions 199,090,160 Foreign currency transactions (730,262) Net change in unrealized appreciation/depreciation of: Investments 35,922,237 Foreign currency denominated ?? assets and liabilities (18,706) ------------ Net gain on investment and foreign currency transactions 234,263,429 ------------ Net Increase in Net Assets from Operations $222,261,983 ============ See notes to financial statements. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 14 STATEMENT OF CHANGES IN NET ASSETS Six Months Ended January 31, 2005 Year Ended (unaudited) July 31, 2004 ================ =============== Increase (Decrease) in Net Assets from Operations Net investment loss $ (12,001,446) $ (56,556,359) Net realized gain on investment and foreign currency transactions 198,359,898 592,189,106 Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities 35,903,531 (384,374,969) -------------- -------------- Net increase in net assets from operations 222,261,983 151,257,778 Capital Stock Transactions Net decrease (344,360,569) (674,559,162) -------------- -------------- Total decrease (122,098,586) (523,301,384) Net Assets Beginning of period 2,606,622,868 3,129,924,252 -------------- -------------- End of period, (including accumulated net investment loss of ($12,196,523) and ($195,077), respectively) $2,484,524,282 $2,606,622,868 ============== ============== See notes to financial statements. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 15 NOTES TO FINANCIAL STATEMENTS January 31, 2005 (unaudited) NOTE A Significant Accounting Policies AllianceBernstein Global Technology Fund, Inc. (the "Fund"), formerly AllianceBernstein Technology Fund, Inc., is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund offers Class?A, Class B, Class C, Class R and Advisor Class 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 shares are sold without an initial or contingent deferred sales charge and are offered to certain group retirement plans. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. Advisor Class shares are offered to investors participating in fee-based programs and to certain retirement plan accounts. All five classes of shares have identical voting, dividend, liquidation and other rights, except that each class bears different distribution expenses and has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with 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. Additional information about some of the items discussed in these Notes to Financial Statements is contained in the Fund's Statement of Additional Information, which is available upon request. The following is a summary of significant accounting policies followed by the Fund. 1. Security Valuation Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are?deemed unreliable, at "fair value" as determined in accordance with procedures established by and under the general supervision of the Fund's Board of Directors. In general, the market value of securities which are readily available and deemed reliable are determined as follows. Securities listed on a national securities exchange or on a foreign securities exchange are valued at the last sale price at the?close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices on such day. Securities listed on more than one exchange are valued by ref- - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 16 erence to the principal exchange on which the securities are traded; securities not?listed on an exchange but traded on The NASDAQ Stock Market, Inc. ("NASDAQ") are valued in accordance with the NASDAQ Official Closing Price; listed put or call options are valued at the last sale price. If there has been no sale on that day, such securities will be valued at the closing bid prices on that day; open futures contracts and options thereon are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; securities traded in the over-the-counter market, ("OTC") (but excluding securities traded on NASDAQ) are valued at the mean of the current bid and asked prices as reported by the National Quotation Bureau or other comparable sources; U.S. Government securities and other debt instruments having 60 days or less remaining until maturity are valued at amortized cost if their original maturity was 60 days or less; or by amortizing their fair value as of the 61st day prior to maturity if their original term to maturity exceeded 60 days; fixed-income securities, including mortgage backed and asset backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker/dealers. In cases where broker/dealer quotes are obtained, Alliance Capital Management, L.P. (the "Adviser") may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security; and OTC and other derivatives are valued on the basis of a quoted bid price or spread from a major broker/dealer in such security. Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because, most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using?fair value prices based on third party vendor modeling tools to the extent available. 2. Currency Translation Assets and liabilities denominated in foreign currencies and commitments under forward exchange currency contracts are translated into U.S. dollars at the mean of the quoted bid and asked prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 17 Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, foreign currency exchange contracts, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of investments and foreign currency denominated assets and liabilities. 3. Taxes It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of?its investment company taxable income?and net realized gains, if any, to shareholders. Therefore, no provisions for?federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned. 4. Investment Income and Investment Transactions Dividend income is recorded on the ex-dividend date, or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the trade date the securities are purchased or sold. Investment gains and losses are determined on the identified cost basis. The Fund accretes discounts as adjustments to interest income. 5. Income and Expenses All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except that the Fund's Class?B and Class C shares bear higher distribution and transfer agent fees than?Class A, Class R and Advisor Class shares. Advisor Class shares have no distribution fees. 6. Dividends and Distributions Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gain 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 GLOBAL TECHNOLOGY FUND 18 NOTE B Advisory Fee and Other Transactions With Affiliates Until September 6, 2004, under the terms of an investment advisory agreement, the Fund paid the Adviser a quarterly advisory fee equal to the following percentages of the value of the Fund's aggregate net assets at the close of business on the last business day of the previous quarter: .25 of 1.00% of the first $10 billion, .25 of .975% of the next $2.5 billion, .25 of .95% of the next $2.5 billion, .25 of .925% of the next $2.5 billion, .25 of .90% of the next $2.5 billion, .25 of .875% of the next $2.5 billion and .25 of .85% of the net assets in excess of $22.5 billion. Effective September 7, 2004, the terms of the investment advisory agreement were amended so that the Fund pays the Adviser a reduced quarterly advisory fee equal to the following percentages of the value of the Fund's aggregate net assets at the close of business on the last business day of the previous quarter: .25 of .75% of the first $2.5 billion, .25 of .65% of the next $2.5 billion, and .25 of .60% of the net assets in excess of $5 billion. Effective January 1, 2004 through September 6, 2004, in contemplation of the?final agreement with the Office of New York Attorney General ("NYAG"), the Adviser began waiving a portion of its advisory fee so as to charge the Fund at the reduced annual rate discussed above. From August 1, 2004 through September 6, 2004, such waiver amounted to $664,562. For a more complete discussion of the Adviser's settlement with the NYAG, please see "Legal Proceedings" below. Pursuant to the advisory agreement, the Fund paid $46,446 to the Adviser representing the cost of certain legal and accounting services provided to the Fund by the Adviser for the six months ended January 31, 2005. The Fund compensates Alliance Global Investor Services, Inc. (AGIS), a wholly-owned subsidiary of the Adviser, under a Transfer?Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. Such compensation amounted to $3,645,540 for the six months ended January 31, 2005. For the six months ended January 31, 2005 the Fund's expenses were reduced by $1,942 under an expense offset arrangement with AGIS. AllianceBernstein Investment Research and Management, 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 $13,367 from the sales of Class A shares and received $29,197, $397,673, and $8,876 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 January 31, 2005. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 19 Brokerage commissions paid on investment transactions for the six months ended January 31, 2005 amounted to $5,140,063, of which $615,365 was paid to Sanford C. Bernstein & Co. LLC, an affiliate of the Adviser. NOTE C Distribution Services Agreement The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an?annual rate of up to .30% of the Fund's average daily net assets attributable to Class A shares and 1% of the Fund's average daily net assets attributable to both Class B and Class C shares and .50% of the Fund's average daily net assets attributable to Class R shares. There are no distribution and servicing fees on the Advisor Class shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Distributor has advised the Fund that it has incurred expenses in excess?of the distribution costs reimbursed by?the Fund in the amounts of $78,039,236,?$7,123,096 and?$385 for Class B, Class C and Class?R shares, respectively; such costs may be recovered from the Fund in future periods so long as the Agreement is in effect. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares. NOTE D Investment Transactions Purchases and sales of investment securities (excluding short-term investments) for the six months ended January 31, 2005, were as follows: Purchases Sales ============== ============== Investment securities (excluding U.S. government securities) $1,218,860,109 $1,609,497,000 U.S. government securities -0- -0- 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 (excluding foreign currency transactions) are as follows: Gross unrealized appreciation $396,609,578 Gross unrealized depreciation (17,314,308) ------------ Net unrealized appreciation $379,295,270 ============ - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 20 Option Transactions For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign government securities and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the?same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid. When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears?the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value. NOTE E Securities Lending The Fund has entered into a securities lending agreement with AG Edwards & Sons, Inc. (the "Lending Agent"). Under the terms of the agreement, the Lending Agent, on behalf of the Fund, administers the lending of portfolio securities to certain broker-dealers. In return, the Fund receives fee income from the lending transactions or it retains a portion of interest on the investment of any cash received as collateral. The Fund also continues to receive dividends or interest on the securities loaned. Unrealized gain or loss on the value of the securities loaned that may occur during the term of the loan will be reflected in the accounts of the Fund. All loans are continuously secured by collateral exceeding the value of the securities loaned. All collateral consists of either cash or U.S. government securities. The Lending Agent may invest the cash collateral - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 21 received in accordance with the investment restrictions of the Fund in one or more of the following investments: U.S. government or U.S. government agency obligations, bank obligations, corporate debt obligations, asset-backed securities, investment funds, structured products, repurchase agreements and an?eligible money market fund. The Lending Agent will indemnify the Fund for any loss resulting from a borrower's failure to return a?loaned security when due. As of January 31, 2005, the Fund had loaned securities with a value of $724,741,741 and received cash collateral which was invested in short-term securities valued at $738,458,896 as included in the accompanying portfolio of investments. For the?six months ended January 31, 2005, the?Fund earned fee income of $289,422 which is included in interest income in the accompanying?statement of operations. NOTE F Capital Stock There are 15,000,000,000 shares of $0.01 par value capital stock authorized, divided into five classes, designated Class A, Class B, Class C, Advisor Class and Class R shares. Each class consists of 3,000,000,000 authorized shares. Transactions in capital stock were as follows: Shares Amount - ------------------------------------------------------------------------------- Six Months Ended Six Months Ended January 31, Year Ended January 31, Year Ended 2005 July 31, 2005 July 31, (unaudited) 2004 (unaudited) 2004 - ------------------------------------------------------------------------------- Class A Shares sold 1,364,313 5,185,412 $71,429,972 $272,184,753 - ------------------------------------------------------------------------------- Shares converted from Class B 790,104 2,127,361 41,772,996 112,659,496 - ------------------------------------------------------------------------------- Shares redeemed (4,105,046) (9,686,757) (215,620,580) (512,074,234) - ------------------------------------------------------------------------------- Net decrease (1,950,629) (2,373,984)$(102,417,612) $(127,229,985) - ------------------------------------------------------------------------------- Class B Shares sold 392,687 1,476,123 $18,539,992 $71,526,650 - ------------------------------------------------------------------------------- Shares converted to Class A (870,526) (2,305,939) (41,772,996) (112,659,496) - ------------------------------------------------------------------------------- Shares redeemed (3,583,254) (7,966,434) (170,016,177) (385,253,557) - ------------------------------------------------------------------------------- Net decrease (4,061,093) (8,796,250)$(193,249,181) $(426,386,403) - ------------------------------------------------------------------------------- Class C Shares sold 175,893 548,863 $8,330,339 $26,563,961 - ------------------------------------------------------------------------------- Shares redeemed (1,189,177) (2,662,309) (56,615,538) (129,071,486) - ------------------------------------------------------------------------------- Net decrease (1,013,284) (2,113,446) $(48,285,199) $(102,507,525) ============================================================================== - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 22 Shares Amount - ------------------------------------------------------------------------------- Six Months Ended Six Months Ended January 31, Year Ended January 31, Year Ended 2005 July 31, 2005 July 31, (unaudited) 2004 (unaudited) 2004 - ------------------------------------------------------------------------------- Advisor Class Shares sold 148,013 363,853 $8,196,081 $19,837,797 - ------------------------------------------------------------------------------- Shares redeemed (161,103) (696,202) (8,631,276) (38,298,227) - ------------------------------------------------------------------------------- Net increase (decrease) (13,090) (332,349) $(435,195) $(18,460,430) ============================================================================== Six Months Ended Six Months Ended January 31, November 3, January 31, November 3, 2005 2003(a) to 2005 2003(a) to (unaudited) July 31, 2004 (unaudited) July 31, 2004 - ------------------------------------------------------------------------------- Class R Shares sold 819 539 $39,707 $28,510 - ------------------------------------------------------------------------------- Shares redeemed (263) (62) (13,089) (3,329) - ------------------------------------------------------------------------------- Net increase 556 477 $26,618 $25,181 ============================================================================== (a) Commencement of distributions. NOTE G Risks Involved in Investing in the Fund Foreign Securities Risk--Investing in securities of foreign companies or foreign governments involves special risks which include changes in foreign exchange rates and the possibility of the future political and economic developments which?could adversely affect the value of such securities. Moreover, securities of?many foreign companies or foreign governments and their markets may be less?liquid and their prices more volatile than those of comparable United States companies or of the United States 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 H Joint Credit Facility A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $500 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 January 31, 2005. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 23 NOTE I Components of Accumulated Earnings (Deficit) The tax character of distributions to be paid for the year ending July 31, 2005 will be determined at the end of the current fiscal year. As of July 31, 2004, the components of accumulated earnings/(deficit) on a tax basis were as follows: Accumulated capital and other losses $(2,965,388,076)(a) Unrealized appreciation/(depreciation) 223,915,703 --------------- Total accumulated earnings/(deficit) $(2,741,472,373)(b) =============== (a) On July 31, 2004, the Fund had a net capital loss carryforward for federal income tax purposes of $2,965,192,999, of which $1,183,573,611 expires in the year 2009, $1,330,398,762 expires in the year 2010, and $451,220,626 expires in the year 2011. To the extent future capital gains are offset by capital loss carryforwards, such gains will not be distributed. Net capital loss incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds next taxable year. For the year ended July 31, 2004, the Fund deferred to August 1, 2004, post-October currency losses of $195,077. During the fiscal year, the Fund utilized capital loss carryforwards of $308,735,173. (b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales. NOTE J Legal Proceedings As has been previously reported, the staff of the U.S. Securities and Exchange Commission ("SEC") and the NYAG have been investigating practices in the mutual fund industry identified as "market timing" and "late trading" of mutual fund shares. Certain other regulatory authorities have also been conducting investigations into these practices within the industry and have requested that the Adviser provide information to them. The Adviser has been cooperating and will continue to cooperate with all of these authorities. On December 18, 2003, the Adviser confirmed that it had reached terms with the SEC and the NYAG for the resolution of regulatory claims relating to the practice of "market timing" mutual fund shares in some of the AllianceBernstein Mutual Funds. The agreement with the SEC is reflected in an Order of the Commission ("SEC Order"). The agreement with the NYAG is memorialized in an Assurrance of Discontinuance dated September 1, 2004 ("NYAG Order"). Among the key provisions of these agreements are the following: (i) The Adviser agreed to establish a $250 million fund (the "Reimbursement Fund") to compensate mutual fund shareholders for the adverse effects of market timing attributable to market timing relationships described in the SEC Order. According to the SEC Order, the Reimbursement Fund is to be paid, in order of priority, to fund investors based on (i) their aliquot share of losses suffered by the fund due to market timing, and (ii) a proportionate share of advisory fees paid by such fund during the period of such market timing; - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 24 (ii) The Adviser agreed to reduce the advisory fees it receives from some of?the AllianceBernstein long-term, open-end retail funds until December 31, 2008; and (iii) The Adviser agreed to implement changes to its governance and compliance procedures. Additionally, the SEC Order and the NYAG Order contemplate that the Adviser's registered investment company clients, including the Fund, will introduce governance and compliance changes. In anticipation of final, definitive documentation of the NYAG Order and effective January 1, 2004, the Adviser began waiving a portion of its advisory fee. On September 7, 2004, the Fund's investment advisory agreement was amended to reflect the reduced advisory fee. For more information on this waiver and amendment to the Fund's investment advisory agreement, please see "Advisory Fee and?Other Transactions with Affiliates" above. A special committee of the Adviser's Board of Directors, comprised of the members of the Adviser's Audit Committee and the other independent member of the Adviser's Board, is continuing to direct and oversee an internal investigation and a comprehensive review of the facts and circumstances relevant to the SEC's and the NYAG's investigations. In addition, the Independent Directors of the Fund ("the Independent Directors") have initiated an investigation of the above-mentioned matters with the?advice of an independent economic consultant and independent counsel. The?Independent Directors have formed a special committee to supervise the investigation. On October 2, 2003, a putative class action complaint entitled Hindo et al. v. AllianceBernstein Growth & Income Fund et al. (the "Hindo Complaint") was filed against the Adviser; Alliance Capital Management Holding L.P.; Alliance Capital Management Corporation; AXA Financial, Inc.; certain of the AllianceBernstein Mutual Funds, including the Fund; Gerald Malone; Charles Schaffran (collectively, the "Alliance Capital defendants"); and certain other defendants not affiliated with the Adviser. 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 Mutual Funds. The Hindo Complaint alleges that certain of the Alliance Capital 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. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 25 Since October 2, 2003, numerous additional lawsuits making factual allegations similar to those in the Hindo Complaint were filed against the Adviser and certain other defendants, some of which name the Trust or the Fund as a defendant. All of these lawsuits seek an unspecified amount of damages. The lawsuits are now pending in the United States District Court for the District of Maryland pursuant to a ruling by the Judicial Panel on Multidistrict Litigation transferring and centralizing all of the mutual fund cases involving market and late trading in the District of Maryland. As a result of the matters discussed above, investors in the AllianceBernstein Mutual Funds may choose to redeem their investments. 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. The Adviser and approximately twelve other investment management firms were?publicly mentioned in connection with the settlement by the SEC of charges that an unaffiliated broker/dealer violated federal securities laws relating to its receipt of compensation for selling specific mutual funds and the disclosure of such compensation. The SEC has indicated publicly that, among other things, it is considering enforcement action in connection with mutual funds' disclosure of such arrangements and in connection with the practice of considering mutual fund sales in the direction of brokerage commissions from fund portfolio transactions. The SEC has issued subpoenas to the Adviser, and the NASD has issued requests for information, in connection with this matter and the Adviser has provided documents and other information to the SEC and NASD and is cooperating fully with the investigations. On March 11, 2005, discussions commenced with the NASD that management believes will conclude these investigations. On June 22, 2004, a purported class action complaint entitled Aucoin, et al. v. Alliance Capital Management L.P., et al. ("Aucoin Complaint") was filed against the Adviser, Alliance Capital Management Holding L.P., Alliance Capital Management Corporation, AXA Financial, Inc., AllianceBernstein Investment Research & Management, Inc., certain current and former directors of the AllianceBernstein Mutual Funds, and unnamed Doe defendants. The Aucoin Complaint names certain of the AllianceBernstein mutual funds as nominal defendants. The Aucoin Complaint was filed in the United States District Court for?the Southern District of New York by an alleged shareholder of an AllianceBernstein mutual fund. The Aucoin Complaint alleges, among other things, (i) that certain of the defendants improperly authorized the payment of excessive commissions and other fees from fund assets to broker-dealers in exchange for preferential marketing services, (ii) that certain of the defendants misrepresented and omitted from registration statements and other reports material facts concerning such payments, and (iii) that certain defendants caused such conduct as control persons of other defendants. The Aucoin Complaint - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 26 asserts claims for violation of Sections 34(b), 36(b) and 48(a) of the Investment Company Act, Sections 206 and 215 of the Advisers Act, breach of common law fiduciary duties, and aiding and abetting breaches of common law fiduciary duties. Plaintiffs seek an unspecified amount of compensatory damages and punitive damages, rescission of their contracts with the Adviser, including recovery of?all fees paid to the Adviser pursuant to such contracts, an accounting of all fund-related fees, commissions and soft dollar payments, and restitution of all unlawfully or discriminatorily obtained fees and expenses. Since June 22, 2004, numerous additional lawsuits making factual allegations substantially similar to those in the Aucoin Complaint were filed against the Adviser and certain other defendants, and others may be filed. It is possible that these matters and/or other developments resulting from these matters could result in increased redemptions of the Fund's shares or other adverse consequences to the Fund. 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 Fund. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 27 FINANCIAL HIGHLIGHTS Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A ---------------------------------------------------------------------------------------------- Six Months December 1, Ended Year 2002 January 31, Ended to Year Ended November 30, 2005 July 31, July 31, ---------------------------------------------- (unaudited) 2004 2003(a) 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------- Net asset value, beginning of period $49.14 $47.44 $43.48 $67.05 $95.32 $111.46 $68.60 ---------------------------------------------------------------------------------------------- Income From Investment Operations Net investment loss(b) (.14)(c) (.72)(c)(d) (.54) (.87) (.82) (1.35) (.99) Net realized and unrealized gain (loss) on investment and foreign currency transactions 4.57 2.42 4.50 (22.70) (21.17) (10.75) 49.02 ---------------------------------------------------------------------------------------------- Net increase (decrease) in net asset value from operations 4.43 1.70 3.96 (23.57) (21.99) (12.10) 48.03 ---------------------------------------------------------------------------------------------- Less: Distributions Distributions from net realized gain on investment transactions -0- -0- -0- -0- (5.86) (4.04) (5.17) Distributions in excess of net realized gain on investment transactions -0- -0- -0- -0- (.42) -0- -0- ---------------------------------------------------------------------------------------------- Total distributions -0- -0- -0- -0- (6.28) (4.04) (5.17) ---------------------------------------------------------------------------------------------- Net asset value, end of period $53.57 $49.14 $47.44 $43.48 $67.05 $95.32 $111.46 ============================================================================================== Total Return Total investment return based on net asset value(e) 9.02% 3.58% 9.11% (35.15)% (24.90)% (11.48)% 74.67% Ratios/Supplemental Data Net assets, end of period (000's omitted) $1,108,099 $1,112,174 $1,186,488 $1,096,744 $1,926,473 $2,650,904 $2,167,060 Ratio to average net assets of: Expenses, net of waivers/ ?? reimbursements 1.67%(f) 1.65% 2.24%(f) 1.85% 1.58% 1.50% 1.68%(g) Expenses, before waivers/ ? ?reimbursements 1.72%(f) 1.81% 2.24%(f) 1.85% 1.58% 1.50% 1.68%(g) Net investment loss (.52%)(c)(f) (1.36)%(c)(d) (1.95)%(f) (1.64)% (1.08)% (.98)% (1.11)% Portfolio turnover rate 48% 80% 127% 117% 55% 46% 54%
See footnote summary on page 33. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 28 Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B ---------------------------------------------------------------------------------------------- Six Months December 1, Ended Year 2002 January 31, Ended to Year Ended November 30, 2005 July 31, July 31, ---------------------------------------------- (unaudited) 2004 2003(a) 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------- Net asset value, beginning of period $44.71 $43.49 $40.06 $62.27 $89.59 $105.73 $65.75 ---------------------------------------------------------------------------------------------- Income From Investment Operations Net investment loss(b) (.31)(c) (1.03)(c)(d) (.69) (1.16) (1.28) (2.17) (1.54) Net realized and unrealized gain (loss) on investment and foreign currency transactions 4.16 2.25 4.12 (21.05) (19.76) (9.93) 46.69 ---------------------------------------------------------------------------------------------- Net increase (decrease) in net asset value from operations 3.85 1.22 3.43 (22.21) (21.04) (12.10) 45.15 ---------------------------------------------------------------------------------------------- Less: Distributions Distributions from net realized gain on investment transactions -0- -0- -0- -0- (5.86) (4.04) (5.17) Distributions in excess of net realized gain on investment transactions -0- -0- -0- -0- (.42) -0- -0- ---------------------------------------------------------------------------------------------- Total distributions -0- -0- -0- -0- (6.28) (4.04) (5.17) ---------------------------------------------------------------------------------------------- Net asset value, end of period $48.56 $44.71 $43.49 $40.06 $62.27 $89.59 $105.73 ============================================================================================== Total Return Total investment return based on net asset value(e) 8.61% 2.81% 8.56% (35.67)% (25.46)% (12.12)% 73.44% Ratios/Supplemental Data Net assets, end of period (000's omitted) $998,329 $1,100,840 $1,453,453 $1,539,144 $3,092,947 $4,701,567 $3,922,584 Ratio to average net assets of: Expenses, net of waivers/ reimbursements 2.44%(f) 2.42% 3.02%(f) 2.58% 2.31% 2.20% 2.39%(g) Expenses, before waivers/ reimbursements 2.49%(f) 2.58% 3.02%(f) 2.58% 2.31% 2.20% 2.39%(g) Net investment loss (1.29)%(c)(f) (2.13)%(c)(d) (2.73)%(f) (2.37)% (1.80)% (1.68)% (1.83)% Portfolio turnover rate 48% 80% 127% 117% 55% 46% 54%
See footnote summary on page 33. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 29 Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C ---------------------------------------------------------------------------------------------- Six Months December 1, Ended Year 2002 January 31, Ended to Year Ended November 30, 2005 July 31, July 31, ---------------------------------------------- (unaudited) 2004 2003(a) 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------- Net asset value, beginning of period $44.73 $43.50 $40.07 $62.25 $89.55 $105.69 $65.74 ---------------------------------------------------------------------------------------------- Income From Investment Operations Net investment loss(b) (.30)(c) (1.02)(c)(d) (.68) (1.15) (1.28) (2.19) (1.57) Net realized and unrealized gain (loss) on investment and foreign currency transactions 4.16 2.25 4.11 (21.03) (19.74) (9.91) 46.69 ---------------------------------------------------------------------------------------------- Net increase (decrease) in net asset value from operations 3.86 1.23 3.43 (22.18) (21.02) (12.10) 45.12 ---------------------------------------------------------------------------------------------- Less: Distributions Distributions from net realized gain on investment transactions -0- -0- -0- -0- (5.86) (4.04) (5.17) Distributions in excess of net realized gain on investment transactions -0- -0- -0- -0- (.42) -0- -0- ---------------------------------------------------------------------------------------------- Total distributions -0- -0- -0- -0- (6.28) (4.04) (5.17) ---------------------------------------------------------------------------------------------- Net asset value, end of period $48.59 $44.73 $43.50 $40.07 $62.25 $89.55 $105.69 ============================================================================================== Total Return Total investment return based on net asset value(e) 8.63% 2.83% 8.56% (35.63)% (25.45)% (12.13)% 73.40% Ratios/Supplemental Data Net assets, end of period (000's omitted) $290,949 $313,166 $396,472 $410,649 $835,406 $1,252,765 $907,707 Ratio to average net assets of: Expenses, net of waivers/ reimbursements 2.40%(f) 2.39% 3.01%(f) 2.55% 2.30% 2.21% 2.41%(g) Expenses, before waivers/ reimbursements 2.45%(f) 2.55% 3.01%(f) 2.55% 2.30% 2.21% 2.41%(g) Net investment loss (1.25)%(c)(f) (2.10)%(c)(d) (2.72)%(f) (2.34)% (1.80)% (1.69)% (1.85)% Portfolio turnover rate 48% 80% 127% 117% 55% 46% 54%
See footnote summary on page 33. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 30 Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class R -------------------------------------- Six Months Ended November 3, January 31, 2003(h) to 2005 July 31, (unaudited) 2004 -------------------------------------- Net asset value, beginning of period $49.08 $54.17 -------------------------------------- Income From Investment Operations Net investment loss(b) (.18)(c) (.77)(c)(d) Net realized and unrealized gain (loss) on investment and foreign currency transactions 4.56 (4.32) -------------------------------------- Net increase (decrease) in net asset value from operations 4.38 (5.09) -------------------------------------- Net asset value, end of period $53.46 $49.08 ====================================== Total Return Total investment return based on net asset value(e) 8.93% (9.40)% Ratios/Supplemental Data Net assets, end of period (000's omitted) $55 $23 Ratio to average net assets of: Expenses, net of waivers/ reimbursements(f) 1.86% 1.73% Expenses, before waivers/ reimbursements(f) 1.91% 1.97% Net investment loss(f) (.65)%(c) (1.42)%(c)(d) Portfolio turnover rate 48% 80%
See footnote summary on page 33. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 31 Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class ---------------------------------------------------------------------------------------------- Six Months December 1, Ended Year 2002 January 31, Ended to Year Ended November 30, 2005 July 31, July 31, ---------------------------------------------- (unaudited) 2004 2003(a) 2002 2001 2000 1999 ---------------------------------------------------------------------------------------------- Net asset value, beginning of period $50.40 $48.50 $44.36 $68.21 $96.60 $112.59 $69.04 Income From Investment Operations Net investment loss(b) (.06)(c) (.58)(c)(d) (.46) (.72) (.60) (.91) (.68) Net realized and unrealized gain (loss) on investment and foreign currency transactions 4.69 2.48 4.60 (23.13) (21.51) (11.04) 49.40 ---------------------------------------------------------------------------------------------- Net increase (decrease) in net asset value from operations 4.63 1.90 4.14 (23.85) (22.11) (11.95) 48.72 ---------------------------------------------------------------------------------------------- Less: Distributions Distributions from net realized gain on investment transactions -0- -0- -0- -0- (5.89) (4.04) (5.17) Distributions in excess of net realized gain on investment transactions -0- -0- -0- -0- (.39) -0- -0- ---------------------------------------------------------------------------------------------- Total distributions -0- -0- -0- -0- (6.28) (4.04) (5.17) ---------------------------------------------------------------------------------------------- Net asset value, end of period $55.03 $50.40 $48.50 $44.36 $68.21 $96.60 $112.59 ============================================================================================== Total Return Total investment return based on net asset value(e) 9.19% 3.92% 9.33% (34.96)% (24.68)% (11.22)% 75.22% Ratios/Supplemental Data Net assets, end of period (000's omitted) $87,092 $80,420 $93,511 $83,018 $231,167 $288,889 $330,404 Ratio to average net assets of: Expenses, net of waivers/ ? ?reimbursements 1.37%(f) 1.35% 1.94%(f) 1.49% 1.27% 1.19% 1.35%(g) Expenses, before waivers/ ? ?reimbursements 1.42%(f) 1.51% 1.94%(f) 1.49% 1.27% 1.19% 1.35%(g) Net investment loss (.22)%(c)(f) (1.06)%(c)(d) (1.65)%(f) (1.29)% (.78)% (.66)% (.78)% Portfolio turnover rate 48% 80% 127% 117% 55% 46% 54%
See footnote summary on page 33. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 32 (a) The Fund changed its fiscal year end from November 30 to July 31. (b) Based on average shares outstanding. (c) Net of fees and expenses waived/reimbursed by the Adviser. (d) Net of fees and expenses waived/reimbursed by the Transfer Agent. (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) Annualized. (g) Ratio reflects expenses grossed up for the expenses offset arrangement with the Transfer Agent. For the period shown below, the net expense ratios were as follows: Year Ended November 30, 1999 ------------ Class A 1.66% Class B 2.38% Class C 2.40% Advisor Class 1.34% (h) Commencement of distributions. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 33 BOARD OF DIRECTORS William H. Foulk, Jr.(1), Chairman Marc O. Mayer, President Robert C. Alexander(1) David H. Dievler(1) D. James Guzy(1) Marshall C. Turner, Jr.(1) OFFICERS Philip L. Kirstein, Senior Vice President and Independent Compliance Officer Janet A. Walsh(2), Senior Vice President Thomas J. Bardong, Vice President Mark R. Manley, Secretary Mark D. Gersten, Treasurer & Chief Financial Officer Vincent S. Noto, Controller Custodian State Street Bank & Trust Company 225 Franklin Street Boston, MA 02110 Distributor AllianceBernstein Investment Research and Management, 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 Alliance Global Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-free (800) 221-5672 Independent Registered Public Accounting?Firm Ernst & Young LLP 5 Times Square New York, NY 10036 (1) Member of the Audit Committee and Governance and Nominating Committee. (2) Ms. Walsh is the person primarily responsible for the day-to-day management of the Fund's investment portfolio. - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 34 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 All-Asia Investment Fund Global Health Care Fund* Global Research Growth Fund Global Technology Fund* Greater China '97 Fund International Premier Growth Fund New Europe Fund Worldwide Privatization Fund Value Funds - ------------------------------------------ Domestic Balanced Shares Focused Growth & Income Fund* Growth & Income Fund Real Estate Investment Fund Small/Mid-Cap Value Fund** Utility Income Fund Value Fund Global & International Global Value Fund International Value Fund Taxable Bond Funds - -------------------------------- Americas Government Income Trust Corporate Bond Portfolio Emerging Market Debt Fund Global Strategic Income Trust High Yield Fund Multi-Market Strategy Trust Quality Bond Portfolio Short Duration Portfolio U.S. Government Portfolio Municipal Bond Funds - ------------------------------------------ National Insured National Arizona California Insured California Florida Massachusetts Michigan Minnesota New Jersey New York Ohio Pennsylvania Virginia Intermediate Municipal Bond Funds - ------------------------------------------ Intermediate California Intermediate Diversified Intermediate New York Closed-End Funds - ------------------------------------------ All-Market Advantage Fund ACM Income Fund ACM Government Opportunity Fund ACM Managed Dollar Income Fund ACM Managed Income Fund ACM Municipal Securities Income Fund California Municipal Income Fund National Municipal Income Fund New York Municipal Income Fund The Spain Fund World Dollar Government Fund World Dollar Government Fund II We also offer Exchange Reserves,*** which serves as the money market fund exchange vehicle for the AllianceBernstein mutual funds. For more complete information on any AllianceBernstein mutual fund, including investment objectives and policies, sales charges, expenses, risks and other matters of importance to prospective investors, visit our web site at www.alliancebernstein.com or call us at (800) 227-4618 for a current prospectus. You should read the prospectus carefully before you invest. * Prior to December 15, 2004, these Funds were named as follows: Global Health Care Fund was Health Care Fund; Large Cap Growth Fund was Premier Growth Fund; Global Technology Fund was Technology Fund; and Focused Growth & Income Fund was Disciplined Value Fund. ** Prior to February 1, 2005, Small/Mid-Cap Value Fund was named Small Cap Value 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 GLOBAL TECHNOLOGY FUND 35 NOTES - ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 36 ALLIANCEBERNSTEIN GLOBAL TECHNOLOGY FUND 1345 Avenue of the Americas New York, NY 10105 Toll-free 1 (800) 221-5672 [LOGO] ALLIANCEBERNSTEIN (SM) Investment Research and Management (SM) This service mark used under license from the owner, Alliance Capital Management L.P. TECSR0105 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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to the registrant. ITEM 9. 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 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. (b) There were no significant changes in the registrant's internal controls over financial reporting that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 11. EXHIBITS. The following exhibits are attached to this Form N-CSR: Exhibit No. DESCRIPTION OF EXHIBIT 11 (b) (1) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 11 (b) (2) Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 11 (c) Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant): AllianceBernstein Global Technology Fund, Inc. By: /s/ Marc O. Mayer ----------------- Marc O. Mayer President Date: March 31, 2005 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: March 31, 2005 By: /s/ Mark D. Gersten ----------------- Mark D. Gersten Treasurer and Chief Financial Officer Date: March 31, 2005 EX-99.CERT 2 edg10818_302b.txt CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER I, Marc O. Mayer, certify that: 1. I have reviewed this report on Form N-CSR (the "Report") of AllianceBernstein Global Technology Fund, Inc. (the "Fund"); 2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; 3. Based on my knowledge, the financial statements and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this Report; 4. The Fund's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) and internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) for the Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the Fund's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this Report based on such evaluation; and d) disclosed in this Report any change in the Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal half-year [or second fiscal half-year in the case of an annual report] that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer and I have disclosed to the Fund's auditors and the audit committee of the Fund's board of directors: a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal control over financial reporting. Date: March 31, 2005 /s/ Marc O. Mayer ----------------- Marc O. Mayer President CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER I, Mark D. Gersten, certify that: 1. I have reviewed this report on Form N-CSR (the "Report") of AllianceBernstein Global Technology Fund, Inc. (the "Fund"); 2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; 3. Based on my knowledge, the financial statements and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this Report; 4. The Fund's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) and internal control over financial reporting (as defined in Rule30a-3(d) under the Investment Company Act of 1940) for the Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the Fund's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this Report based on such evaluation; and d) disclosed in this Report any change in the Fund's internal control over financial reporting that occurred during the Fund's most recent fiscal half-year [or second fiscal half-year in the case of an annual report] that has materially affected, or is reasonably likely to materially affect, the Fund's internal control over financial reporting; and 5. The Fund's other certifying officer and I have disclosed to the Fund's auditors and the audit committee of the Fund's board of directors: a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund's internal control over financial reporting. Date: March 31, 2005 /s/ Mark D. Gersten -------------------- Mark D. Gersten Treasurer and Chief Financial Officer EX-99.906 CERT 3 edg10818_906b.txt CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Pursuant to 18 U.S.C. 1350, each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of AllianceBernstein Global Technology Fund, Inc. (the "Registrant"), hereby certifies that the Registrant's report on Form N-CSR for the period ended January 31, 2005 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: March 31, 2005 By: /s/ Marc O. Mayer ---------------------------- Marc O. Mayer President By: /s/ Mark D. Gersten ---------------------------- Mark D. Gersten Treasurer and Chief Financial Officer This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----