-----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, Pu9CMUAZOjQcGuQkIKlNCc8it3daj0eb38p7MCSn4WK55jjA+t3rhOJv0HFz/B6J 4oOv+GE2+401qVi8VzaP8w== 0000936772-03-000370.txt : 20030909 0000936772-03-000370.hdr.sgml : 20030909 20030909171202 ACCESSION NUMBER: 0000936772-03-000370 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030909 EFFECTIVENESS DATE: 20030909 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCEBERNSTEIN BOND FUND INC CENTRAL INDEX KEY: 0000003794 IRS NUMBER: 132754393 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-02383 FILM NUMBER: 03888524 BUSINESS ADDRESS: STREET 1: 500 PLAZA DRIVE STREET 2: 1345 AVENUE OF THE AMERICAS CITY: SECAUCUS STATE: NJ ZIP: 07094 BUSINESS PHONE: 2013194105 MAIL ADDRESS: STREET 1: 500 PLAZA DRIVE STREET 2: 1345 AVENUE OF THE AMERICAS CITY: SECAUCUS STATE: NJ ZIP: 07094 FORMER COMPANY: FORMER CONFORMED NAME: ALLIANCE BOND FUND INC DATE OF NAME CHANGE: 19920703 N-CSR 1 edg9302.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: 811-02383 AllianceBernstein Bond 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: June 30, 2003 Date of reporting period: June 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. - ------------------------------------------------------------------------------- Investment Grade Fixed Income - ------------------------------------------------------------------------------- AllianceBernstein [LOGO](SM) Investment Research and Management AllianceBernstein Bond Fund Quality Bond Portfolio Annual Report -- June 30, 2003 Investment Products Offered - ------------------------- o Are Not FDIC Insured o May Lose Value o Are Not Bank Guaranteed - ------------------------- This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund. AllianceBernstein Investment Research and Management, Inc., the principal underwriter of the AllianceBernstein mutual funds and an affiliate of Alliance Capital Management L.P., the manager of the funds, is a member of the NASD. August 6, 2003 Annual Report We're excited to announce that Alliance Fund Distributors, Inc. has become AllianceBernstein Investment Research and Management, Inc. All of Alliance Capital's domestic mutual funds have been renamed AllianceBernstein. This report provides management's discussion of fund performance for AllianceBernstein Bond Fund Quality Bond Portfolio (the "Portfolio") for the annual reporting period ended June 30, 2003. Investment Objective and Policies This open-end fund seeks high current income consistent with preservation of capital by investing in investment-grade fixed income securities. The Portfolio invests in readily marketable securities that do not involve undue risk of capital. Investment Results The following table shows the performance of the Portfolio for the six- and 12-month periods ended June 30, 2003. For comparison, we have included the Lehman Brothers (LB) Aggregate Bond Index, a standard measure of the performance of a basket of unmanaged debt securities. INVESTMENT RESULTS* Periods Ended June 30, 2003 --------------------------------- Returns --------------------------------- 6 Months 12 Months -------------- -------------- AllianceBernstein Bond Fund Quality Bond Portfolio Class A 3.59% 9.87% - ------------------------------------------------------------ Class B 3.24% 9.12% - ------------------------------------------------------------ Class C 3.25% 9.03% - ------------------------------------------------------------ Lehman Brothers Aggregate Bond Index 3.93% 10.40% - ------------------------------------------------------------ * The Portfolio's investment results are for the periods shown and are based on the net asset value (NAV) of each class of shares as of June 30, 2003. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. All fees and expenses related to the operation of the Portfolio have been deducted, but no adjustment has been made for sales charges that may apply when shares are purchased or redeemed. Returns for Advisor Class shares will vary due to different expenses associated with this class. Returns for the Portfolio include the reinvestment of any distributions paid during each period. During the reporting _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 1 period, the Advisor waived a portion of its advisory fee or reimbursed the Portfolio for a portion of its expenses to the extent necessary to limit the Portfolio's expenses to 0.98% for Class A, 1.68% for Class B, 1.68% for Class C and 0.68% for Advisor Class. This waiver extends through the Portfolio's current fiscal year and may be extended by the Advisor for additional one-year terms. Without the waiver, the Portfolio's expenses would have been higher and its performance would have been lower than that shown above. Past performance is no guarantee of future results. The unmanaged Lehman Brothers (LB) Aggregate Bond Index is a standard measure of the performance of a basket of unmanaged debt securities. It is composed of the LB Mortgage-Backed Securities Index, the LB Asset-Backed Securities Index and the LB Government/Credit Bond Index. An investor cannot invest directly in an index, and its results are not indicative of any particular investment, including AllianceBernstein Bond Fund Quality Bond Portfolio. Additional investment results appear on page 6. For the six- and 12-month periods ended June 30, 2003, the Portfolio underperformed the Lehman Brothers Aggregate Bond Index. At the start of 2003, the Portfolio's yield curve structure was positioned for a period of rising rates, a strategy that contributed positively to relative returns in the first quarter. In the second quarter, however, this positioning detracted from performance. The U.S. Federal Reserve announced concerns about deflation risk and moved to an easing bias in April, finally cutting interest rates by 25 basis points to 1.00% in its June meeting. A greater exposure to investment-grade corporates compared to the benchmark, including an overweight in BBB-rated bonds, contributed positively to overall performance. Mortgage coupon selection was also a positive, as was the Portfolio's diversified overweight in non-government sectors. Market Overview and Investment Strategy Business conditions worsened in the first quarter of the year, despite record high corporate cash flow and signs of consumer strength in rising building permits and a new high in the mortgage refinance index. The U.S. economy contracted in February and March, in part because of bad weather, and also because of corporate and consumer hesitancy to make purchase and investment decisions during the Iraqi conflict. The second quarter saw interest rates fall sharply in anticipation of Federal Reserve easing. As a result, the bond markets delivered very strong absolute returns. Despite sluggish economic growth and the Fed's talk of deflation, the credit-sensitive sectors were the top performers, and lower-rated credits outperformed higher-rated debt. Government bonds were the weakest performers in the fixed income markets. _______________________________________________________________________________ 2 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO In the first half of the six-month period, we increased the liquidity of the Portfolio and pared back its risk profile. We reduced holdings in Treasuries on expectations of increased supply, and we eliminated commercial mortgage-backed securities in light of growing default rates. Later, as credit-sensitive sectors outperformed, we increased our exposure to corporates. In the face of a massive refinancing wave during the second quarter, we trimmed our mortgage overweight, reducing 15-year exposure in favor of 30-year and lowering the average coupon. We also eliminated the Portfolio's exposure to non-U.S. dollar government bonds. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 3 PERFORMANCE UPDATE ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO GROWTH OF A $10,000 INVESTMENT 7/1/99--6/30/03 Lehman Brothers Aggregate Bond Index: $13,949 AllianceBernstein Bond Fund Quality Bond Portfolio Class A: $12,847 [THE FOLLOWING TABLE WAS DEPICTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL.] AllianceBernstein Bond Lehman Brothers Fund Quality Bond Portfolio Aggregate Bond Index - ------------------------------------------------------------------------------- 7/1/99* $ 9,579 $ 10,000 6/30/2000 $ 10,000 $ 10,457 6/30/2001 $ 11,009 $ 11,631 6/30/2002 $ 11,695 $ 12,635 6/30/2003 $ 12,847 $ 13,949 This chart illustrates the total value of an assumed $10,000 investment in AllianceBernstein Bond Fund Quality Bond Portfolio Class A shares (from 7/1/99 to 6/30/03) as compared to the performance of an appropriate index. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Portfolio and assumes the reinvestment of dividends and capital gains. Performance for Class B, Class C and Advisor Class shares will vary from the results shown above due to differences in expenses charged to these classes. Past performance is not indicative of future results, and is not representative of future gain or loss in capital value or dividend income. The unmanaged Lehman Brothers (LB) Aggregate Bond Index is a standard measure of the performance of a basket of unmanaged debt securities. It is composed of the LB Mortgage-Backed Securities Index, the LB Asset-Backed Securities Index and the LB Government/Credit Bond Index. When comparing AllianceBernstein Bond Fund Quality Bond Portfolio to the index shown above, you should note that no sales charges are reflected in the performance of the index. An investor cannot invest directly in an index, and its results are not indicative of any specific investment, including AllianceBernstein Bond Fund Quality Bond Portfolio. _______________________________________________________________________________ 4 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO PORTFOLIO SUMMARY June 30, 2003 INCEPTION DATES Class A Shares 7/1/99 Class B Shares 7/1/99 Class C Shares 7/1/99 PORTFOLIO STATISTICS Net Assets ($mil): $462.4 SECURITY TYPE 19.7% U.S. Treasury Securities 17.7% Federal National Mortgage Association 6.5% Federal Home Loan Mortgage Corporation 4.2% Government National Mortgage Association [PIE CHART OMITTED] 1.8% Asset-Backed Securities 1.2% Sovereign Debt Securities Corporate 3.7% Banking 2.8% Financial 1.5% Broadcasting/Media 1.4% Public Utilities-Electric & Gas [PIE CHART OMITTED] 1.4% Automotive 1.3% Communications 6.1% Other 30.7% Short-Term Investments All data as of June 30, 2003. The Portfolio's security type breakdown is expressed as a percentage of total investments and may vary over time. "Other" represents less than 1.0% weightings in Aerospace/Defense, Building/Real Estate, Cable, Communications-Mobile, Energy, Food/Beverages, Health Care, Industrial, Insurance, Metals/Mining, Non-Air Transportation, Paper/Packaging, Petroleum Products, Retail, Savings and Loan, Services and Technology. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 5 INVESTMENT RESULTS AVERAGE ANNUAL RETURNS AS OF JUNE 30, 2003 Class A Shares - ------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year 9.87% 5.25% Since Inception* 7.62% 6.46% SEC Yield** 3.24% Class B Shares - ------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year 9.12% 6.12% Since Inception* 6.85% 6.85% SEC Yield** 2.69% Class C Shares - ------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year 9.03% 8.03% Since Inception* 6.81% 6.81% SEC Yield** 2.70% The Portfolio's investment results represent average annual returns. Returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The returns reflect reinvestment of dividends and/or capital gains distributions in additional shares without and with the effect of the 4.25% maximum front-end sales charge for Class A or applicable contingent deferred sales charge for Class B (3% year 1, 2% year 2, 1% year 3, 0% year 4); and for Class C shares (1% year 1). Returns for Class A shares do not reflect the imposition of the 1 year, 1% contingent deferred sales charge for accounts over $1,000,000. Returns for Advisor Class shares will vary due to different expenses associated with this class. The Portfolio normally invests all of its assets in securities that are rated at least BBB by Standard & Poor's or, if unrated, are of comparable quality. The Portfolio also may invest in convertible debt securities, preferred stock and dividend-paying stocks, U.S. government obligations, and foreign fixed-income securities. The Portfolio may invest a portion of its assets in foreign securities, which may magnify fluctuations. Price fluctuations may also be caused by changes in interest rates or bond credit quality ratings. These changes have a greater effect on bonds with longer maturities than on those with shorter maturities. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. * Inception date: 7/1/99 for all share classes. ** SEC yields are based on SEC guidelines and are calculated on 30 days ended June 30, 2003. _______________________________________________________________________________ 6 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 2003 Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- U.S. GOVERNMENT & AGENCY OBLIGATIONS-63.6% Federal National Mortgage Association-23.5% 2.50%, 6/15/08 $ 6,345 $ 6,321,898 2.875%, 5/19/08 3,030 3,043,362 4.50%, TBA 4,835 4,933,209 5.00%, TBA 26,565 26,830,917 5.50%, TBA 8,890 9,234,487 6.00%, TBA 30,590 31,851,733 6.50%, TBA 6,605 6,883,652 6.50%, 1/01/28-10/01/32 15,477 16,152,998 7.50%, 7/01/31-3/01/32 2,988 3,175,872 -------------- 108,428,128 -------------- Federal Home Loan Mortgage Corp.-8.6% 4.50%, TBA 9,300 9,494,724 5.00%, TBA 9,550 9,779,716 5.50%, TBA 8,835 9,116,616 6.00%, 12/01/32 11,032 11,441,364 -------------- 39,832,420 -------------- Government National Mortgage Association-5.5% 5.50%, TBA 10,675 11,078,643 6.50%, TBA 12,485 13,113,145 6.50%, 11/15/31-2/15/32 1,311 1,376,751 -------------- 25,568,539 -------------- U.S. TREASURY SECURITIES-26.0% U.S. Treasury Notes-15.2% 1.125%, 6/30/05 9,305 9,273,019 2.00%, 5/15/06 8,870 8,967,020 2.25%, 7/31/04 41,235 41,781,075 2.625%, 5/15/08 5,450 5,501,524 3.625%, 5/15/13 4,790 4,828,924 -------------- 70,351,562 -------------- U.S. Treasury Bonds-9.2% 5.375%, 2/15/31 15,770 17,762,823 10.75%, 8/15/05 10,900 13,043,812 11.25%, 2/15/15 1,000 1,704,375 12.00%, 8/15/13 7,000 10,174,885 -------------- 42,685,895 -------------- U.S. Treasury Strip-1.6% Zero coupon, 11/15/21 18,180 7,430,221 -------------- 120,467,678 -------------- Total U.S. Government & Agency Obligations (cost $294,155,490) 294,296,765 -------------- _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 7 Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- CORPORATE DEBT OBLIGATIONS-24.0% Aerospace/Defense-0.1% Northrop Grumman Corp. 7.125%, 2/15/11 $ 540 $ 647,856 -------------- Automotive-1.8% DaimlerChrysler NA Holdings 4.75%, 1/15/08 1,140 1,170,593 Ford Motor Credit Co. 7.375%, 10/28/09 3,515 3,690,391 General Motors Acceptance Corp. 6.875%, 9/15/11 1,960 1,969,591 8.00%, 11/01/31 400 393,549 General Motors Corp. 8.375%, 7/15/33 1,220 1,203,164 -------------- 8,427,288 -------------- Banking-4.9% Bank of America Corp. 6.25%, 4/15/12 1,380 1,601,471 Barclays Bank Plc 8.55%, 9/29/49(a) 780 1,001,208 Citicorp 6.375%, 11/15/08 1,840 2,117,676 Citigroup, Inc. 7.25%, 10/01/10 2,495 3,027,376 GreenPoint Financial Corp. 3.20%, 6/06/08(a) 1,115 1,107,792 HSBC Capital Funding LP 10.176%, 6/30/30(a) 570 898,530 ING Capital Funding Trust III 8.439%, 12/31/10 960 1,200,312 J.P. Morgan Chase & Co. 3.625%, 5/01/08 1,195 1,231,175 6.75%, 8/15/08-2/01/11 1,880 2,208,528 M&T Bank Corp. 3.85%, 4/01/13 525 536,290 MBNA America Bank 6.50%, 6/20/06 985 1,087,467 National City Corp. 3.20%, 4/01/08 530 535,978 RBS Capital Trust I 4.709%, 7/01/13 2,090 2,096,441 U.S. Bank NA 6.375%, 8/01/11 1,755 2,052,028 Unicredito Italiano Capital Trust 9.20%, 10/05/49(a) 1,510 1,944,995 -------------- 22,647,267 -------------- _______________________________________________________________________________ 8 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- Broadcasting/Media-1.9% AOL Time Warner, Inc. 7.70%, 5/01/32 $ 1,205 $ 1,412,111 Clear Channel Communications, Inc. 4.25%, 5/15/09 680 689,565 4.625%, 1/15/08 865 907,899 Liberty Media Corp. 5.70%, 5/15/13 1,220 1,242,949 News America, Inc. 6.55%, 3/15/33(a) 1,175 1,254,068 Time Warner, Inc. 8.375%, 3/15/23 2,750 3,477,166 -------------- 8,983,758 -------------- Building/Real Estate-0.4% EOP Operating LP 5.875%, 1/15/13 585 631,863 ERP Operating LP 5.20%, 4/01/13 470 492,430 Lennar Corp. 5.95%, 3/01/13 230 252,290 Vornado Realty Trust 5.625%, 6/15/07 640 687,313 -------------- 2,063,896 -------------- Cable-1.1% AT&T Broadband Corp. 9.455%, 11/15/22 670 916,006 Comcast Cable Communications, Inc. 6.20%, 11/15/08 1,650 1,860,580 Comcast Corp. 7.05%, 3/15/33 465 518,498 Cox Communications, Inc. 7.125%, 10/01/12 525 628,018 Lenfest Communications, Inc. 8.375%, 11/01/05 1,005 1,134,872 -------------- 5,057,974 -------------- Communications-1.7% AT&T Corp. 7.80%, 11/15/11 485 555,454 British Telecommunications Plc 8.875%, 12/15/30 1,025 1,403,887 Citizens Communications Co. 9.00%, 8/15/31 385 520,658 Koninklijke (Royal) KPN NV 8.00%, 10/01/10 670 830,856 Sprint Capital Corp. 6.00%, 1/15/07 1,045 1,124,087 7.625%, 1/30/11 1,595 1,823,811 Verizon Global Funding Corp. 7.375%, 9/01/12 1,465 1,790,582 -------------- 8,049,335 -------------- _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 9 Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- Communications - Mobile-1.0% AT&T Wireless Services, Inc. 8.75%, 3/01/31 $ 1,160 $ 1,438,944 Telus Corp. 7.50%, 6/01/07 1,145 1,282,400 Verizon Wireless Capital LLC 5.375%, 12/15/06 1,045 1,148,863 Vodafone Airtouch Plc 7.875%, 2/15/30 450 581,928 -------------- 4,452,135 -------------- Energy-1.2% Amerada Hess Corp. 7.875%, 10/01/29 1,575 1,922,853 Conoco Funding Co. 5.45%, 10/15/06 695 767,775 Conoco, Inc. 6.95%, 4/15/29 1,455 1,756,338 Devon Energy Corp. 7.95%, 4/15/32 450 581,131 Devon Financing Corp. 7.875%, 9/30/31 420 535,053 -------------- 5,563,150 -------------- Financial-3.7% American General Finance Corp. 4.50%, 11/15/07 545 579,946 CIT Group, Inc. 4.125%, 2/21/06 985 1,020,129 5.50%, 11/30/07 440 476,482 Countrywide Home Loans, Inc. 4.25%, 12/19/07 1,090 1,146,137 General Electric Capital Corp. 5.45%, 1/15/13 795 862,711 6.75%, 3/15/32 2,790 3,274,327 Household Finance Corp. 6.50%, 11/15/08 1,505 1,732,484 7.00%, 5/15/12 495 586,904 John Deere Capital Corp. 4.50%, 8/22/07 690 734,900 Lehman Brothers Holdings, Inc. 4.00%, 1/22/08 1,945 2,029,191 6.625%, 1/18/12 670 786,806 Morgan Stanley 7.25%, 4/01/32 750 922,589 National Rural Utilities Cooperative Finance Corp. 7.25%, 3/01/12 270 323,828 The Bear Stearns Cos., Inc. 4.00%, 1/31/08 640 670,163 The Goldman Sachs Group, Inc. 5.25%, 4/01/13 785 838,625 6.125%, 2/15/33 1,070 1,151,501 -------------- 17,136,723 -------------- _______________________________________________________________________________ 10 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- Food/Beverages-0.7% Kellogg Co. 2.875%, 6/01/08 $ 690 $ 685,925 Pepsi Bottling Group, Inc. 7.00%, 3/01/29 1,950 2,381,929 -------------- 3,067,854 -------------- Health Care-0.5% Bristol-Myers Squibb Co. 4.75%, 10/01/06 515 554,728 HCA, Inc. 7.125%, 6/01/06 855 930,114 Health Net, Inc. 8.375%, 4/15/11 520 632,989 -------------- 2,117,831 -------------- Industrial-0.3% General Electric Co. 5.00%, 2/01/13 715 756,665 Praxair, Inc. 2.75%, 6/15/08 525 521,282 -------------- 1,277,947 -------------- Insurance-0.5% Anthem, Inc. 6.80%, 8/01/12 610 713,388 MetLife, Inc. 6.50%, 12/15/32 450 515,329 New York Life Insurance Co. 5.875%, 5/15/33(a) 880 926,872 -------------- 2,155,589 -------------- Metals/Mining-0.1% Alcan, Inc. 4.50%, 5/15/13 420 427,851 -------------- Non-Air Transportation-0.3% CSX Corp. 7.95%, 5/01/27 995 1,277,726 -------------- Paper/Packaging-0.3% International Paper Co. 5.85%, 10/30/12 625 682,416 MeadWestvaco Corp. 8.20%, 1/15/30 545 678,434 -------------- 1,360,850 -------------- Petroleum Products-0.3% Petronas Capital, Ltd. 7.00%, 5/22/12(a) 1,010 1,170,725 -------------- _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 11 Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- Public Utilities - Electric & Gas-1.8% Carolina Power & Light Co. 6.50%, 7/15/12 $ 675 $ 782,167 CenterPoint Energy Resources Corp. 6.50%, 2/01/08 825 885,664 Cincinnati Gas & Electric Co. 5.70%, 9/15/12 385 423,751 Columbus Southern Power Co. 5.50%, 3/01/13(a) 170 183,118 Dominion Resources, Inc. 5.00%, 3/15/13 690 716,831 Duke Energy Corp. 3.75%, 3/05/08(a) 860 886,171 FirstEnergy Corp. 7.375%, 11/15/31 575 646,469 KeySpan Corp. 7.25%, 11/15/05 1,430 1,605,690 MidAmerican Energy Holdings Co. 5.875%, 10/01/12 395 433,985 Nisource Finance Corp. 7.875%, 11/15/10 520 614,846 Public Service Company of Colorado 7.875%, 10/01/12 450 567,513 Xcel Energy, Inc. 7.00%, 12/01/10 650 744,473 -------------- 8,490,678 -------------- Retail-0.2% Limited Brands 6.95%, 3/01/33 355 393,733 Target Corp. 5.875%, 3/01/12 615 696,190 -------------- 1,089,923 -------------- Savings and Loan-0.8% Great Western Financial Trust II 8.206%, 2/01/27 1,190 1,371,624 Washington Mutual Finance Corp. 6.875%, 5/15/11 1,945 2,309,769 -------------- 3,681,393 -------------- Services-0.2% Waste Management, Inc. 6.875%, 5/15/09 960 1,118,739 -------------- Technology-0.2% Hewlett-Packard Co. 7.15%, 6/15/05 670 741,236 -------------- Total Corporate Debt Obligations (cost $102,322,794) 111,007,724 -------------- _______________________________________________________________________________ 12 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- ASSET BACKED SECURITIES-2.4% Citibank Credit Card Issuance Trust 4.15%, 7/07/17 $ 2,035 $ 2,034,043 5.65%, 6/16/08 2,715 2,984,941 Discover Card Master Trust I 6.35%, 7/15/08 3,190 3,535,949 Fleet Credit Card Master Trust II 5.60%, 12/15/08 2,300 2,473,949 -------------- Total Asset Backed Securities (cost $10,647,058) 11,028,882 -------------- SOVEREIGN DEBT SECURITIES-1.6% Quebec Province of Canada 7.50%, 9/15/29 1,340 1,793,040 United Mexican States 4.625%, 10/08/08 3,325 3,403,137 7.50%, 1/14/12 2,075 2,378,469 -------------- Total Sovereign Debt Securities (cost $7,070,276) 7,574,646 -------------- SHORT-TERM INVESTMENTS-40.6% U.S. Treasury Bills-35.5% Zero coupon, 7/31/03-9/18/03 164,445 164,284,312 -------------- Time Deposit-5.1% State Street Euro Dollar 0.50%, 7/01/03 23,270 23,270,000 -------------- Total Short-Term Investments (amortized cost $187,554,312) 187,554,312 -------------- Total Investments-132.2% (cost $601,749,930) 611,462,329 Other assets less liabilities*-(32.2%) (149,092,736) -------------- Net Assets-100% $ 462,369,593 ============== See footnote summary on page 14. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 13 * SECURITIES LENDING INFORMATION Includes cash collateral of $168,050,751 (representing 36.3% of net assets) received for securities on loan as of June 30, 2003 (see Note E). The lending agent invested $167,953,254 of the cash collateral in short-term investments as follows: Current U.S. $ Yield Shares Value ======== ============= ============== UBS Private Money Market Fund LLC 1.15% 118,003,809 $118,003,809 Principal Amount (000) ============= Gotham Funding, 7/02/03 1.30% $50,000 49,949,445 ------------ Total Short-Term Investments $167,953,254 ------------ (a) Security exempt from Registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified buyers. At June 30, 2003. the aggregate market value of these securities amounted to $9,373,479 or 2.0% of net assets. Glossary: TBA - (To Be Assigned) - Securities are purchased on a forward commitment with an appropriate principal amount (generally +/-1.0%) and no definite maturity date. The actual principal amount and maturity date will be determined upon settlement when the specific mortgage pools are assigned. See notes to financial statements. _______________________________________________________________________________ 14 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO STATEMENT OF ASSETS & LIABILITIES June 30, 2003 ASSETS Investments in securities, at value (cost $601,749,930) $ 611,462,329(a) Cash 39,140 Collateral held for securities loaned 168,050,751 Receivable for investment securities sold 39,363,049 Interest receivable 3,768,424 Receivable for capital stock sold 1,345,650 Receivable due from Adviser 61,130 ------------- Total assets 824,090,473 ------------- LIABILITIES Payable for investment securities purchased 190,816,685 Payable for collateral received on securities loaned 168,050,751 Payable for capital stock redeemed 2,078,611 Dividends payable 382,174 Distribution fee payable 136,618 Accrued expenses 256,041 ------------- Total liabilities 361,720,880 ------------- Net Assets $ 462,369,593 ============= COMPOSITION OF NET ASSETS Capital stock, at par $ 42,753 Additional paid-in capital 444,370,491 Distributions in excess of net investment income (1,298,018) Accumulated net realized gain on investment and foreign currency transactions 9,541,968 Net unrealized appreciation of investments 9,712,399 ------------- $ 462,369,593 ============= CALCULATION OF MAXIMUM OFFERING PRICE Class A Shares Net asset value and redemption price per share ($76,564,667 / 7,075,760 shares of capital stock issued and outstanding) $ 10.82 Sales charge--4.25% of public offering price .48 ------- Maximum offering price $ 11.30 ======= Class B Shares Net asset value and offering price per share ($113,233,017 / 10,474,261 shares of capital stock issued and outstanding) $ 10.81 ======= Class C Shares Net asset value and offering price per share ($26,444,738 / 2,450,532 shares of capital stock issued and outstanding) $ 10.79 ======= Advisor Class Shares Net asset value, redemption and offering price per share ($246,127,171 / 22,752,712 shares of capital stock issued and outstanding) $ 10.82 ======= (a) Includes securities on loan with a value of $164,470,803 (see Note E). See notes to financial statements. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 15 STATEMENT OF OPERATIONS Year Ended June 30, 2003 INVESTMENT INCOME Interest $ 16,018,006 EXPENSES Advisory fee $ 2,163,652 Distribution fee -- Class A 195,491 Distribution fee -- Class B 926,913 Distribution fee -- Class C 244,627 Transfer agency 1,237,319 Custodian 191,425 Printing 125,347 Administrative 120,000 Registration fees 83,992 Audit and legal 81,878 Directors' fees and expenses 20,000 Miscellaneous 28,807 ------------ Total expenses 5,419,451 Less: expenses waived and reimbursed by the Adviser (see Note B) (1,376,256) Less: expense offset arrangement (see Note B) (1,103) ------------ Net expenses 4,042,092 ------------ Net investment income 11,975,914 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS Net realized gain (loss) on: Investment transactions 15,242,181 Foreign currency transactions (282,560) Net change in unrealized appreciation/ depreciation of investments 8,812,869 ------------ Net gain on investment and foreign currency transactions 23,772,490 ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $ 35,748,404 ============ See notes to financial statements. _______________________________________________________________________________ 16 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS Year Ended Year Ended June 30, 2003 June 30, 2002 ============== ============== INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 11,975,914 $ 7,878,464 Net realized gain (loss) on investment and foreign currency transactions 14,959,621 (1,208,743) Net change in unrealized appreciation/ depreciation of investments 8,812,869 1,069,652 ------------- ------------- Net increase in net assets from operations 35,748,404 7,739,373 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM Net investment income Class A (2,559,355) (1,504,476) Class B (2,981,723) (1,172,187) Class C (803,086) (388,314) Advisor Class (8,978,394) (4,813,487) Distributions in excess of net investment income Class A -0- (322,169) Class B -0- (251,012) Class C -0- (83,154) Advisor Class -0- (1,030,761) Net realized gain on investment transactions Class A -0- (37,302) Class B -0- (34,427) Class C -0- (11,308) Advisor Class -0- (89,616) Distributions in excess of net realized gain on investment transactions Class A -0- (100,078) Class B -0- (92,363) Class C -0- (30,340) Advisor Class -0- (240,432) CAPITAL STOCK TRANSACTIONS Net increase 145,535,331 233,107,087 ------------- ------------- Total increase 165,961,177 230,645,034 NET ASSETS Beginning of period 296,408,416 65,763,382 ------------- ------------- End of period $ 462,369,593 $ 296,408,416 ============= ============= See notes to financial statements. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 17 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A Significant Accounting Policies AllianceBernstein Bond Fund, Inc. (the "Fund"), formerly Alliance Bond Fund, Inc., is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund, which is a Maryland corporation, operates as a series company currently comprised of three portfolios: the Corporate Bond Portfolio, the Quality Bond Portfolio and the U.S. Government Portfolio. Each series is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the Quality Bond Portfolio. The Quality Bond Portfolio (the "Portfolio") offers Class A, Class B, Class C and Advisor Class shares. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class B shares are currently sold with a contingent deferred sales charge which declines from 3% to zero depending on the period of time the shares are held. Class B shares will automatically convert to Class A shares six years after the end of the calendar month of purchase. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. Advisor Class shares are offered to investors participating in fee-based programs and to certain retirement plan accounts. All four classes of shares have identical voting, dividend, liquidation and other rights, except that each class bears different distribution expenses and has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with 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: _______________________________________________________________________________ 18 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO 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 the rates of exchange prevailing when accrued. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 19 Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, foreign currency exchange contracts, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of investments and foreign currency denominated assets and liabilities. 3. Taxes It is the policy of the Portfolio 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 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 accretes discounts as adjustments to interest income. Additionally, the Portfolio amortizes premiums on debt securities for financial statement reporting purposes only. 5. Income and Expenses All income earned and expenses incurred by the Portfolio are borne on a pro rata basis by each settled class of shares, based on proportionate interest in the Portfolio represented by the net assets of such class, except that the Portfolio's Class B and Class C shares bear higher distribution and transfer agent fees than Class A and Advisor Class shares. Advisor Class shares have no distribution fees. 6. Dividends and Distributions Dividends and 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. _______________________________________________________________________________ 20 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO 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 advisory fee at an annual rate of .55 of 1% of the Portfolio's average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses on an annual basis to .98%, 1.68%, 1.68% and .68% of the average daily net assets of Class A, Class B, Class C and Advisor Class shares, respectively. For the year ended June 30, 2003, such waiver amounted to $1,256,256. Pursuant to the advisory agreement, the Portfolio may reimburse the Adviser for certain legal and accounting services provided to the Portfolio by the Adviser. For the year ended June 30, 2003, the Adviser agreed to waive its fees for such services. Such waiver amounted to $120,000. The Portfolio compensates Alliance Global Investor Services, Inc. (AGIS), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Portfolio. Such compensation amounted to $1,014,792 for the year ended June 30, 2003. For the year ended June 30, 2003, the Portfolio's expenses were reduced by $1,103 under an expense offset arrangement with AGIS. AllianceBernstein Investment Research and Management, Inc. (the "Distributor"), formerly Alliance Fund Distributors, Inc., a wholly-owned subsidiary of the Adviser, serves as the distributor of the Portfolio's shares. The Distributor has advised the Portfolio that it has received front-end sales charges of $16,996 from the sales of Class A shares and $3,950, $262,207 and $16,470 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the year ended June 30, 2003. NOTE C Distribution Services Agreement The Portfolio has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Portfolio pays distribution and servicing fees to the Distributor at an annual rate of up to .30 of 1% of the Portfolio's average daily net assets attributable to Class A shares and 1% of the average daily net assets attributable _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 21 to both Class B and Class C shares. There are no distribution and servicing fees on the Advisor Class shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Distributor has advised the Portfolio that it has incurred expenses in excess of the distribution costs reimbursed by the Portfolio in the amount of $1,076,098 and $332,703 for Class B and Class C shares, respectively. Such costs may be recovered from the Portfolio in future periods so long as the Agreement is in effect. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Portfolio's shares. NOTE D Investment Transactions Purchases and sales of investment securities (excluding short-term investments) for the year ended June 30, 2003, were as follows: Purchases Sales ============== ============== Investment securities (excluding U.S. government securities) $ 187,760,261 $ 187,851,912 U.S. government securities 3,158,279,955 3,029,098,566 At June 30, 2003, the cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows: Cost $ 602,454,010 -------------- Gross unrealized appreciation $ 10,147,563 Gross unrealized depreciation (1,139,244) -------------- Net unrealized appreciation $ 9,008,319 -------------- 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 foreign portfolio holdings and to hedge certain firm purchase and sale commitments denominated in foreign currencies. A forward exchange currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be 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. _______________________________________________________________________________ 22 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND 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. NOTE E Securities Lending The Portfolio has entered into a securities lending agreement with AG Edwards & Sons, Inc. (the "Lending Agent"). Under the terms of the agreement, the Lending Agent, on behalf of the 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 on 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 may invest the cash collateral received in accordance with the investment restrictions of the Portfolio in one or more of the following investments: U.S. government or U.S. government agency obligations, bank obligations, corporate debt obligations, asset-backed securities, investment funds, structured products, repurchase agreements and an eligible money market fund. The Lending Agent will indemnify the 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 $164,470,803 and received cash collateral of $168,050,751, of which $167,953,254 was invested in short-term investments as included in the footnotes to the accompanying portfolio of investments. For the year ended June 30, 2003, the Portfolio earned fee income of $110,476 which is included in interest income in the accompanying statement of operations. NOTE F Capital Stock There are 12,000,000,000 shares of $.001 par value capital stock authorized, divided into four classes, designated Class A, Class B, Class C and Advisor Class _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 23 shares. Each class consists of 3,000,000,000 authorized shares. Transactions in capital stock were as follows: Shares Amount --------------------------- ------------------------------ Year Ended Year Ended Year Ended Year Ended June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002 ----------------------------------------------------------- Class A Shares sold 7,320,478 4,696,262 $ 77,100,650 $ 49,488,409 - ------------------------------------------------------------------------------- Shares issued in reinvestment of dividends and distributions 188,816 130,123 1,997,352 1,344,953 - ------------------------------------------------------------------------------- Shares converted from Class B 183,885 118,430 1,956,325 521,783 - ------------------------------------------------------------------------------- Shares redeemed (4,991,928) (2,534,079) (52,684,749) (26,178,704) - ------------------------------------------------------------------------------- Net increase 2,701,251 2,410,736 $ 28,369,578 $ 25,176,441 =============================================================================== Class B Shares sold 10,491,815 4,915,718 $ 110,463,465 $ 50,969,528 - ------------------------------------------------------------------------------- Shares issued in reinvestment of dividends and distributions 187,182 97,916 1,979,554 1,011,618 - ------------------------------------------------------------------------------- Shares converted to Class A (183,857) (118,478) (1,956,325) (521,783) - ------------------------------------------------------------------------------- Shares redeemed (4,937,099) (1,346,260) (52,323,161) (14,625,886) - ------------------------------------------------------------------------------- Net increase 5,558,041 3,548,896 $ 58,163,533 $ 36,833,477 =============================================================================== Class C Shares sold 3,020,966 1,732,851 $ 31,610,879 $ 17,979,445 - ------------------------------------------------------------------------------- Shares issued in reinvestment of dividends and distributions 40,953 28,077 431,766 290,031 - ------------------------------------------------------------------------------- Shares redeemed (2,189,012) (606,701) (22,969,541) (6,294,895) - ------------------------------------------------------------------------------- Net increase 872,907 1,154,227 $ 9,073,104 $ 11,974,581 =============================================================================== Advisor Class Shares sold 6,206,900 15,000,776 $ 65,432,463 $ 155,281,551 - ------------------------------------------------------------------------------- Shares issued in reinvestment of dividends and distributions 854,656 576,188 9,029,421 5,942,746 - ------------------------------------------------------------------------------- Shares redeemed (2,365,708) (204,144) (24,532,768) (2,101,709) - ------------------------------------------------------------------------------- Net increase 4,695,848 15,372,820 $ 49,929,116 $ 159,122,588 =============================================================================== _______________________________________________________________________________ 24 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO NOTE G 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, in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Portfolio did not utilize the Facility during the year ended June 30, 2003. NOTE H Distributions to Shareholders The tax character of distributions paid during the fiscal years ended June 30, 2003 and June 30, 2002 were as follows: 2003 2002 ============= ============= Distributions paid from: Ordinary income $ 15,322,558 $ 9,824,526 Net long-term capital gains -0- 53,837 ------------- ------------- Total taxable distributions 15,322,558 9,878,363 ------------- ------------- Total distributions paid $ 15,322,558 $ 9,878,363(a) ============= ============= As of June 30, 2003, the components of accumulated earnings/(deficit) on a tax basis were as follows: Undistributed ordinary income $ 6,934,334 Undistributed long-term capital gains 2,678,430 Accumulated capital and other losses (282,560)(b) Unrealized appreciation/(depreciation) 9,008,319(c) ------------- Total accumulated earnings/(deficit) $ 18,338,523 ============= (a) Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. (b) Net foreign currency losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Fund's next taxable year. For the year ended June 30, 2003, the Fund deferred to July 1, 2003, post October foreign currency losses of $282,560. (c) The difference between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales and the difference between book and tax amortization methods for premium and market discount. During the current fiscal year, permanent differences, primarily due to foreign currency transactions, tax character of distributions, tax character of paydown losses and the tax treatment of bond premium, resulted in a net decrease in distributions in excess of net investment income and a net decrease in accumulated net realized gain on investment and foreign currency transactions. This reclassification had no effect on net assets. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 25 FINANCIAL HIGHLIGHTS Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A -------------------------------------------------- July 1, Year Ended June 30, 1999(b) to ------------------------------------- June 30, 2003 2002(a) 2001 2000 ----------- ----------- ----------- ----------- Net asset value, beginning of period $10.25 $10.22 $9.85 $10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income(c)(d) .33 .46 .55 .60 Net realized and unrealized gain (loss) on investment and foreign currency transactions .66 .17 .42 (.21) Net increase in net asset value from operations .99 .63 .97 .39 LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.42) (.46) (.55) (.54) Distributions in excess of net investment income -0- (.10) (.04) -0- Distributions from net realized gain on investment transactions -0- (.01) (.01) -0- Distributions in excess of net realized gain on investment transactions -0- (.03) -0- -0- Total dividends and distributions (.42) (.60) (.60) (.54) Net asset value, end of period $10.82 $10.25 $10.22 $9.85 TOTAL RETURN Total investment return based on net asset value(e) 9.87% 6.23% 10.09% 4.40% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $76,565 $44,852 $20,068 $5,071 Ratio to average net assets of: Expenses, net of waivers/ reimbursements .98% .98% .98% .98%(f) Expenses, before waivers/ reimbursements 1.32% 1.48% 2.85% 13.10%(f) Net investment income(d) 3.08% 4.39% 5.49% 5.96%(f) Portfolio turnover rate 867% 573% 385% 215%
See footnote summary on page 30. _______________________________________________________________________________ 26 o ALLIANCEBERNSTEIN BOND Fund quality bond Portfolio Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B -------------------------------------------------- July 1, Year Ended June 30, 1999(b) to ------------------------------------- June 30, 2003 2002(a) 2001 2000 ----------- ----------- ----------- ----------- Net asset value, beginning of period $10.24 $10.21 $9.84 $10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income(c)(d) .26 .38 .47 .50 Net realized and unrealized gain (loss) on investment and foreign currency transactions .66 .16 .43 (.18) Net increase in net asset value from operations .92 .54 .90 .32 LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.35) (.38) (.47) (.48) Distributions in excess of net investment income -0- (.09) (.05) -0- Distributions from net realized gain on investment transactions -0- (.01) (.01) -0- Distributions in excess of net realized gain on investment transactions -0- (.03) -0- -0- Total dividends and distributions (.35) (.51) (.53) (.48) Net asset value, end of period $10.81 $10.24 $10.21 $9.84 TOTAL RETURN Total investment return based on net asset value(e) 9.12% 5.52% 9.34% 3.56% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $113,233 $50,354 $13,960 $1,007 Ratio to average net assets of: Expenses, net of waivers/ reimbursements 1.68% 1.68% 1.68% 1.68%(f) Expenses, before waivers/ reimbursements 2.05% 2.19% 3.36% 11.29%(f) Net investment income(d) 2.41% 3.70% 4.82% 5.32%(f) Portfolio turnover rate 867% 573% 385% 215%
See footnote summary on page 30. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 27 Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C -------------------------------------------------- July 1, Year Ended June 30, 1999(b) to ------------------------------------- June 30, 2003 2002(a) 2001 2000 ----------- ----------- ----------- ----------- Net asset value, beginning of period $10.23 $10.19 $9.83 $10.00 INCOME FROM INVESTMENT OPERATIONS Net investment income(c)(d) .26 .38 .48 .51 Net realized and unrealized gain (loss) on investment and foreign currency transactions .65 .17 .41 (.20) Net increase in net asset value from operations .91 .55 .89 .31 LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.35) (.38) (.48) (.48) Distributions in excess of net investment income -0- (.09) (.04) -0- Distributions from net realized gain on investment transactions -0- (.01) (.01) -0- Distributions in excess of net realized gain on investment transactions -0- (.03) -0- -0- Total dividends and distributions (.35) (.51) (.53) (.48) Net asset value, end of period $10.79 $10.23 $10.19 $9.83 TOTAL RETURN Total investment return based on net asset value(e) 9.03% 5.63% 9.25% 3.47% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $26,445 $16,131 $4,315 $514 Ratio to average net assets of: Expenses, net of waivers/ reimbursements 1.68% 1.68% 1.68% 1.68%(f) Expenses, before waivers/ reimbursements 2.03% 2.19% 3.42% 11.75%(f) Net investment income(d) 2.41% 3.71% 4.88% 5.35%(f) Portfolio turnover rate 867% 573% 385% 215%
See footnote summary on page 30. _______________________________________________________________________________ 28 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period Advisor Class ------------------------------------ October 9, Year Ended June 30, 2000(g) to ------------------------ June 30, 2003 2002(a) 2001 ----------- ----------- ----------- Net asset value, beginning of period $10.25 $10.22 $9.97 INCOME FROM INVESTMENT OPERATIONS Net investment income(c)(d) .36 .48 .42 Net realized and unrealized gain on investment and foreign currency transactions .66 .18 .30 Net increase in net asset value from operations 1.02 .66 .72 LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.45) (.48) (.42) Distributions in excess of net investment income -0- (.11) (.04) Distributions from net realized gain on investment transactions -0- (.01) (.01) Distributions in excess of net realized gain on investment transactions -0- (.03) -0- Total dividends and distributions (.45) (.63) (.47) Net asset value, end of period $10.82 $10.25 $10.22 TOTAL RETURN Total investment return based on net asset value(e) 10.20% 6.57% 7.28% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $246,127 $185,071 $27,420 Ratio to average net assets of: Expenses, net of waivers/ reimbursements .68% .68% .68%(f) Expenses, before waivers/ reimbursements 1.02% 1.20% 2.29%(f) Net investment income(d) 3.39% 4.69% 5.89%(f) Portfolio turnover rate 867% 573% 385% See footnote summary on page 30. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 29 (a) As required, effective July 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 financial statement reporting purposes only. The effect of this change for the year ended June 30, 2002 was to decrease net investment income per share by $.05, increase net realized and unrealized gain on investments per share by $.05 for Class A, B and C, respectively, and by $.06 for the Advisor Class, and decrease the ratio of net investment income to average net assets from 4.93% to 4.39% for Class A, from 4.24% to 3.70% for Class B, from 4.25% to 3.71% for Class C and from 5.24% to 4.69% for Advisor Class. Per share, ratios and supplemental data for periods prior to July 1, 2001 have not been restated to reflect this change in presentation. (b) Commencement of operations. (c) Based on average shares outstanding. (d) Net of fees waived and expenses reimbursed by the Adviser. (e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total investment 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. (f) Annualized. (g) Commencement of distribution. _______________________________________________________________________________ 30 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS To the Shareholders and Board of Directors of AllianceBernstein Bond Fund, Inc. Quality Bond Portfolio We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Quality Bond Portfolio (the "Portfolio") (one of the portfolios constituting the AllianceBernstein Bond Fund, Inc., formerly Alliance Bond Fund, Inc.) as of June 30, 2003, and the related statement of operations for the year then ended and the statement of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of June 30, 2003, by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Quality Bond Portfolio of the AllianceBernstein Bond Fund, Inc. at June 30, 2003, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated periods, in conformity with accounting principles generally accepted in the United States. /s/ ERNST & YOUNG LLP New York, New York August 8, 2003 _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 31 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 Paul J. DeNoon, Vice President Matthew D.W. Bloom, Vice President Michael A. Snyder, Vice President Lawrence J. Shaw, Vice President S. Sean Kelleher, Vice President Jeffrey S. Phlegar, Vice President Edmund P. Bergan, Jr., Secretary Mark D. Gersten, Treasurer & Chief Financial Officer Vincent S. Noto, Controller Custodian State Street Bank & Trust Company 225 Franklin Street Boston, MA 02110 Principal Underwriter AllianceBernstein Investment Research and Management, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent Alliance Global Investor Services, Inc P.O. Box 756003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Auditors Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 (1) Member of the Audit Committee. _______________________________________________________________________________ 32 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO MANAGEMENT OF THE FUND Board of Directors Information The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund's Directors is set forth below.
PORTFOLIOS IN FUND OTHER NAME, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIPS ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY (YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR - -------------------------------------------------------------------------------------------------------------------- INTERESTED DIRECTOR John D. Carifa, **, 58 President, Chief Operating Officer 113 None 1345 Avenue of the and a Director of Alliance Capital Americas Management Corporation New York, NY 10105 (4) ("ACMC"),with which he has been as sociated with since prior to 1998. DISINTERESTED DIRECTORS Ruth Block, #+, 72 Formerly an Executive Vice 94 None P.O. Box 4623 President and Chief Insurance Stamford, CT 06903 (4) Officer of The Equitable Life Assurance Society of the United States; Chairman and Chief Executive Officer of Evlico. Formerly a Director of Avon, BP Amoco Corporation (oil and gas), Ecolab Incorporated (specialty chemicals), Tandem Financial Group and Donaldson, Lufkin & Jenrette Securities Corporation. Formerly Governor at Large National Association of Securities Dealers, Inc. David H. Dievler, #+, 73 Independent Consultant. Until 98 None P.O. Box 167 December 1994, Senior Vice Spring Lake, NJ 07762 (4) President of ACMC responsible for mutual fund administration. Prior to joining ACMC in 1984, Chief Financial Officer of Eberstadt Asset Management since 1968. Prior to that, Senior Manager at Price Waterhouse & Co. Member of the American Institute of Certified Public Accountants since 1953. John H. Dobkin, #+, 61 Consultant. Formerly a President 95 None P.O. Box 12 of Save Venice, Inc. from 2001- Annandale, NY 12504 (4) 2002, Senior Advisor from June 1999-June 2000 and President of Historic Hudson Valley from December 1989-May 1999. Previously, Director of the National Academy of Design and during 1988-1992, Director and Chairman of the Audit Committee of ACMC.
_______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 33
PORTFOLIOS IN FUND OTHER NAME, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIPS ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY (YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR - -------------------------------------------------------------------------------------------------------------------- DISINTERESTED DIRECTORS (continued) William H. Foulk, Jr., #+, 70 Investment Adviser and 110 None 2 Sound View Drive Independent Consultant. Suite 100 Formerly Senior Manager of Greenwich, CT 06830 (4) Barrett Associates, Inc., a registered investment adviser, with which he had been associated since prior to 1998. Formerly Deputy Comptroller of the State of New York and, prior thereto, Chief Investment Officer of the New York Bank for Savings. Clifford L. Michel, #+, 64 Senior Counsel of the law firm of 94 Placer Dome, Inc. 15 St. Bernard's Road Cahill Gordon & Reindel since Gladstone, NJ 07934 (4) February 2001 and a partner of that firm for more than twenty-five years prior thereto. President and Chief Executive Officer of Wenonah Development Company (investments) and a Director of Placer Dome, Inc. (mining). Donald J. Robinson, #+, 69 Senior Counsel to the law firm of 93 None 98 Hell's Peak Road Orrick, Herrington & Sutcliffe LLP Weston, VT 05161 (4) since prior to 1998. Formerly a senior partner and a member of the Executive Committee of that firm. Formerly a member and Chairman of the Municipal Securities Rulemaking Board and a Trustee of the Museum of the City of New York.
* There is no stated term of office for the Fund's Directors. ** Mr. Carifa is an "interested director", as defined in the 1940 Act, due to his position as President and Chief Operating Officer of ACMC, the Fund's investment adviser. # Member of the Audit Committee. + Member of the Nominating Committee. _______________________________________________________________________________ 34 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO Officer Information Certain information concerning the Fund's Officers is set forth below.
NAME, POSITION(S) PRINCIPAL OCCUPATION ADDRESS* AND AGE HELD WITH FUND DURING PAST 5 YEARS** - -------------------------------------------------------------------------------------------------------------- Kathleen A. Corbet, (43) Senior Vice President Executive Vice President of Alliance Capital Management Corporation (ACMC)** with which she has been associated since prior to 1998. Matthew D.W. Bloom, (47) Vice President Senior Vice President of ACMC,** with which he has been associated since prior to 1998. Jeffrey S. Phlegar, (37) Vice President Vice President of ACMC,** with which he has been associated since prior to 1998. S. Sean Kelleher, (42) Vice President Senior Vice President of ACMC since 1999. Previously, a manager of the MBS swaps desk at Deutsche Bank since 1997 and worked in fixed income research at Merrill Lynch since prior to 1998. Paul J. DeNoon, (41) Vice President Senior Vice President of ACMC,** with which he has been associated since prior to 1998. Edmund P. Bergan, Jr., (53) Secretary Senior Vice President and General Counsel of AllianceBernstein Investment Research and Management, Inc. ("ABIRM")** and Alliance Global Investor Services, Inc. ("AGIS"),** with which he has been associated since prior to 1998. Mark D. Gersten, (52) Treasurer and Senior Vice President of AGIS,** with which Chief Financial Officer he has been associated since prior to 1998. Vincent S. Noto (38) Controller Vice President of AGIS,** with which he has been associated since prior to 1998.
* The address for each of the Fund's officers is 1345 Avenue of the Americas, New York, NY 10105. ** ACMC, ABIRM and AGIS are affiliates of the Fund. The Fund's Statement of Additional Information ("SAI") has additional information about the Fund's Directors and Officers and is available without charge upon request. Contact your financial representative or Alliance Capital at 1-800-227-4618 for a free prospectus or SAI. _______________________________________________________________________________ ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 35 ALLIANCEBERNSTEIN FAMILY OF FUNDS U.S. Growth Funds Growth Fund Health Care Fund Mid-Cap Growth Fund Premier Growth Fund Quasar Fund Technology Fund Value Funds Balanced Shares Disciplined Value Fund Global Value Fund Growth & Income Fund International Value Fund Real Estate Investment Fund Small CapValue Fund Utility Income Fund Value Fund Blended Style Series U.S. Large Cap Portfolio Global & International Stock Funds All-Asia Investment Fund Global Small Cap Fund Greater China '97 Fund International Premier Growth Fund New Europe Fund Worldwide Privatization Fund Select Investor Series Biotechnology Portfolio Premier Portfolio Technology Portfolio Taxable Bond Funds Americas Government Income Trust Corporate Bond Portfolio Emerging Market Debt Fund Global Strategic Income Trust High Yield Fund Multi-Market Strategy Trust Quality Bond Portfolio U.S. Government Portfolio Tax-Exempt Bond Funds National Intermediate Diversified Insured National Arizona California Intermediate California Insured California Florida Massachusetts Michigan Minnesota New Jersey New York Intermediate New York Ohio Pennsylvania Virginia Asset Allocation Funds Conservative Investors Fund Growth Investors Fund Closed-End Funds All-Market Advantage Fund ACM Income Fund ACM Government Opportunity Fund ACM Managed Dollar Income Fund ACM Managed Income Fund ACM Municipal Securities Income Fund California Municipal Income Fund National Municipal Income Fund New York Municipal Income Fund The Spain Fund World Dollar Government Fund World Dollar Government Fund II AllianceBernstein also offers AllianceBernstein Exchange Reserves, which serves as the money market fund exchange vehicle for the AllianceBernstein mutual funds. To obtain a prospectus for any AllianceBernstein fund, call your investment professional, or call AllianceBernstein at (800) 227-4618 or visit our web site at www.alliancebernstein.com. _______________________________________________________________________________ 36 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO 1345 Avenue of the Americas New York, NY 10105 (800) 221-5672 AllianceBernstein [LOGO](SM) Investment Research and Management SM This service mark used under license from the owner, Alliance Capital Management L.P. QBPAR0603 ITEM 2. CODE OF ETHICS. Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Form N-CSR disclosure requirement not yet effective with respect to the registrant. 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 Bond 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 ex10b_302.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 Bond 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 Bond 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 ex10c_906.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 Bond 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-----