N-CSRS 1 edg9695_sr.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-08426 AllianceBernstein Worldwide Privatization Fund, Inc. (Exact name of registrant as specified in charter) 1345 Avenue of the Americas, New York, New York 10105 (Address of principal executive offices) (Zip code) Mark R. Manley Alliance Capital Management, L.P. 1345 Avenue of the Americas New York, New York 10105 (Name and address of agent for service) Registrant's telephone number, including area code: (800) 221-5672 Date of fiscal year end: June 30, 2003 Date of reporting period: December 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. [LOGO] ALLIANCEBERNSTEIN (SM) Investment Research and Management International Mid-cap AllianceBernstein Worldwide Privatization Fund Semi-Annual Report--December 31, 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 investors in the Fund. You may obtain a description of the Fund's proxy voting policies and procedures, without charge, upon request by visiting Alliance Capital's web site at www.investor.alliancecapital.com or on the Securities and Exchange Commission's web site at http://www.sec.gov, or by calling Alliance Capital at (800) 227-4618. AllianceBernstein Investment Research and Management, Inc. is an affiliate of Alliance Capital Management L.P., the manager of the funds, and is a member of the NASD. February 24, 2004 Semi-Annual Report This report provides management's discussion of fund performance for AllianceBernstein Worldwide Privatization Fund (the "Fund") for the semi-annual reporting period ended December 31, 2003. Investment Objective and Policies This open-end fund seeks long-term capital appreciation. The Fund invests substantially all of its assets in equity securities issued by companies that are undergoing, or have undergone, privatization, and in securities of companies believed by Alliance to be beneficiaries of privatizations. Investment Results The following table provides the performance results for the Fund and the Morgan Stanley Capital International (MSCI) World (minus the U.S.) Index, as well as the MSCI Emerging Markets Free (EMF) Index, for the six- and 12-month periods ended December 31, 2003. We have also included the performance results for the Fund's benchmark, a 65%/35% composite of the MSCI World (minus the U.S.) Index and the MSCI EMF Index, respectively, which more closely reflects the Fund's investment orientation and portfolio characteristics than either of the indices standing alone. ------------------------------------------------------------------------------- INVESTMENT RESULTS* Periods Ended December 31, 2003 Returns ------------------------ 6 Months 12 Months -------- --------- AllianceBernstein Worldwide Privatization Fund Class A 30.21% 44.72% Class B 29.59% 43.50% Class C 29.59% 43.50% MSCI World (minus the U.S.) Index 26.56% 40.01% MSCI EMF Index 34.57% 56.28% 65%/35% Composite: MSCI World (minus the U.S.) Index/MSCI EMF Index 29.36% 45.70% * The Fund's investment results are for the periods shown and are based on the net asset value (NAV) of each class of shares as of December 31, 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 Fund have been deducted, but no adjustment has been made for sales charges that may apply when shares ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 1 ------------------------------------------------------------------------------- are purchased or redeemed. Returns for Advisor Class shares will vary due to different expenses associated with this class. Returns for the Fund include the reinvestment of any distributions paid during each period. Past performance is no guarantee of future results. Neither the unmanaged Morgan Stanley Capital International (MSCI) World (minus the U.S.) Index nor the MSCI Emerging Markets Free (EMF) Index reflects fees and expenses associated with the active management of a mutual fund portfolio. The MSCI World (minus the U.S.) Index is a market capitalization-weighted index that measures the performance of stock markets in 22 countries outside the United States. The MSCI EMF Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. An investor cannot invest directly in an index, and its results are not indicative of any specific investment, including AllianceBernstein Worldwide Privatization Fund. Additional investment results appear on page 5. ------------------------------------------------------------------------------- During the six- and 12-month periods ended December 31, 2003, the Fund's Class A shares returned 30.21% and 44.72%, respectively. The Fund's benchmark, a 65%/35% composite of the MSCI World (minus the U.S.) Index and the MSCI EMF Index, posted returns of 29.36% and 45.70%, respectively, during the same periods. Over the 12-month period, the Fund underperformed the benchmark due to mildly disappointing stock selection results in Japan and to the Fund's underweighted asset allocation in Asia. Over the six-month period, the Fund outperformed the benchmark due primarily to positive contributions from stock selection, with relative overweight positions in Brazilian and Chinese commodity stocks having a notable impact. Regional asset allocation also made a slight positive contribution to the relative performance, most notably from the Fund's overweight positions in the Latin American, and to a lesser extent the EMEA (East Europe, Middle East and Africa), regions. Market Review and Investment Strategy During the 12-month reporting period ended December 31, 2003, both developed and emerging market equities posted strong positive returns. Within developed markets, the European and the Pacific ex-Japan regions registered the strongest performance, while Japan marginally lagged behind. North America was the worst relative performer in U.S. dollar terms. Among the emerging markets group, Latin America proved the strongest performer, driven by a rebound in the Brazilian equity market. The EMEA ------------------------------------------------------------------------------- 2 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND region also posted positive returns. Returns from Asia were also strong but lagged the overall emerging markets group. The broad strength in the equity markets in 2003 was due to a combination of factors. The investment environment improved and investor appetite for risk grew, as the uncertainty that had previously overshadowed the markets was reduced with the swift resolution of the conflict in Iraq. Actions taken by global policy makers to stimulate economic activity also started to bear fruit, as economic growth began to accelerate across all the major regions. North America and Asia registered the strongest recovery, while recovery in Europe and Japan was more tentative. Equity market valuations were further enhanced by a dramatic improvement in corporate profitability and cash flow based on cost cutting efforts and better top line results. The Fund's portfolio continued to emphasize diversification, with strong representation in both developed and emerging markets and in a wide array of economic sectors. Privatization activity gained momentum over the period under review and a number of large privatization deals were successfully completed during the period. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 3 Portfolio Summary ------------------------------------------------------------------------------- PORTFOLIO SUMMARY December 31, 2003 (unaudited) 6/2/94 Class B Shares 6/2/94 Class C Shares 2/8/95 Net Assets ($mil): $276.5 [GRAPH OMITTED] SECTOR BREAKDOWN 22.1% Finance 18.8% Utilities 17.0% Consumer Services 11.6% Energy 7.0% Transportation 6.9% Technology 5.5% Basic Industry 4.6% Health Care 3.1% Consumer Staples 2.4% Multi-Industry 0.7% Consumer Manufacturing 0.3% Short-Term [GRAPH OMITTED] SECURITY BREAKDOWN 87.1% Common Stock 8.8% American Depositary Receipt 2.7% Global Depositary Receipt 1.1% Preferred Stock 0.3% Time Deposit All data as of December 31, 2003. The Fund's sector and security breakdowns are expressed as a percentage of total investments and may vary over time. ------------------------------------------------------------------------------- 4 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Investment Results ------------------------------------------------------------------------------- INVESTMENT RESULTS AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2003 Class A Shares ------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year 44.72% 38.65% 5 Years 5.34% 4.43% Since Inception* 7.84% 7.36% Class B Shares ------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year 43.50% 39.50% 5 Years 4.53% 4.53% Since Inception* 7.19% 7.19% Class C Shares ------------------------------------------------------------------------------- Without Sales Charge With Sales Charge 1 Year 43.50% 42.50% 5 Years 4.53% 4.53% Since Inception* 8.20% 8.20% The Fund'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 (4% year 1, 3% year 2, 2% year 3, 1% 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. Substantially all of the Fund's assets will be invested in foreign securities, which may magnify fluctuations in the prices of individual securities in which the Fund invests due to changes in foreign exchange rates and the possibility of substantial volatility due to political and economic uncertainties in foreign countries. 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. * Since Inception: 6/2/94 Class A and Class B; 2/8/95 Class C. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 5 Ten Largest Holdings ------------------------------------------------------------------------------- TEN LARGEST HOLDINGS December 31, 2003 (unaudited) Percent of Company U.S. $ Value Net Assets ------------------------------------------------------------------------------- Mitsubishi Tokyo Financial Group, Inc. $ 7,499,963 2.7% Vodafone Group Plc. 6,883,637 2.5 Japan Tobacco, Inc. 6,778,613 2.4 BNP Paribas, SA 6,513,012 2.3 Deutsche Post AG 6,032,599 2.2 Kookmin Bank (common stock & ADR) 5,998,667 2.2 ENI SpA 5,973,692 2.2 France Telecom, SA 5,962,850 2.2 Nomura Holdings, Inc. 5,639,236 2.0 East Japan Railway Co. 5,331,917 1.9 $ 62,614,186 22.6% ------------------------------------------------------------------------------- 6 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Portfolio of Investments ------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS December 31, 2003 (unaudited) Company Shares U.S. $ Value ------------------------------------------------------------------------------- COMMON & PREFERRED STOCKS-98.1% Australia-1.1% CSL, Ltd. 230,911 $ 3,102,862 ------------ Austria-1.3% Bank Austria Creditanstalt(a) 36,571 1,864,145 Boehler-Uddeholm AG 27,500 1,853,100 ------------ 3,717,245 Brazil-5.0% Brasil Telecom Participacoes, SA (ADR) 27,600 1,043,280 Companhia Paranaense de Energia-Copel (ADR)(a) 78,400 373,968 Companhia Vale do Rio Doce (ADR) 32,200 1,883,700 Sponsored ADR 21,600 1,112,616 Gerdau, SA pfd 42,749 902,315 Sponsored ADR 87,180 1,762,780 Investimentos Itau, SA pfd(a) 1,834,674 2,164,788 Petroleo Brasileiro, SA (ADR) 144,600 3,855,036 Telesp Celular Participacoes, SA (ADR)(a) 45,300 298,074 Uniao de Bancos Brasileiros, SA (GDR) 11,700 291,915 ------------ 13,688,472 Chile-0.1% Enersis, SA (ADR)(a) 41,200 303,232 ------------ China-2.8% Beijing Capital International Airport Co., Ltd. 3,444,000 1,175,540 China Petroleum and Chemical Corp. 3,882,000 1,737,556 China Resources Power Holdings Co., Ltd.(a) 3,482,000 1,614,581 CNOOC, Ltd. 826,000 1,622,476 Legend Group, Ltd. 3,690,000 1,580,325 ------------ 7,730,478 Czech Republic-0.6% Cesky Telecom AS (GDR)(a) 155,200 1,746,000 ------------ Egypt-0.9% Eastern Co. for Tobacco & Cigarettes 95,724 1,195,424 Egyptian Co. for Mobile Services 106,675 1,306,574 ------------ 2,501,998 Finland-2.3% Fortum OYJ 171,894 1,769,709 Sampo OYJ 158,538 1,636,195 TietoEnator OYJ 102,745 2,806,132 ------------ 6,212,036 ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 7 Portfolio of Investments ------------------------------------------------------------------------------- Company Shares U.S. $ Value ------------------------------------------------------------------------------- France-10.8% BNP Paribas, SA 103,662 $ 6,513,012 Dassault Systemes, SA 58,719 2,672,359 France Telecom, SA(a) 209,077 5,962,850 Sanofi-Synthelabo, SA 32,867 2,469,574 STMicroelectronics NV 45,334 1,226,733 TF1-TV Francaise 91,058 3,172,283 TotalFinaElf Series B 19,365 3,592,549 Veolia Environnement 155,716 4,174,463 ------------ 29,783,823 Germany-4.3% Deutsche Lufthansa AG 86,289 1,438,994 Deutsche Post AG 293,695 6,032,599 Fraport AG(a) 95,043 2,727,362 Rhoen-Klinikum AG 29,081 1,621,440 ------------ 11,820,395 Ghana-0.7% Ashanti Goldfields Co., Ltd. (GDR)(a) 153,700 2,004,248 ------------ Greece-1.7% Greek Organisation of Football Prognostics, SA 165,336 2,388,895 Public Power Corp. 98,264 2,424,031 ------------ 4,812,926 Hong Kong-0.9% China Mobile (Hong Kong), Ltd. 365,000 1,118,918 China Resources Enterprise, Ltd. 1,314,000 1,489,383 ------------ 2,608,301 Hungary-1.6% Matav Magyar Tavkozlesi Rt. 334,574 1,266,779 MOL Magyar Olaj-es Gazipari Rt. 41,992 1,270,930 OTP Bank Rt.(a) 151,041 1,936,423 ------------ 4,474,132 India-0.6% Canara Bank, Ltd. 268,600 805,210 Punjab National Bank, Ltd. 170,300 903,339 ------------ 1,708,549 Indonesia-0.2% PT Hanjaya Mandala Sampoerna Tbk 1,174,500 624,029 ------------ Israel-0.7% Bank Hapoalim, Ltd. 807,600 1,985,450 ------------ ------------------------------------------------------------------------------- 8 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Portfolio of Investments ------------------------------------------------------------------------------- Company Shares U.S. $ Value ------------------------------------------------------------------------------- Italy-5.0% Acegas-APS SpA 216,186 $ 1,398,551 ENI SpA 317,266 5,973,692 Telecom Italia Mobile SpA 280,263 1,520,305 Telecom Italia SpA(a) 445,064 1,316,370 UniCredito Italiano SpA 672,283 3,621,459 ------------ 13,830,377 Japan-14.2% East Japan Railway Co. 1,131 5,331,917 Japan Airlines System Corp. 506,000 1,336,800 Japan Tobacco, Inc. 925 6,778,613 KDDI Corp. 590 3,381,815 Mitsubishi Tokyo Financial Group, Inc. 961 7,499,963 Nippon Telegraph & Telephone Corp. 482 2,326,307 Nissan Motor Co., Ltd. 167,200 1,910,500 Nomura Holdings, Inc. 331,000 5,639,236 NTT DoCoMo, Inc. 1,557 3,532,029 West Japan Railway Co. 372 1,462,024 ------------ 39,199,204 Luxembourg-0.9% Tenaris, SA (ADR) 70,221 2,339,764 ------------ Malaysia-0.3% Astro All Asia Networks Plc.(a) 123,500 143,650 Maxis Communications Berhad 329,900 655,459 ------------ 799,109 Mexico-3.7% America Movil, SA de CV Series L 95,506 2,611,134 Grupo Aeroportuario del Sureste, SA de CV (ADR) 20,200 355,520 Grupo Financiero Banorte, SA de CV Series O 347,977 1,207,770 Grupo Financiero BBVA Bancomer, SA de CV(a) 4,364,000 3,728,421 Telefonos de Mexico, SA de CV Cl. L (ADR) 67,506 2,229,723 ------------ 10,132,568 Netherlands-1.2% ING Groep NV 143,153 3,331,387 ------------ Norway-0.5% Telenor ASA 212,204 1,384,541 ------------ Peru-0.7% Exsa, SA(b) 2,553,049 1,807,038 ------------ Poland-1.0% Bank Pekao, SA 43,601 1,261,427 Polski Koncern Naftowy Orlen, SA (GDR) 107,117 1,435,368 ------------ 2,696,795 ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 9 Portfolio of Investments ------------------------------------------------------------------------------- Company Shares U.S. $ Value ------------------------------------------------------------------------------- Russia-2.4% AO VimpelCom (ADR)(a) 25,500 $ 1,874,250 Lukoil Holding (ADR) 26,209 2,440,058 Mobile Telesystems (ADR) 15,000 1,242,000 YUKOS (ADR) 26,400 1,108,800 ------------ 6,665,108 Singapore-1.5% DBS Group Holdings, Ltd. 236,535 2,047,379 Singapore Post, Ltd. 1,660,000 679,326 Singapore Telecommunications, Ltd. 1,231,000 1,420,691 ------------ 4,147,396 South Africa-1.0% MTN Group, Ltd.(a) 647,865 2,757,140 ------------ South Korea-5.5% Kookmin Bank 93,701 3,511,330 ADR 65,733 2,487,337 POSCO 28,720 3,928,963 SK Telecom Co., Ltd. 31,260 5,220,932 ------------ 15,148,562 Spain-3.2% Amadeus Global Travel Distribution, SA 263,903 1,710,564 Iberia Lineas Aereas de Espana, SA 545,358 1,564,964 Indra Sistemas, SA 98,417 1,259,734 Red Electrica de Espana 84,316 1,379,562 Telefonica, SA 193,648 2,836,963 ------------ 8,751,787 Sweden-1.0% Eniro AB 281,883 2,701,191 ------------ Switzerland-0.3% Unique Zurich Airport(a) 17,645 925,910 ------------ Taiwan-3.2% Cathay Financial Holding Co., Ltd. (GDR)(a)(c) 117,200 1,758,000 Chunghwa Telecom Co., Ltd. (ADR) 169,900 2,463,550 Fubon Financial Holding Co., Ltd. 1,693,865 1,621,520 Taiwan Semiconductor Manufacturing Co., Ltd.(a) 1,675,212 3,133,313 ------------ 8,976,383 Thailand-1.6% Ratchaburi Electricity Generating Holding Public Co., Ltd. 2,130,300 2,634,480 Siam Commercial Bank Public Co., Ltd.(a) 1,264,800 1,723,748 ------------ 4,358,228 Trinidad & Tobago-0.3% B.W.I.A. International Airways, Ltd.(a)(b) 2,727,272 909,000 ------------ ------------------------------------------------------------------------------- 10 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Portfolio of Investments ------------------------------------------------------------------------------- Shares or Principal Amount Company (000) U.S. $ Value ------------------------------------------------------------------------------- Turkey-1.4% Dogan Yayin Holding AS(a) 321,570,948 $ 1,236,371 Turkiye Is Bankasi Series C(a) 633,565,037 2,571,250 ------------ 3,807,621 United Kingdom-10.2% BP Plc. 366,908 2,963,762 British Airways Plc.(a) 334,212 1,385,584 British Sky Broadcasting Group Plc.(a) 267,103 3,348,282 Centrica Plc. 867,547 3,264,099 Mersey Docks & Harbour Co. 180,403 2,131,167 National Grid Transco Plc. 723,317 5,162,355 Vedanta Resources Plc.(a) 209,591 1,375,334 Vodafone Group Plc. 2,787,278 6,883,637 Wolfson Microelectronics Plc.(a) 318,547 1,817,655 ------------ 28,331,875 United States-3.4% Affiliated Computer Services, Inc. Cl. A(a) 77,000 4,193,420 Pfizer, Inc. 149,300 5,274,769 ------------ 9,468,189 Total Common & Preferred Stocks (cost $206,357,539) 271,293,349 ------------ SHORT-TERM INVESTMENT-0.3% Time Deposit-0.3% Societe Generale 0.91%, 1/02/04 (cost $700,000) $700 700,000 ------------ Total Investments-98.4% (cost $207,057,539) 271,993,349 Other assets less liabilities-1.6% 4,534,141 ------------ Net Assets-100% $ 276,527,490 (a) Non-income producing security. (b) Illiquid security, valued at fair value (See Note A). (c) Security is 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 institutional buyers. At December 31, 2003, the aggregate market value of these securities amounted to $1,758,000 or 0.6% of net assets. Glossary of terms: ADR - American Depositary Receipt GDR - Global Depositary Receipt See notes to financial statements. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 11 Statement of Assets & Liabilities ------------------------------------------------------------------------------- STATEMENT OF ASSETS & LIABILITIES December 31, 2003 (unaudited) Assets Investments in securities, at value (cost $207,057,539) $ 271,993,349 Cash 956,176 Foreign cash, at value (cost $4,742,489) 4,811,855 Dividends and interest receivable 728,581 Receivable for capital stock sold 232,751 Total assets 278,722,712 Liabilities Payable for investment securities purchased 700,000 Payable for capital stock redeemed 561,427 Advisory fee payable 224,188 Net unrealized depreciation on India capital gains tax 166,273 Distribution fee payable 109,106 Accrued expenses 434,228 Total liabilities 2,195,222 Net Assets $ 276,527,490 Composition of Net Assets Capital stock, at par $ 25,912 Additional paid-in capital 258,107,847 Distributions in excess of net investment income (674,929) Accumulated net realized loss on investment and foreign currency transactions (45,786,335) Net unrealized appreciation of investments and and foreign currency denominated assets and liabilities 64,854,995 $ 276,527,490 Calculation of Maximum Offering Price Class A Shares Net asset value and redemption price per share ($201,137,459/18,500,876 shares of capital stock issued and outstanding) $10.87 Sales charge--4.25% of public offering price .48 Maximum offering price $11.35 Class B Shares Net asset value and offering price per share ($58,651,961/5,771,832 shares of capital stock issued and outstanding) $10.16 Class C Shares Net asset value and offering price per share ($15,606,160/1,535,904 shares of capital stock issued and outstanding) $10.16 Advisor Class Shares Net asset value, redemption and offering price per share ($1,131,910/103,573 shares of capital stock issued and outstanding) $10.93 See notes to financial statements. ------------------------------------------------------------------------------- 12 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Statement of Operations ------------------------------------------------------------------------------- STATEMENT OF OPERATIONS Six Months Ended December 31, 2003 (unaudited) Investment Income Dividends (net of foreign taxes withheld of $298,117) $ 2,280,184 Interest 3,108 $ 2,283,292 Expenses Advisory fee 1,226,979 Distribution fee--Class A 268,163 Distribution fee--Class B 261,125 Distribution fee--Class C 67,622 Transfer agency 564,864 Custodian 213,648 Administrative 68,866 Printing 63,909 Audit and legal 63,580 Registration 39,997 Directors' fees 9,000 Miscellaneous 8,678 Total expenses 2,856,431 Less: expenses waived by the Transfer Agent (see Note B) (36,328) Less: expense offset arrangement (see Note B) (280) Net expenses 2,819,823 Net investment loss (536,531) Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions Net realized gain (loss) on: Investment transactions 18,004,730 Foreign currency transactions (77,480) Net change in unrealized appreciation/depreciation of: Investments 47,794,496 Foreign currency denominated assets and liabilities (30,386) Net gain on investment and foreign currency transactions 65,691,360 Net Increase in Net Assets from Operations $ 65,154,829 See notes to financial statements. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 13 Statement Of Changes In Net Assets -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS Six Months Ended Year Ended December 31, 2003 June 30, (unaudited) 2003 ----------------- ------------ Increase (Decrease) in Net Assets from Operations Net investment income (loss) $ (536,531) $ 1,162 Net realized gain (loss) on investment and foreign currency transactions 17,927,250 (4,816,525) Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities 47,764,110 6,240,176 Net increase in net assets from operations 65,154,829 1,424,813 Dividends to Shareholders from Net investment income Class A (708,309) -0- Advisor Class (6,139) -0- Capital Stock Transactions Net decrease (12,337,789) (42,233,358) Total increase (decrease) 52,102,592 (40,808,545) Net Assets Beginning of period 224,424,898 265,233,443 End of period (including undistributed net investment income of $576,050 at June 30, 2003) $276,527,490 $224,424,898 See notes to financial statements. ------------------------------------------------------------------------------- 14 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Notes to Financial Statements ------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS December 31, 2003 (unaudited) NOTE A Significant Accounting Policies AllianceBernstein Worldwide Privatization Fund, Inc. (the "Fund") organized as a Maryland corporation on March 16, 1994, is registered under the Investment Company Act of 1940 as an open-end management investment company. The Fund offers Class A, Class B, Class C and Advisor Class shares. Class A shares are sold with an initial sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class B shares are currently sold with a contingent deferred sales charge which declines from 4.00% to zero depending on the period of time the shares are held. Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase. Advisor Class shares are sold without an initial or contingent deferred sales charge. Advisor Class shares are offered solely 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, and the same terms and conditions, 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 Fund. 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 Alliance Capital Management L.P. (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 ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 15 Notes to Financial Statements ------------------------------------------------------------------------------- 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 at rates of exchange prevailing when accrued. Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, foreign currency exchange contracts, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the 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. ------------------------------------------------------------------------------- 16 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Notes to Financial Statements ------------------------------------------------------------------------------- 3. Taxes It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. 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 Fund accretes discounts on short-term securities as adjustments to interest income. 5. Income and Expenses All income earned and expenses incurred by the Fund are borne on a pro rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except that the Fund's Class B and Class C shares bear higher distribution and transfer agent fees than Class A shares and Advisor Class shares. Advisor Class shares also have no distribution fees. 6. Dividends and Distributions Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income 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 an investment advisory agreement, the Fund pays the Adviser a fee at an annual rate of 1% of the Fund's average daily net assets. Such fee is accrued daily and paid monthly. Pursuant to the advisory agreement, the Fund paid $68,866 to the Adviser representing the cost of certain legal and accounting services provided to the Fund by the Adviser for the six months ended December 31, 2003. Effective January 1, 2004, the Adviser began waiving a portion of its advisory fee so as to charge the Fund at the reduced annual rate of .75% of the first $2.5 billion, .65% of the next $2.5 billion and .60% in excess of $5 billion, of the average daily net assets of the Fund. The amount of the fee waiver may increase or decrease as a result of a final, definitive agreement with the New York Attorney General's Office ("NYAG"). For a more complete discussion of the Adviser's settlement with the NYAG, please see "Legal Proceedings" below. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 17 Notes to Financial Statements ------------------------------------------------------------------------------- The Fund compensates Alliance Global Investor Services, Inc. (AGIS), a wholly-owned subsidiary of the Adviser under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. Such compensation amounted to $328,984 for the six months ended December 31, 2003. In addition, AGISagreed to waive a portion of its fees for the six months ended December 31, 2003. Such waiver amounted to $36,328. For the six months ended December 31, 2003, the Fund's expenses were reduced by $280 under an expense offset arrangement with AGIS. AllianceBernstein Investment Research and Management, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $1,879 from the sale of Class A shares and received $14,791, $53,120 and $4,173 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the six months ended December 31, 2003. Brokerage commissions paid on investment transactions for the six months ended December 31, 2003, amounted to $285,687, none of which was paid to Sanford C. Bernstein & Co. LLC, an affiliate of the Adviser. NOTE C Distribution Services Agreement The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30 of 1% of the Fund's average daily net assets attributable to Class A shares and 1% of the average daily net assets attributable to the 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 Fund that it has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $6,619,225 and $1,218,807 for Class B and Class C shares, respectively; such costs may be recovered from the Fund in future periods so long as the Agreement is in effect. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares. ------------------------------------------------------------------------------- 18 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Notes to Financial Statements ------------------------------------------------------------------------------- NOTE D Investment Transactions Purchases and sales of investment securities (excluding short-term investments) for the six months ended December 31, 2003, were as follows: Purchases Sales ---------- ------------- Investment securities (excluding U.S. government securities) $ 53,445,013 $ 64,823,482 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 $ 71,983,426 Gross unrealized depreciation (7,047,616) Net unrealized appreciation $ 64,935,810 Forward Exchange Currency Contracts The Fund 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 and to hedge certain firm purchase and sales 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 contracts and the closing of such contracts would be included in net realized gains or losses 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 Fund. The Fund's custodian will place and maintain cash not available for investment or liquid assets in a separate account of the Fund having a value equal to the aggregate amount of the Fund'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. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 19 Notes to Financial Statements ------------------------------------------------------------------------------- NOTE E Capital Stock There are 12,000,000,000 shares of $0.001 par value capital stock authorized, divided into four classes, designated Class A, Class B, Class C, and Advisor Class. Each class consists of 3,000,000,000 authorized shares. Transactions in capital stock were as follows: Shares Amount --------------------------- --------------------------- Six Months Six Months Ended Ended December 31, December 31, 2003 Year Ended 2003 Year Ended (unaudited) June 30, 2003 (unaudited) June 30, 2003 ------------ ------------- ------------ ------------- Class A Shares sold 2,305,410 13,183,729 $ 20,981,266 $ 96,276,749 Shares issued in reinvestment of dividends 51,705 -0- 512,401 -0- Shares converted from Class B 113,665 856,684 1,044,600 7,708,791 Shares redeemed (3,460,944) (16,909,314) (31,761,667) (126,147,344) Net decrease (990,164) (2,868,901) $ (9,223,400) $ (22,161,804) Class B Shares sold 453,595 945,209 $ 4,047,423 $ 6,678,057 Shares converted to Class A (121,684) (897,545) (1,044,600) (7,708,791) Shares redeemed (708,395) (2,413,607) (6,210,984) (15,566,368) Net decrease (376,484) (2,365,943) $ (3,208,161) $ (16,597,102) Class C Shares sold 695,780 1,759,195 $ 5,873,289 $ 12,385,634 Shares redeemed (703,079) (2,229,518) (5,927,801) (15,771,710) Net decrease (7,299) (470,323) $ (54,512) $ (3,386,076) Advisor Class Shares sold 172,515 286,023 $ 1,523,729 $ 2,282,890 Shares issued in reinvestment of dividends 419 -0- 4,171 -0- Shares redeemed (157,457) (296,367) (1,379,616) (2,371,266) Net increase (decrease) 15,477 (10,344) $ 148,284 $ (88,376) ------------------------------------------------------------------------------- 20 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Notes to Financial Statements ------------------------------------------------------------------------------- NOTE F Concentration of Risk Investing in securities of foreign companies 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 and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies. The Fund invests in securities issued by enterprises that are undergoing, or that have undergone, privatization. Privatization is a process through which the ownership and control of companies or assets in whole or in part are transferred from the public sector to the private sector. Through privatization a government or state divests or transfers all or a portion of its interest in a state enterprise to some form of private ownership. Therefore, the Fund is susceptible to the government re-nationalization of these enterprises and economic factors adversely affecting the economics of these countries. In addition, these securities created through privatization may be less liquid and subject to greater volatility than securities of more developed countries. NOTE G Joint Credit Facility A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $500 million revolving credit facility (the "Facility") intended to provide short-term financing if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the facility during the six months ended December 31, 2003. NOTE H Distributions to Shareholders The tax character of distributions to be paid for the year ending June 30, 2004 will be determined at the end of the current fiscal year. As of June 30, 2003, the components of accumulated earning/(deficit) on a tax basis were as follows: Accumulated capital and other losses $(63,455,808)(a) Undistributed ordinary income 576,050 Unrealized appreciation/(depreciation) 16,833,108 Total accumulated earnings/(deficit) $(46,046,650) (a) On June 30, 2003, the Fund had a net capital loss carryforward of $57,588,910 of which $2,674,544 expires in the year 2009, $9,780,649 expires in the year 2010 and $45,133,717 expires in the year 2011. To the extent future capital gains are offset by capital loss carryforward, such gains will not be distributed. Net capital 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 capital losses of $5,866,898. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 21 Notes to Financial Statements ------------------------------------------------------------------------------- NOTE I Legal Proceedings As has been previously reported in the press, the Staff of the U.S. Securities and Exchange Commission ("SEC") and the NYAG have been investigating practices in the mutual fund industry identified as "market timing" and "late trading" of mutual fund shares. Certain other regulatory authorities have also been conducting investigations into these practices within the industry and have requested that Alliance Capital Management L.P. ("Alliance Capital"), the Fund's Adviser, provide information to them. Alliance Capital has been cooperating and will continue to cooperate with all of these authorities. On December 18, 2003, Alliance Capital confirmed that it had reached terms with the SEC and the NYAG for the resolution of regulatory claims relating to the practice of "market timing" mutual fund shares in some of the AllianceBernstein Mutual Funds. The agreement with the SEC is reflected in an Order of the Commission ("SEC Order"). The agreement with the NYAG is subject to final, definitive documentation. Among the key provisions of these agreements are the following: (i) Alliance Capital agreed to establish a $250 million fund (the "Reimbursement Fund") to compensate mutual fund shareholders for the adverse effects of market timing attributable to market timing relationships described in the SEC Order. According to the SEC Order, the Reimbursement Fund is to be paid, in order of priority, to fund investors based on (i) their aliquot share of losses suffered by the fund due to market timing, and (ii) a proportionate share of advisory fees paid by such fund during the period of such market timing; (ii) Alliance Capital agreed to reduce the advisory fees it receives from some of the AllianceBernstein long-term, open-end retail funds, commencing January 1, 2004, for a period of at least five years. The determination of which funds will have their fees reduced and to what degree is subject to the terms of the definitive agreement with the NYAG; and (iii) Alliance Capital agreed to implement changes to its governance and compliance procedures. Additionally, the SEC Order contemplates that Alliance Capital's registered investment company clients, including the Fund, will introduce governance and compliance changes. In anticipation of final, definitive documentation and effective January 1, 2004, the Adviser began waiving a portion of its advisory fee. For a more complete description of this waiver, please see "Advisory Fee and Other Transactions with Affiliates" above. ------------------------------------------------------------------------------- 22 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Notes to Financial Statements ------------------------------------------------------------------------------- The special committee of Alliance Capital's Board of Directors, comprised of the members of Alliance Capital's Audit Committee and the other independent member of the Board, is continuing to direct and oversee an internal investigation and a comprehensive review of the facts and circumstances relevant to the SEC's and the NYAG's investigations. In addition, the Independent Directors of the Fund ("the Independent Directors") have initiated an investigation of the above-mentioned matters with the advice of an independent economic consultant and independent counsel. The Independent Directors have formed a special committee to supervise the investigation. On October 2, 2003, a putative class action complaint entitled Hindo et al. v. AllianceBernstein Growth & Income Fund et al. (the "Hindo Complaint") was filed against Alliance Capital; Alliance Capital Management Holding L.P.; Alliance Capital Management Corporation; AXA Financial, Inc.; certain of the AllianceBernstein Mutual Funds, including the Fund; Gerald Malone; Charles Schaffran (collectively, the "Alliance Capital defendants"); and certain other defendants not affiliated with Alliance Capital. The Hindo Complaint was filed in the United States District Court for the Southern District of New York by alleged shareholders of two of the AllianceBernstein Mutual Funds. The Hindo Complaint alleges that certain of the Alliance Capital defendants failed to disclose that they improperly allowed certain hedge funds and other unidentified parties to engage in late trading and market timing of AllianceBernstein Fund securities, violating Sections 11 and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act, and Sections 206 and 215 of the Advisers Act. Plaintiffs seek an unspecified amount of compensatory damages and rescission of their contracts with Alliance Capital, including recovery of all fees paid to Alliance Capital pursuant to such contracts. Since October 2, 2003, approximately 40 additional lawsuits making factual allegations similar to those in the Hindo Complaint were filed against Alliance Capital and certain other defendants, some of which name the Fund as a defendant. All of these lawsuits seek an unspecified amount of damages. As a result of the matters discussed above, investors in the AllianceBernstein Mutual Funds may choose to redeem their investments. This may require the AllianceBernstein Mutual Funds to sell investments held by those funds to provide for sufficient liquidity and could also have an adverse effect on the investment performance of the AllianceBernstein Mutual Funds. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 23 Financial Highlights ------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A ----------------------------------------------------------------------------- Six Months Ended December 31, Year Ended June 30, 2003 --------------------------------------------------------------- (unaudited) 2003 2002 2001 2000 1999 ----------- ----------- ----------- ----------- ----------- ----------- Net asset value, beginning of period $ 8.38 $ 8.19 $ 8.76 $13.57 $11.84 $12.67 Income From Investment Operations Net investment income (loss)(a) (.01) .02 (.03) .02 (.04) -0- Net realized and unrealized gain (loss) on investment and foreign currency transactions 2.54 .17 (.54) (3.45) 2.83 .93 Net increase (decrease) in net asset value from operations 2.53 .19 (.57) (3.43) 2.79 .93 Less: Dividends and Distributions Dividends from net investment income (.04) -0- -0- -0- -0- (.12) Distributions from net realized gains on investment and foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64) Distributions in excess of net realized gains on investments -0- -0- -0- (.01) -0- -0- Total dividends and distributions (.04) -0- -0- (1.38) (1.06) (1.76) Net asset value, end of period $10.87 $ 8.38 $ 8.19 $ 8.76 $13.57 $11.84 Total Return Total investment return based on net asset value(b) 30.21% 2.32% (6.51)% (26.81)% 24.26% 9.86% Ratios/Supplemental Data Net assets, end of period (000's omitted) $201,137 $163,406 $183,160 $245,873 $394,665 $340,194 Ratio to average net assets of: Expenses, net of waivers/ reimbursement 2.09%(c) 2.29% 2.10% 1.81% 1.74%(d) 1.92%(d) Expenses, before waivers/ reimbursement 2.10%(c) 2.29% 2.10% 1.81% 1.74%(d) 1.92%(d) Net investment income (loss) (.23)%(c) .23% (.40)% .14% (.31)% (.01)% Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28. ------------------------------------------------------------------------------- 24 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Financial Highlights ------------------------------------------------------------------------------- Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B ------------------------------------------------------------------------------ Six Months Ended December 31, Year Ended June 30, 2003 --------------------------------------------------------------- (unaudited) 2003 2002 2001 2000 1999 ----------- ----------- ----------- ----------- ----------- ----------- Net asset value, beginning of period $ 7.84 $ 7.72 $ 8.32 $13.06 $11.50 $12.37 Income From Investment Operations Net investment loss(a) (.04) (.04) (.09) (.07) (.13) (.08) Net realized and unrealized gain (loss) on investment and foreign currency transactions 2.36 .16 (.51) (3.29) 2.75 .89 Net increase (decrease) in net asset value from operations 2.32 .12 (.60) (3.36) 2.62 .81 Less: Dividends and Distributions Dividends from net investment income -0- -0- -0- -0- -0- (.04) Distributions from net realized gains on investment and foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64) Distributions in excess of net realized gains on investments -0- -0- -0- (.01)-0--0- Total dividends and distributions -0- -0- -0- (1.38) (1.06) (1.68) Net asset value, end of period $10.16 $ 7.84 $ 7.72 $ 8.32 $13.06 $11.50 Total Return Total investment return based on net asset value(b) 29.59% 1.55% (7.21)% (27.37)% 23.45% 8.91% Ratios/Supplemental Data Net assets, end of period (000's omitted) $58,652 $48,183 $65,724 $92,446 $160,847 $117,420 Ratio to average net assets of: Expenses, net of waivers/ reimbursement 2.87%(c) 3.08% 2.89% 2.56% 2.47%(d) 2.63%(d) Expenses, before waivers/ reimbursement 2.88%(c) 3.08% 2.89% 2.56% 2.47%(d) 2.65%(d) Net investment loss (1.01)%(c) (.61)% (1.19)% (.64)% (1.02)% (1.43)% Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 25 Financial Highlights ------------------------------------------------------------------------------- Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C ------------------------------------------------------------------------------ Six Months Ended December 31, Year Ended June 30, 2003 --------------------------------------------------------------- (unaudited) 2003 2002 2001 2000 1999 ----------- ----------- ----------- ----------- ----------- ----------- Net asset value, beginning of period $ 7.84 $ 7.72 $ 8.32 $13.05 $11.50 $12.37 Income From Investment Operations Net investment loss(a) (.04) (.04) (.09) (.06) (.12) (.08) Net realized and unrealized gain (loss) on investment and foreign currency transactions 2.36 .16 (.51) (3.29) 2.73 .89 Net increase (decrease) in net asset value from operations 2.32 .12 (.60) (3.35) 2.61 .81 Less: Dividends and Distributions Dividends from net investment income -0- -0- -0- -0- -0- (.04) Distributions from net realized gains on investment and foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64) Distributions in excess of net realized gains on investments -0- -0- -0- (.01) -0- -0- Total dividends and distributions -0- -0- -0- (1.38) (1.06) (1.68) Net asset value, end of period $10.16 $ 7.84 $ 7.72 $ 8.32 $13.05 $11.50 Total Return Total investment return based on net asset value(b) 29.59% 1.55% (7.21)% (27.30)% 23.37% 8.91% Ratios/Supplemental Data Net assets, end of period (000's omitted) $15,606 $12,092 $15,541 $23,976 $39,598 $20,397 Ratio to average net assets of: Expenses, net of waivers/ reimbursement 2.86%(c) 3.06% 2.85% 2.56% 2.44%(d) 2.63%(d) Expenses, before waivers/ reimbursement 2.87%(c) 3.06% 2.85% 2.56% 2.44%(d) 2.63%(d) Net investment loss (.99)%(c) (.57)% (1.18)% (.62)% (.94)% (1.44)% Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28. ------------------------------------------------------------------------------- 26 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Financial Highlights ------------------------------------------------------------------------------- Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class ------------------------------------------------------------------------------ Six Months Ended December 31, Year Ended June 30, 2003 --------------------------------------------------------------- (unaudited) 2003 2002 2001 2000 1999 ----------- ----------- ----------- ----------- ----------- ----------- Net asset value, beginning of period $ 8.44 $ 8.21 $ 8.76 $13.53 $11.77 $12.63 Income From Investment Operations Net investment income (loss)(a) -0- .06 (.01) .04 -0- .02 Net realized and unrealized gain (loss) on investment and foreign currency transactions 2.56 .17 (.54) (3.43) 2.82 .93 Net increase (decrease) in net asset value from operations 2.56 .23 (.55) (3.39) 2.82 .95 Less: Dividends and Distributions Dividends from net investment income (.07) -0- -0- -0- -0- (.17) Distributions from net realized gains on investment and foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64) Distributions in excess of net realized gains on investments -0- -0- -0- (.01) -0- -0- Total dividends and distributions (.07) -0- -0- (1.38) (1.06) (1.81) Net asset value, end of period $10.93 $ 8.44 $ 8.21 $ 8.76 $13.53 $11.77 Total Return Total investment return based on net asset value(b) 30.35% 2.80% (6.28)% (26.58)% 24.68% 10.12% Ratios/Supplemental Data Net assets, end of period (000's omitted) $1,132 $744 $808 $1,343 $2,506 $1,610 Ratio to average net assets of: Expenses, net of waivers/ reimbursement 1.78%(c) 1.98% 1.80% 1.50% 1.43%(d) 1.62%(d) Expenses, before waivers/ reimbursement 1.79%(c) 1.98% 1.80% 1.50% 1.43%(d) 1.62%(d) Net investment income (loss) .07%(c) .74% (.18)% .38% .01% .37% Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 27 Financial Highlights ------------------------------------------------------------------------------- (a) Based on average shares outstanding. (b) 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 charge or contingent deferred sales charge is 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 fund distributions or the redemption of fund shares. Total investment return for a period of less than one year is not annualized. (c) Annualized. (d) Ratios reflect expenses grossed up for expense offset arrangement with the Transfer Agent. For the periods shown below, the net expense ratios were as follows: Year Ended June 30, ------------------------------ 2000 1999 --------- -------- Class A 1.73% 1.91% Class B 2.46% 2.62% Class C 2.43% 2.61% Advisor Class 1.42% 1.61% ------------------------------------------------------------------------------- 28 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND Board of Directors ------------------------------------------------------------------------------- BOARD OF DIRECTORS William H. Foulk, Jr.,(1) Chairman Marc O. Mayer, President Ruth Block(1) David H. Dievler(1) John H. Dobkin(1) Clifford L. Michel(1) Donald J. Robinson(1) OFFICERS Edward D. Baker, III,(2) Vice President Thomas J. Bardong, Vice President Russell Brody, Vice President Jean Van De Walle, Vice President Michael Levy,(2) Vice President Mark R. Manley, Secretary Mark D. Gersten, Treasurer & Chief Financial Officer Vincent S. Noto, Controller Custodian Brown Brothers Harriman & Company 40 Water Street Boston, MA 02109-3661 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 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Auditors PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 (1) Member of the Audit Committee. (2) Messrs. Baker and Levy are the persons primarily responsible for the day-to-day management of the Fund's investment portfolio. ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 29 AllianceBernstein Family Of Funds ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN FAMILY OF FUNDS ------------------------------------------------------------------------------- Wealth Strategies Funds Balanced Wealth Strategy Wealth Appreciation Strategy Wealth Preservation Strategy Tax-Managed Balanced Wealth Strategy* Tax-Managed Wealth Appreciation Strategy Tax-Managed Wealth Preservation Strategy** ------------------------------------------------------------------------------- Blended Style Series U.S. Large Cap Portfolio ------------------------------------------------------------------------------- Growth Funds Domestic Growth Fund Health Care Fund Mid-Cap Growth Fund Premier Growth Fund Small Cap Growth Fund+ Technology Fund Global & International 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 ------------------------------------------------------------------------------- Value Funds Domestic Balanced Shares Disciplined Value Fund Growth & Income Fund Real Estate Investment Fund Small Cap Value Fund Utility Income Fund Value Fund Global & International Global Value Fund International Value Fund ------------------------------------------------------------------------------- Taxable Bond Funds Americas Government Income Trust Corporate Bond Portfolio Emerging Market Debt Fund Global Strategic Income Trust High Yield Fund Multi-Market Strategy Trust Quality Bond Portfolio Short Duration Portfolio U.S. Government Portfolio ------------------------------------------------------------------------------- Municipal Bond Funds National Insured National Arizona California Insured California Florida Massachusetts Michigan Minnesota New Jersey New York Ohio Pennsylvania Virginia ------------------------------------------------------------------------------- Intermediate Municipal Bond Funds Intermediate California Intermediate Diversified Intermediate New York ------------------------------------------------------------------------------- Closed-End Funds All-Market Advantage Fund ACM Income Fund ACM Government Opportunity Fund ACM Managed Dollar Income Fund ACM Managed Income Fund ACM Municipal Securities Income Fund California Municipal Income Fund National Municipal Income Fund New York Municipal Income Fund The Spain Fund World Dollar Government Fund World Dollar Government Fund II We also offer Exchange Reserves,++ which serves as the money market fund exchange vehicle for the AllianceBernstein mutual funds. For more complete information on any AllianceBernstein mutual fund, including investment objectives and policies, sales charges, expenses, risks and other matters of importance to prospective investors, visit our web site at www.alliancebernstein.com or call us at (800) 227-4618 for a current prospectus. Please read the prospectus carefully before you invest or send money. * Formerly Growth Investors Fund. ** Formerly Conservative Investors Fund. + Quasar Fund changed its name to Small Cap Growth Fund on 11/3/03. ++ An investment in the Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. ------------------------------------------------------------------------------- 30 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND NOTES ------------------------------------------------------------------------------- ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 31 NOTES ------------------------------------------------------------------------------- 32 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND 1345 Avenue of the Americas New York, NY 10105 (800) 221-5672 [LOGO] ALLIANCEBERNSTEIN (SM) Investment Research and Management (SM) This service mark used under license from the owner, Alliance Capital Management L.P. WWPSR1203 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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to the registrant. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 10. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. (b) There were no significant changes in the registrant's internal controls that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 11. EXHIBITS. The following exhibits are attached to this Form N-CSR: EXHIBIT NO. DESCRIPTION OF EXHIBIT 11 (b) (1) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 11 (b) (2) Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 11 (c) Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant): AllianceBernstein Worldwide Privatization Fund, Inc. By: /s/ Marc O. Mayer ---------------------- Marc O. Mayer President Date: February 26, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Marc O. Mayer --------------------- Marc O. Mayer President Date: February 26, 2004 By: /s/ Mark D. Gersten ----------------------- Mark D. Gersten Treasurer and Chief Financial Officer Date: February 26, 2004