-----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, DhOeH/LOnOEqmQkXlZi2MldMBY6YVGcB4t0D0uSZAUfOPTUTdVhuGve6Qhl/B9/O Stekbn1q6bTTo6F8Zhb4Vg== 0000919574-07-005554.txt : 20071116 0000919574-07-005554.hdr.sgml : 20071116 20071116122601 ACCESSION NUMBER: 0000919574-07-005554 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20071116 DATE AS OF CHANGE: 20071116 EFFECTIVENESS DATE: 20071116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND INC CENTRAL INDEX KEY: 0000825316 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-18647 FILM NUMBER: 071252218 BUSINESS ADDRESS: STREET 1: ALLIANCEBERNSTEIN LP STREET 2: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2129691000 MAIL ADDRESS: STREET 1: ALLIANCEBERNSTEIN LP STREET 2: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 0000825316 S000010429 AllianceBernstein International Growth Portfolio C000028824 Class A C000028825 Class B 497 1 d813639a_497.txt This is filed pursuant to Rule 497(c). File Nos. 33-18647 and 811-05398. ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. - ALLIANCEBERNSTEIN INTERNATIONAL GROWTH PORTFOLIO 1345 Avenue of the Americas New York, New York Toll Free (800) 221-5672 - -------------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION November 1, 2007 This Statement of Additional Information (the "SAI") relates to the acquisition (the "Acquisition") of all of the assets and liabilities of AllianceBernstein International Research Growth Portfolio ("International Research Growth"), a series of AllianceBernstein Variable Products Series Fund, Inc. ("AVP"), by AllianceBernstein International Growth Portfolio ("International"), another series of AVP. Each of International Research Growth and International is sometimes referred to as a "Portfolio" and together, the "Portfolios". This SAI contains information which may be of interest to shareholders but which is not included in the Prospectus dated November 1, 2007 (the "Prospectus") of International which relates to the Acquisition. As described in the Prospectus, the Acquisition would involve the transfer of all the assets of International Research Growth in exchange for shares of International and the assumption by International of all the liabilities of International Research Growth. International Research Growth would distribute the International shares it receives to its shareholders in complete liquidation of International Research Growth. International will be the survivor for accounting purposes. This SAI is not a prospectus and should be read in conjunction with the Prospectus. The Prospectus has been filed with the Securities and Exchange Commission (the "SEC") and is available upon request and without charge by writing to International Research Growth at 1345 Avenue of the Americas, New York, New York 10105, or by calling 1-800-221-5672. - -------------------------------------------------------------------------------- TABLE OF CONTENTS Page ADDITIONAL INFORMATION ABOUT INTERNATIONAL AND INTERNATIONAL RESEARCH GROWTH FINANCIAL STATEMENTS Additional Information about International and International Research Growth Further information about International and International Research Growth is contained in their Statements of Additional Information each dated May 1, 2007, which are incorporated herein by reference and available upon request and without charge by writing to International Research Growth at 1345 Avenue of the Americas, New York, New York 10105, or by calling 1-800-221-5672. Financial Statements The financial statements and Report of Independent Registered Public Accounting Firm contained in the Annual Report for the twelve months ended December 31, 2006, of International which report contains historical financial information regarding International, has been filed with the SEC and is incorporated herein by reference. International's Semi-Annual Report dated June 30, 2007 is also incorporated herein by reference. The financial statements and Report of Independent Registered Public Accounting Firm contained in the Annual Report for the twelve months ended December 31, 2006, of International Research Growth, which report contains historical financial information regarding International Research Growth, has been filed with the SEC and is incorporated herein by reference. International Research Growth's Semi-Annual Report dated June 30, 2007 is also incorporated herein by reference. The following represents the pro forma financial information. The pro forma financial statements give effect to the Acquisition of the assets and liabilities of International Research Growth by International in exchange for shares of International pursuant to the Plan of Acquisition and Liquidation. International's unaudited pro forma Portfolio of Investments, Statement of Assets and Liabilities and Statement of Operations are prepared as though the Acquisition was effective for the period July 1, 2006 - June 30, 2007. PRO FORMA ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. FINANCIAL STATEMENTS ALLIANCEBERNSTEIN INTERNATIONAL GROWTH PORTFOLIO ALLIANCEBERNSTEIN INTERNATIONAL RESEARCH GROWTH PORTFOLIO November 1, 2007 (unaudited)
PORTFOLIO OF INVESTMENTS PRO FORMA ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND INTERNATIONAL GROWTH PORTFOLIO AllianceBernstein Variable Products Series Fund - International Growth Portfolio June 30, 2007 (unaudited) AllianceBernstein Variable Products Series Fund - International Research Growth Portfolio - ------------------------------------------------------------------------------------------------------------------------------------ AllianceBernstein AllianceBernstein AllianceBernstein AllianceBernstein Variable Products Variable Products Variable Products Variable Products Series Fund Series Fund Series Fund Series Fund International International International International Growth Growth Research Growth Research Growth Portfolio Portfolio Portfolio Portfolio Company Shares (U.S. $ Value) Shares (U.S. $ Value) Adjustments - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 97.9% FINANCIALS - 27.6% CAPITAL MARKETS - 10.0% 3i Group PLC 56,766 $ 1,321,377 -0- $ -0- $ -0- BlueBay Asset Management/United Kingdom (a) -0- -0- 59,876 591,734 -0- Credit Suisse Group 43,820 3,110,829 43,257 3,070,861 -0- Macquarie Bank Ltd. 21,694 1,558,176 30,599 2,197,781 -0- Man Group PLC -0- -0- 80,333 977,164 -0- Nomura Holdings, Inc. 127,600 2,478,421 43,800 850,743 -0- Partners Group -0- -0- 7,553 1,013,473 -0- UBS AG (Swiss Virt-X) 28,895 1,728,046 40,836 2,442,169 -0- ----------- ------------ --------- 10,196,849 11,143,925 -0- ----------- ------------ --------- COMMERCIAL BANKS - 14.4% Allied Irish Banks PLC 38,326 1,046,949 24,358 665,618 -0- Anglo Irish Bank Corp. PLC (Dublin) 55,731 1,143,793 -0- -0- -0- Anglo Irish Bank Corp. PLC (London Exchange) -0- -0- 45,102 917,201 -0- Banco Bilbao Vizcaya Argentaria, SA 87,252 2,133,739 28,317 692,489 -0- Banco Santander Chile, SA (ADR) 6,300 312,102 -0- -0- -0- Bank Central Asia Tbk PT 995,500 600,281 -0- -0- -0- Bank Hapoalim BM 120,758 588,321 -0- -0- -0- Bank Mandiri Persero Tbk PT -0- -0- 1,479,500 511,478 -0- BNP Paribas, SA 15,702 1,865,140 5,018 596,056 -0- China Construction Bank Corp.-Class H -0- -0- 1,453,000 999,152 -0- Commerzbank AG 20,805 992,309 -0- -0- -0- Industrial & Commercial Bank of China, Ltd.-Class H 2,692,000 1,496,369 1,459,000 810,996 -0- Investimentos Itau, SA 367,162 2,282,153 88,455 549,806 -0- Kookmin Bank (ADR) 14,308 1,255,098 -0- -0- -0- Malayan Banking Bhd 246,100 855,224 216,400 752,013 -0- Mitsubishi UFJ Financial Group, Inc. 202 2,226,179 -0- -0- -0- Standard Chartered -0- -0- 38,798 1,265,489 -0- Turkiye Is Bankasi-Class C 207,668 964,953 103,535 481,086 -0- UniCredito Italiano SpA 323,500 2,889,374 180,873 1,615,486 -0- VTB Bank OJSC (GDR) (a)(b) 10,500 115,290 -0- -0- -0- ----------- ------------ --------- 20,767,274 9,856,870 -0- ----------- ------------ ---------- DIVERSIFIED FINANCIAL SERVICES - 1.5% Deutsche Boerse AG -0- -0- 3,316 372,320 -0- FirstRand Ltd. 383,559 1,219,265 -0- -0- -0- IG Group Holdings PLC -0- -0- 72,801 429,800 -0- ING Groep NV 25,557 1,124,861 -0- -0- -0- ----------- ------------ --------- 2,344,126 802,120 -0- ----------- ------------ --------- INSURANCE - 1.7% Prudential PLC 1,085 15,444 -0- -0- -0- QBE Insurance Group Ltd. -0- -0- 62,073 1,637,796 -0- Swiss Reinsurance 14,923 1,360,979 7,496 683,636 -0- ----------- ------------ --------- 1,376,423 2,321,432 -0- ----------- ------------ --------- 34,684,672 24,124,347 -0- ----------- ------------ --------- CONSUMER DISCRETIONARY - 12.0% AUTO COMPONENTS - 0.8% Denso Corp. 27,700 1,083,365 13,500 527,994 -0- ----------- ------------ --------- AUTOMOBILES - 2.5% Fiat SpA 85,545 2,511,230 45,887 1,362,976 -0- Suzuki Motor Corp. 37,100 1,053,566 15,000 425,970 -0- ----------- ------------ --------- 3,564,796 1,788,946 -0- ----------- ------------ --------- HOTELS, RESTAURANTS & LEISURE - 2.0% Accor, SA 18,507 1,636,033 7,347 649,481 -0- OPAP, SA 30,727 1,085,686 -0- -0- -0- Punch Taverns PLC -0- -0- 35,983 882,785 -0- ----------- ------------ --------- 2,721,719 1,532,266 -0- ----------- ------------ --------- HOUSEHOLD DURABLES - 1.3% Daiwa House Industry Co. Ltd. 37,000 528,840 -0- -0- -0- Gafisa, SA (ADR) (a) -0- -0- 6,800 212,160 -0- Sony Corp. 12,700 651,914 6,600 338,790 -0- Urbi Desarrollos Urbanos, SA de C.V. (a) 149,800 689,827 72,100 332,019 -0- ----------- ------------ --------- 1,870,581 882,969 -0- ----------- ------------ --------- LEISURE EQUIPMENT & PRODUCTS - 0.2% Largan Precision Co., Ltd. -0- -0- 37,000 518,372 -0- ----------- ------------ --------- MEDIA - 3.4% Eutelsat Communications 16,110 391,696 14,804 359,942 -0- Grupo Televisa, SA (ADR) 30,900 853,149 21,300 588,093 -0- Naspers Ltd.-Class N 43,353 1,113,842 -0- -0- -0- Pearson PLC -0- -0- 28,880 486,490 -0- Premiere AG (a) -0- -0- 20,035 479,320 -0- SES Global -FDR 27,855 601,541 -0- -0- -0- Societe Television Francaise 1 27,255 942,039 -0- -0- -0- WPP Group PLC 62,895 940,687 34,906 522,071 -0- ----------- ------------ --------- 4,842,954 2,435,916 -0- ----------- ------------ --------- MULTILINE RETAIL - 0.5% Lotte Shopping Co. Ltd. 2,765 1,077,158 -0- -0- -0- ----------- ------------ --------- (TABLE CONTINUED) PORTFOLIO OF INVESTMENTS PRO FORMA ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND INTERNATIONAL GROWTH PORTFOLIO AllianceBernstein Variable Products Series Fund - International Growth Portfolio June 30, 2007 (unaudited) AllianceBernstein Variable Products Series Fund - International Research Growth Portfolio - ------------------------------------------------------------------------------------------------------------------------------------ Pro Forma Pro Forma AllianceBernstein AllianceBernstein Variable Products Variable Products Series Fund Series Fund International International Growth Growth Portfolio Portfolio Company Shares (U.S. $ Value) - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS - 97.9% FINANCIALS - 27.6% CAPITAL MARKETS - 10.0% 3i Group PLC 56,766 $ 1,321,377 BlueBay Asset Management/United Kingdom (a) 59,876 591,734 Credit Suisse Group 87,077 6,181,690 Macquarie Bank Ltd. 52,293 3,755,957 Man Group PLC 80,333 977,164 Nomura Holdings, Inc. 171,400 3,329,164 Partners Group 7,553 1,013,473 UBS AG (Swiss Virt-X) 69,731 4,170,215 ------------ 21,340,774 ------------ COMMERCIAL BANKS - 14.4% Allied Irish Banks PLC 62,684 1,712,567 Anglo Irish Bank Corp. PLC (Dublin) 55,731 1,143,793 Anglo Irish Bank Corp. PLC (London Exchange) 45,102 917,201 Banco Bilbao Vizcaya Argentaria, SA 115,569 2,826,228 Banco Santander Chile, SA (ADR) 6,300 312,102 Bank Central Asia Tbk PT 995,500 600,281 Bank Hapoalim BM 120,758 588,321 Bank Mandiri Persero Tbk PT 1,479,500 511,478 BNP Paribas, SA 20,720 2,461,196 China Construction Bank Corp.-Class H 1,453,000 999,152 Commerzbank AG 20,805 992,309 Industrial & Commercial Bank of China, Ltd.-Class H 4,151,000 2,307,365 Investimentos Itau, SA 455,617 2,831,959 Kookmin Bank (ADR) 14,308 1,255,098 Malayan Banking Bhd 462,500 1,607,237 Mitsubishi UFJ Financial Group, Inc. 202 2,226,179 Standard Chartered 38,798 1,265,489 Turkiye Is Bankasi-Class C 311,203 1,446,039 UniCredito Italiano SpA 504,373 4,504,860 VTB Bank OJSC (GDR) (a)(b) 10,500 115,290 ------------ 30,624,144 ------------ DIVERSIFIED FINANCIAL SERVICES - 1.5% Deutsche Boerse AG 3,316 372,320 FirstRand Ltd. 383,559 1,219,265 IG Group Holdings PLC 72,801 429,800 ING Groep NV 25,557 1,124,861 ------------ 3,146,246 ------------ INSURANCE - 1.7% Prudential PLC 1,085 15,444 QBE Insurance Group Ltd. 62,073 1,637,796 Swiss Reinsurance 22,419 2,044,615 ------------ 3,697,855 ------------ 58,809,019 ------------ CONSUMER DISCRETIONARY - 12.0% AUTO COMPONENTS - 0.8% Denso Corp. 41,200 1,611,359 ------------ AUTOMOBILES - 2.5% Fiat SpA 130,432 3,874,206 Suzuki Motor Corp. 52,100 1,479,536 ------------ 5,353,742 ------------ HOTELS, RESTAURANTS & LEISURE - 2.0% Accor, SA 25,854 2,285,514 OPAP, SA 30,727 1,085,686 Punch Taverns PLC 35,983 882,785 ------------ 4,253,985 ------------ HOUSEHOLD DURABLES - 1.3% Daiwa House Industry Co. Ltd. 37,000 528,840 Gafisa, SA (ADR) (a) 6,800 212,160 Sony Corp. 19,300 990,704 Urbi Desarrollos Urbanos, SA de C.V. (a) 221,900 1,021,846 ------------ 2,753,550 ------------ LEISURE EQUIPMENT & PRODUCTS - 0.2% Largan Precision Co., Ltd. 37,000 518,372 ------------ MEDIA - 3.4% Eutelsat Communications 30,914 751,638 Grupo Televisa, SA (ADR) 52,200 1,441,242 Naspers Ltd.-Class N 43,353 1,113,842 Pearson PLC 28,880 486,490 Premiere AG (a) 20,035 479,320 SES Global -FDR 27,855 601,541 Societe Television Francaise 1 27,255 942,039 WPP Group PLC 97,801 1,462,758 ------------ 7,278,870 ------------ MULTILINE RETAIL - 0.5% Lotte Shopping Co. Ltd. 2,765 1,077,158 ------------
- ------------------------------------------------------------------------------------------------------------------------------------ AllianceBernstein AllianceBernstein AllianceBernstein AllianceBernstein Variable Products Variable Products Variable Products Variable Products Series Fund Series Fund Series Fund Series Fund International International International International Growth Growth Research Growth Research Growth Portfolio Portfolio Portfolio Portfolio Company Shares (U.S. $ Value) Shares (U.S. $ Value) Adjustments - ------------------------------------------------------------------------------------------------------------------------------------ SPECIALTY RETAIL - 1.2% Esprit Holdings Ltd. -0- $ -0- 31,369 $ 398,558 $ -0- Fast Retailing Co. Ltd. 8,100 576,521 -0- -0- -0- Inditex, SA 12,479 734,503 7,345 432,320 -0- Praktiker Bau- und Heimwerkermaerkte AG 8,574 347,768 -0- -0- -0- ----------- ------------ --------- 1,658,792 830,878 -0- ----------- ------------ --------- TEXTILES, APPAREL & LUXURY GOODS - 0.1% Geox SpA -0- -0- 10,919 201,108 -0- ----------- ------------ --------- 16,819,365 8,718,449 -0- ----------- ------------ --------- INDUSTRIALS - 10.2% AEROSPACE & DEFENSE - 0.7% BAE Systems PLC 96,244 776,640 76,137 614,387 -0- ----------- ------------ --------- AIRLINES - 0.4% easyJet PLC (a) 71,197 745,657 -0- -0- -0- ----------- ------------ --------- BUILDING PRODUCTS - 1.5% Asahi Glass Co. Ltd. 48,000 647,204 22,000 296,635 -0- Cie de Saint-Gobain 16,134 1,807,373 3,873 433,864 -0- ----------- ------------ --------- 2,454,577 730,499 -0- ----------- ------------ --------- COMMERCIAL SERVICES & SUPPLIES - 0.9% Capita Group PLC 93,365 1,355,365 -0- -0- -0- Michael Page International PLC -0- -0- 49,605 521,148 -0- ----------- ------------ --------- 1,355,365 521,148 -0- ----------- ------------ --------- CONSTRUCTION & ENGINEERING- 1.1% Vinci, SA 20,692 1,544,391 11,580 864,297 -0- ----------- ------------ --------- ELECTRICAL EQUIPMENT - 0.5% ABB Ltd. -0- -0- 14,588 328,927 -0- Fuji Electric Holdings Co. Ltd. 109,000 552,883 31,000 157,242 -0- ----------- ------------ --------- 552,883 486,169 -0- ----------- ------------ --------- INDUSTRIAL CONGLOMERATES - 0.3% Barloworld Ltd. 26,031 723,306 -0- -0- -0- ----------- ------------ --------- MACHINERY - 2.4% Atlas Copco AB 96,822 1,612,693 68,634 1,143,186 -0- Hitachi Construction Machinery Co. Ltd. 22,100 767,885 -0- -0- -0- Komatsu Ltd. -0- -0- 26,300 762,255 -0- NGK Insulators Ltd. -0- -0- 9,000 221,032 -0- NSK Ltd. -0- -0- 23,000 237,783 -0- Tata Motors Ltd. 17,660 290,857 -0- -0- -0- ----------- ------------ --------- 2,671,435 2,364,256 -0- ----------- ------------ --------- TRADING COMPANIES & DISTRIBUTORS - 1.9% Mitsubishi Corp. -0- -0- 35,500 930,172 -0- Mitsui & Co. Ltd. 67,000 1,337,119 53,000 1,057,722 -0- Wolseley PLC 34,083 817,982 -0- -0- -0- ----------- ------------ --------- 2,155,101 1,987,894 -0- ----------- ------------ --------- TRANSPORTATION INFRASTRUCTURE - 0.5% Cia de Concessoes Rodoviarias 24,400 453,215 -0- -0- -0- Fraport AG Frankfurt Airport Services Worldwide 8,738 622,170 -0- -0- -0- ----------- ------------ --------- 1,075,385 -0- -0- ----------- ------------ --------- 14,054,740 7,568,650 -0- ----------- ------------ --------- ENERGY - 10.0% ENERGY EQUIPMENT & SERVICES- 1.8% Schlumberger, Ltd. -0- -0- 5,700 484,158 -0- Technip, SA 10,224 845,039 -0- -0- -0- Tenaris, SA (ADR) -0- -0- 20,000 979,200 -0- WorleyParsons Ltd. -0- -0- 48,556 1,396,718 -0- ----------- ------------ --------- 845,039 2,860,076 -0- ----------- ------------ --------- OIL, GAS & CONSUMABLE FUELS - 8.2% Addax Petroleum Corp. -0- -0- 6,892 257,758 -0- China Shenhua Energy Co. Ltd.-Class H -0- -0- 338,500 1,181,150 -0- Gazprom OAO (ADR) 33,207 1,391,373 31,871 1,335,395 -0- LUKOIL (ADR) -0- -0- 12,420 952,614 -0- MOL Hungarian Oil and Gas NyRt 4,281 645,049 -0- -0- -0- Oil Search Ltd. -0- -0- 259,601 921,838 -0- Origin Energy Ltd. -0- -0- 60,675 510,194 -0- Petro-Canada 21,605 1,150,982 -0- -0- -0- Petroleo Brasileiro, SA (NY) (ADR) 17,300 1,845,564 11,580 1,235,354 -0- Royal Dutch Shell PLC-Class A 33,979 1,383,317 -0- -0- -0- Total, SA 38,281 3,103,756 19,737 1,600,241 -0- ----------- ------------ --------- 9,520,041 7,994,544 -0- ----------- ------------ --------- 10,365,080 10,854,620 -0- ----------- ------------ --------- HEALTH CARE - 8.0% BIOTECHNOLOGY - 1.1% CSL Ltd./Australia 26,969 2,007,506 4,136 307,874 -0- ----------- ------------ --------- HEALTH CARE EQUIPMENT & SUPPLIES - 1.8% Essilor International, SA 14,670 1,747,282 7,495 892,698 -0- Nobel Biocare Holding AG 2,625 856,882 1,108 361,686 -0- ----------- ------------ --------- 2,604,164 1,254,384 -0- ----------- ------------ --------- PHARMACEUTICALS - 5.1% Daiichi Sankyo Co. Ltd. -0- -0- 10,200 270,633 -0- Merck KGaA 12,266 1,678,232 2,702 369,687 -0- Novartis AG 35,212 1,976,822 19,671 1,104,341 -0- Roche Holding AG 8,794 1,558,179 6,473 1,146,929 -0- Shionogi & Co. Ltd. 72,000 1,173,612 -0- -0- -0- Teva Pharmaceutical Industries, Ltd. (ADR) 28,800 1,188,000 9,100 375,375 -0- ----------- ------------ --------- 7,574,845 3,266,965 -0- ----------- ------------ --------- 12,186,515 4,829,223 -0- ----------- ------------ --------- - ------------------------------------------------------------------------------------------------------------------------------------ Pro Forma Pro Forma AllianceBernstein AllianceBernstein Variable Products Variable Products Series Fund Series Fund International International Growth Growth Portfolio Portfolio Company Shares (U.S. $ Value) - ------------------------------------------------------------------------------------------------------------------------------------ SPECIALTY RETAIL - 1.2% Esprit Holdings Ltd. 31,369 $ 398,558 Fast Retailing Co. Ltd. 8,100 576,521 Inditex, SA 19,824 1,166,823 Praktiker Bau- und Heimwerkermaerkte AG 8,574 347,768 ------------ 2,489,670 ------------ TEXTILES, APPAREL & LUXURY GOODS - 0.1% Geox SpA 10,919 201,108 ------------ 25,537,814 ------------ INDUSTRIALS - 10.2% AEROSPACE & DEFENSE - 0.7% BAE Systems PLC 172,381 1,391,027 ------------ AIRLINES - 0.4% easyJet PLC (a) 71,197 745,657 ------------ BUILDING PRODUCTS - 1.5% Asahi Glass Co. Ltd. 70,000 943,839 Cie de Saint-Gobain 20,007 2,241,237 ------------ 3,185,076 ------------ COMMERCIAL SERVICES & SUPPLIES - 0.9% Capita Group PLC 93,365 1,355,365 Michael Page International PLC 49,605 521,148 ------------ 1,876,513 ------------ CONSTRUCTION & ENGINEERING- 1.1% Vinci, SA 32,272 2,408,688 ------------ ELECTRICAL EQUIPMENT - 0.5% ABB Ltd. 14,588 328,927 Fuji Electric Holdings Co. Ltd. 140,000 710,125 ------------ 1,039,052 ------------ INDUSTRIAL CONGLOMERATES - 0.3% Barloworld Ltd. 26,031 723,306 ------------ MACHINERY - 2.4% Atlas Copco AB 165,456 2,755,879 Hitachi Construction Machinery Co. Ltd. 22,100 767,885 Komatsu Ltd. 26,300 762,255 NGK Insulators Ltd. 9,000 221,032 NSK Ltd. 23,000 237,783 Tata Motors Ltd. 17,660 290,857 ------------ 5,035,691 ------------ TRADING COMPANIES & DISTRIBUTORS - 1.9% Mitsubishi Corp. 35,500 930,172 Mitsui & Co. Ltd. 120,000 2,394,841 Wolseley PLC 34,083 817,982 ------------ 4,142,995 ------------ TRANSPORTATION INFRASTRUCTURE - 0.5% Cia de Concessoes Rodoviarias 24,400 453,215 Fraport AG Frankfurt Airport Services Worldwide 8,738 622,170 ------------ 1,075,385 ------------ 21,623,390 ------------ ENERGY - 10.0% ENERGY EQUIPMENT & SERVICES- 1.8% Schlumberger, Ltd. 5,700 484,158 Technip, SA 10,224 845,039 Tenaris, SA (ADR) 20,000 979,200 WorleyParsons Ltd. 48,556 1,396,718 ------------ 3,705,115 ------------ OIL, GAS & CONSUMABLE FUELS - 8.2% Addax Petroleum Corp. 6,892 257,758 China Shenhua Energy Co. Ltd.-Class H 338,500 1,181,150 Gazprom OAO (ADR) 65,078 2,726,768 LUKOIL (ADR) 12,420 952,614 MOL Hungarian Oil and Gas NyRt 4,281 645,049 Oil Search Ltd. 259,601 921,838 Origin Energy Ltd. 60,675 510,194 Petro-Canada 21,605 1,150,982 Petroleo Brasileiro, SA (NY) (ADR) 28,880 3,080,918 Royal Dutch Shell PLC-Class A 33,979 1,383,317 Total, SA 58,018 4,703,997 ------------ 17,514,585 ------------ 21,219,700 ------------ HEALTH CARE - 8.0% BIOTECHNOLOGY - 1.1% CSL Ltd./Australia 31,105 2,315,380 ------------ HEALTH CARE EQUIPMENT & SUPPLIES - 1.8% Essilor International, SA 22,165 2,639,980 Nobel Biocare Holding AG 3,733 1,218,568 ------------ 3,858,548 ------------ PHARMACEUTICALS - 5.1% Daiichi Sankyo Co. Ltd. 10,200 270,633 Merck KGaA 14,968 2,047,919 Novartis AG 54,883 3,081,163 Roche Holding AG 15,267 2,705,108 Shionogi & Co. Ltd. 72,000 1,173,612 Teva Pharmaceutical Industries, Ltd. (ADR) 37,900 1,563,375 ------------ 10,841,810 ------------ 17,015,738 ------------
- ------------------------------------------------------------------------------------------------------------------------------------ AllianceBernstein AllianceBernstein AllianceBernstein AllianceBernstein Variable Products Variable Products Variable Products Variable Products Series Fund Series Fund Series Fund Series Fund International International International International Growth Growth Research Growth Research Growth Portfolio Portfolio Portfolio Portfolio Company Shares (U.S. $ Value) Shares (U.S. $ Value) Adjustments - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 7.5% BEVERAGES - 1.7% Fomento Economico Mexicano SAB de CV (ADR) 12,500 $ 491,500 14,668 $ 576,746 $ -0- Pernod-Ricard, SA 7,272 1,605,566 3,904 861,954 -0- ----------- ----------- --------- 2,097,066 1,438,700 -0- ----------- ----------- --------- FOOD PRODUCTS - 1.9% Nestle, SA 6,950 2,640,816 3,684 1,399,823 -0- ----------- ----------- --------- PERSONAL PRODUCTS - 1.3% L'Oreal, SA 16,613 1,963,668 7,431 878,349 -0- ----------- ----------- ---------- TOBACCO - 2.6% Altadis, SA 14,290 944,417 5,489 362,764 -0- British American Tobacco PLC 38,162 1,301,533 26,126 891,040 -0- Japan Tobacco, Inc. 380 1,873,114 52 256,321 -0- ----------- ----------- --------- 4,119,064 1,510,125 -0- ----------- ----------- --------- 10,820,614 5,226,997 -0- ----------- ----------- --------- TELECOMMUNICATION SERVICES - 7.4% DIVERSIFIED TELECOMMUNICATION SERVICES - 2.7% Iliad, SA -0- -0- 3,560 358,591 -0- Neuf Cegetel (a) -0- -0- 9,442 369,426 -0- Telefonica, SA 68,343 1,520,910 44,487 990,017 -0- Telekom Austria AG 34,697 864,053 19,736 491,482 -0- Telekomunikasi Indonesia Tbk PT 1,120,500 1,215,506 -0- -0- -0- ----------- ----------- --------- 3,600,469 2,209,516 -0- ----------- ----------- --------- WIRELESS TELECOMMUNICATION SERVICES - 4.7% America Movil SAB de CV Series L (ADR) 32,600 2,018,918 9,100 563,563 -0- Bharti Airtel Ltd. (a) 94,349 1,939,289 11,968 245,996 -0- China Mobile Ltd. -0- -0- 14,271 153,542 -0- MTN Group Ltd. 78,486 1,066,852 -0- -0- -0- NTT DoCoMo, Inc. 404 638,966 -0- -0- -0- Orascom Telecom Holding SAE (GDR) (b) 10,604 688,200 4,547 295,100 -0- Turkcell Iletisim Hizmet AS -0- 3 -0- -0- -0- Vimpel-Communications (ADR) 10,000 1,053,600 2,895 305,017 -0- Vodafone Group PLC -0- -0- 315,465 1,057,064 -0- ----------- ----------- --------- 7,405,828 2,620,282 -0- ----------- ----------- --------- 11,006,297 4,829,798 -0- ----------- ----------- --------- MATERIALS - 6.4% CHEMICALS - 0.8% Bayer AG -0- -0- 8,099 610,067 -0- Incitec Pivot Ltd. -0- -0- 4,852 327,849 -0- Nitto Denko Corp. 9,700 488,914 5,800 292,340 -0- ----------- ----------- --------- 488,914 1,230,256 -0- ----------- ----------- --------- METALS & MINING - 5.6% Cia Vale do Rio Doce (ADR) 29,500 1,314,225 46,800 1,764,360 -0- Cia Vale do Rio Doce (Sponsored) (ADR) 23,600 889,720 -0- -0- -0- Minara Resources Ltd. -0- -0- 80,921 496,297 -0- Rio Tinto PLC 17,840 1,364,828 26,826 2,052,291 -0- Usinas Siderurgicas de Minas Gerais, SA 9,300 612,768 -0- -0- -0- Xstrata PLC 27,162 1,617,035 28,852 1,717,646 -0- ----------- ----------- --------- 5,798,576 6,030,594 -0- ----------- ----------- --------- 6,287,490 7,260,850 -0- ----------- ----------- --------- INFORMATION TECHNOLOGY - 6.1% COMMUNICATIONS EQUIPMENT- 1.7% Delta Networks, Inc. (a) -0- -0- 25,000 14,388 -0- Nokia OYJ 68,283 1,917,748 56,935 1,599,035 -0- ----------- ----------- --------- 1,917,748 1,613,423 -0- ----------- ----------- --------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0% AU Optronics Corp. -0- -0- 126,000 215,243 -0- AU Optronics Corp. (ADR) 28,000 481,600 -0- -0- -0- Hoya Corp. 16,400 544,039 9,900 328,414 -0- Integra Group Holdings (GDR) (a) 32,515 591,773 -0- -0- -0- ----------- ----------- --------- 1,617,412 543,657 -0- ----------- ----------- --------- IT SERVICES - 1.4% Cap Gemini, SA -0- -0- 3,711 271,307 -0- Indra Sistemas, SA 20,102 501,269 -0- -0- -0- Infosys Technologies Ltd. (ADR) -0- -0- 12,300 619,674 -0- LogicaCMG PLC 266,999 809,117 -0- -0- -0- Otsuka Corp. -0- -0- 2,600 246,583 -0- Tata Consultancy Services Ltd. 20,335 575,229 -0- -0- -0- ----------- ----------- --------- 1,885,615 1,137,564 -0- ----------- ----------- --------- OFFICE ELECTRONICS- 1.4% Canon, Inc. 28,100 1,647,869 22,100 1,296,011 -0- ----------- ----------- --------- - ------------------------------------------------------------------------------------------------------------------------------------ Pro Forma Pro Forma AllianceBernstein AllianceBernstein Variable Products Variable Products Series Fund Series Fund International International Growth Growth Portfolio Portfolio Company Shares (U.S. $ Value) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 7.5% BEVERAGES - 1.7% Fomento Economico Mexicano SAB de CV (ADR) 27,168 $ 1,068,246 Pernod-Ricard, SA 11,176 2,467,520 ----------- 3,535,766 ----------- FOOD PRODUCTS - 1.9% Nestle, SA 10,634 4,040,639 ----------- PERSONAL PRODUCTS - 1.3% L'Oreal, SA 24,044 2,842,017 ----------- TOBACCO - 2.6% Altadis, SA 19,779 1,307,181 British American Tobacco PLC 64,288 2,192,573 Japan Tobacco, Inc. 432 2,129,435 ----------- 5,629,189 ----------- 16,047,611 ----------- TELECOMMUNICATION SERVICES - 7.4% DIVERSIFIED TELECOMMUNICATION SERVICES - 2.7% Iliad, SA 3,560 358,591 Neuf Cegetel (a) 9,442 369,426 Telefonica, SA 112,830 2,510,927 Telekom Austria AG 54,433 1,355,535 Telekomunikasi Indonesia Tbk PT 1,120,500 1,215,506 ----------- 5,809,985 ----------- WIRELESS TELECOMMUNICATION SERVICES - 4.7% America Movil SAB de CV Series L (ADR) 41,700 2,582,481 Bharti Airtel Ltd. (a) 106,317 2,185,285 China Mobile Ltd. 14,271 153,542 MTN Group Ltd. 78,486 1,066,852 NTT DoCoMo, Inc. 404 638,966 Orascom Telecom Holding SAE (GDR) (b) 15,151 983,300 Turkcell Iletisim Hizmet AS -0- 3 Vimpel-Communications (ADR) 12,895 1,358,617 Vodafone Group PLC 315,465 1,057,064 ----------- 10,026,110 ----------- 15,836,095 ----------- MATERIALS - 6.4% CHEMICALS - 0.8% Bayer AG 8,099 610,067 Incitec Pivot Ltd. 4,852 327,849 Nitto Denko Corp. 15,500 781,254 ----------- 1,719,170 ----------- METALS & MINING - 5.6% Cia Vale do Rio Doce (ADR) 76,300 3,078,585 Cia Vale do Rio Doce (Sponsored) (ADR) 23,600 889,720 Minara Resources Ltd. 80,921 496,297 Rio Tinto PLC 44,666 3,417,119 Usinas Siderurgicas de Minas Gerais, SA 9,300 612,768 Xstrata PLC 56,014 3,334,681 ----------- 11,829,170 ----------- 13,548,340 ----------- INFORMATION TECHNOLOGY - 6.1% COMMUNICATIONS EQUIPMENT- 1.7% Delta Networks, Inc. (a) 25,000 14,388 Nokia OYJ 125,218 3,516,783 ----------- 3,531,171 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS - 1.0% AU Optronics Corp. 126,000 215,243 AU Optronics Corp. (ADR) 28,000 481,600 Hoya Corp. 26,300 872,453 Integra Group Holdings (GDR) (a) 32,515 591,773 ----------- 2,161,069 ----------- IT SERVICES - 1.4% Cap Gemini, SA 3,711 271,307 Indra Sistemas, SA 20,102 501,269 Infosys Technologies Ltd. (ADR) 12,300 619,674 LogicaCMG PLC 266,999 809,117 Otsuka Corp. 2,600 246,583 Tata Consultancy Services Ltd. 20,335 575,229 ----------- 3,023,179 ----------- OFFICE ELECTRONICS- 1.4% Canon, Inc. 50,200 2,943,880 -----------
- ------------------------------------------------------------------------------------------------------------------------------------ AllianceBernstein AllianceBernstein Variable Products AllianceBernstein Variable Products AllianceBernstein Series Fund Variable Products Series Fund Variable Products International Series Fund International Series Fund Growth Portfolio International Research Growth International Shares or Growth Portfolio Shares Research Growth Principal Amount Portfolio or Principal Portfolio Company (000) (U.S. $ Value) Amount (000) (U.S. $ Value) Adjustments - ------------------------------------------------------------------------------------------------------------------------------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.6% ASML Holding NV (a) -0- $ -0- 9,132 $ 250,905 $ -0- Chartered Semiconductor Manufacturing, Ltd. (a) -0- -0- 450,000 395,781 -0- Novatek Microelectronics Corp. Ltd. 62,000 323,932 57,000 297,809 -0- ------------ ----------- --------- 323,932 944,495 -0- ------------ ----------- --------- 7,392,576 5,535,150 -0- ------------ ----------- --------- UTILITIES - 2.7% ELECTRIC UTILITIES - 1.5% CEZ 16,820 864,927 -0- -0- -0- Cia Energetica de Minas Gerais (ADR) 19,200 405,120 33,126 698,958 -0- Fortum Oyj 37,378 1,167,969 -0- -0- -0- ------------ ----------- --------- 2,438,016 698,958 -0- ------------ ----------- --------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.7% International Power PLC 122,433 1,052,396 -0- -0- -0- NTPC Ltd. -0- -0- 138,000 518,030 -0- ------------ ----------- --------- 1,052,396 518,030 -0- ------------ ----------- --------- MULTI-UTILITIES - 0.5% National Grid PLC 68,517 1,010,989 -0- -0- -0- ------------ ----------- --------- 4,501,401 1,216,988 -0- ------------ ----------- --------- Total Common Stocks (cost $154,509,868) 128,118,750 80,165,072 -0- ------------ ----------- --------- SHORT-TERM INVESTMENTS - 1.3% TIME DEPOSIT- 1.3% The Bank of New York 4.25%, 7/02/07 (cost $2,761,000) $ 2,326 2,326,000 $ 435 435,000 -0- ------------ ----------- --------- TOTAL INVESTMENTS - 99.2% (cost $157,270,868) 130,444,750 80,600,072 -0- Other assets less liabilities - 0.8% 531,156 1,175,695 -0- ------------ ----------- --------- NET ASSETS - 100.0% $130,975,906 $81,775,767 $ -0- ============ =========== ========= - ------------------------------------------------------------------------------------------------------------------------------------ Pro Forma AllianceBernstein Pro Forma Variable Products AllianceBernstein Series Fund Variable Products International Series Fund Growth Portfolio International Shares or Growth Principal Amount Portfolio Company (000) (U.S. $ Value) - ------------------------------------------------------------------------------------------------------------------------------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.6% ASML Holding NV (a) 9,132 $ 250,905 Chartered Semiconductor Manufacturing, Ltd. (a) 450,000 395,781 Novatek Microelectronics Corp. Ltd. 119,000 621,741 ------------ 1,268,427 ------------ 12,927,726 ------------ UTILITIES - 2.7% ELECTRIC UTILITIES - 1.5% CEZ 16,820 864,927 Cia Energetica de Minas Gerais (ADR) 52,326 1,104,078 Fortum Oyj 37,378 1,167,969 ------------ 3,136,974 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.7% International Power PLC 122,433 1,052,396 NTPC Ltd. 138,000 518,030 ------------ 1,570,426 ------------ MULTI-UTILITIES - 0.5% National Grid PLC 68,517 1,010,989 ------------ 5,718,389 ------------ Total Common Stocks (cost $154,509,868) 208,283,822 ------------ SHORT-TERM INVESTMENTS - 1.3% TIME DEPOSIT- 1.3% The Bank of New York 4.25%, 7/02/07 (cost $2,761,000) $ 2,761 2,761,000 ------------ TOTAL INVESTMENTS - 99.2% (cost $157,270,868) 211,044,822 Other assets less liabilities - 0.8% 1,706,851 ------------ NET ASSETS - 100.0% $212,751,673 ============
(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 June 30, 2007, the aggregate market value of these securities amounted to $1,098,590 or 0.5% of net assets. Glossary: ADR - American Depositary Receipt FDR - Fiduciary Depositary Receipt GDR - Global Depositary Receipt See notes to pro forma AllianceBernstein Variable Products Series Fund - International Growth Portfolio financial statements. STATEMENT OF ASSETS AND LIABILITIES PRO FORMA ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND - INTERNATIONAL GROWTH PORTFOLIO AllianceBernstein Variable Products Series Fund - International Growth Portfolio June 30, 2007 (unaudited) AllianceBernstein Variable Products Series Fund - International Research Growth Portfolio - ------------------------------------------------------------------------------------------------------------------------------------
Pro Forma AllianceBernstein AllianceBernstein AllianceBernstein Variable Products Variable Products Variable Products Series Fund Series Fund Series Fund International International International Growth Research Growth Portfolio Growth Portfolio Adjustments Portfolio ------------------ ----------------- ------------ ----------------- ASSETS Investments in securities, at value (cost $157,270,868) $130,444,750 $ 80,600,072 $ -0- $211,044,822 Cash 386 6,063 -0- 6,449 Foreign cash, at value (cost $1,808,787) 447,045 1,372,233 -0- 1,819,278 Dividends and interest receivable 269,000 267,864 -0- 536,864 Receivable for capital stock sold 172,175 23,079 -0- 195,254 Receivable for investment securities sold and foreign currency contracts -0- 2,783,416 -0- 2,783,416 ------------ ------------ ----------- ------------ Total assets 131,333,356 85,052,727 -0- 216,386,083 ------------ ------------ ----------- ------------ LIABILITIES Payable for capital stock redeemed 88,206 119,029 -0- 207,235 Advisory fee payable 82,887 52,147 -0- 135,034 Custodian fee payable 66,673 34,115 -0- 100,788 Payable for investment securities purchased and foreign currency contracts 44,881 2,970,883 -0- 3,015,764 Printing fee payable 19,857 12,192 -0- 32,049 Administrative fee payable 19,261 19,185 -0- 38,446 Foreign capital gain tax payable 10,043 42,269 -0- 52,312 Distribution fee payable 8,306 2,585 -0- 10,891 Transfer Agent fee payable 59 59 -0- 118 Accrued expenses 17,277 24,496 -0- 41,773 ------------ ------------ ----------- ------------ Total liabilities 357,450 3,276,960 -0- 3,634,410 ------------ ------------ ----------- ------------ NET ASSETS $130,975,906 $ 81,775,767 $ -0- $212,751,673 ============ ============ =========== ============ Composition of Net Assets Capital stock, at par $ 4,416 $ 3,522 $ -0- $ 7,938 Additional paid-in capital 87,206,403 51,615,730 -0- 138,822,133 Undistributed net investment income 913,197 501,580 -0- 1,414,777 Accumulated net realized gain on investment and foreign currency transactions 10,093,577 8,657,392 -0- 18,750,969 Net unrealized appreciation of investments and foreign currency denominated assets and liabilities 32,758,313 20,997,543 -0- 53,755,856 ------------ ------------ ------------ $130,975,906 $ 81,775,767 $ -0- $212,751,673 CLASS A SHARES Net Assets $ 91,592,069 $ 69,604,588 (158,871)* $161,196,657 Shares of capital stock outstanding 3,082,629 2,993,745 (650,946)** 5,425,428 ------------ ------------ ----------- ------------ Net asset value per share $ 29.71 $ 23.25 $ 29.71 ------------ ------------ ------------ CLASS B SHARES Net Assets $ 39,383,837 $ 12,171,179 (51,129)* $ 51,555,016 Shares of capital stock outstanding 1,332,976 528,316 (116,390)** 1,744,902 ------------ ------------ ----------- ------------ Net asset value per share $ 29.55 $ 23.04 $ 29.55 ------------ ------------ ------------ See Notes to pro forma AllianceBernstein Variable Products Series Fund-International Growth Portfolio financial statements. * Includes adjustments for estimated proxy costs. ** The pro forma net asset value per share for the combined Portfolio assumes the issuance of International Growth shares to International Research Growth shareholders in connection with the Acquisition. The number of International Growth shares assumed to be issued is equal to the net asset value of International Research Growth divided by the net asset value per share of International Growth as of June 30, 2007.
STATEMENT OF OPERATIONS PRO FORMA ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND - INTERNATIONAL GROWTH PORTFOLIO Twelve Months Ended AllianceBernstein Variable Products Series Fund - International Growth Portfolio June 30, 2007 (unaudited) AllianceBernstein Variable Products Series Fund - International Research Growth Portfolio - ------------------------------------------------------------------------------------------------------------------------------------
Pro Forma AllianceBernstein AllianceBernstein AllianceBernstein Variable Products Variable Products Variable Products Series Fund Series Fund Series Fund International Growth International Research International Growth Portfolio Growth Portfolio Adjustments Portfolio -------------------- --------------------- ------------ ------------------- INVESTMENT INCOME Dividends (net of foreign taxes withheld of $451,834) $ 2,399,672 $ 1,543,520 $ -0- $ 3,943,192 Interest 113,861 52,737 -0- 166,598 ------------- --------------- ------------ ------------- 2,513,533 1,596,257 -0- 4,109,790 ------------- --------------- ------------ ------------- EXPENSES Advisory fee 864,345 584,959 86,899 1,536,203 (a) Distribution fee - Class B 87,364 29,020 9,170 125,554 (b) Transfer agency 4,403 3,985 (3,691) 4,697 (c) Custodian 286,877 227,283 (111,482) 402,678 (c) Administrative 93,081 93,006 (99,337) 86,750 (c) Printing 50,002 23,303 (28,305) 45,000 (c) Audit & legal 43,814 44,170 (34,984) 53,000 (c) Directors' fees 1,988 1,703 (1,299) 2,392 (c) Miscellaneous 10,199 4,761 (7,960) 7,000 (c) ------------- --------------- ------------ ------------- Total expenses 1,442,073 1,012,190 (190,989) 2,263,274 ------------- --------------- ------------ ------------- Net investment income 1,071,460 584,067 190,989 1,846,516 ------------- --------------- ------------ ------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS Net realized gain (loss) on: Investment transactions 15,570,188 14,729,887 -0- 30,300,075 Foreign currency transactions (38,412) (24,257) -0- (62,669) Net change in unrealized appreciation/depreciation of: Investments 13,208,049 5,268,517 -0- 18,476,566 (d) Foreign currency denominated assets and liabilities 32,021 2,377 -0- 34,398 ------------- --------------- ------------ ------------- Net gain on investment and foreign currency transactions 28,771,846 19,976,524 -0- 48,748,370 ------------- --------------- ------------ ------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 29,843,306 $ 20,560,591 $ 190,989 $ 50,594,886 ------------- --------------- ------------ ------------- - ---------------- (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 June 30, 2007, the aggregate market value of these securities amounted to $1,098,590 or 0.5% of net assets. Glossary: ADR - American Depositary Receipt FDR - Fiduciary Depositary Receipt GDR - Global Depositary Receipt See notes to Pro Forma AllianceBernstein Variable Products Series Fund - International Growth Portfolio financial statements.
NOTES TO FINANCIAL STATEMENTS PRO FORMA ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND INTERNATIONAL GROWTH PORTFOLIO June 30, 2007 (unaudited) NOTE A: General The pro forma AllianceBernstein Variable Products Series Fund - International Growth Portfolio financial statements give effect to the Acquisition of the assets and liabilities of International Research Growth by International pursuant to the Plan of Acquisition and Liquidation. The Acquisition would be accomplished by a tax-free exchange of the assets and liabilities of AllianceBernstein Variable Products Series Fund International Research Growth Portfolio for shares of International. After the proposed acquisition, the tax survivor would be AllianceBernstein Variable Products Series Fund - International Growth Portfolio. AVP was incorporated under the laws in the state of Maryland on November 17, 1987. International's unaudited pro forma Portfolio of Investments, Statement of Assets and Liabilities and Statement of Operations are prepared as though the Acquisition was effective for the period July 1, 2006 - June 30, 2007. You should read them in conjunction with International's historical financial statements, which are included in International's Statement of Additional Information. International's pro forma Statement of Operations reflects the assumption that certain expenses would be lower for the combined Portfolio as a result of the Acquisition. Each Portfolio will bear the expenses of the Acquisition on a relative net asset basis, including the cost of proxy solicitation, except that International Research Growth will bear its own costs associated with the disposition of any assets or liabilities not being transferred to International in connection with the Acquisition. NOTE B: Significant Accounting Policies International's pro forma 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. 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 AVP'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 (other than securities listed on The NASDAQ Stock Market, Inc. ("NASDAQ")) 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 reference to the principal exchange on which the securities are traded; securities listed only on 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") 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, AllianceBernstein 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, AVP may use fair value pricing for securities primarily traded in non-U.S. markets because, most foreign markets close well before AVP 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, AVP 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 currency exchange 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. 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 International'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 policy of International 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. International 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 International is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the trade date securities are purchased or sold. Investment gains and losses are determined on the identified cost basis. International amortizes premiums and accretes discounts as adjustments to interest income. 5. Class Allocations All income earned and expenses incurred by International are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in International represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Realized and unrealized gains and losses are allocated among the various share classes based on their respective net assets. 6. Dividends and Distributions International declares and distributes dividends and distributions from net investment income and net realized gains, respectively, if any, at least annually. Income dividends and capital gains distributions to shareholders are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. generally accepted accounting principles. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification. NOTE C: Advisory Fee and Other Transactions with Affiliates Under the terms of the investment advisory agreement, International pays the Adviser an advisory fee at an annual rate of .75% of the first $2.5 billion, ..65% of the next $2.5 billion and .60% in excess $5 billion, of International's average daily net assets. The fee is accrued daily and paid monthly. Pursuant to the advisory agreement, International paid $86,750 to the Adviser representing the cost of certain legal and accounting services provided to International by the Adviser for the twelve months ended June 30, 2007. International compensates AllianceBernstein Investor Services, Inc., a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Portfolio. NOTE D: Distribution Plan International has adopted a Distribution Plan (the "Plan") for Class B shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Plan International pays distribution and servicing fees to AllianceBernstein Investments, Inc. (the "Distributor"), a wholly owned subsidiary of the Adviser, at an annual rate of up to .50% of International's average daily net assets attributable to Class B shares. The fees are accrued daily and paid monthly. The Board of Directors currently limits payments under the Plan to .25% of International's average daily net assets attributable to Class B shares. The Plan provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. NOTE E: Capital Stock The pro forma net asset value per share of the combined Portfolio assumes the issuance of International shares to International Research Growth shareholders in connection with the Acquisition. The number of shares assumed to be issued is equal to the net asset value of International Research Growth divided by the net asset value per share of International as of June 30, 2007. The pro forma number of shares outstanding, by class for the combined Portfolio consists of the following at June 30, 2007. Shares of Additional Shares Total Shares International Assumed Issued Outstanding Class of Shares Pre-Acquisition with Merger Post-Acquisition - -------------------------------------------------------------------------------- Class A 3,082,629 2,342,799 5,425,428 Class B 1,332,976 411,926 1,744,902 -----END PRIVACY-ENHANCED MESSAGE-----