-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EvY7hrqaaTLRSSz6Xf90Po7zZmlHvkOrPnx3JVFt6dPhhb0rzSzhUEj55gzEKC+v B/+cWshqoN3IzawPPlezlg== 0001003715-05-000122.txt : 20050331 0001003715-05-000122.hdr.sgml : 20050331 20050331113248 ACCESSION NUMBER: 0001003715-05-000122 CONFORMED SUBMISSION TYPE: NSAR-A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050131 FILED AS OF DATE: 20050331 DATE AS OF CHANGE: 20050331 EFFECTIVENESS DATE: 20050331 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCEBERNSTEIN INTERNATIONAL PREMIER GROWTH FUND INC CENTRAL INDEX KEY: 0001050658 IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NSAR-A SEC ACT: 1940 Act SEC FILE NUMBER: 811-08527 FILM NUMBER: 05717438 BUSINESS ADDRESS: STREET 1: C/O ALLIANCE CAPITAL MANAGEMENT LP STREET 2: 1345 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2129692292 MAIL ADDRESS: STREET 1: C/O ALLIANCE CAPITAL MANAGEMENT LP STREET 2: 1345 AVE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 FORMER COMPANY: FORMER CONFORMED NAME: ALLIANCE INTERNATIONAL PREMIER GROWTH FUND INC DATE OF NAME CHANGE: 19971202 NSAR-A 1 answer.fil AB INTERNATIONAL PREMIER GROWTH 1.31.05 SEMI-ANNUAL REPORT PAGE 1 000 A000000 01/31/2005 000 C000000 0001050658 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 6.1 000 J000000 A 001 A000000 ALLIANCEBERNSTEIN INTL PREMIER GROWTH FUND 001 B000000 811-08527 001 C000000 2013194105 002 A000000 1345 AVENUE OF THE AMERICAS 002 B000000 NEW YORK 002 C000000 NY 002 D010000 10105 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 N 007 B000000 0 007 C010100 1 007 C010200 2 007 C010300 3 007 C010400 4 007 C010500 5 007 C010600 6 007 C010700 7 007 C010800 8 007 C010900 9 007 C011000 10 008 A000001 ALLIANCE CAPITAL MANAGEMENT L.P. 008 B000001 A 008 C000001 801-56720 008 D010001 NEW YORK 008 D020001 NY 008 D030001 10105 011 A000001 ALLIANCEBERNSTEIN INVEST RESEARCH AND MGMT. 011 B000001 8-30851 011 C010001 NEW YORK 011 C020001 NY 011 C030001 10105 012 A000001 ALLIANCE GLOBAL INVESTOR SERVICES, INC. 012 B000001 84-001187 012 C010001 SAN ANTONIO 012 C020001 TX 012 C030001 78278 013 A000001 PRICEWATERHOUSECOOPERS LLP 013 B010001 NEW YORK 013 B020001 NY PAGE 2 013 B030001 10036 015 A000001 BROWN BROTHERS HARRIMAN & CO 015 B000001 C 015 C010001 BOSTON 015 C020001 MA 015 C030001 02109 015 E010001 X 015 A000002 BANCO NACIONAL DE MEXICO 015 B000002 S 015 C010002 MEXICO DF 015 D010002 MEXICO 015 E040002 X 015 A000003 BANCO BILBAO VIZCAYA 015 B000003 S 015 C010003 MADRID 015 D010003 SPAIN 015 E040003 X 015 A000004 BANK AUSTRIA CREDITANSTALT AG 015 B000004 S 015 C010004 VIENNA 015 D010004 AUSTRIA 015 E040004 X 015 A000005 BANK HAPOALIM 015 B000005 S 015 C010005 TEL AVIV 015 D010005 ISRAEL 015 E040005 X 015 A000006 BANK BOSTON 015 B000006 S 015 C010006 SAO PAULO 015 D010006 BRAZIL 015 E040006 X 015 A000007 BANK OF TOKYO-MITSUBISHI LTD 015 B000007 S 015 C010007 TOKYO 015 D010007 JAPAN 015 E040007 X 015 A000008 CITBANK 015 B000008 S 015 C010008 PRAHA 015 D010008 CZECH REPUBLIC 015 E040008 X 015 A000009 CITIBANK 015 B000009 S 015 C010009 BUDAPEST 015 D010009 HUNGARY 015 E040009 X 015 A000010 CITIBANK 015 B000010 S 015 C010010 CAIRO 015 D010010 EGYPT PAGE 3 015 E040010 X 015 A000011 CITIBANK 015 B000011 S 015 C010011 JAKARTA 015 D010011 INDONESIA 015 E040011 X 015 A000012 CITIBANK 015 B000012 S 015 C010012 WORLI, MUMBAI 015 D010012 INDIA 015 E040012 X 015 A000013 CITIBANK 015 B000013 S 015 C010013 BUENOS AIRES 015 D010013 ARGENTINA 015 E040013 X 015 A000014 CITIBANK 015 B000014 S 015 C010014 ISTANBUL 015 D010014 TURKEY 015 E040014 X 015 A000015 CITIBANK 015 B000015 S 015 C010015 LIMA 015 D010015 PERU 015 E040015 X 015 A000016 CREDIT AGRICOLE INDOSUEZ 015 B000016 S 015 C010016 PARIS 015 D010016 FRANCE 015 E040016 X 015 A000017 DEUTSCHE BANK 015 B000017 S 015 C010017 FRANKFURT 015 D010017 GERMANY 015 E040017 X 015 A000018 EUROCLEAR 015 B000018 S 015 C010018 BRUSSELS 015 D010018 BELGIUM 015 E040018 X 015 A000019 FORTIS BANK (NETHERLANDS) NV 015 B000019 S 015 C010019 AMSTERDAM 015 D010019 NETHERLANDS 015 E040019 X 015 A000020 FIRST NATIONAL BANK LTD 015 B000020 S 015 C010020 JOHANNESBURG 015 D010020 SOUTH AFRICA 015 E040020 X PAGE 4 015 A000021 HSBC 015 B000021 S 015 C010021 HONG KONG 015 D010021 HONG KONG 015 E040021 X 015 A000022 HSBC 015 B000022 S 015 C010022 BANGKOK 015 D010022 THAILAND 015 E040022 X 015 A000023 HSBC 015 B000023 S 015 C010023 SINGAPORE 015 D010023 SINGAPORE 015 E040023 X 015 A000024 HONG KONG BANK MALAYSIA BERHAD 015 B000024 S 015 C010024 KUALA LUMPUR 015 D010024 MALAYSIA 015 E040024 X 015 A000025 HSBC 015 B000025 S 015 C010025 CHUNG-KU, SEOUL 015 D010025 KOREA 015 E040025 X 015 A000026 HSBC 015 B000026 S 015 C010026 ATHENS 015 D010026 GREECE 015 E040026 X 015 A000027 HSBC PLC 015 B000027 S 015 C010027 LONDON 015 D010027 UNITED KINGDOM 015 E040027 X 015 A000028 NATIONAL AUSTRALIAN BANK 015 B000028 S 015 C010028 MELBOURNE 015 D010028 AUSTRALIA 015 E040028 X 015 A000029 NORDEA BANK 015 B000029 S 015 C010029 HELSINKI 015 D010029 FINLAND 015 E040029 X 015 A000030 NORDEA BANK NORGE ASA 015 B000030 S 015 C010030 OSLO 015 D010030 NORWAY 015 E040030 X 015 A000031 ROYAL BANK OF CANADA PAGE 5 015 B000031 S 015 C010031 TORONTO 015 D010031 CANADA 015 E040031 X 015 A000032 SANTANDER CENTRAL HISPANO INVESTMENT 015 B000032 S 015 C010032 MADRID 015 D010032 SPAIN 015 E040032 X 015 A000033 SKANDINAVISKA ENSKILDA BANKEN 015 B000033 S 015 C010033 STOCKHOLM 015 D010033 SWEDEN 015 E040033 X 015 A000034 STANDARD CHARTERED BANK 015 B000034 S 015 C010034 TAIPEI 015 D010034 TAIWAN 015 E040034 X 015 A000035 STANDARD CHARTERED BANK 015 B000035 S 015 C010035 HONG KONG 015 D010035 HONG KONG 015 E040035 X 015 A000036 UNICREDITO ITALIANO SPA 015 B000036 S 015 C010036 MILAN 015 D010036 ITALY 015 E040036 X 015 A000037 UBS 015 B000037 S 015 C010037 ZURICH 015 D010037 SWITZERLAND 015 E040037 X 018 000000 Y 019 A000000 Y 019 B000000 125 019 C000000 ALLIANCECA 020 A000001 UBS AG 020 B000001 13-3873456 020 C000001 17 020 A000002 MORGAN STANLEY & CO. 020 B000002 13-2655998 020 C000002 15 020 A000003 LEHMAN BROTHERS INC. 020 B000003 13-2518466 020 C000003 11 020 A000004 CITIGROUP GLOBAL MARKETS, INC. 020 B000004 11-2418191 020 C000004 10 020 A000005 MERRILL LYNCH PIERCE FENNER & SMITH PAGE 6 020 B000005 13-5674085 020 C000005 9 020 A000006 J.P. MORGAN SECURITIES INC. 020 B000006 13-3224016 020 C000006 9 020 A000007 CREDIT SUISSE FIRST BOSTON 020 B000007 13-5659485 020 C000007 8 020 A000008 GOLDMAN SACHS & CO. 020 B000008 13-5108880 020 C000008 7 020 A000009 CAZENOVE AND CO. LTD 020 B000009 00-0000000 020 C000009 6 020 A000010 DEUTSCHE BANK SECURITIES INC. 020 B000010 13-2730828 020 C000010 3 021 000000 118 022 A000001 HSBC SECURITIES INC. 022 B000001 13-2650272 022 C000001 6800 022 D000001 0 022 A000002 ING BANK 022 B000002 00-0000000 022 C000002 3000 022 D000002 0 022 A000003 BRANCH BANK & TRUST 022 B000003 00-0000000 022 C000003 1300 022 D000003 0 022 A000004 DRESDNER BANK 022 B000004 00-0000000 022 C000004 1300 022 D000004 0 022 A000005 SOCITETE GENERALE 022 B000005 00-0000000 022 C000005 1200 022 D000005 0 022 A000006 BANK OF MONTREAL 022 B000006 00-0000000 022 C000006 1100 022 D000006 0 022 A000007 DEUTSCHE BANK SECURITIES INC. 022 B000007 13-2730828 022 C000007 575 022 D000007 0 022 A000008 MERRILL LYNCH PIERCE FENNER & SMITH 022 B000008 13-5674085 022 C000008 433 022 D000008 7 022 A000009 CREDIT SUISSE FIRST BOSTON PAGE 7 022 B000009 13-5659485 022 C000009 0 022 D000009 29 022 A000010 ABN AMRO INC. 022 B000010 13-3227945 022 C000010 11 022 D000010 0 023 C000000 15720 023 D000000 36 024 000000 Y 025 A000001 ING GROEP NV 025 C000001 E 025 D000001 1510 025 A000002 BNP PARIBAS, SA 025 C000002 E 025 D000002 1195 025 D000003 0 025 D000004 0 025 D000005 0 025 D000006 0 025 D000007 0 025 D000008 0 026 A000000 N 026 B000000 Y 026 C000000 N 026 D000000 Y 026 E000000 N 026 F000000 N 026 G010000 N 026 G020000 N 026 H000000 N 027 000000 Y 028 A010000 1515 028 A020000 0 028 A030000 0 028 A040000 2358 028 B010000 678 028 B020000 0 028 B030000 0 028 B040000 3650 028 C010000 1157 028 C020000 0 028 C030000 0 028 C040000 2976 028 D010000 811 028 D020000 0 028 D030000 0 028 D040000 3290 028 E010000 1184 028 E020000 0 028 E030000 0 PAGE 8 028 E040000 4029 028 F010000 2505 028 F020000 0 028 F030000 0 028 F040000 3741 028 G010000 7850 028 G020000 0 028 G030000 0 028 G040000 20044 028 H000000 4465 029 000000 Y 030 A000000 22 030 B000000 4.25 030 C000000 0.00 031 A000000 1 031 B000000 0 032 000000 19 033 000000 2 034 000000 Y 035 000000 22 036 A000000 N 036 B000000 0 037 000000 N 038 000000 0 039 000000 N 040 000000 Y 041 000000 Y 042 A000000 0 042 B000000 0 042 C000000 100 042 D000000 0 042 E000000 0 042 F000000 0 042 G000000 0 042 H000000 0 043 000000 285 044 000000 230 045 000000 Y 046 000000 N 047 000000 Y 048 000000 0.000 048 A010000 2500000 048 A020000 0.750 048 B010000 2500000 048 B020000 0.650 048 C010000 0 048 C020000 0.000 048 D010000 0 048 D020000 0.000 048 E010000 0 048 E020000 0.000 PAGE 9 048 F010000 0 048 F020000 0.000 048 G010000 0 048 G020000 0.000 048 H010000 0 048 H020000 0.000 048 I010000 0 048 I020000 0.000 048 J010000 0 048 J020000 0.000 048 K010000 5000000 048 K020000 0.600 049 000000 N 050 000000 N 051 000000 N 052 000000 N 053 A000000 Y 053 B000000 Y 053 C000000 N 054 A000000 Y 054 B000000 Y 054 C000000 N 054 D000000 N 054 E000000 N 054 F000000 N 054 G000000 Y 054 H000000 Y 054 I000000 N 054 J000000 Y 054 K000000 N 054 L000000 N 054 M000000 Y 054 N000000 N 054 O000000 N 055 A000000 Y 055 B000000 N 056 000000 Y 057 000000 N 058 A000000 N 059 000000 Y 060 A000000 Y 060 B000000 Y 061 000000 2500 062 A000000 N 062 B000000 0.0 062 C000000 0.0 062 D000000 0.0 062 E000000 0.0 062 F000000 0.0 062 G000000 0.0 062 H000000 0.0 PAGE 10 062 I000000 0.0 062 J000000 0.0 062 K000000 0.0 062 L000000 0.0 062 M000000 0.0 062 N000000 0.0 062 O000000 0.0 062 P000000 0.0 062 Q000000 0.0 062 R000000 0.0 063 A000000 0 063 B000000 0.0 066 A000000 Y 066 B000000 N 066 C000000 N 066 D000000 Y 066 E000000 N 066 F000000 N 066 G000000 N 067 000000 N 068 A000000 N 068 B000000 Y 069 000000 N 070 A010000 Y 070 A020000 N 070 B010000 Y 070 B020000 N 070 C010000 Y 070 C020000 N 070 D010000 Y 070 D020000 N 070 E010000 N 070 E020000 N 070 F010000 Y 070 F020000 N 070 G010000 Y 070 G020000 N 070 H010000 Y 070 H020000 N 070 I010000 N 070 I020000 N 070 J010000 Y 070 J020000 N 070 K010000 Y 070 K020000 N 070 L010000 Y 070 L020000 Y 070 M010000 Y 070 M020000 Y 070 N010000 Y 070 N020000 N PAGE 11 070 O010000 Y 070 O020000 N 070 P010000 Y 070 P020000 N 070 Q010000 N 070 Q020000 N 070 R010000 Y 070 R020000 N 071 A000000 26802 071 B000000 40264 071 C000000 85895 071 D000000 31 072 A000000 6 072 B000000 1 072 C000000 485 072 D000000 0 072 E000000 0 072 F000000 349 072 G000000 41 072 H000000 0 072 I000000 186 072 J000000 87 072 K000000 0 072 L000000 41 072 M000000 13 072 N000000 31 072 O000000 0 072 P000000 0 072 Q000000 0 072 R000000 37 072 S000000 31 072 T000000 285 072 U000000 0 072 V000000 0 072 W000000 5 072 X000000 1106 072 Y000000 22 072 Z000000 -598 072AA000000 4415 072BB000000 0 072CC010000 6682 072CC020000 0 072DD010000 0 072DD020000 0 072EE000000 0 073 A010000 0.0000 073 A020000 0.0000 073 B000000 0.0000 073 C000000 0.0000 074 A000000 1242 074 B000000 0 PAGE 12 074 C000000 0 074 D000000 0 074 E000000 1287 074 F000000 81856 074 G000000 0 074 H000000 0 074 I000000 1108 074 J000000 0 074 K000000 0 074 L000000 2130 074 M000000 0 074 N000000 87623 074 O000000 1433 074 P000000 102 074 Q000000 0 074 R010000 0 074 R020000 0 074 R030000 0 074 R040000 528 074 S000000 0 074 T000000 85560 074 U010000 2185 074 U020000 6955 074 V010000 9.61 074 V020000 0.00 074 W000000 0.0000 074 X000000 16113 074 Y000000 0 075 A000000 0 075 B000000 86961 076 000000 0.00 077 A000000 Y 077 B000000 N 077 C000000 N 077 D000000 N 077 E000000 Y 077 F000000 N 077 G000000 N 077 H000000 N 077 I000000 N 077 J000000 N 077 K000000 N 077 L000000 N 077 M000000 N 077 N000000 N 077 O000000 N 077 P000000 N 077 Q010000 Y 077 Q020000 N 077 Q030000 N 078 000000 N PAGE 13 080 C000000 0 081 B000000 0 082 B000000 0 083 B000000 0 084 B000000 0 086 A010000 0 086 A020000 0 086 B010000 0 086 B020000 0 086 C010000 0 086 C020000 0 086 D010000 0 086 D020000 0 086 E010000 0 086 E020000 0 086 F010000 0 086 F020000 0 SIGNATURE MARK GERSTEN TITLE TREASURER & CFO EX-99.77E LEGAL 2 legal.txt LEGAL PROCEEDINGS AllianceBernstein International Premier Growth Fund Exhibit 77E Legal Proceedings As has been previously reported in the press, the staff of the U.S. Securities and Exchange Commission (SEC) and the Office of New York Attorney General (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. (the Adviser) provide information to them. The Adviser has been cooperating and will continue to cooperate with all of these authorities. On December 18, 2003, the Adviser 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 memorialized in an Assurrance of Discontinuance dated September 1, 2004 (NYAG Order). Among the key provisions of these agreements are the following: (i) The Adviser 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) The Adviser agreed to reduce the advisory fees it receives from some of the AllianceBernstein long-term, open-end retail funds until December 31, 2008; and (iii) The Adviser agreed to implement changes to its governance and compliance procedures. Additionally, the SEC Order and the NYAG Order contemplate that the Advisers registered investment company clients, including the Fund, will introduce governance and compliance changes. In anticipation of final, definitive documentation of the NYAG Order and effective January 1, 2004, the Adviser began waiving a portion of its advisory fee. On September 7, 2004, the Funds investment advisory agreement was amended to reflect the reduced advisory fee at the 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 Funds average daily net assets. A special committee of the Advisers Board of Directors, comprised of the members of the Advisers Audit Committee and the other independent member of the Advisers Board, is continuing to direct and oversee an internal investigation and a comprehensive review of the facts and circumstances relevant to the SECs and the NYAGs 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 the Adviser; 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 the Adviser. 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 the Adviser, including recovery of all fees paid to the Adviser pursuant to such contracts. Since October 2, 2003, numerous additional lawsuits making factual allegations similar to those in the Hindo Complaint were filed against the Adviser and certain other defendants, some of which name the Fund as a defendant. All of these lawsuits seek an unspecified amount of damages. The lawsuits are now pending in the United States District Court for the District of Maryland pursuant to a ruling by the Judicial Panel on Multidistrict Litigation transferring and centralizing all of the mutual fund cases involving market and late trading in the District of Maryland. 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. The Adviser and approximately twelve other investment management firms were publicly mentioned in connection with the settlement by the SEC of charges that an unaffiliated broker/dealer violated federal securities laws relating to its receipt of compensation for selling specific mutual funds and the disclosure of such compensation. The SEC has indicated publicly that, among other things, it is considering enforcement action in connection with mutual funds disclosure of such arrangements and in connection with the practice of considering mutual fund sales in the direction of brokerage commissions from fund portfolio transactions. The SEC has issued subpoenas to the Adviser in connection with this matter and the Adviser has provided documents and other information to the SEC and is cooperating fully with its investigation. On June 22, 2004, a purported class action complaint entitled Aucoin, et al. v.Alliance Capital Management L.P., et al. (Aucoin Complaint) was filed against the Adviser, Alliance Capital Management Holding L.P., Alliance Capital Management Corporation, AXA Financial, Inc., AllianceBernstein Investment Research & Management, Inc., certain current and former directors of the AllianceBernstein Mutual Funds, and unnamed Doe defendants. The Aucoin Complaint names certain of the AllianceBernstein mutual funds as nominal defendants. The Aucoin Complaint was filed in the United States District Court for the Southern District of New York by an alleged shareholder of an AllianceBernstein mutual fund. The Aucoin Complaint alleges, among other things, (i) that certain of the defendants improperly authorized the payment of excessive commissions and other fees from fund assets to broker-dealers in exchange for preferential marketing services, (ii) that certain of the defendants misrepresented and omitted from registration statements and other reports material facts concerning such payments, and (iii) that certain defendants caused such conduct as control persons of other defendants. The Aucoin Complaint asserts claims for violation of Sections 34(b), 36(b) and 48(a) of the Investment Company Act, Sections 206 and 215 of the Advisers Act, breach of common law fiduciary duties, and aiding and abetting breaches of common law fiduciary duties. Plaintiffs seek an unspecified amount of compensatory damages and punitive damages, rescission of their contracts with the Adviser, including recovery of all fees paid to the Adviser pursuant to such contracts, an accounting of all fundrelated fees, commissions and soft dollar payments, and restitution of all unlawfully or discriminatorily obtained fees and expenses. Since June 22, 2004, numerous additional lawsuits making factual allegations substantially similar to those in the Aucoin Complaint were filed against the Adviser and certain other defendants, and others may be filed. It is possible that these matters and/or other developments resulting from these matters could result in increased redemptions of the Funds shares or other adverse consequences to the Fund. However, the Adviser believes that these matters are not likely to have a material adverse effect on its ability to perform advisory services relating to the Fund. -----END PRIVACY-ENHANCED MESSAGE-----