UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07732
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, 2005
Date of reporting period: December 31, 2004
ITEM 1. SCHEDULE OF INVESTMENTS.
WORLD DOLLAR GOVERNMENT FUND II
PORTFOLIO OF INVESTMENTS
December 31, 2004 (unaudited)
Principal
Amount
(000) U.S.$ Value
--------------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS--85.2%
Argentina--4.2%
Republic of Argentina
1.98%, 8/03/12FRN 23,875 $ 20,293,750
11.75%, 6/15/15 (a) 3,950 1,293,625
12.25%, 6/19/18 (a) 23,767 7,843,009
15.50%, 12/19/08 (a) 18,980 6,215,950
11.375%, 3/15/10 (a) 1,420 482,800
12.00%, 6/19/31(a) 9,535 3,146,451
----------------
39,275,585
----------------
Brazil--18.9%
Federal Republic of Brazil
9.25%, 10/22/10 1,400 1,565,200
10.50%, 7/14/14 14,290 16,933,650
11.00%, 8/17/40 51,715 61,333,989
12.00%, 4/15/10 8,650 10,700,050
12.75%, 1/15/20 17,880 24,191,640
C - Bonds
8.00%, 4/15/14 45,445 46,526,962
DCB FRN
Series L
3.125%, 4/15/12 16,465 15,704,162
----------------
176,955,653
----------------
Bulgaria--1.0%
Republic of Bulgaria
8.25%, 1/15/15 (b) 7,266 9,082,500
----------------
9,082,500
----------------
Colombia--2.7%
Republic of Colombia
8.25%, 12/22/14 3,919 4,085,558
10.75%, 1/15/13 3,057 3,650,058
11.75%, 2/25/20 14,121 18,131,364
----------------
25,866,980
----------------
Ecuador--3.3%
Ecuador Structured Note Fltr
zero coupon 10/11/05 6,665 6,369,607
8.00%, 8/15/30 (b) (c) 28,275 24,429,600
----------------
30,799,207
----------------
El Salvador--0.7%
Republic of EL Salvador
7.625%, 9/21/34 (b) 2,290 2,358,700
8.50%, 7/25/11 (b) 3,700 4,177,300
----------------
6,536,000
----------------
Indonesia--0.9%
Republic of Indonesia
6.75%, 3/10/14 (b) 8,585 8,606,463
----------------
Principal
Amount
(000) U.S.$ Value
--------------------------------------------------------------------------------
Jamaica--0.6%
Government of Jamaica
11.750%, 5/15/11 (b) 4,610 $ 5,439,800
12.750%, 9/01/07 (b) 500 595,750
----------------
6,035,550
----------------
Mexico--15.1%
United Mexican States
6.375%, 1/16/13 2,782 2,962,830
7.500%, 1/14/12 7,400 8,391,600
8.00%, 9/24/22 35,510 41,014,050
8.125%, 12/30/19 49,800 58,440,300
9.875%, 2/01/10 11,800 14,508,100
11.375%, 9/15/16 11,110 16,359,475
----------------
141,676,355
----------------
Panama--2.7%
Republic of Panama
2.75%, 7/17/14 IRB VRN 2,193 2,149,406
8.875%, 9/30/27 725 800,400
9.375%, 7/23/12- 4/01/29 5,850 6,910,950
9.625%, 2/08/11 8,677 10,282,245
10.750%, 5/15/20 3,940 5,122,000
----------------
25,265,001
----------------
Peru--3.1%
Republic of Peru
8.375%, 5/03/16 8,112 9,085,440
8.75%, 11/21/33 2,430 2,636,550
9.125%, 2/21/12 7,037 8,180,513
9.875%, 2/06/15 7,240 8,941,400
----------------
28,843,903
----------------
Philippines--3.6%
Republic of Philippines
9.00%, 2/15/13 4,775 4,870,500
9.875%, 1/15/19 12,750 13,068,750
10.625%, 3/16/25 15,143 16,165,153
----------------
34,104,403
----------------
Russia--13.6%
Russian Federation
5.00%, 3/31/30 (b) (c) 80,910 83,437,922
Russian Ministry of Finance
Series V
3.00%, 5/14/08 26,162 24,380,368
Series VII
3.00%, 5/14/11 24,180 20,342,634
----------------
128,160,924
----------------
Principal
Amount
(000) U.S.$ Value
--------------------------------------------------------------------------------
Turkey--4.8%
Republic of Turkey
11.00%, 1/14/13 5,500 $ 6,998,750
11.50%, 1/23/12 11,700 15,045,615
11.75%, 6/15/10 4,455 5,597,708
11.875%, 1/15/30 8,000 11,494,700
12.375%, 6/15/09 2,805 3,520,499
----------------
42,657,272
----------------
Ukraine--4.0%
Government of Ukraine
6.875%, 3/04/11 (b) 7,400 7,593,510
7.65%, 6/11/13 (b) 18,801 19,996,709
11.00%, 3/15/07 (b) 9,357 10,009,112
----------------
37,599,331
----------------
Uruguay--0.9%
Republic of Uruguay
7.875%, 1/15/33 9,968 8,846,418
----------------
Venezuela--5.1%
Republic of Venezuela
3.09%, 4/20/11 FRN 6,600 5,989,500
5.375%, 8/07/10 11,850 11,127,150
8.50%, 10/08/14 4,450 4,717,000
9.25%, 9/15/27 21,564 22,750,020
----------------
44,583,670
----------------
Total Sovereign Debt Obligations
(cost $687,771,338) 794,895,215
----------------
SHORT-TERM INVESTMENT--7.2%
Time Deposit--7.2%
Societe Generale
2.125%, 1/03/05
(cost $68,000,000) 68,000 68,000,000
----------------
CORPORATE DEBT OBLIGATIONS--5.4%
Indonesia--0.6%
Freeport-McMoran Copper & Gold
10.125%, 2/01/10 4,800 5,484,000
----------------
Kazakhstan--1.1%
Hurricane Finance
9.625%, 2/12/10 (b) 3,500 3,853,850
Kazkommerts International BV
8.50%, 4/16/13 (b) 3,000 3,135,000
Tengizchevroil
6.124%, 11/15/14 (b) 3,369 3,377,423
----------------
10,366,273
----------------
Shares Or
Principal
Amount
(000) U.S.$ Value
--------------------------------------------------------------------------------
Mexico--2.3%
Innova S de. R.L., SA
9.375%, 9/19/13 $ 7,955 $ 9,048,812
12.875%, 4/01/07 2,787 2,786,667
Monterrey Power SA De CV
9.625%, 11/15/09 (b) 2,526 2,981,263
Vitro Envases
10.750%, 7/23/11 (b) 6,900 7,158,749
----------------
21,975,491
----------------
Romania--0.4%
MobiFon Holdings BV
12.50%, 7/31/10 3,075 3,647,719
----------------
Russia--0.8%
Gazprom Oao
9.625%, 3/01/13 (b) 500 592,500
Mobile Tele Fin
9.75%, 1/30/08 2,650 2,795,750
Mobile Telesystems Finance
9.75%, 1/30/08 (b) 2,740 2,890,700
Tyumen Oil
11.00%, 11/06/07 (b) 1,075 1,222,813
----------------
7,501,763
----------------
Ukraine--0.2%
Kyivstar
10.375%, 8/17/09 (b) 1,800 1,980,000
----------------
Total Corporate Debt Obligations
(cost $46,435,493) 50,955,246
----------------
WARRANTS (d)--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
----------------
Total Investments--97.8%
(cost $802,206,831) 913,850,461
Other assets less liabilities--2.2% 27,101,839
----------------
Net Assets--100% $ 940,952,300
----------------
CALL OPTION WRITTEN
Exercise Expiration
Description Contracts (f) Price Month U.S. $ Value
--------------------------------------------------------------------------------------------
Federal Republic of Brazil
11.00%, 8/17/40
(premium received $62,712.50) 4,325,000 $117.65 Jan '04 $ (69,200)
Federal Republic of Brazil
11.00%, 8/17/40
(premium received $46,400) 3,200,000 118.10 Jan '04 (44,800)
Federal Republic of Brazil
11.00%, 8/17/40
(premium received $89,625) 5,975,000 118.15 Jan '04 (77,675)
Federal Republic of Brazil
11.00%, 8/17/40
(premium received $49,700) 3,500,000 118.50 Jan '04 (45,500)
Federal Republic of Brazil
11.00%, 8/17/40
(premium received $24,675) 1,750,000 118.75 Jan '04 (21,000)
---------
$(258,175)
---------
CREDIT DEFAULT SWAP CONTRACTS
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation/
Referenced Obligation (000's) Rate Date (Depreciation)
----------------------------------------------------------------------------------------------------
Buy Contracts:
Citigroup Global Markets, Inc.
Republic of Hungary
4.50%, 2/06/13 $ 3,075 0.50% 11/26/13 $(57,841)
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 4,070 5.60 3/20/14 (24,040)
Citigroup Global Markets, Inc.
Republic of Colombia
3.02%, 1/20/10 4,250 3.02 1/20/10 (30,340)
Sale Contracts:
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 11,000 6.35 8/20/05 673,597
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 6,750 4.40 5/20/06 348,900
Citigroup Global Markets, Inc.
Republic of Colombia
1.13% ,1/20/07 8,600 1.13 1/20/07 12,160
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 4,070 4.95 3/20/09 87,261
Credit Suisse Markets, Inc.
Federal Republic of Brazil
12.25%, 3/6/30 5,800 6.90 6/20/07 510,980
Morgan Stanley
Federal Republic of Brazil
10.125%, 5/15/27 7,200 17.75 2/13/08 3,780,870
Morgan Stanley
Federal Republic of Brazil
12.25%, 3/06/30 5,120 3.80 8/20/06 303,246
(a) Security is in default and is non-income producing.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities are considered liquid and may be resold in
transactions exempt from registration, normally to qualified institutional
buyers. At December 31,2004, the aggregate market value of these
securities amounted to $202,919,664 or 21.57 % of net assets.
(c) Coupon increases periodically based upon a predetermined schedule. Stated
interest rate in effect at December 31,2004.
(d) Non-income producing security.
Glossary of Terms:
DCB - Debt Conversion Bonds
FRN - Floating Rate Note
IRB - Interest Reduction Bond
VRN - Variable Rate Note
ITEM 2. 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 3. EXHIBITS.
The following exhibits are attached to this Form N-Q:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
----------- ----------------------
11(a)(1) Certification of Principal Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
11(a)(2) Certification of Principal Financial Officer Pursuant to
Section 302 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: February 28, 2005
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 28, 2005
By: /s/ Mark D. Gersten
-------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: February 28, 2005