-----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, GuQKD77mcpaSlXAVHtuumgsGHS40wZwdg3MHfpOFYCQulC+kzAUHVbPgHmo9v2+V f+hlvp446ZUReWXwZyuCQw== 0000936772-03-000338.txt : 20030829 0000936772-03-000338.hdr.sgml : 20030829 20030829121533 ACCESSION NUMBER: 0000936772-03-000338 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030829 EFFECTIVENESS DATE: 20030829 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND INC CENTRAL INDEX KEY: 0000825316 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05398 FILM NUMBER: 03873162 BUSINESS ADDRESS: STREET 1: 500 PLAZA DRIVE STREET 2: 1345 AVENUE OF THE AMERICAS 31ST FL CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2013194105 MAIL ADDRESS: STREET 1: ALLIANCE CAPITAL MANGEMENT LP STREET 2: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 N-CSR 1 edg9272.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 SMALL CAP VALUE PORTFOLIO SEMI-ANNUAL REPORT JUNE 30, 2003 INVESTMENT PRODUCTS OFFERED - --------------------------- > ARE NOT FDIC INSURED > MAY LOSE VALUE > ARE NOT BANK GUARANTEED - --------------------------- SMALL CAP VALUE PORTFOLIO TEN LARGEST HOLDINGS June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ PERCENT OF COMPANY U.S. $ VALUE NET ASSETS _______________________________________________________________________________ Terex Corp. $ 2,127,680 2.1% - ------------------------------------------------------------------------------- Nortel Networks Corp. 2,025,000 2.0 - ------------------------------------------------------------------------------- Cooper Industries, Ltd. Cl.A 1,742,860 1.7 - ------------------------------------------------------------------------------- PNM Resources, Inc. 1,717,350 1.7 - ------------------------------------------------------------------------------- Standard Pacific Corp. 1,697,792 1.6 - ------------------------------------------------------------------------------- Pulte Homes, Inc. 1,670,986 1.6 - ------------------------------------------------------------------------------- Group 1 Automotive, Inc. 1,652,910 1.6 - ------------------------------------------------------------------------------- Valero Energy Corp. 1,634,850 1.6 - ------------------------------------------------------------------------------- Hughes Supply, Inc. 1,630,900 1.6 - ------------------------------------------------------------------------------- PacifiCare Health Systems, Inc. 1,618,024 1.6 ------------ ---- - ------------------------------------------------------------------------------- $ 17,518,352 17.1% - ------------------------------------------------------------------------------- 1 SMALL CAP VALUE PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- COMMON STOCKS-95.7% FINANCIAL-17.3% MAJOR REGIONAL BANKS-6.8% Banknorth Group, Inc. 59,000 $ 1,505,680 Hibernia Corp. Cl.A 56,300 1,022,408 Popular, Inc. 36,000 1,389,240 Silicon Valley Bancshares (a) 37,000 880,970 UnionBanCal Corp. 28,400 1,174,908 Whitney Holding Corp. 30,000 959,100 ------------- 6,932,306 ------------- MULTI-LINE INSURANCE-2.2% Health Net, Inc. (a) 18,800 619,460 PacifiCare Health Systems, Inc. 32,800 1,618,024 ------------- 2,237,484 ------------- PROPERTY - CASUALTY INSURANCE-1.2% PartnerRe, Ltd. 24,000 1,226,640 ------------- REAL ESTATE INVESTMENT TRUST-3.7% Avalonbay Communities, Inc. 29,400 1,253,616 FelCor Lodging Trust, Inc. 70,000 549,500 Mack-Cali Realty Corp. 20,000 727,600 Post Properties, Inc. 49,100 1,301,150 ------------- 3,831,866 ------------- SAVINGS AND LOAN-3.4% Commercial Federal Corp. 55,700 1,180,840 Sovereign Bancorp, Inc. 85,000 1,330,250 Washington Federal, Inc. 40,095 927,397 ------------- 3,438,487 ------------- 17,666,783 ------------- CAPITAL EQUIPMENT-13.4% AUTO TRUCKS - PARTS-5.6% ArvinMeritor, Inc. 80,000 1,614,400 BorgWarner, Inc. 21,000 1,352,400 Modine Manufacturing Co. 64,500 1,249,365 PACCAR, Inc. 23,000 1,553,880 ------------- 5,770,045 ------------- ELECTRICAL EQUIPMENT-1.7% Cooper Industries, Ltd. Cl.A 42,200 1,742,860 ------------- MACHINERY-4.6% Flowserve Corp. (a) 9,850 193,750 Kennametal, Inc. 34,700 1,174,248 Lincoln Electric Holdings, Inc. 58,000 1,183,780 Terex Corp. (a) 109,000 2,127,680 ------------- 4,679,458 ------------- MISCELLANEOUS CAPITAL GOODS-1.5% Parker-Hannifin Corp. 36,000 1,511,640 ------------- 13,704,003 ------------- CONSUMER CYCLICALS-12.2% AUTOS & AUTO PARTS-4.5% American Axle & Manufacturing Holdings, Inc. (a) 52,000 1,242,800 Dana Corp. 41,600 480,896 Genuine Parts Co. 38,800 1,241,988 Group 1 Automotive, Inc. (a) 51,000 1,652,910 ------------- 4,618,594 ------------- HOTEL - MOTEL-1.2% Park Place Entertainment Corp. (a) 140,000 1,272,600 ------------- MISCELLANEOUS CONSUMER CYCLICALS-1.2% Brunswick Corp. 47,000 1,175,940 ------------- RETAILERS-4.1% AutoNation, Inc. (a) 84,000 1,320,480 Federated Department Stores, Inc. 38,000 1,400,300 Foot Locker, Inc. 110,000 1,457,500 ------------- 4,178,280 ------------- TEXTILES/SHOES - APPAREL MFG.-1.2% Jones Apparel Group, Inc. (a) 33,700 986,062 V. F. Corp. 6,500 220,805 ------------- 1,206,867 ------------- 12,452,281 ------------- TECHNOLOGY-11.8% COMMUNICATION - EQUIP. MFRS.-7.4% ADC Telecommunications, Inc. (a) 636,000 1,480,608 Andrew Corp. (a) 163,500 1,504,200 Corning, Inc. (a) 210,000 1,551,900 Nortel Networks Corp. (a) 750,000 2,025,000 Tellabs, Inc. (a) 157,000 1,031,490 ------------- 7,593,198 ------------- COMPUTER/INSTRUMENTATION-1.4% Adaptec, Inc. (a) 188,100 1,463,418 ------------- 2 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- MISCELLANEOUS INDUSTRIAL TECHNOLOGY-1.5% Arrow Electronics, Inc. (a) 21,000 $ 320,040 Avnet, Inc. (a) 22,000 278,960 Solectron Corp. (a) 107,400 401,676 Tech Data Corp. (a) 17,500 467,425 ------------- 1,468,101 ------------- SEMICONDUCTORS-1.5% KEMET Corp. (a) 149,700 1,511,970 ------------- 12,036,687 ------------- UTILITIES-9.7% ELECTRIC COMPANIES-9.0% Constellation Energy Group, Inc. 41,000 1,406,300 Northeast Utilities 94,200 1,576,908 OGE Energy Corp. 60,100 1,284,337 PNM Resources, Inc. 64,200 1,717,350 Puget Energy, Inc. 55,800 1,331,946 Reliant Resources, Inc. (a) 124,700 764,411 Sierra Pacific Resources (a) 41,800 248,292 WPS Resources Corp. 22,500 904,500 ------------- 9,234,044 ------------- TELEPHONE-0.7% Qwest Communications International, Inc. (a) 153,000 731,340 ------------- 9,965,384 ------------- COMMODITIES-9.2% ALUMINUM-1.5% Mueller Industries Inc. (a) 55,000 1,491,050 ------------- CHEMICALS-4.0% Crompton Corp. 226,200 1,594,710 Cytec Industries, Inc. (a) 40,500 1,368,900 FMC Corp. (a) 50,400 1,140,552 ------------- 4,104,162 ------------- CONTAINERS - METAL/GLASS/PAPER-1.4% Ball Corp. 32,000 1,456,320 ------------- MISCELLANEOUS METALS-1.3% Reliance Steel & Aluminum Co. 61,200 1,266,840 ------------- PAPER-1.0% MeadWestvaco Corp. 40,660 1,004,302 Temple-Inland, Inc. 700 30,037 ------------- 1,034,339 ------------- 9,352,711 ------------- NON-FINANCIAL-8.4% BUILDING MATERIALS - CEMENT-1.1% Texas Industries, Inc. 47,000 1,118,600 ------------- BUILDING MATERIAL - HEAT/PLUMBING/AIR-1.6% Hughes Supply, Inc. 47,000 1,630,900 ------------- HOME BUILDING-2.6% Centex Corp. 12,300 956,817 Pulte Homes, Inc. 27,100 1,670,986 ------------- 2,627,803 ------------- MISCELLANEOUS BUILDING-3.1% Harsco Corp. 41,000 1,478,050 Standard Pacific Corp. 51,200 1,697,792 ------------- 3,175,842 ------------- 8,553,145 ------------- ENERGY-5.0% COAL-1.6% Peabody Energy Corp. 48,000 1,612,320 ------------- OILS - INTEGRATED DOMESTIC-3.4% Amerada Hess Corp. 16,400 806,552 Kerr-McGee Corp. 23,300 1,043,840 Valero Energy Corp. 45,000 1,634,850 ------------- 3,485,242 ------------- 5,097,562 ------------- CONSUMER GROWTH-4.3% HOSPITAL MANAGEMENT-1.2% Universal Health Services, Inc. Cl.B, (a) 31,000 1,228,220 ------------- HOSPITAL SUPPLIES-1.0% Apogent Technologies, Inc. (a) 54,600 1,092,000 ------------- PUBLISHING-2.1% Deluxe Corp. 22,000 985,600 The Readers Digest Association, Inc. 84,500 1,139,060 ------------- 2,124,660 ------------- 4,444,880 ------------- CONSUMER STAPLES-3.3% FOODS-2.7% Corn Products International, Inc. 37,000 1,111,110 Smithfield Foods, Inc. (a) 40,000 916,800 Universal Corp. 16,500 697,950 ------------- 2,725,860 ------------- 3 SMALL CAP VALUE PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- RETAIL STORES - FOOD-0.6% SUPERVALU, Inc. 30,000 $ 639,600 ------------- 3,365,460 ------------- SERVICES-1.1% MISCELLANEOUS INDUSTRIAL TRANSPORTATION-1.1% SEACOR SMIT, Inc. (a) 32,100 1,171,329 ------------- Total Common Stocks (cost $97,266,232) 97,810,225 ------------- Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENT-5.1% TIME DEPOSIT-5.1% State Street Euro Dollar 0.50%, 7/01/03 (cost $5,194,000) $ 5,194 $ 5,194,000 ------------- TOTAL INVESTMENTS-100.8% (cost $102,460,232) 103,004,225 Other assets less liabilities-(0.8%) (827,487) ------------- NET ASSETS-100% $ 102,176,738 ============= (a) Non-income producing security. See Notes to Financial Statements. 4 SMALL CAP VALUE PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ ASSETS Investments in securities, at value (cost $102,460,232) $ 103,004,225 Cash 375 Dividends and interest receivable 142,076 ------------- Total assets 103,146,676 ------------- LIABILITIES Payable for investment securities purchased 854,757 Advisory fee payable 59,017 Distribution fee payable 7,810 Accrued expenses 48,354 ------------- Total liabilities 969,938 ------------- NET ASSETS $ 102,176,738 ============= COMPOSITION OF NET ASSETS Capital stock, at par $ 8,820 Additional paid-in capital 100,109,882 Undistributed net investment income 164,387 Accumulated net realized gain on investment transactions 1,349,656 Net unrealized appreciation of investments 543,993 ------------- $ 102,176,738 ============= Class A Shares Net assets $ 63,841,332 ============= Shares of capital stock outstanding 5,509,901 ============= Net asset value per share $ 11.59 ============= Class B Shares Net assets $ 38,335,406 ============= Shares of capital stock outstanding 3,310,334 ============= Net asset value per share $ 11.58 ============= See Notes to Financial Statements. 5 SMALL CAP VALUE PORTFOLIO STATEMENT OF OPERATIONS Six Months Ended June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ INVESTMENT INCOME Dividends (net of foreign taxes withheld of $1,332) $ 697,522 Interest 18,692 ------------- Total investment income 716,214 ------------- EXPENSES Advisory fee 420,425 Distribution fee--Class B 35,007 Custodian 47,177 Administrative 37,500 Audit and legal 29,526 Printing 23,052 Directors' fees and expenses 514 Transfer agency 474 Miscellaneous 11,462 ------------- Total expenses 605,137 Less: expenses waived and reimbursed (see Note B) (67,438) ------------- Net expenses 537,699 ------------- Net investment income 178,515 ------------- REALIZED AND UNREALIZED GAIN ON INVESTMENT TRANSACTIONS Net realized gain on investment transactions 1,356,244 Net change in unrealized appreciation/ depreciation of investments 9,244,229 ------------- Net gain on investment transactions 10,600,473 ------------- NET INCREASE IN NET ASSETS FROM OPERATIONS $ 10,778,988 ============= See Notes to Financial Statements. 6 SMALL CAP VALUE 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 $ 178,515 $ 569,082 Net realized gain on investment transactions 1,356,244 1,432,612 Net change in unrealized appreciation/ depreciation of investments 9,244,229 (10,019,480) ------------ ------------ Net increase (decrease) in net assets from operations 10,778,988 (8,017,786) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income Class A (375,698) (104,339) Class B (199,672) (10,387) Net realized gain on investment transactions Class A (896,307) (49,686) Class B (529,290) (5,193) CAPITAL STOCK TRANSACTIONS Net increase 14,974,800 65,189,261 ------------ ------------ Total increase 23,752,821 57,001,870 NET ASSETS Beginning of period 78,423,917 21,422,047 ------------ ------------ End of period (including undistributed net investment income of $561,242 at December 31, 2002) $102,176,738 $ 78,423,917 ============ ============ See Notes to Financial Statements. 7 SMALL CAP VALUE PORTFOLIO NOTES TO FINANCIAL STATEMENTS June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ NOTE A: Significant Accounting Policies The AllianceBernstein Small Cap Value Portfolio (the "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 long-term growth of capital. 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 commenced operations on May 1, 2001. The Portfolio offers Class A and Class B shares. Both classes of shares have identical voting, dividend, liquidating 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 such security. Securities for which market quotations are not readily available are valued at fair value in accordance with the Pricing Policies. 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. 8 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ 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 transactions are 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 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 to the extent necessary to limit total operating expenses on an annual basis to .95% and 1.20% of the average daily net assets for Class A and Class B shares, respectively. Effective May 1, 2002, the Adviser agreed to waive its fee and to reimburse the additional operating expenses to the extent necessary to limit total operating expenses on an annual basis to 1.20% and 1.45% of the average daily net assets for Class A and Class B shares, respectively. Any expense waivers or reimbursements are accrued daily and paid monthly. For the six months ended June 30, 2003, the Adviser waived fees in the amount of $29,938. Pursuant to the terms of the investment advisory agreement, the Portfolio has agreed to reimburse the Adviser for the cost of providing the Portfolio with certain legal and accounting services. Because of the Adviser's agreement to limit total operating expenses as described above, the Adviser waived reimbursement for such services in the amount of $37,500 for the six months ended June 30, 2003. Brokerage commissions paid on investment transactions for the six months ended June 30, 2003, amounted to $80,894, of which $44,256 was paid to Sanford C. Bernstein & Co. LLC, an affiliate of the Adviser. 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 six months ended June 30, 2003. 9 SMALL CAP VALUE PORTFOLIO NOTES TO FINANCIAL STATEMENTS (continued) 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 Portfolio 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 $ 22,537,593 $ 9,446,959 U.S. government securities -0- -0- The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation (excluding foreign currency transactions) are as follows: Gross unrealized appreciation $ 9,858,315 Gross unrealized depreciation (9,314,322) ------------- Net unrealized appreciation $ 543,993 ------------- 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 original contracts and the closing of such contracts is included in net realized gain or loss on foreign currency transactions. Fluctuations in the value of open forward exchange currency contracts are recorded for financial reporting purposes as net unrealized appreciation or depreciation by the Portfolio. The Portfolio's custodian will place and maintain cash not available for investment or other liquid assets in a separate account of the Portfolio having a value at least equal to the aggregate amount of the Portfolio's commitments under forward exchange currency contracts entered into with respect to position hedges. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in 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. 10 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ 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. 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 $ 164,117 $ -0- Net long-term capital gains 5,488 -0- ------------- ------------- Total taxable distributions 169,605 -0- ------------- ------------- Total distributions paid $ 169,605 $ -0- ============= ============= As of December 31, 2002, the components of accumulated earnings/(deficit) on a tax basis were as follows: Undistributed ordinary income $ 1,579,648 Accumulated long-term capital gains 405,614 Unrealized appreciation/(depreciation) (8,705,247)(a) ------------- Total accumulated earnings/(deficit) $ (6,719,985) ============= (a) The difference between book-basis and tax-basis unrealized appreciation/(depreciation) is attributable primarily to the tax deferral of losses on wash sales. 11 SMALL CAP VALUE PORTFOLIO NOTES TO FINANCIAL STATEMENTS (continued) AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ NOTE F: 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 651,484 5,079,981 $ 7,038,410 $ 58,777,847 Shares issued in reinvestment of dividends and distributions 105,912 12,954 1,272,005 154,025 Shares redeemed (561,251) (1,664,834) (5,750,328) (17,337,964) ----------- ----------- ------------ ------------- Net increase 196,145 3,428,101 $ 2,560,087 $ 41,593,908 =========== =========== ============ ============= CLASS B Shares sold 2,287,071 2,687,037 $ 25,354,480 $ 29,520,479 Shares issued in reinvestment of dividends and distributions 60,747 1,307 728,962 15,580 Shares redeemed (1,219,469) (537,232) (13,668,729) (5,940,706) ----------- ----------- ------------ ------------- Net increase 1,128,349 2,151,112 $ 12,414,713 $ 23,595,353 =========== =========== ============ ============= NOTE G: 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 H: 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. 12 SMALL CAP VALUE PORTFOLIO FINANCIAL HIGHLIGHTS AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
CLASS A ------------------------------------ Six Months May 2, 2001(a) Ended Year Ended to June 30, 2003 December 31, December 31, (unaudited) 2002 2001 ----------- ----------- ----------- Net asset value, beginning of period $10.46 $11.18 $10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income (b)(c) .03 .12 .14 Net realized and unrealized gain (loss) on investment Transactions 1.34 (.81) 1.04 Net increase (decrease) in net asset value from Operations 1.37 (.69) 1.18 LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.07) (.02) -0- Distributions from net realized gain on investment Transactions (.17) (.01) -0- Total dividends and distributions (.24) (.03) -0- Net asset value, end of period $11.59 $10.46 $11.18 TOTAL RETURN Total investment return based on net asset value (d) 12.99% (6.20)% 11.80% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $63,841 $55,592 $21,076 Ratio to average net assets of: Expenses, net of waivers and reimbursements 1.20%(e) 1.13% .95%(e) Expenses, before waivers and reimbursements 1.35%(e) 1.41% 2.65%(e) Net investment income (c) .51%(e) 1.04% 1.99%(e) Portfolio turnover rate 12% 28% 12%
See footnote summary on page 14. 13 AllianceBernstein Variable Products Series Fund _______________________________________________________________________________ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
CLASS B ------------------------------------ Six Months May 2, 2001(f) Ended Year Ended to June 30, 2003 December 31, December 31, (unaudited) 2002 2001 ----------- ----------- ----------- Net asset value, beginning of period $10.46 $11.20 $10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income (b)(c) .01 .08 .11 Net realized and unrealized gain (loss) on investment Transactions 1.34 (.79) 1.09 Net increase (decrease) in net asset value from Operations 1.35 (.71) 1.20 LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.06) (.02) -0- Distributions from net realized gain on investment Transactions (.17) (.01) -0- Total dividends and distributions (.23) (.03) -0- Net asset value, end of period $11.58 $10.46 $11.20 TOTAL RETURN Total investment return based on net asset value (d) 12.83% (6.37)% 12.00% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $38,336 $22,832 $346 Ratio to average net assets of: Expenses, net of waivers and reimbursements 1.45%(e) 1.43% 1.20%(e) Expenses, before waivers and reimbursements 1.63%(e) 1.70% 3.17%(e) Net investment income (c) .26%(e) .74% 2.17%(e) Portfolio turnover rate 12% 28% 12%
(a) Commencement of distribution. (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 operations. 14 SMALL CAP VALUE 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. Winge, 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. 15 (This page left intentionally blank.) (This page left intentionally blank.) 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 EX-99.CERT 3 ex-99certb.txt Exhibit 10(b)(1) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER I, John D. Carifa, certify that: 1. I have reviewed this report on Form N-CSR (the ?Report?) of AllianceBernstein Variable Products Series Fund, Inc. (the ?Fund?); 2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; 3. Based on my knowledge, the financial statements and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this Report; 4. The Fund?s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) for the Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; b) evaluated the effectiveness of the Fund?s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this Report based on such evaluation; and c) disclosed in this Report any change in the Fund?s internal control over financial reporting that occurred during the Fund?s most recent fiscal half-year [or second fiscal half-year in the case of an annual report] that has materially affected, or is reasonably likely to materially affect, the Fund?s internal control over financial reporting; and 5. The Fund?s other certifying officer and I have disclosed to the Fund?s auditors and the audit committee of the Fund?s board of directors: a) all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund?s ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund?s internal controls. Date: August 22, 2003 /s/John D. Carifa ------------------------ John D. Carifa Chairman and President Exhibit 10(b)(2) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER I, Mark D. Gersten, certify that: 1. I have reviewed this report on Form N-CSR (the ?Report?) of AllianceBernstein Variable Products Series Fund, Inc. (the ?Fund?); 2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; 3. Based on my knowledge, the financial statements and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Fund as of, and for, the periods presented in this Report; 4. The Fund?s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) for the Fund and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Fund, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; b) evaluated the effectiveness of the Fund?s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this Report based on such evaluation; and c) disclosed in this Report any change in the Fund?s internal control over financial reporting that occurred during the Fund?s most recent fiscal half-year [or second fiscal half-year in the case of an annual report] that has materially affected, or is reasonably likely to materially affect, the Fund?s internal control over financial reporting; and 5. The Fund?s other certifying officer and I have disclosed to the Fund?s auditors and the audit committee of the Fund?s board of directors: a) all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Fund?s ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Fund?s internal controls. Date: August 22, 2003 /s/Mark D. Gersten --------------------------- Mark D. Gersten Treasurer and Chief Financial Officer EX-99.906 CERT 4 ex-99906c.txt Exhibit 10(c) CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Pursuant to 18 U.S.C. 1350, each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of AllianceBernstein Variable Products Series Fund, Inc. (the "Registrant"), hereby certifies that the Registrant's report on Form N-CSR for the period ended June 30, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: August 22, 2003 By: /s/John D. Carifa --------------------------------- John D. Carifa Chairman and President By: /s/Mark D. Gersten ---------------------------------- Mark D. Gersten Treasurer and Chief Financial Officer This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----