N-CSR 1 edg9266.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: 811-05398 AllianceBernstein Variable Products Series 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) Edmund P. Bergan, Jr. 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: December 31, 2003 Date of reporting period: June 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND ALLIANCEBERNSTEIN HIGH YIELD PORTFOLIO ------------------------------------------------------------------------------- SEMI-ANNUAL REPORT JUNE 30, 2003 INVESTMENT PRODUCTS OFFERED o ARE NOT FDIC INSURED o MAY LOSE VALUE o ARE NOT BANK GUARANTEED HIGH YIELD PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ CORPORATE DEBT OBLIGATIONS-91.7% AEROSPACE/DEFENSE-0.9% Hexcel Corp. 9.875%, 10/01/08 $ 45 $ 49,725 K & F Industries, Inc. 9.625%, 12/15/10 130 144,950 Sequa Corp. 9.00%, 8/01/09 70 74,550 Transdigm, Inc. 10.375%, 12/01/08 (a) 155 168,784 ------------ 438,009 AUTOMOTIVE-3.2% Advanced Accessory Systems 10.75%, 6/15/11 (a) 115 122,475 Dana Corp. 10.125%, 3/15/10 220 243,650 Dura Operating Corp. 9.00%, 5/01/09 185 171,125 General Motors Corp. 7.125%, 7/15/13 205 205,267 HLI Operating, Inc. 10.50%, 6/15/10 (a) 230 242,650 Tenneco Automotive, Inc. 10.25%, 7/15/13 205 208,587 TRW Automotive 9.375%, 2/15/13 110 119,900 11.00%, 2/15/13 110 120,450 United Auto Group, Inc. 9.625%, 3/15/12 120 129,000 ------------ 1,563,104 BROADCASTING/MEDIA-4.3% Allbritton Communications Co. 7.75%, 12/15/12 180 186,750 American Media Operations, Inc. 10.25%, 5/01/09 165 179,025 Corus Entertainment, Inc. 8.75%, 3/01/12 (a) 120 129,600 Emmis Communications Corp. 12.50%, 3/15/11 (b) 165 143,550 Mediacom Broadband LLC 11.00%, 7/15/13 150 167,625 Paxson Communications Corp. 10.75%, 7/15/08 150 162,000 12.25%, 1/15/09 (b) 145 121,800 PRIMEDIA, Inc. 8.00%, 5/15/13 (a) 70 72,100 8.875%, 5/15/11 145 153,338 Radio One, Inc. 8.875%, 7/01/11 105 116,025 Sinclair Broadcast Group, Inc. 8.00%, 3/15/12 65 69,713 8.00%, 3/15/12 (a) 85 91,162 8.75%, 12/15/11 (a) 95 104,737 Time Warner Telecom, Inc. 10.125%, 2/01/11 315 305,550 YOUNG BROADCASTING, INC. 8.50%, 12/15/08 90 96,750 ------------ 2,099,725 BUILDING/REAL ESTATE-3.8% Associated Materials, Inc. 9.75%, 4/15/12 65 71,256 Beazer Homes USA, Inc. 8.375%, 4/15/12 90 100,125 Interline Brands, Inc. 11.50%, 5/15/11 (a) 155 164,300 KB HOME 7.75%, 2/01/10 180 195,525 LNR Property Corp. 7.625%, 7/15/13 (a) 125 125,000 10.50%, 1/15/09 315 339,413 M.D.C Holdings, Inc. 7.00%, 12/01/12 90 99,774 Meritage Corp. 9.75%, 6/01/11 205 227,550 Schuler Homes, Inc. 10.50%, 7/15/11 165 190,575 The Ryland Group, Inc. 9.75%, 9/01/10 40 46,200 Werner Holding Co., Inc. 10.00%, 11/15/07 150 153,750 Williams Lyon Homes, Inc. 10.75%, 4/01/13 130 138,775 ------------ 1,852,243 CABLE-4.0% Charter Communications Holdings LLC 11.75%, 5/15/11 (b) 740 377,400 Coaxial Communications, Inc. 10.00%, 8/15/06 90 93,263 CSC Holdings, Inc. 7.625%, 7/15/18 195 195,487 DirecTV Holdings LLC 8.375%, 3/15/13 (a) 135 151,200 EchoStar DBS Corp. 9.375%, 2/01/09 300 321,375 Innova S. de R.L. 12.875%, 4/01/07 205 208,587 Insight Communications Co., Inc. 12.25%, 2/15/11 265 221,275 Insight Midwest LP 9.75%, 10/01/09 (a) 200 212,500 PanAmSat Corp. 8.50%, 2/01/12 155 168,563 ------------ 1,949,650 1 HIGH YIELD PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ CHEMICALS-3.1% Avecia Group Plc 11.00%, 7/01/09 $110 $ 100,100 Equistar Chemicals LP 10.125%, 9/01/08 295 305,325 10.625%, 5/01/11 130 133,900 FMC Corp. 10.25%, 11/01/09 120 135,600 Georgia Gulf Corp. 10.375%, 11/01/07 220 234,850 Huntsman ICI Chemicals LLC 10.125%, 7/01/09 220 212,300 Lyondell Chemical Co. 9.625%, 5/01/07 215 211,775 Millennium America, Inc. 9.25%, 6/15/08 145 156,600 Resolution Performance Products LLC 9.50%, 4/15/10 25 26,125 ------------ 1,516,575 COMMUNICATIONS-0.5% WorldCom, Inc.- WorldCom Group 7.50%, 5/15/11 (c) 760 226,100 COMMUNICATIONS - FIXED-3.0% FairPoint Communications, Inc. 11.875%, 3/01/10 80 93,200 12.50%, 5/01/10 65 69,225 Mobifon Holdings BV 12.50%, 7/31/10 (a) 345 360,525 Qwest Corp. 8.875%, 3/15/12 (a) 200 224,500 Qwest Services Corp. 13.50%, 12/15/10 (A) 603 684,405 ------------ 1,431,855 COMMUNICATIONS - MOBILE-5.3% Dobson/Sygnet Communications 12.25%, 12/15/08 400 430,000 Iridium Capital Corp. LLC 14.00%, 7/15/05 (c) 550 44,000 Nextel Communications, Inc. 9.375%, 11/15/09 45 48,544 9.95%, 2/15/08 (b) 280 294,000 Nextel Partners, Inc. 8.125%, 7/01/11 (a) 455 452,725 11.00%, 3/15/10 100 108,500 12.50%, 11/15/09 (a) 105 118,650 PTC International Finance II, SA 11.25%, 12/01/09 200 227,000 Rural Cellular Corp. 9.75%, 1/15/10 (a) 285 253,650 TeleCorp PCS, Inc. 10.625%, 7/15/10 83 100,638 Tritel PCS, Inc. 10.375%, 1/15/11 94 115,385 Triton PCS, Inc. 8.50%, 6/01/13 (a) 175 189,000 8.75%, 11/15/11 185 185,462 ------------ 2,567,554 CONSUMER MANUFACTURING-2.5% Applica, Inc. 10.00%, 7/31/08 90 94,950 Central Garden & Pet Co. 9.125%, 2/01/13 85 90,950 Collins & Aikman Floor Cover 9.75%, 2/15/10 110 115,500 Pennzoil-Quaker State Co. 10.00%, 11/01/08 (a) 75 92,129 Playtex Products, Inc. 9.375%, 6/01/11 130 130,650 Remington Products Co. LLC 11.00%, 5/15/06 100 101,000 Salton, Inc. 12.25%, 4/15/08 175 175,000 St. John Knits International, Inc. 12.50%, 7/01/09 90 98,550 Tyco International, Ltd. 6.75%, 2/15/11 220 234,300 Warnaco, Inc. 8.875%, 6/15/13 90 93,600 ------------ 1,226,629 CONTAINERS-1.2% Crown Euro Holdings, SA 9.50%, 3/01/11 215 233,275 Greif Bros. Corp. 8.875%, 8/01/12 (a) 150 162,000 Silgan Holdings, Inc. 9.00%, 6/01/09 165 171,600 ------------ 566,875 ENERGY-4.3% Chesapeake Energy Corp. 7.75%, 1/15/15 255 273,487 9.00%, 8/15/12 80 89,600 CITGO Petroleum Corp. 11.375%, 2/01/11 (a) 385 431,200 Frontier Escrow Corp. 8.00%, 4/15/13 (a) 55 57,750 Frontier Oil Corp. 11.75%, 11/15/09 115 127,075 Grant Prideco, Inc. 9.00%, 12/15/09 125 139,375 Grey Wolf, Inc. 8.875%, 7/01/07 60 62,100 Parker & Parsley Petroleum Co. 8.875%, 4/15/05 150 165,000 2 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ Premcor Refining Group, Inc. 9.50%, 2/01/13 $120 $ 133,200 Pride International, Inc. 9.375%, 5/01/07 160 166,000 Range Resources Corp. 8.75%, 1/15/07 (a) 100 102,250 Universal Compression, Inc. 7.25%, 5/15/10 80 83,200 Westport Resources Corp. 8.25%, 11/01/11 55 60,500 8.25%, 11/01/11 (a) 100 110,000 XTO Energy, Inc. 7.50%, 4/15/12 90 102,600 ------------ 2,103,337 ENTERTAINMENT & LEISURE-2.4% Cinemark USA, Inc. 9.00%, 2/01/13 (a) 180 196,200 Royal Caribbean Cruises, Ltd. 8.00%, 5/15/10 85 88,825 8.75%, 2/02/11 240 255,600 Six Flags, Inc. 9.50%, 2/01/09 (A) 180 178,200 9.75%, 6/15/07 175 174,125 9.75%, 4/15/13 (a) 20 19,900 Universal City Development 11.75%, 4/01/10 210 231,525 ------------ 1,144,375 FINANCIAL-4.1% Crum & Forster 10.375%, 6/15/13 (a) 110 111,925 Danka Business Systems Plc 11.00%, 6/15/10 185 183,150 Fairfax Financial Holdings, Ltd. 8.25%, 10/01/15 30 27,300 Finova Group, Inc. 7.50%, 11/15/09 375 165,000 iStar Financial, Inc. 7.00%, 3/15/08 200 209,560 8.75%, 8/15/08 130 142,350 Markel Capital Trust I 8.71%, 1/01/46 310 310,000 PXRE Capital Trust I 8.85%, 2/01/27 205 182,450 Royal & Sun Alliance, Inc. 8.95%, 10/15/29 240 226,268 Western Financial Bank 9.625%, 5/15/12 270 292,950 Williams Scotsman, Inc. 9.875%, 6/01/07 150 147,750 ------------ 1,998,703 FOOD/BEVERAGE-2.4% B & G Foods, Inc. 9.625%, 8/01/07 90 93,150 CBRE Escrow, Inc. 9.75%, 5/15/10 70 73,937 Dean Foods Co. 8.15%, 8/01/07 85 94,775 Del Monte Foods Co. 8.625%, 12/15/12 (a) 115 122,475 9.25%, 5/15/11 110 118,250 DIMON, Inc. 7.75%, 6/01/13 (a) 70 72,275 9.625%, 10/15/11 75 82,875 Dole Food Co. 8.625%, 5/01/09 (d) 110 116,875 8.875%, 3/15/11 65 69,225 Merisant Co. 9.50%, 7/15/13 (a) 130 134,550 Swift & Co. 10.125%, 10/01/09 (a) 180 188,100 ------------ 1,166,487 GAMING-5.7% Ameristar Casinos, Inc. 10.75%, 2/15/09 100 113,875 Argosy Gaming Co. 9.00%, 9/01/11 105 113,925 Boyd Gaming Corp. 7.75%, 12/15/12 110 117,288 Harrahs Operating Co., Inc. 7.875%, 12/15/05 105 114,450 Horseshoe Gaming Holding Corp. 8.625%, 5/15/09 85 90,525 Mandalay Resort Group 10.25%, 8/01/07 250 283,750 MGM Mirage, Inc. 8.375%, 2/01/11 260 297,050 Mohegan Tribal Gaming Authority 8.375%, 7/01/11 (a) 95 103,312 8.75%, 1/01/09 60 64,950 Park Place Entertainment Corp. 7.00%, 4/15/13 (a) 185 198,875 7.875%, 3/15/10 90 97,200 9.375%, 2/15/07 225 249,750 Riviera Holdings Corp. 11.00%, 6/15/10 150 144,000 Station Casinos, Inc. 8.375%, 2/15/08 100 108,500 Sun International Hotels, Ltd. 8.875%, 8/15/11 (a) 105 114,188 Trump Holdings & Funding 11.625%, 3/15/10 135 129,600 3 HIGH YIELD PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ Turning Stone Casino Resort Enterprises 9.125%, 12/15/10 (a) $150 $ 160,687 Venetian Casino Resort LLC 11.00%, 6/15/10 210 237,825 ------------ 2,739,750 HEALTHCARE-4.9% Advanced Medical Optics, Inc. 9.25%, 7/15/10 (A) 110 119,900 Alliance Imaging, Inc. 10.375%, 4/15/11 185 194,250 Concentra Operating Corp. 13.00%, 8/15/09 191 208,190 Extendicare Health Services, Inc. 9.50%, 7/01/10 155 163,525 Hanger Orthopedic Group, Inc. 10.375%, 2/15/09 185 205,350 Iasis Healthcare Corp. 13.00%, 10/15/09 165 183,975 Omnicare, Inc. 8.125%, 3/15/11 95 103,550 PacifiCare Health Systems, Inc. 10.75%, 6/01/09 280 322,700 Psychiatric Solutions, Inc. 10.625%, 6/15/13 165 170,775 Triad Hospitals, Inc. 8.75%, 5/01/09 205 219,094 11.00%, 5/15/09 110 121,825 Vanguard Health Systems, Inc. 9.75%, 8/01/11 225 225,000 Ventas Realty LP 9.00%, 5/01/12 100 109,500 ------------ 2,347,634 HOME FURNISHINGS-0.3% Sealy Mattress Co. 9.875%, 12/15/07 130 130,000 HOTEL/LODGING-4.4% Corrections Corp. of America 7.50%, 5/01/11 45 47,250 9.875%, 5/01/09 165 185,006 Extended Stay America, Inc. 9.875%, 6/15/06 240 259,200 Felcor Lodging LP 8.50%, 6/01/11 25 25,313 9.50%, 9/15/08 185 191,937 Host Marriott LP 9.25%, 10/01/07 180 194,400 9.50%, 1/15/07 135 145,800 Intrawest Corp. 9.75%, 8/15/08 10 10,488 10.50%, 2/01/10 180 194,400 La Quinta Properties, Inc. 8.875%, 3/15/11 (a) 195 208,650 MeriStar Hospitality Corp. 9.125%, 1/15/11 40 39,400 10.50%, 6/15/09 110 113,025 Starwood Hotels & Resorts Worlwide, Inc. 7.875%, 5/01/12 330 363,000 Vail Resorts, Inc. 8.75%, 5/15/09 140 147,000 ------------ 2,124,869 INDUSTRIAL-4.7% Airgas, Inc. 9.125%, 10/01/11 100 111,750 Amtrol, Inc. 10.625%, 12/31/06 145 82,106 Dayton Superior Corp. 10.75%, 9/15/08 115 114,425 FastenTech, Inc. 11.50%, 5/01/11 180 180,000 Flowserve Corp. 12.25%, 8/15/10 160 187,200 H & E Equipment Services, Inc. 11.125%, 6/15/12 110 97,350 Legrand SA 10.50%, 2/15/13 (a) 125 140,000 Motors and Gears, Inc. 10.75%, 11/15/06 100 88,000 NMHG Holdings Co. 10.00%, 5/15/09 105 116,025 Resolution Performance Products LLC 13.50%, 11/15/10 295 296,475 Rexnord Corp. 10.125%, 12/15/12 (a) 85 93,925 Russell-Stanley Holdings, Inc. 9.00%, 11/30/08 (a)(e) 76 57,338 Service Corp. International 6.00%, 12/15/05 40 40,500 6.50%, 3/15/08 55 54,038 SPX Corp. 7.50%, 1/01/13 105 114,187 Terex Corp. 10.375%, 4/01/11 210 233,100 TriMas Corp. 9.875%, 6/15/12 195 200,850 9.875%, 6/15/12 (a) 65 66,950 ------------ 2,274,219 INSURANCE-0.2% Fairfax Financial Holdings, Ltd. 7.75%, 12/15/03 100 101,250 4 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ MINING & METALS-2.1% Alaska Steel Corp. 7.875%, 2/15/09 $270 $ 230,850 Earle M. Jorgensen Co. 9.75%, 6/01/12 115 122,475 Freeport-McMoRan Copper & Gold, Inc. Cl.B 10.125%, 2/01/10 145 162,400 Gerdau Ameristeel Corp. 10.375%, 7/15/11 (a) 110 108,075 Peabody Energy Corp. 6.875%, 3/15/13 185 194,712 Steel Dynamics, Inc. 9.50%, 3/15/09 100 105,250 United States Steel Corp. 10.75%, 8/01/08 110 116,050 ------------ 1,039,812 PAPER/PACKAGING-7.3% Anchor Glass Container Corp. 11.00%, 2/15/13 (a) 245 268,888 Berry Plastics Corp. 10.75%, 7/15/12 185 204,425 Constar International, Inc. 11.00%, 12/01/12 75 81,375 Doman Industries, Ltd. 12.00%, 7/01/04 95 97,850 Georgia-Pacific Corp. 9.375%, 2/01/13 (a) 305 337,787 Graham Packaging Co. 8.75%, 1/15/08 (a) 120 120,000 Graphic Packaging International Corp. 8.625%, 2/15/12 80 82,000 Huntsman Advanced Materials LLC 11.00%, 7/15/10 120 125,400 Huntsman International Holdings LLC 0.00%, 12/31/09 500 197,500 JSG Funding Plc 9.625%, 10/01/12 205 227,550 Norske Skog Canada, Ltd. 8.625%, 6/15/11 175 183,750 Owens-Brockway Glass Container 8.875%, 2/15/09 420 457,800 Plastipak Holdings, Inc. 10.75%, 9/01/11 (a) 145 155,875 Pliant Corp. 11.125%, 9/01/09 (a) 60 61,800 13.00%, 6/01/10 175 165,375 Riverwood International Corp. 10.625%, 8/01/07 270 281,475 Smurfit-Stone Container Corp. 8.25%, 10/01/12 140 150,850 Stone Container Corp. 9.25%, 2/01/08 25 27,375 9.75%, 2/01/11 125 137,500 Tembec Industries, Inc. 8.50%, 2/01/11 45 44,775 8.625%, 6/30/09 105 104,213 ------------ 3,513,563 PUBLIC UTILITIES - ELECTRIC & GAS-4.2% AES Corp. 8.75%, 5/15/13 (a) 55 57,475 9.00%, 5/15/15 (a) 100 105,000 10.00%, 12/12/05 (a) 125 130,312 Allegheny Energy, Inc. 7.75%, 8/01/05 260 261,300 Northwest Pipelines Corp. 8.125%, 3/01/10 110 118,800 PG&E Corp. 6.875%, 7/15/08 205 212,175 SEMCO Energy, Inc. 7.125%, 5/15/08 (a) 65 68,250 7.75%, 5/15/13 (a) 120 128,400 Southern Natural Gas Co. 7.35%, 2/15/31 160 163,600 8.875%, 3/15/10 130 142,350 Transcontinental Gas Pipe Line Corp. 8.875%, 7/15/12 25 28,375 Williams Cos., Inc. 8.625%, 6/01/10 590 619,500 ------------ 2,035,537 PUBLISHING-2.0% American Media, Inc. Cl.A 8.875%, 1/15/11 50 54,375 Dex Media East LLC 9.875%, 11/15/09 50 56,000 12.125%, 11/15/12 145 172,187 Hollinger International Publishing, Inc. 9.00%, 12/15/10 175 188,125 Houghton Mifflin Co. 8.25%, 2/01/11 (a) 125 132,500 9.875%, 2/01/13 45 49,050 PEI Holdings, Inc. 11.00%, 3/15/10 95 105,213 R.H. Donnelley Corp. 8.875%, 12/15/10 (a) 55 61,050 10.875%, 12/15/12 (a) 110 128,700 ------------ 947,200 RESTAURANTS-0.4% Domino's, Inc. 8.25%, 7/01/11 185 191,938 5 HIGH YIELD PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ SHARES OR PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ RETAIL-2.1% J.C. Penney Corp., Inc. 8.00%, 3/01/10 $125 $ 131,563 Jostens, Inc. 12.75%, 5/01/10 335 396,975 Pathmark Stores, Inc. 8.75%, 2/01/12 95 98,800 Rent-A-Center, Inc. 7.50%, 5/01/10 110 116,050 Rite Aid Corp. 11.25%, 7/01/08 140 151,200 Saks, Inc. 8.25%, 11/15/08 90 95,625 ------------ 990,213 SERVICES-4.1% Alderwoods Group, Inc. 11.00%, 1/02/07 72 73,463 Allied Waste North America, Inc. 8.50%, 12/01/08 225 243,000 8.875%, 4/01/08 135 147,150 10.00%, 8/01/09 360 384,300 Coinmach Corp. 9.00%, 2/01/10 120 129,000 Iron Mountain, Inc. 7.75%, 1/15/15 80 85,000 8.625%, 4/01/13 150 161,250 National Waterworks, Inc. 10.50%, 12/01/12 115 127,794 Service Corp. 7.70%, 4/15/09 215 220,375 Stewart Enterprises, Inc. 10.75%, 7/01/08 195 218,400 United Rentals NA, Inc. 10.75%, 4/15/08 180 197,550 ------------ 1,987,282 SUPERMARKET/DRUG-0.8% Rite Aid Corp. 9.25%, 6/01/13 40 39,800 9.50%, 2/15/11 150 162,000 Roundy's, Inc. 8.875%, 6/15/12 115 120,750 Stater Bros. Holdings, Inc. 10.75%, 8/15/06 65 68,738 ------------ 391,288 TECHNOLOGY-3.5% Cooperative Computing, Inc. 10.50%, 6/15/11 155 160,425 Fairchild Semiconductor Corp. 10.50%, 2/01/09 225 254,250 Filtronic Plc 10.00%, 12/01/05 345 354,487 Flextronics International, Ltd. 6.50%, 5/15/13 (a) 105 101,588 9.875%, 7/01/10 115 126,500 Lucent Technologies, Inc. 6.45%, 3/15/29 100 69,000 NORTEL NETWORKS, LTD. 6.125%, 2/15/06 70 68,250 ON Semiconductor Corp. 13.00%, 5/15/08 365 370,475 SCG Holding Corp. 12.00%, 8/01/09 115 99,475 Titan Corp. 8.00%, 5/15/11 60 63,900 ------------ 1,668,350 Total Corporate Debt Obligations (cost $42,472,205) 44,334,126 SOVEREIGN DEBT OBLIGATIONS-1.4% Republic of Brazil 8.00%, 4/15/14 166 146,092 Republic of Colombia 10.00%, 1/23/12 65 73,287 10.75%, 1/15/13 20 23,380 Republic of Costa Rica 8.05%, 1/31/13 (a) 50 54,000 Republic of Panama 10.75%, 5/15/20 30 37,125 Republic of Peru 9.125%, 2/21/12 30 32,107 Republic of Ukraine 11.00%, 3/15/07 26 28,695 Russian Federation 5.00%, 3/31/30 (a) 305 296,041 Total Sovereign Debt Obligations (cost $512,744) 690,727 PREFERRED STOCKS-3.1% BROADCASTING/MEDIA-0.3% Paxson Communications Corp. 13.25%, 11/15/06 12 118,200 Sinclair Broadcast Group, Inc. 11.625% 250 26,375 ------------ 144,575 CABLE-1.3% CSC Holdings, Inc 11.125%, 4/01/08 4,258 437,509 CSC Holdings, Inc. 11.75%, 10/01/07 1,800 185,400 ------------ 622,909 6 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ SHARES OR PRINCIPAL AMOUNT (000) U.S. $ VALUE --------- ------------ CHEMICALS-0.1% Avecia Group Plc 16.00%, 7/01/10 (e) 1,866 $ 27,990 COMMUNICATIONS - MOBILE-0.4% Nextel Communications, Inc. 11.125%, 2/15/03 196 208,740 FINANCIAL-1.0% Sovereign Real Estate Investor Trust 12.00%, 8/29/49 (a) 335 486,588 Total Preferred Stocks (cost $1,199,736) 1,490,802 COMMON STOCKS & WARRANTS-0.0% (F) Jostens, Inc. warrants, expiring 5/01/10 (a) 200 16,600 Pliant Corp. warrants, expiring 6/01/10 (a) 50 6 Russell-Stanley Holdings, Inc. 10 0 ------------ Total Common Stocks & Warrants (cost $5,820) 16,606 SHORT-TERM INVESTMENT-4.1% TIME DEPOSIT-4.1% State Street Euro Dollar 0.50%, 7/01/03 (cost $1,962,000) $1,962 1,962,000 TOTAL INVESTMENTS-100.3% (cost $46,152,505) 48,494,261 Other assets less liabilities*-(0.3%) (157,043) ------------ NET ASSETS-100% $48,337,218 * SECURITY LENDING INFORMATION Includes cash collateral received of $968,460 for securities on loan as of June 30, 2003 (see Note F). The lending agent invested the cash collateral in a short-term investment as follows: PERCENT CURRENT U.S. $ OF NET YIELD SHARES VALUE ASSETS UBS Private Money Market Fund LLC 1.15% 968,460 $968,460 2.0% (a) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 2003, the aggregate market value of these securities amounted to $8,193,078 or 19.0% of net assets. (b) Indicates a security that has a zero coupon that remains in effect until a predetermined date at which time the stated coupon rate becomes effective until final maturity. (c) Security is in default and is non-income producing. (d) Variable rate coupon, rate shown is as of June 30, 2003. (e) PIK (Paid-in-kind) preferred quarterly stock payments. (f) Non-income producing security. See Notes to Financial Statements. 7 HIGH YIELD PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ ASSETS Investments in securities, at value (cost $46,152,505) $48,494,261(a) Cash 61,514 Collateral held for securities loaned 968,460 Dividends and interest receivable 959,624 Receivable for investment securities sold 596,250 Total assets 51,080,109 LIABILITIES Payable for investment securities purchased 1,688,527 Payable for collateral received on securities loaned 968,460 Advisory fee payable 29,205 Distribution fee payable 543 Accrued expenses 56,156 Total liabilities 2,742,891 NET ASSETS $48,337,218 COMPOSITION OF NET ASSETS Capital stock, at par $ 6,595 Additional paid-in capital 61,263,014 Undistributed net investment income 1,552,119 Accumulated net realized loss on investment transactions (16,826,266) Net unrealized appreciation of investments 2,341,756 $48,337,218 CLASS A SHARES Net assets $45,488,400 Shares of capital stock outstanding 6,206,851 Net asset value per share $7.33 CLASS B SHARES Net assets $ 2,848,818 Shares of capital stock outstanding 388,377 Net asset value per share $7.34 (a) Includes securities on loan with a value of $924,645 (see Note F). See Notes to Financial Statements. 8 HIGH YIELD PORTFOLIO STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ INVESTMENT INCOME Interest $1,822,774 Dividends 47,427 Total investment income 1,870,201 EXPENSES Advisory fee 152,277 Distribution fee-Class B 1,588 Custodian 77,833 Audit and legal 25,405 Administrative 37,500 Printing 3,956 Directors' fees and expenses 483 Transfer agency 474 Miscellaneous 6,216 Total expenses 305,732 Net investment income 1,564,469 REALIZED AND UNREALIZED GAIN ON INVESTMENT TRANSACTIONS Net realized gain on investment transactions 252,851 Net change in unrealized appreciation/depreciation of investments 3,323,240 Net gain on investment transactions 3,576,091 NET INCREASE IN NET ASSETS FROM OPERATIONS $5,140,560 See Notes to Financial Statements. 9 HIGH YIELD PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ SIX MONTHS ENDED YEAR ENDED JUNE 30, 2003 DECEMBER 31, (UNAUDITED) 2002 INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 1,564,469 $ 2,583,502 Net realized gain (loss) on investment transactions 252,851 (4,355,071) Net change in unrealized appreciation/ depreciation of investments 3,323,240 739,335 Net increase (decrease) in net assets from operations 5,140,560 (1,032,234) DIVIDENDS TO SHAREHOLDERS FROM Net investment income Class A (2,439,115) (2,125,869) Class B (149,865) -0- CAPITAL STOCK TRANSACTIONS Net increase 10,654,520 7,005,841 Total increase 13,206,100 3,847,738 NET ASSETS Beginning of period 35,131,118 31,283,380 End of period (including undistributed net investment income of $2,576,630 at December 31, 2002) $48,337,218 $35,131,118 See Notes to Financial Statements. 10 HIGH YIELD PORTFOLIO NOTES TO FINANCIAL STATEMENTS June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ NOTE A: SIGNIFICANT ACCOUNTING POLICIES The AllianceBernstein High Yield Portfolio (the "Portfolio"), formerly Alliance High Yield Portfolio, is a series of AllianceBernstein Variable Products Series Fund, Inc. (the "Fund"), formerly Alliance Variable Products Series Fund, Inc. The Portfolio's investment objective is to seek to earn the highest level of current income without assuming undue risk by investing principally in high yielding, fixed-income securities rated Baa or lower by Moody's or BBB or lower by S&P Duff &Phelps or Fitch or, if unrated of comparable quantity. The Fund was incorporated in the State of Maryland on November 17, 1987, as an open-end series investment company. The Fund offers twenty separately managed pools of assets which have differing investment objectives and policies. The Portfolio offers Class A and Class B shares. Both classes of shares have identical voting, dividend, liqudating and other rights, except that Class B shares bear a distribution expense and have exclusive voting rights with respect to the Class B distribution plan. The Portfolio offers and sells its shares only to separate accounts of certain life insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies. Sales are made without a sales charge at the Portfolio's net asset value per share. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. 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 Portfolio. 1. SECURITY VALUATION In accordance with Pricing Policies adopted by the Board of Directors of the Fund (the "Pricing Policies") and applicable law, portfolio securities are valued at current market value or at fair value. The Board of Directors has delegated to the Adviser, subject to the Board's continuing oversight, certain responsibilities with respect to the implementation of the Pricing Policies. Pursuant to the Pricing Policies, securities for which market quotations are readily available are valued at their current market value. In general, the market value of these securities is 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. If no bid or asked prices are quoted on such day, then the security is valued in good faith at fair value in accordance with the Pricing Policies. Securities listed on more than one exchange are valued by reference 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 valuations, the last available closing settlement price is used; securities traded in the over-the-counter market, (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, the Pricing Policies provide that 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 suchsecurity. Securities for which market quotations are not readily available are valued at fair value in accordance with the Pricing Policies. 11 HIGH YIELD PORTFOLIO NOTES TO FINANCIAL STATEMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ 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. 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 Portfolio'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 Portfolio's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. 4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. Investment transactionsare accounted for on the date securities are purchased or sold. Investment gains and losses are determined on the identified cost basis. The Portfolio amortizes premiums and accretes discounts as adjustments to interest income. 5. INCOME AND EXPENSES Expenses attributable to a single portfolio are charged to that portfolio. Expenses of the Fund are charged to each portfolio in proportion to net assets. All income earned and expenses incurred by a portfolio, with multi-class shares outstanding, are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the portfolio represented by the net assets of such class, except that the portfolio's Class B shares bear the distribution fees. 6. DIVIDENDS AND DISTRIBUTIONS The Portfolio 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 accounting principles generally accepted in the United States. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification. NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of an investment advisory agreement, the Portfolio pays Alliance Capital Management L.P. (the "Adviser"), an investment advisory fee at an annual rate of .75 of 1% of the Portfolio's average daily net assets. Such fee is accrued daily and paid monthly. Prior to May 1, 2002, the Adviser agreed to waive its fee and to reimburse the additional operating expenses ("Expense Limitation Undertaking") to the extent necessary to limit total operating expenses on an annual basis to .95% of the average daily net assets for Class A shares. The Adviser terminated the Expense Limitation Undertaking effective May 1, 2002. Any expense waivers or reimbursements were accrued daily and paid monthly. Pursuant to the advisory agreement, the Portfolio paid $37,500 to the Adviser representing the cost of certain legal and accounting services provided to the Portfolio by the Adviser for the six months ended June 30, 2003. The Portfolio compensates Alliance Global 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. Such compensation amounted to $474 for the period ended June 30, 2003. 12 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ NOTE C: DISTRIBUTION PLAN The Portfolio 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, the Portfolio pays distribution and servicing fees to AllianceBernstein Investment Research and Management, Inc., (the "Distributor"), formerly Alliance Fund Distributors, Inc., a wholly-owned subsidiary of the Adviser, at an annual rate of up to .50 of 1% of the Portfolio's average daily net assets attributable to the Class B shares. The fees are accrued daily and paid monthly. The Board of Directors currently limits payments under the Plan to .25 of 1% of the Portfolio'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. The Portfolio is not obligated under the Plan to pay any distribution and servicing fees in excess of the amounts set forth above. The purpose of the payments to the Distributor under the Plan is to compensate the Distributor for its distribution services with respect to the sale of the Portfolio's Class B shares. Since the Distributor's compensation is not directly tied to its expenses, the amount of compensation received by it under the Plan during any year may be more or less than its actual expenses. For this reason, the Plan is characterized by the staff of the Securities and Exchange Commission as being of the "compensation" variety. In the event that the Plan is terminated or not continued, no distribution and servicing fees (other than current amounts accrued but not yet paid) would be owed by the Portfolios to the Distributor. The Plan also provides that the Adviser may use its own resources to finance the distribution of the Portfolio's shares. NOTE D: INVESTMENT TRANSACTIONS Purchases and sales of investment securities (excluding short-term investments) for the period ended June 30, 2003, were as follows: PURCHASES SALES Investment securities $26,905,816 $16,977,285 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 are as follows: Gross unrealized appreciation $3,479,359 GROSS UNREALIZED DEPRECIATION (1,137,603) Net unrealized appreciation $2,341,756 1. FORWARD EXCHANGE CURRENCY CONTRACTS The Portfolio may enter into forward exchange currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sales commitments denominated in foreign currencies and for investment purposes. A forward exchange currency contract is a commitment to purchase or sell a foreign currency on a future date at a negotiated forward rate. The gain or loss arising from the difference between the value of a foreign currency relative to the U.S. dollar. The face or contract amount, in U.S. dollars, reflects the total exposure the Portfolio has in that particular currency contract. 2. OPTION TRANSACTIONS For hedging and investment purposes, the Portfolio 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 Portfolio pays a premium whether or not the option is exercised. Additionally, the Portfolio 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. 13 HIGH YIELD PORTFOLIO NOTES TO FINANCIAL STATEMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ When the Portfolio writes an option, the premium received by the Portfolio 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 Portfolio 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 Portfolio 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 Portfolio. In writing an option, the Portfolio 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 Portfolio could result in the Portfolio selling or buying a security or currency at a price different from the current market value. NOTE E: DISTRIBUTIONS TO SHAREHOLDERS The tax character of distributions to be paid for the year ending December 31, 2003 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended December 31, 2002 and December 31, 2001 were as follows: 2002 2001 DISTRIBUTIONS PAID FROM: Ordinary income $2,125,869 $2,037,954 Total taxable distributions 2,125,869 2,037,954 Total distributions paid $2,125,869 $2,037,954 As of December 31, 2002, the components of accumulated earnings/(deficit) on a tax basis were as follows: Undistributed ordinary income $2,576,630 Accumulated capital and other losses (17,004,424)(a) UNREALIZED APPRECIATION/(DEPRECIATION) (1,056,177)(b) Total accumulated earnings/(deficit) $(15,483,971) (a) On December 31, 2002, the Portfolio had a net capital loss carryforward of $16,871,043 of which $63,971 will expire in the year 2006, $3,933,459 will expire in the year 2007, $5,774,960 will expire in the year 2008, $2,890,265 will expire in the year 2009 and $4,208,388 will expire in the year 2010. To the extent future capital gains are offset by capital loss carryforwards, such gains will not be distributed. Based on certain provisions in the Internal Revenue Code, various limitations regarding the future utilization of these carryforwards, brought forward as a result of the Portfolio's merger with Brinson Series Trust High Income Portfolio, may apply. Net capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Portfolio's next taxable year. For the year ended December 31, 2002, the Portfolio deferred to January 1, 2003, post October capital losses of $133,381. (b) The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales. NOTE F: SECURITIES LENDING The Portfolio has entered into a securities lending agreement with UBS Warburg LLC (the "Lending Agent"), formerly UBS/PaineWebber, Inc. Under the terms of the agreement, the Lending Agent, on behalf of the Portfolio, administers the lending of portfolio securities to certain broker-dealers. In return, the Portfolio receives fee income from the lending transactions or it retains a portion of interest on the investment of any cash received as collateral. The Portfolio also continues to receive dividends or interest on the securities loaned. Unrealized gain or loss in the value of the securities loaned that may occur during the term of the loan will be reflected in the accounts of the Portfolio. 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 invests the cash collateral received in an eligible money market vehicle in accordance with the investment restrictions of the Portfolio. The lending agent will indemnify the Portfolio for any loss resulting from a borrower's failure to return a loaned security when due. As of June 30, 2003, the Portfolio had loaned securities with a value of $924,645 and received cash collateral of $968,460 which was invested in a money market fund as included in the footnotes in the accompanying portfolio of investments. For the six months ended June 30, 2003, the Portfolio earned fee income of $1,274 which is included in interest income in the accompanying statement of operations. 14 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ NOTE G: CAPITAL STOCK There are 1,000,000,000 shares of $.001 par value capital stock authorized, divided into two classes, designated Class A and Class B shares. Each class consists of 500,000,000 authorized shares. Transactions in capital stock were as follows: SHARES AMOUNT --------------------------- ------------------------------ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED JUNE 30, 2003 DECEMBER 31, JUNE 30, 2003 DECEMBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 ------------ ------------ -------------- -------------- CLASS A Shares sold 1,254,778 1,640,577 $9,146,407 $11,549,210 Shares issued in reinvestment of dividends 334,125 309,442 2,439,115 2,125,868 Shares redeemed (469,354) (1,030,895) (3,394,843) (7,032,050) Net increase 1,119,549 919,124 $8,190,679 $6,643,028 SIX MONTHS JULY 22, SIX MONTHS JULY 22, ENDED 2002(A) TO ENDED 2002(A) TO JUNE 30, 2003 DECEMBER 31, JUNE 30, 2003 DECEMBER 31, (UNAUDITED) 2002 (UNAUDITED) 2002 ------------- ------------ -------------- -------------- CLASS B Shares sold 1,208,487 103,564 $8,867,037 $704,198 Shares issued in reinvestment of dividends 20,502 -0- 149,866 -0- Shares redeemed (894,143) (50,033) (6,553,062) (341,385) Net increase 334,846 53,531 $2,463,841 $362,813 NOTE H: CONCENTRATION OF RISK Investing in securities of foreign companies or foreign governments involves special risks which include changes in foreign exchange rates and the possibility of future political and economic developments which could adversely affect the value of such securities. Moreover, securities of many foreign companies or foreign governments and their markets may be less liquid and their prices more volatile than those of comparable United States companies or of the United States government. NOTE I:JOINT CREDIT FACILITY A number of open-end mutual funds managed by the Adviser, including the Portfolio, participate in a $750 million revolving credit facility (the "Facility") intended to provide short-term financing if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in the miscellaneous expenses in the statement of operations. The Portfolio did not utilize the Facility during the six months ended June 30, 2003. (a)Commencement of distribution. 15 HIGH YIELD PORTFOLIO FINANCIAL HIGHLIGHTS AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
CLASS A ------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, JUNE 30, 2003 --------------------------------------------------------------- (UNAUDITED) 2002 2001 (A) 2000 1999 1998 -------------- ----------- ----------- ----------- ----------- ----------- Net asset value, beginning of period $6.83 $7.51 $7.91 $9.14 $9.94 $10.33 INCOME FROM INVESTMENT OPERATIONS Net investment income (b) .28 .54(c) .63(c) .74(c) .91(c) 1.03(c) Net realized and unrealized gain (loss) on investment transactions .26 (.76) (.38) (1.18) (1.16) (1.41) Net increase (decrease) in net asset value from operations .54 (.22) .25 (.44) (.25) (.38) LESS: DIVIDENDS Dividends from net investment income (.04) (.46) (.65) (.79) (.55) (.01) Net asset value, end of period $7.33 $6.83 $7.51 $7.91 $9.14 $9.94 TOTAL RETURN Total investment return based on net asset value (d) 13.47% (3.03)% 3.04% (5.15)% (2.58)% (3.69)% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $45,488 $34,765 $31,283 $22,333 $24,567 $16,910 Ratio to average net assets of: Expenses, net of waivers and reimbursements 1.50%(e) 1.18% .95% .95% .95% .95% Expenses, before waivers and reimbursements 1.50%(e) 1.45% 1.51% 1.42% 1.40% 1.80% Net investment income 7.71%(e) 7.78%(c) 8.08%(c) 8.68%(c) 9.72%(c) 9.77%(c) Portfolio turnover rate 44% 83% 95% 175% 198% 295%
See footnote summary on page 17. 16 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
CLASS B --------------------------------- SIX MONTHS JULY 22, ENDED 2002(F) TO JUNE 30, 2003 DECEMBER 31, (UNAUDITED) 2002 -------------- ------------ Net asset value, beginning of period $6.84 $6.45 INCOME FROM INVESTMENT OPERATIONS Net investment income (b) .23 .15(c) Net realized and unrealized gain on investment transactions .31 .24 Net increase in net asset value from operations .54 .39 LESS: DIVIDENDS Dividends from net investment income (.04) -0- Net asset value, end of period $7.34 $6.84 TOTAL RETURN Total investment return based on net asset value (d) 13.43% 6.05% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $2,849 $366 Ratio to average net assets of: Expenses, net of waivers and reimbursements (e) 1.79% 1.42% Expenses, before waivers and reimbursements (e) 1.79% 1.63% Net investment income (e) 7.51% 8.39%(c) Portfolio turnover rate 44% 83%
(a) As required, effective January 1, 2001, the Portfolio has adopted the provisions of the AICPA Audit and Accounting Guide, Audits of Investment Companies, and began amortizing premium on debt securities. For the year ended December 31, 2002, the effect ofthis change was to decrease net investment income by less than $.01 per share, decrease net realized and unrealized loss on investments by less than $.01 per share and decrease the ratio of net investment income to average net assets from 8.14% to 8.08%. Per share ratios and supplemental data for periods prior to January 1, 2001 have not been restated to reflect this change in presentation. (b) Based on average shares outstanding. (c) Net of expenses reimbursed or waived by the Adviser. (d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Total investment return calculated for a period of less than one year is not annualized. (e) Annualized. (f) Commencement of distribution. 17 HIGH YIELD PORTFOLIO AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ BOARD OF DIRECTORS JOHN D. CARIFA, Chairman and President RUTH BLOCK (1) DAVID H. DIEVLER (1) JOHN H. DOBKIN (1) WILLIAM H. FOULK, JR. (1) CLIFFORD L. MICHEL (1) DONALD J. ROBINSON (1) OFFICERS KATHLEEN A. CORBET, Senior Vice President LEWIS A. SANDERS, Senior Vice President ANDREW S. ADELSON, Vice President ANDREW ARAN, Vice President BRUCE K. ARONOW, Vice President EDWARD D. BAKER III, Vice President THOMAS J. BARDONG, Vice President MATTHEW D.W. BLOOM, Vice President RUSSELL BRODY, Vice President FRANK V. CARUSO, Vice President JOHN F. CHIODI, Vice President PAUL J. DENOON, Vice President JOSEPH C. DONA, Vice President MARILYN G. FEDAK, Vice President THOMAS KAMP, Vice President SEAN KELLEHER, Vice President DAVID A. KRUTH, Vice President ALAN E. LEVI, Vice President MICHAEL LEVY, Vice President GERALD T. MALONE, Vice President MICHAEL MON, Vice President RANJI H. NAGASWAMI, Vice President DANIEL NORDBY, Vice President JIMMY K. PANG, Vice President RAYMOND J. PAPERA, Vice President JOSEPH G. PAUL, Vice President DOUGLAS J. PEEBLES, Vice President JEFFREY S. PHLEGAR, Vice President DANIEL G. PINE, Vice President MICHAEL J. REILLY, Vice President PAUL C. RISSMAN, Vice President IVAN RUDOLPH-SHABINSKY, Vice President KEVIN F. SIMMS, Vice President MICHAEL A. SNYDER, Vice President ANNIE TSAO, Vice President JEAN VAN DE WALLE, Vice President RICHARD A. WING , Vice President SANDRA YEAGER, Vice President EDMUND P. BERGAN, JR., Secretary MARK D. GERSTEN, Treasurer and Chief Financial Officer THOMAS R. MANLEY, Controller CUSTODIAN STATE STREET BANK AND TRUST COMPANY 225 Franklin Street Boston, MA 02110 DISTRIBUTOR ALLIANCEBERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, INC. 1345 Avenue of the Americas New York, NY 10105 INDEPENDENT AUDITORS ERNST & YOUNG LLP 5 Times Square New York, NY 10036 LEGAL COUNSEL SEWARD & KISSEL 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 1-(800) 221-5672 (1) Member of the Audit Committee. 18 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. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the registrant. ITEM 8. [RESERVED] ITEM 9. 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 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 10. EXHIBITS. The following exhibits are attached to this Form N-CSR: EXHIBIT NO. DESCRIPTION OF EXHIBIT 10 (b) (1) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 10 (b) (2) Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 10 (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 Variable Products Series Fund, Inc. By: /s/John D. Carifa ------------------------------- John D. Carifa President Date: August 22, 2003 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/John D. Carifa ---------------------------------- John D. Carifa President Date: August 22, 2003 By: /s/Mark D. Gersten ---------------------------------- Mark D. Gersten Treasurer and Chief Financial Officer Date: August 22, 2003