NOTES TO FINANCIAL STATEMENTS
The exchange rate for the Euro at May 31, 2000 was 1.07 EUR to U.S. $1.00.
It is the Fund's policy to meet the requirements of the U.S. 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 its shareholders. Therefore, no provisions for federal income or excise taxes are required. Withholding taxes
on foreign interest and dividends have been provided for in accordance with the Spanish tax rates.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest
income is accrued daily. Investment transactions are accounted for on the date securities are purchased or sold.
Realized gains and losses from security and currency transactions are calculated on the identified cost basis.
5. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend date. Income dividends and capital
gain distributions are determined in accordance with tax regulations, which may differ 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 treatment; temporary differences, do not require
Management Fee and Other Transactions with Affiliates
Under an Investment Management and Administration Agreement, the Fund pays Alliance Capital Management
L.P. (the "Investment Manager") a fee, calculated weekly and paid monthly, at an annualized rate of 1.10% of the
average weekly net assets up to $50 million, 1.00% of the Fund's average weekly net assets on the next $50
million, and .90% of the Fund's average weekly net assets over $100 million.
The Fund and the Investment Manager have entered into a Sub-Advisory Agreement with Privanza Banco
Personal, S.A. (t