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: 811-7732
Alliance World Dollar Government Fund II, 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: March 31, 2003
Date of reporting period: September 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] ALLIANCEBERNSTEIN(SM)
Investment Research and Management
Alliance World Dollar Government Fund II
Closed End
Semi-Annual Report--September 30, 2003
Investment Products Offered
=====================================
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
=====================================
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., 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.
November 10, 2003
Semi-Annual Report
This report provides management's discussion of fund performance for Alliance
World Dollar Government Fund II (the "Fund") for the semi-annual reporting
period ended September 30, 2003.
Investment Objective and Policies
This closed-end fund is designed for investors who seek high current income and,
secondarily, capital appreciation. To achieve this objective, it invests
primarily in high yielding, high risk sovereign debt and U.S. corporate
fixed-income obligations that we expect to benefit from improving economic and
credit fundamentals.
Investment Results
The following table shows the Fund's performance over the six- and 12-month
periods ended September 30, 2003. For comparison, we have included the J.P.
Morgan Emerging Markets Bond Index Plus (JPM EMBI+), which is a standard measure
of the performance of a basket of unmanaged emerging market debt securities.
INVESTMENT RESULTS*
Periods Ended September 30, 2003
===============================
Returns
===============================
6 Months 12 Months
--------------------------------------------------------------------------------
Alliance
World Dollar
Govenment
Fund II (NAV) 17.65% 53.68%
--------------------------------------------------------------------------------
J.P. Morgan
Emerging
Markets Bond
Index Plus 13.73% 40.19%
--------------------------------------------------------------------------------
The Fund's Market Price per share on September 30, 2003 was $12.36.
* The Fund's investment results are for the periods shown and are based on
the net asset value (NAV) of the Fund as of September 30, 2003. All fees and
expenses related to the operation of the Fund have been deducted. Returns for
the Fund include the reinvestment of any distributions paid during each
period. Past performance is no guarantee of future results.
The J.P. Morgan Emerging Markets Bond Index Plus (JPM EMBI+) is comprised
of dollar-denominated restructured sovereign bonds; a large percentage of the
index is made up of Brady bonds. The index is unmanaged and reflects no fees
or expenses. An investor cannot invest directly in an index, and its results
are not indicative of any specific investment, including Alliance World
Dollar Government Fund II.
The Fund significantly outperformed its benchmark, the JPM EMBI+, for both the
six- and 12-month periods ended September 30, 2003. The Fund benefited primarily
from its emerging market debt country weightings and individual security
selection. Country and security selection in the Fund's overweight allocation to
Brazil was the largest contributor to both absolute and relative performance for
the annual and semi-annual periods. Brazilian debt was also a top performer
within the JPM EMBI+. The Fund's overweight of Russia contributed positively to
performance, as prospects for rating agency upgrades reflected the success of
structural reforms that have led to economic growth and debt reduction. The
Fund's holdings of Uruguayan and Venezuelan debt also had a positive impact on
performance. Both countries conducted debt exchanges
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 1
during this period that significantly improved the maturity structure of their
external debt.
Market Review and Investment Strategy
During the semi-annual reporting period ended September 30, 2003, investors'
desire for higher yielding asset classes benefited the emerging debt markets, as
high levels of global liquidity encouraged more risk taking. The emerging market
debt class, as represented by the JPM EMBI+, returned a strong 13.73% for the
six-month period under review. Latin countries outperformed non-Latin regions,
posting returns of 15.61% and 11.19%, respectively. All countries represented
within the Index posted positive returns during the reporting period. Top
performing countries included Venezuela at 30.45%, Turkey at 30.29%, Ecuador at
23.77% and Brazil at 23.63%, while Bulgaria at 3.08%, Poland at 3.73% and South
Africa at 4.01% lagged.
During the semi-annual period, we increased the Fund's overweight exposure to
Brazilian sovereign bonds, as President Lula exceeded expectations in his
ability to push forward crucial tax and social security reforms. Russia and
Mexico continued to be a large percentage of the Fund's exposure; however, we
maintained an underweight of the latter, relative to the Index, as bond
valuations began to exceed interest rate risk. We have maintained the Fund's
overweight position in Russian sovereign debt, as credit statistics continued to
improve. The Fund's small position in Venezuela was increased once new
management of the state-owned oil company, PDVSA (Petroleos de Venezuela S.A.),
proved adept at improving oil production, which helped to augment international
reserves. In April, Uruguay, with the support of the International Monetary
Fund, announced an aggressive plan to swap its outstanding debt for longer
maturity securities. We aggressively purchased Uruguay bonds after this
announcement--a tactic that proved beneficial to the Fund.
--------------------------------------------------------------------------------
2 o Alliance World Dollar Government Fund II
PORTFOLIO SUMMARY
September 30, 2003
INCEPTION DATE
7/28/93
PORTFOLIO STATISTICS
Net Assets ($mil): $998.0
SECURITY TYPE BREAKDOWN
81.7% Sovereign
14.0% Corporate
4.3% Short-Term [GRAPH OMITTED]
COUNTRY BREAKDOWN
21.0% Brazil
19.9% Russia
16.9% Mexico
5.1% Venezuela
5.1% Turkey
4.0% Philippines [GRAPH OMITTED]
3.9% Colombia
3.2% Peru
2.6% Ukraine
14.0% Other
4.3% Short-Term
All data as of September 30, 2003. The Fund's security type and country
breakdowns are expressed as a percentage of total investments and may vary over
time. "Other" represents less than 2% weightings in the following countries:
Argentina, Belize, Bulgaria, Cayman Islands, Ecuador, El Salvador, Guatemala,
Kazakhstan, Luxembourg, Malaysia, Panama, Romania, South Africa, United States
and Uruguay.
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 3
PORTFOLIO OF INVESTMENTS
September 30, 2003 (unaudited)
Principal
Amount
(000) U.S. $ Value
--------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS-79.4%
Argentina-1.6%
Republic of Argentina FRN
1.162%, 8/03/12.......................... $ 26,178 $ 16,099,470
---------------
Belize-0.6%
Government of Belize
9.50%, 8/15/12........................... 6,425 6,476,053
---------------
Brazil-19.6%
Banco Nac Desenv Bondes
6.50%, 6/15/06(a)........................ 2,905 2,963,100
Federal Republic of Brazil
8.875%, 4/15/24.......................... 7,250 5,818,125
9.375%, 4/07/08.......................... 10,700 10,940,750
10.00%, 1/16/07.......................... 4,700 5,017,250
10.00%, 8/07/11.......................... 9,900 9,751,500
10.125%, 5/15/27......................... 11,475 10,270,125
11.00%, 1/11/12.......................... 5,500 5,632,000
11.00%, 8/17/40.......................... 51,735 48,954,243
11.25%, 7/26/07.......................... 5,000 5,410,000
11.50%, 3/12/08.......................... 3,400 3,719,600
12.75%, 1/15/20.......................... 10,350 11,090,025
14.50%, 10/15/09......................... 9,050 10,873,575
C-Bonds
8.00%, 4/15/14........................... 40,581 37,285,929
DCB FRN
Series L
2.188%, 4/15/12.......................... 34,400 27,520,000
---------------
195,246,222
---------------
Bulgaria-1.4%
Republic of Bulgaria
8.25%, 1/15/15(a)........................ 12,341 14,037,888
---------------
Colombia-3.8%
Republic of Colombia
9.75%, 4/23/09........................... 775 861,219
10.00%, 1/23/12.......................... 9,010 9,820,900
10.50%, 7/09/10.......................... 1,000 1,124,000
10.75%, 1/15/13.......................... 10,410 11,659,200
11.75%, 2/25/20.......................... 12,310 14,451,940
---------------
37,917,259
---------------
--------------------------------------------------------------------------------
4 o Alliance World Dollar Government Fund II
Principal
Amount
(000) U.S. $ Value
--------------------------------------------------------------------------------
Ecuador-1.2%
Republic of Ecuador
7.00%, 8/15/30(a)(b)..................... $16,150 $ 10,117,976
12.00%, 11/15/12(a)...................... 2,200 1,831,500
---------------
11,949,476
---------------
El Salvador-0.8%
Republic of El Salvador
7.75%, 1/24/23(a)........................ 3,750 3,956,250
8.50%, 7/25/11(a)........................ 3,700 4,020,050
---------------
7,976,300
---------------
Guatemala-0.3%
Republic of Guatemala
9.25%, 8/01/13(a)........................ 3,000 3,202,500
---------------
Mexico-11.4%
United Mexican States
6.625%, 3/03/15(c)....................... 8,575 9,046,625
11.375%, 9/15/16......................... 72,310 104,325,252
---------------
113,371,877
---------------
Panama-1.7%
Republic of Panama
9.375%, 7/23/12.......................... 1,900 2,149,850
9.375%, 4/01/29.......................... 5,625 6,412,500
9.625%, 2/08/11.......................... 5,175 5,931,844
10.75%, 5/15/20.......................... 700 840,000
IRB VRN
5.00%, 7/17/14........................... 1,609 1,504,630
---------------
16,838,824
---------------
Peru-3.2%
Republic of Peru
9.125%, 2/21/12.......................... 20,075 22,383,625
9.875%, 2/06/15.......................... 1,450 1,685,625
FLIRB
4.50%, 3/07/17(b)........................ 8,450 7,393,750
---------------
31,463,000
---------------
Philippines-3.9%
Republic of the Philippines
8.25%, 1/15/14........................... 4,200 4,273,500
9.00%, 2/15/13........................... 10,450 11,181,500
9.875%, 1/15/19.......................... 10,650 11,581,875
10.625%, 3/16/25......................... 10,525 12,172,163
---------------
39,209,038
---------------
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 5
Principal
Amount
(000) U.S. $ Value
--------------------------------------------------------------------------------
Russia-15.1%
Russian Federation
5.00%, 3/31/30(a)(b)..................... $113,000 $ 107,173,437
11.00% 7/24/18(a)........................ 2,300 3,139,500
12.75%, 6/24/28(a)....................... 190 307,800
Russian Ministry of Finance
Series V
3.00%, 5/14/08........................... 12,087 10,606,343
Series VI
3.00%, 5/14/06(a)........................ 300 289,890
3.00%, 5/14/06........................... 27,910 26,969,433
Series VII
3.00% 5/14/11............................ 3,500 2,721,250
---------------
151,207,653
---------------
South Africa-0.5%
Republic of South Africa
7.375%, 4/25/12.......................... 4,500 5,130,000
---------------
Turkey-4.9%
Republic of Turkey
9.50%, 1/15/14(c)........................ 7,025 7,183,063
9.875%, 3/19/08.......................... 3,500 3,776,500
11.00%, 1/14/13.......................... 6,000 6,639,000
11.75%, 6/15/10.......................... 11,555 13,244,630
11.875%, 1/15/30......................... 9,950 11,517,125
12.375%, 6/15/09......................... 5,750 6,759,844
---------------
49,120,162
---------------
Ukraine-2.6%
Government of Ukraine
7.65%, 6/11/13(a)........................ 3,075 3,076,875
11.00%, 3/15/07(a)....................... 20,139 22,394,796
---------------
25,471,671
---------------
Uruguay-1.8%
Republic of Uruguay
7.25%, 2/15/11........................... 5,675 4,662,013
7.50%, 3/15/15........................... 86 66,885
7.875%, 1/15/33.......................... 19,199 12,959,325
---------------
17,688,223
---------------
Venezuela-5.0%
Republic of Venezuela
5.375%, 8/07/10.......................... 4,550 3,264,625
9.25%, 9/15/27........................... 40,285 31,180,589
10.75%, 9/19/13(a)....................... 800 742,000
DCB FRN
Series DL
1.875%, 12/18/07............................ 10,821 9,780,146
--------------------------------------------------------------------------------
6 o Alliance World Dollar Government Fund II
Principal
Amount
(000) U.S. $ Value
--------------------------------------------------------------------------------
Discount Bonds FRN
Series W-B
2.063%, 3/31/20.......................... $ 216 $ 167,400
FLIRB
2.063%, 3/31/07.......................... 4,952 4,469,379
---------------
49,604,139
---------------
Total Sovereign Debt Obligations
(cost $640,198,213)....................... 792,009,755
---------------
CORPORATE DEBT OBLIGATIONS-13.6%
Brazil-0.9%
Petrobras International Finance
9.875%, 5/09/08.......................... 4,550 5,010,688
Unibanco (Cayman)
9.375%, 4/30/12(a)(b).................... 3,475 3,657,438
---------------
8,668,126
---------------
Cayman Islands-0.5%
PF Export Receivables Master Trust
6.436%, 6/01/15(a)....................... 4,873 4,849,728
---------------
Kazakhstan-1.0%
Hurricane Finance
9.625%, 2/12/10(a)....................... 3,500 3,832,500
Kazkommerts International BV
8.50%, 4/16/13(a)........................ 6,550 6,402,625
---------------
10,235,125
---------------
Luxembourg-1.2%
Mobile Telesystems Finance
9.75%, 1/30/08(a)........................ 3,290 3,536,750
10.95%, 12/21/04......................... 8,210 8,764,175
---------------
12,300,925
---------------
Malaysia-0.3%
Petronas Capital Ltd.
7.875%, 5/22/22(a)....................... 2,340 2,729,222
---------------
Mexico-5.0%
Innova S De R.L., SA
9.375%, 9/19/13(a)(c).................... 7,955 8,044,494
12.875%, 4/01/07......................... 11,875 12,290,625
Mexico City Toluca Toll Road
11.00%, 1/19/13(a)....................... 2,352 2,234,406
Monterrey Power SA De CV
9.625%, 11/15/09(a)...................... 3,609 4,132,622
Petroleos Mexicanos
9.25%, 3/30/18........................... 20,000 23,549,999
---------------
50,252,146
---------------
Romania-0.3%
MobiFon Holdings BV
12.50%, 7/31/10(a)....................... 3,075 3,367,125
---------------
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 7
Contracts(d),
Shares
or Principal
Amount
(000) U.S. $ Value
--------------------------------------------------------------------------------
Russia-3.0%
Gazprom Oao
9.625%, 3/01/13(a)....................... $19,400 $ 20,855,000
Tyumen Oil
11.00%, 11/06/07(a)...................... 8,125 9,074,250
---------------
29,929,250
---------------
United States-1.4%
Citgo Petroleum Corp.
11.375%, 2/01/11(a)...................... 6,500 7,377,500
Freeport-McMoran Copper & Gold
10.125%, 2/01/10......................... 5,800 6,510,500
---------------
13,888,000
---------------
Total Corporate Debt Obligations
(cost $124,085,656)...................... 136,219,647
---------------
CALL OPTION PURCHASED(e)-0.0%
Brazil-0.0%
Federal Republic of Brazil
C-Bonds
8.00%, 4/15/14
expiring Oct '03 @ 90.9375
(cost $166,394).......................... 14,469,000 231,505
---------------
WARRANTS(e)-0.0%
Central Bank of Nigeria
Warrants, expiring 11/15/20.............. 43,000 -0-
Republic of Venezuela
Warrants, expiring 4/15/20............... 25,000 -0-
---------------
Total Warrants
(cost $0)................................ -0-
---------------
SHORT-TERM INVESTMENT-4.2%
Time Deposit-4.2%
Societe Generale
1.10%, 10/01/03
(cost $41,500,000)....................... $41,500 41,500,000
---------------
Total Investments-97.2%
(cost $805,950,263)...................... 969,960,907
Other assets less liabilities-2.8%.......... 28,079,550
---------------
Net Assets-100%............................. $ 998,040,457
---------------
CALL OPTION WRITTEN(f) (see Note C)
Federal Republic of Venezuela
9.25%, 9/15/27
expiring Oct '03 @ 78.25
(premiums received $69,038).............. 6,575,000 $ (26,300)
---------------
--------------------------------------------------------------------------------
8 o Alliance World Dollar Government Fund II
CREDIT DEFAULT SWAP CONTRACTS (see Note C)
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation /
Referenced Obligation (000's) Rate Date (Depreciation)
--------------------- -------- -------- ----------- --------------
Buy Contracts:
Deutsche Bank
Republic of Peru
9.875%, 2/06/15 6,150 3.90% 9/20/08 $ (41,820)
JP Morgan Chase
Republic of Venezuela
1.875%, 12/18/07 9,200 5.00 9/20/04 (91,080)
Morgan Stanley
Federal Republic of Brazil
10.125%, 5/15/27 7,200 15.25 7/30/04 (798,480)
Sale Contracts:
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 11,000 6.35 8/20/05 366,300
Citigroup Global Markets, Inc.
Republic of Turkey
11.875%, 1/15/30 6,675 6.45 9/05/08 158,264
Citigroup Global Markets, Inc.
Republic of Turkey
11.875%, 1/15/30 13,350 7.30 8/13/08 719,912
Deutsche Bank
Federal Republic of Brazil
12.25%, 3/06/30 4,700 17.85 2/06/08 1,718,790
Deutsche Bank
Federal Republic of Brazil
12.25%, 3/06/30 12,500 14.50 3/08/08 3,121,250
Deutsche Bank
Republic of Romania
8.50%, 5/08/12 12,500 3.55 4/03/10 853,750
JP Morgan Chase
Federal Republic of Brazil
8.00%, 8/15/14 5,500 8.60 9/20/08 226,050
JP Morgan Chase
Federal Republic of Brazil
8.00%, 8/15/14 6,400 9.05 9/20/13 332,800
JP Morgan Chase
Republic of Venezuela
1.875%, 12/18/07 9,200 7.70 9/20/06 68,080
JP Morgan Chase
Russian Federation
5.00%, 3/31/30 14,500 3.20 6/25/13 58,000
JP Morgan Chase
Russian Federation
5.00%, 3/31/30 14,500 3.20 6/26/13 58,000
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 9
CREDIT DEFAULT SWAP CONTRACTS (continued)
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation /
Referenced Obligation (000's) Rate Date (Depreciation)
--------------------- -------- -------- ----------- --------------
Morgan Stanley
Federal Republic of Brazil
10.125%, 5/15/27 7,200 17.75% 2/13/08 $ 2,554,560
UBS Warburg
Federal Republic of Brazil
11.00%, 8/17/40 5,500 8.80 9/20/13 492,800
REVERSE REPURCHASE AGREEMENTS (see Note C)
Interest
Broker Rate Maturity Amount
--------------------------------------------------------------------------------
Lehman Brothers 0.25% 10/09/03 $ 4,120,143
Lehman Brothers 0.75 10/24/03 6,361,933
JP Morgan Chase 0.85 10/24/03 7,053,499
-----------
$17,535,575
-----------
(a) 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 September 30,
2003, the aggregate market value of these securities amounted to
$257,347,222 or 25.8% of net assets.
(b) Coupon increases periodically based upon a predetermined schedule. Stated
interest rate in effect at September 30, 2003.
(c) Positions, or portions thereof, with an aggregate market value of
$17,558,220 have been segregated to collateralize reverse repurchase
agreements.
(d) One contract relates to principal amount of $1.00.
(e) Non-income producing.
(f) Cash approximating the market value of the call option written has been
segregated to collateralize the call option written.
Glossary of Terms:
DCB -Debt Conversion Bonds
FLIRB -Front Loaded Interest Reduction Bond
FRN -Floating Rate Note
IRB -Interest Reduction Bonds
VRN -Variable Rate Note
See notes to financial statements.
--------------------------------------------------------------------------------
10 o Alliance World Dollar Government Fund II
STATEMENT OF ASSETS & LIABILITIES
September 30, 2003 (unaudited)
Assets
Investments in securities, at value
(cost $805,950,263)................................... $ 969,960,907
Cash.................................................... 863,692
Due from broker......................................... 6,361,800
Receivable for investment securities sold............... 63,240,774
Interest receivable..................................... 18,592,256
Unrealized appreciation on swap contracts............... 10,728,556
---------------
Total assets............................................ 1,069,747,985
---------------
Liabilities
Outstanding call options written, at value
(premiums received $69,038)............................. 26,300
Payable for investment securities purchased............. 51,698,269
Payable for reverse repurchase agreements............... 17,535,575
Unrealized depreciation on swap contracts............... 931,380
Advisory fee payable.................................... 860,376
Administrative fee payable.............................. 207,009
Accrued expenses........................................ 448,619
---------------
Total liabilities....................................... 71,707,528
---------------
Net Assets.............................................. $ 998,040,457
===============
Composition of Net Assets
Capital stock, at par................................... $ 778,503
Additional paid-in capital.............................. 1,048,473,894
Undistributed net investment income..................... 3,627,431
Accumulated net realized loss on investment
transactions.......................................... (228,689,901)
Net unrealized appreciation on investments.............. 173,850,530
---------------
$ 998,040,457
===============
Net Asset Value Per Share
(based on 77,850,368 shares outstanding).............. $12.82
======
See notes to financial statements.
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 11
STATEMENT OF OPERATIONS
Six Months Ended September 30, 2003 (unaudited)
Investment Income
Interest............................... $ 50,523,263
Expenses
Advisory fee........................... $ 4,826,552
Administrative......................... 723,983
Custodian.............................. 192,398
Transfer agency........................ 88,399
Audit and legal........................ 67,591
Printing............................... 52,564
Registration........................... 32,530
Directors' fees........................ 15,807
Miscellaneous.......................... 19,523
---------------
Total expenses before interest......... 6,019,347
Interest expense....................... 1,629,113
---------------
Total expenses......................... 7,648,460
---------------
Net investment income.................. 42,874,803
---------------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized gain on:
Investment transactions............. 134,946,254
Written options..................... 770,916
Net change in unrealized appreciation/
depreciation of:
Investments......................... (35,658,685)
Swaps............................... 8,547,224
Written options..................... 329,835
---------------
Net gain on investment transactions.... 108,935,544
---------------
Net Increase in Net Assets
from Operations..................... $ 151,810,347
===============
See notes to financial statements.
--------------------------------------------------------------------------------
12 o Alliance World Dollar Government Fund II
STATEMENT OF CHANGES IN NET ASSETS
Six Months
Ended
September 30, Year Ended
2003 March 31,
(unaudited) 2003
--------------- ---------------
Increase (Decrease) in Net Assets
from Operations
Net investment income.................. $ 42,874,803 $ 83,488,349
Net realized gain (loss) on investment
transactions........................ 135,717,170 (28,508,765)
Net change in unrealized
appreciation/depreciation
of investments...................... (26,781,626) 93,026,805
--------------- ---------------
Net increase in net assets from
operations.......................... 151,810,347 148,006,389
Dividends to Shareholders from
Net investment income.................. (43,205,382) (82,323,739)
--------------- ---------------
Total increase......................... 108,604,965 65,682,650
Net Assets
Beginning of period.................... 889,435,492 823,752,842
--------------- ---------------
End of period (including undistributed
net investment income of $3,958,010
at March 31, 2003).................. $ 998,040,457 $ 889,435,492
=============== ===============
See notes to financial statements.
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 13
STATEMENT OF CASH FLOWS
Six Months Ended September 30, 2003 (unaudited)
Increase (Decrease) in Cash From
Operating Activities:
Interest received...................... $ 47,152,209
Interest expense paid.................. (2,003,175)
Operating expenses paid................ (6,059,232)
---------------
Net increase in cash from operating
activities.......................... $ 39,089,802
Investing Activities:
Proceeds from disposition of long-term
portfolio investments............... 825,599,796
Purchase of long-term portfolio
investments......................... (761,122,153)
Proceeds from disposition of short-term
investments, net.................... 118,298,849
---------------
Net increase in cash from investing
activities.......................... 182,776,492
Financing Activities:*
Decrease in reverse repurchase
agreements.......................... (178,513,565)
Cash dividends paid.................... (43,205,382)
---------------
Net decrease in cash from financing
activities.......................... (221,718,947)
---------------
Net increase in cash................... 147,347
Cash at beginning of period............ 716,345
---------------
Cash at end of period.................. $ 863,692
===============
--------------------------------------------------------------------------------
Reconciliation of Net Increase in Net
Assets from Operations to Net Increase
in Cash from Operating Activities:
Net increase in net assets resulting
from operations..................... $ 151,810,347
Adjustments:
Decrease in interest receivable........ $ 3,730,025
Net realized gain on investment
transactions........................ (135,717,170)
Net change in unrealized
appreciation/depreciation of
investments......................... 26,781,626
Accretion of bond discount and
amortization of bond premium........ (7,101,079)
Decrease in interest payable........... (374,062)
Decrease in accrued expenses........... (39,885)
---------------
Total adjustments...................... (112,720,545)
---------------
Net increase in cash from operating
activities.......................... $ 39,089,802
===============
* Non-cash financing activities not included herein consist of reinvestment of
dividends.
See notes to financial statements.
--------------------------------------------------------------------------------
14 o Alliance World Dollar Government Fund II
NOTES TO FINANCIAL STATEMENTS
September 30, 2003 (unaudited)
NOTE A
Significant Accounting Policies
Alliance World Dollar Government Fund II (the "Fund") was incorporated under the
laws of the State of Maryland on May 20, 1993 and is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end management
investment company. 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. 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 the Adviser, subject to the Board's continuing oversight, certain
responsibilities with respect to the implementation of the Pricing Policies.
Pursuant to the Pricing Policies, securities for which market quotations are
readily available are valued at their current market value. In general, the
market value of these securities is determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such
day. If no bid or asked prices are quoted on such day, then the security is
valued in good faith at fair value in accordance with the Pricing Policies.
Securities listed on more than one exchange are valued by reference to the
principal exchange on which the securities are traded; securities not listed on
an exchange but traded on The Nasdaq Stock Market, Inc. ("NASDAQ") are valued in
accordance with the NASDAQ Official Closing Price; listed put or call options
are valued at the last sale price. If there has been no sale on that day, such
securities will be valued at the closing bid prices on that day; open futures
contracts and options thereon are valued using the closing settlement price or,
in the absence of such a price, the most recent quoted bid price. If there are
no quotations available for the day of valuations, the last available closing
settlement price is used; securities traded in the over-the-counter market, (but
excluding securities traded on NASDAQ) are valued at the mean of the current bid
and asked prices as reported by the National Quotation Bureau or other
comparable sources; U.S. Government securities and other debt instruments having
60 days or less remaining until maturity are valued at amortized cost if their
original maturity was 60 days or less, or by amortizing their fair value as of
the 61st day prior to maturity if their original term to maturity exceeded 60
days; fixed-income securities, including mortgage backed and asset backed
securities, may be valued on the basis of prices
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 15
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. 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 provision for federal income or excise taxes is
required.
3. 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 Fund accretes discounts as
adjustments to interest income. Additionally, the Fund amortizes premiums on
debt securities for financial statement reporting purposes.
4. Dividends and Distributions
Dividends and distributions to shareholders 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, Administrative Fees and Other Affiliated Transactions
Under the terms of the Investment Advisory Agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee at an annual rate of 1%
of the Fund's average weekly net assets. Such fee is accrued daily and paid
monthly.
Under the terms of the Administration Agreement, the Fund pays the Adviser an
administrative fee at an annual rate of .15 of 1% of the Fund's average weekly
net assets. Such fee is accrued daily and paid monthly. The Adviser provides
administrative functions as well as other clerical services to the Fund and
prepares financial and regulatory reports.
The Fund entered into a Shareholder Inquiry Agency Agreement with Alliance
Global Investor Services, Inc. (AGIS), a wholly-owned subsidiary of the Adviser,
--------------------------------------------------------------------------------
16 o Alliance World Dollar Government Fund II
whereby the Fund reimburses AGIS for costs relating to servicing phone inquiries
on behalf of the Fund. During the six months ended September 30, 2003, there was
no reimbursement paid to AGIS.
NOTE C
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the period ended September 30, 2003, were as follows:
Purchases Sales
--------------- ---------------
Investment securities (excluding U.S.
government securities)............... $ 729,449,459 $ 841,582,328
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 written options and swap
contracts) are as follows:
Gross unrealized appreciation........................... $ 170,866,634
Gross unrealized depreciation........................... (6,855,990)
---------------
Net unrealized appreciation............................. $ 164,010,644
---------------
1. Option Transactions
For hedging and investment purposes, the Fund may purchase and write (sell) put
and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk of
loss of premium and change in market value should the counterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. The cost of securities acquired through the
exercise of call options is increased by premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by the
premiums paid.
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from written options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from options
written. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received is added to the proceeds from the sale
of the underlying security or currency in determining whether the Fund has real-
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 17
ized a gain or loss. If a put option is exercised, the premium received reduces
the cost basis of the security or currency purchased by the Fund. In writing an
option, the Fund bears the market risk of an unfavorable change in the price of
the security or currency underlying the written option. Exercise of an option
written by the Fund could result in the Fund selling or buying a security or
currency at a price different from the current market value.
Transactions in written options for the six months ended September 30, 2003,
were as follows:
Number of Premiums
Contracts Received
--------------- ---------------
Options outstanding at
March 31, 2003 ...................... 36,595,124 $ 508,492
Options written........................ 22,132,883 331,464
Options terminated in closing purchase
transactions......................... (44,353,007) (632,618)
Options expired........................ (7,800,000) (138,300)
--------------- ---------------
Options outstanding at
September 30, 2003................... 6,575,000 $ 69,038
--------------- ---------------
2. Swap Agreements
The Fund may enter into swaps to hedge its exposure to interest rates and credit
risk or for investment purposes. A swap is an agreement that obligates two
parties to exchange a series of cash flows at specified intervals based upon or
calculated by reference to changes in specified prices or rates for a specified
amount of an underlying asset. The payment flows are usually netted against each
other, with the difference being paid by one party to the other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by the
failure of a counterparty is generally limited to the net interest payment to be
received by the Fund, and/or the termination value at the end of the contract.
Therefore, the Fund considers the creditworthiness of each counterparty to a
swap contract in evaluating potential credit risk. Additionally, risks may arise
from unanticipated movements in interest rates or in the value of the underlying
securities.
The Fund records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as interest
income (or as an offset to interest income). Fluctuations in the value of swap
contracts are recorded for financial statement purposes as a component of net
change in unrealized appreciation/depreciation of investments. Realized gains
and/or loss from terminated swap contracts are included in net realized gain or
loss on investment transactions.
--------------------------------------------------------------------------------
18 o Alliance World Dollar Government Fund II
The Fund may enter into credit default swaps. A sell/(buy) in a credit default
swap provides upon the occurrence of a credit event, as defined in the swap
agreement, for the Fund to buy/(sell) from/(to) the Counterparty at par and
take/(deliver) the principal amount (the "Notional Amount") of the referenced
obligation. During the term of the swap agreement, the Fund receives/(pays)
semi-annual fixed interest payments from/(to) the respective Counterparty,
calculated at the agreed upon interest rate applied to the Notional Amount.
Credit default swaps may involve greater risks than if a Fund had invested in
the referenced obligation directly. Credit default swaps are subject to general
market risk, liquidity risk and credit risk. If the Fund is a buyer and no
credit event occurs, it will lose its investment. In addition, the value of the
referenced obligation received by the Fund as a seller if a credit event occurs,
coupled with the periodic payments previously received, may be less than the
full notional value it pays to the buyer, resulting in a loss of value to the
Fund.
3. Reverse Repurchase Agreements
Under a reverse repurchase agreement, the Fund sells securities and agrees to
repurchase them at a mutually agreed upon date and price. At the time the Fund
enters into a reverse repurchase agreement, it will establish a segregated
account with the custodian containing liquid assets having a value at least
equal to the repurchase price.
"Due from broker" shown on the statement of assets and liabilities represents
the receivable from the respective broker for the reverse repurchase agreements
enterd into on September 24, 2003.
For the six months ended September 30, 2003, the average amount of reverse
repurchase agreements outstanding was $87,633,544 and the daily weighted average
annualized interest rate was 1.01%.
NOTE D
Capital Stock
There are 100,000,000 shares of $0.01 par value common stock authorized. Of the
77,850,368 shares outstanding at September 30, 2003, the Adviser owned 7,200
shares. During the six months ended September 30, 2003 and the year ended March
31, 2003, the Fund issued no shares in connection with the Fund's dividend
reinvestment plan.
NOTE E
Concentration of Risk
Investing in securities of foreign companies and foreign governments involves
special risks, which include changes in foreign exchange rates and the
possibility of future political and economic developments which could adversely
affect the value of such securities. Moreover, securities of many foreign
companies and for-
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 19
eign governments and their markets may be less liquid and their prices more
volatile than those of comparable U.S. companies and the United States
government.
NOTE F
Distributions to Shareholders
The tax character of distributions to be paid for the year ending March 31, 2004
will be determined at the end of the current fiscal year. The tax character of
distributions paid during the fiscal years ended March 31, 2003 and March 31,
2002 were as follows:
2003 2002
-------------- ---------------
Distributions paid from:
Ordinary income.................... $ 82,323,739 $ 101,219,354
-------------- ---------------
Total taxable distributions........... 82,323,739 101,219,354
-------------- ---------------
Total distributions paid.............. $ 82,323,739 $ 101,219,354
-------------- ---------------
As of March 31, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Undistributed ordinary income........................... $ 4,884,899
Accumulated capital and other losses.................... (354,176,827)(a)
Unrealized appreciation/(depreciation).................. 189,475,023(b)
--------------
Total accumulated earnings/(deficit).................... $ (159,816,905)
--------------
(a) On March 31, 2003, the Fund had a net capital loss carryforward of
$353,038,174 of which $103,516,115 expires in the year 2007, $43,184,734
expires in the year 2008, $68,859,018 expires in the year 2009, $78,955,786
expires in the year 2010 and $58,522,521 expires in the year 2011. To the
extent future capital gains are offset by capital loss carryforwards, 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 March 31, 2003, the Fund
deferred to April 1, 2003, post October capital losses of $1,138,653.
(b) The difference between book-basis and tax-basis unrealized
appreciation/depreciation is attributable primarily to the tax deferral of
losses on wash sales and the difference between book and tax amortization
methods for premium.
--------------------------------------------------------------------------------
20 o Alliance World Dollar Government Fund II
FINANCIAL HIGHLIGHTS
Selected Data for A Common Stock Outstanding Throughout Each Period
Six Months
Ended
September 30, Year Ended March 31,
2003 --------------------------------------------------------------------
(unaudited) 2003 2002(a) 2001 2000 1999
----------------------------------------------------------------------------------------
Net asset value,
beginning of period ................. $ 11.42 $ 10.58 $ 10.37 $ 10.83 $ 8.52 $ 13.82
----------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) .............. .55 1.07 1.32 1.25 1.16 1.20
Net realized and unrealized
gain (loss) on investment
transactions ........................ 1.41 .83 .19 (.62) 2.29 (5.06)
----------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations ......... 1.96 1.90 1.51 .63 3.45 (3.86)
----------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net investment
income .............................. (.56) (1.06) (1.30) (1.09) (1.10) (1.44)
Tax return of capital ................. -0- -0- -0- -0- (.04) -0-
----------------------------------------------------------------------------------------
Total dividends and distributions ..... (.56) (1.06) (1.30) (1.09) (1.14) (1.44)
----------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 12.82 $ 11.42 $ 10.58 $ 10.37 $ 10.83 $ 8.52
========================================================================================
Market value, end of period ........... $ 12.36 $ 10.91 $ 10.32 $ 9.15 $ 9.19 $ 9.38
========================================================================================
Premium/(Discount) .................... (3.59)% (4.47)% (2.46)% (11.76)% (15.14)% 10.09%
Total Return
Total investment return based on:(c)
Market value ...................... 18.73% 17.72% 27.02% 12.05% 11.15% (20.95)%
Net asset value ................... 17.65% 20.20% 16.22% 7.73% 44.16% (28.44)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ..................... $998,040 $889,435 $823,753 $807,476 $843,390 $651,967
Ratio to average net assets of:
Expenses ......................... 1.58%(d) 1.49% 1.88% 1.90% 1.51% 1.31%
Expenses, excluding interest
expense ........................ 1.25%(d) 1.35% 1.29% 1.28% 1.30% 1.31%
Net investment income ............ 8.88%(d) 10.53% 12.69% 11.31% 12.33% 11.89%
Portfolio turnover rate ............... 76% 121% 178% 203% 217% 262%
See footnote summary on page 22.
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 21
(a) As required, effective April 1, 2001, the Fund 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 March
31, 2002 was to decrease net investment income per share by $.01, increase
net realized and unrealized gain on investments per share by $.01, and
decrease the ratio of net investment income to average net assets from
12.74% to 12.69%. Per share, ratios and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in
presentation.
(b) Based on average shares outstanding.
(c) Total investment return is calculated assuming a purchase of common stock on
the opening of the first day and a sale on the closing of the last day of
each period reported. Dividends and distributions, if any, are assumed, for
purposes of this calculation, to be reinvested at prices obtained under the
Fund's Dividend Reinvestment Plan. Generally, total investment return based
on net asset value will be higher than total investment return based on
market value in periods where there is an increase in the discount or a
decrease in the premium of the market value to the net asset value from the
beginning to the end of such periods. Conversely, total investment return
based on net asset value will be lower than total investment return based on
market value in periods where there is a decrease in the discount or an
increase in the premium of the market value to the net asset value from the
beginning to the end of such periods. Total investment return calculated for
a period of less than one year is not annualized.
(d) Annualized.
--------------------------------------------------------------------------------
22 o Alliance World Dollar Government Fund II
BOARD OF DIRECTORS
William H. Foulk, Jr.(1), Chairman
Marc O. Mayer, President
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
Dr. James M. Hester(1)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Kathleen A. Corbet, Senior Vice President
Paul J. DeNoon(2), Vice President
Mark R. Manley, Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Administrator
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, NY 10105
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Dividend Paying Agent, Transfer Agent and Registrar
Equiserve Trust Company, N.A.
P.O. Box 43011
Providence, RI 02940-3011
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.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase at market prices from time
to time shares of its Common Stock in the open market.
This report, including the financial statements herein, is transmitted to
the shareholders of Alliance World Dollar Government Fund II for their
information. The financial information included herein is taken from the
records of the Fund. This is not a prospectus, circular or representation
intended for use in the purchase of shares of the Fund or any securities
mentioned in this report.
(2) Mr. DeNoon is the person responsible for the day-to-day management of the
Fund's investment portfolio.
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 23
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.
--------------------------------------------------------------------------------
24 o Alliance World Dollar Government Fund II
SUMMARY OF GENERAL INFORMATION
Shareholder Information
The daily net asset value of the Fund's shares is available from the Fund's
Transfer Agent by calling (800) 426-5523. The Fund also distributes its daily
net asset value (NAV) to various financial publications or independent
organizations such as Lipper Analytical Services, Inc., Morningstar, Inc. and
Bloomberg. Daily market prices for the Fund's shares are published in the New
York Stock Exchange Composite Transactions Section of different newspapers each
day. The Fund's NYSE trading symbol is "AWF." Weekly comparative net asset value
and market price information about the Fund is published each Monday in the Wall
Street Journal, each Sunday in the New York Times and each Saturday in Barron's
and other newspapers in a table called "Closed-End Funds."
Dividend Reinvestment Plan
If your shares are held in your own name, you will automatically be a
participant in the Plan unless you elect to receive cash. If your shares are
held in nominee or street name through a broker or nominee who provides this
service, you will also automatically be a participant in the Plan. If your
shares are held in the name of a broker or nominee who does not provide this
service, you will need to instruct them to participate in the Plan on your
behalf or your distributions will not be reinvested. In such case, you will
receive your distributions in cash.
For questions concerning shareholder account information, or if you would like a
brochure describing the Divi-dend Reinvestment Plan, please call Equiserve Trust
Company, N.A. at (800) 219-4218.
--------------------------------------------------------------------------------
Alliance World Dollar Government Fund II o 25
ALLIANCE WORLD DOLLAR GOVERNMENT FUND II
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.
WDGIISR0903
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.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable when filing a Semi-Annual report to shareholders.
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): Alliance World Dollar Government Fund II, Inc.
By: /s/ Marc O. Mayer
--------------------------------------------
Marc O. Mayer
President
Date: November 25, 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/ Marc O. Mayer
--------------------------------------------
Marc O. Mayer
President
Date: November 25, 2003
By: /s/ Mark D. Gersten
--------------------------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: November 25, 2003