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, 2006
Date of reporting period: December 31, 2005
ITEM 1. SCHEDULE OF INVESTMENTS.
ALLIANCE WORLD DOLLAR GOVERNMENT FUND II
PORTFOLIO OF INVESTMENTS
December 31, 2005 (unaudited)
Principal
Amount
(000) U.S. $ Value
--------- --------------
SOVEREIGN DEBT OBLIGATIONS--85.0%
Argentina--4.5%
Republic of Argentina
0.00%, 12/15/35(a) $50,875 $ 2,645,497
4.005%, 8/03/12(b) 39,325 35,055,830
8.28%, 12/31/33 7,252 6,091,575
--------------
43,792,902
--------------
Belize--0.1%
Government of Belize
9.50%, 8/15/12 1,265 1,100,550
--------------
Brazil--17.6%
Federal Republic of Brazil
8.00%, 1/15/18 9,038 9,752,002
8.25%, 1/20/34 11,053 11,732,760
9.25%, 10/22/10 2,785 3,116,415
10.50%, 7/14/14 10,110 12,389,805
11.00%, 8/17/40(c) 29,278 37,768,619
12.00%, 4/15/10 8,650 10,531,375
12.75%, 1/15/20 43,088 62,111,351
14.50%, 10/15/09 2,365 3,033,113
DCB FRN
Series L
5.25%, 4/15/12(b) 21,010 20,747,971
--------------
171,183,411
--------------
Bulgaria--0.4%
Republic of Bulgaria
8.25%, 1/15/15(d) 3,204 3,860,820
--------------
Colombia--2.6%
Republic of Colombia
10.75%, 1/15/13 8,057 9,990,680
11.75%, 2/25/20 10,919 15,150,113
--------------
25,140,793
--------------
Dominican Republic--1.1%
Dominican Republic
9.50%, 9/27/11(d) 10,427 11,000,290
--------------
Ecuador--1.1%
Republic of Ecuador
9.00%, 8/15/30(d)(e) 4,124 3,720,490
9.375%, 12/15/15(d) 7,698 7,178,385
--------------
10,898,875
--------------
El Salvador--1.2%
Republic of El Salvador
7.625%, 9/21/34(d) 2,290 2,478,925
7.65%, 6/15/35(d) 4,410 4,542,300
8.50%, 7/25/11(d) 3,700 4,147,700
--------------
11,168,925
--------------
Principal
Amount
(000) U.S. $ Value
--------- --------------
Indonesia--1.2%
Republic of Indonesia
6.75%, 3/10/14(d) $ 8,585 $ 8,585,000
7.25%, 4/20/15(d) 2,480 2,539,520
--------------
11,124,520
--------------
Lebanon--1.2%
Lebanese Republic
7.875%, 5/20/11(d) 2,475 2,549,250
10.125%, 8/06/08(d) 7,501 8,082,328
11.625%, 5/11/16(d) 1,114 1,389,715
--------------
12,021,293
--------------
Malaysia--1.1%
Malaysia
8.75%, 6/01/09 9,420 10,523,204
--------------
Mexico--14.3%
United Mexican States
7.50%, 1/14/12 7,400 8,251,000
8.125%, 12/30/19 45,200 55,482,999
11.375%, 9/15/16 11,110 16,359,475
Series A
6.375%, 1/16/13 2,782 2,955,875
8.00%, 9/24/22 34,632 42,597,359
9.875%, 2/01/10 11,800 13,835,500
--------------
139,482,208
--------------
Nigeria--1.5%
Central Bank of Nigeria
6.25%, 11/15/20(e) 14,750 14,860,625
--------------
Panama--3.1%
Republic of Panama
7.125%, 1/29/26 8,194 8,296,425
8.875%, 9/30/27 2,613 3,109,470
9.375%, 7/23/12-4/01/29 6,285 7,492,808
9.625%, 2/08/11 5,206 6,085,814
10.75%, 5/15/20 3,940 5,462,810
--------------
30,447,327
--------------
Peru--3.1%
Republic of Peru
7.35%, 7/21/25 4,097 4,035,545
8.375%, 5/03/16 1,630 1,788,925
8.75%, 11/21/33 21,303 23,965,875
9.875%, 2/06/15 157 188,400
--------------
29,978,745
--------------
Philippines--4.8%
Republic of Philippines
8.875%, 3/17/15 17,505 19,237,995
9.00%, 2/15/13 4,775 5,276,375
9.50%, 2/02/30 4,046 4,754,050
9.875%, 1/15/19 12,750 15,096,000
Principal
Amount
(000) U.S. $ Value
--------- --------------
10.625%, 3/16/25 $ 2,055 $ 2,620,125
--------------
46,984,545
--------------
Russia--13.7%
Russian Federation
5.00%, 3/31/30(d)(e) 48,841 55,067,664
11.00%, 7/24/18(d) 4,340 6,397,160
Russian Ministry of Finance
Series V
3.00%, 5/14/08 70,752 66,952,617
Series VII
3.00%, 5/14/11 5,870 5,231,931
--------------
133,649,372
--------------
Turkey--4.8%
Republic of Turkey
7.375%, 2/05/25 2,142 2,211,615
11.00%, 1/14/13 5,500 6,979,500
11.50%, 1/23/12 5,183 6,569,453
11.75%, 6/15/10 5,823 7,133,175
11.875%, 1/15/30 15,793 24,226,462
--------------
47,120,205
--------------
Ukraine--0.7%
Government of Ukraine
7.65%, 6/11/13(d) 1,170 1,263,600
11.00%, 3/15/07(d) 5,614 5,838,977
--------------
7,102,577
--------------
Uruguay--1.2%
Republic of Uruguay
7.50%, 3/15/15 3,691 3,774,048
7.875%, 1/15/33(f) 4,204 4,231,397
9.25%, 5/17/17 3,488 3,941,440
--------------
11,946,885
--------------
Venezuela--5.7%
Republic of Venezuela
5.614%, 4/20/11(b)(d) 3,050 2,989,000
8.50%, 10/08/14 935 1,025,228
9.25%, 9/15/27 20,794 24,640,890
10.75%, 9/19/13 21,495 26,438,850
--------------
55,093,968
--------------
Total Sovereign Debt Obligations
(cost $730,715,999) 828,482,040
--------------
CORPORATE DEBT OBLIGATIONS--11.9%
Brazil--0.3%
Banco BMG, SA
9.15%, 1/15/16(d) 2,900 2,859,400
--------------
Hong Kong--0.4%
Noble Group Ltd.
6.625%, 3/17/15(d) 4,731 4,356,716
--------------
Principal
Amount
(000) U.S. $ Value
--------- --------------
Indonesia--0.5%
Freeport-McMoran Copper & Gold
10.125%, 2/01/10 $ 4,800 $ 5,274,000
--------------
Jamaica--0.3%
Digicel Ltd.
9.25%, 9/01/12(d) 2,884 2,963,310
--------------
Kazakhstan--0.6%
Kazkommerts International BV
8.50%, 4/16/13(d) 3,000 3,268,200
TengizChevroil Finance Co.
6.124%, 11/15/14(d) 2,569 2,612,673
--------------
5,880,873
--------------
Mexico--1.4%
America Movil SA de CV
6.375%, 3/01/35 2,488 2,410,374
Innova S De. R.L., SA
9.375%, 9/19/13 7,955 8,840,392
Monterrey Power SA De CV
9.625%, 11/15/09(d) 2,526 2,839,274
--------------
14,090,040
--------------
People's Republic of China--0.4%
Choada Modern Agricultural Hldgs. Ltd.
7.75%, 2/08/10(d) 3,808 3,741,360
--------------
Peru--0.5%
Southern Peru Copper Corp.
6.375%, 7/27/15(d) 4,524 4,515,762
--------------
Romania--0.4%
MobiFon Holdings BV
12.50%, 7/31/10 3,075 3,567,000
--------------
Russia--6.8%
Aries Vermogensverwaltng
9.60%, 10/25/14(d) 21,750 28,131,450
Citigroup (JSC Severstal)
9.25%, 4/19/14(d) 2,256 2,442,120
Evraz Group, SA
8.25%, 11/10/15(d) 3,933 3,889,737
Gazprom Oao
9.625%, 3/01/13(d) 16,100 19,461,680
Gazstream, SA
5.625%, 7/22/13(d) 1,957 1,937,430
Mobile Telesystems Finance
9.75%, 1/30/08(d) 5,390 5,708,895
Russian Standard Finance
7.50%, 10/07/10(d) 3,412 3,322,435
Tyumen Oil
11.00%, 11/06/07(d) 1,075 1,165,300
--------------
66,059,047
--------------
Ukraine--0.3%
Kyivstar
7.75%, 4/27/12(d) 900 911,880
Shares or
Principal
Amount
(000) U.S. $ Value
--------- --------------
10.375%, 8/17/09(d) $ 1,800 $ 1,986,480
--------------
2,898,360
--------------
Total Corporate Debt Obligations
(cost $112,027,498) 116,205,868
--------------
WARRANTS(g)--0.0%
Central Bank of Nigeria
Warrants, expiring 11/15/20 9,500 209,000
Republic of Venezuela
Warrants, expiring 4/15/20 25,000 0
--------------
Total Warrants
(cost $0) 209,000
--------------
SHORT-TERM INVESTMENT--6.3%
Time Deposit--6.3%
Societe Generale
4.19% 1/03/06
(cost $61,400,000) $61,400 61,400,000
--------------
Total Investments--103.2%
(cost $904,143,497) 1,006,296,908
Other assets less liabilities--(3.2%) (30,899,005)
--------------
Net Assets--100% $ 975,397,903
--------------
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.
Federal Republic of Brazil
12.25%, 3/06/30 $ 9,070 4.14% 4/20/10 $ (829,860)
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 12,150 4.07 8/20/15 (1,109,950)
Citigroup Global Markets, Inc.
Republic of Columbia
8.375%, 2/15/27 4,250 3.02 1/20/10 (319,352)
Citigroup Global Markets, Inc.
Republic of Hungary
4.50%, 2/06/13 3,075 0.50 11/26/13 (29,612)
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 4,070 5.60 3/20/14 (558,187)
Deutsche Bank AG London
Federal Republic of Brazil
12.25%, 3/06/30 9,070 4.02 4/20/10 (756,000)
Buy Contracts (continued):
JPMorgan Chase & Co.
OAO Gazprom
10.50%, 10/21/09 $12,210 1.04% 10/20/10 $ (108,581)
Sale Contracts:
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 19,047 1.98 4/20/07 430,748
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 18,840 3.09 8/20/10 1,000,184
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 6,750 4.40 5/20/06 142,500
Citigroup Global Markets, Inc.
Republic of Columbia
8.375%, 2/15/27 8,600 1.13 1/20/07 105,601
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 4,070 4.95 3/20/09 387,383
Credit Suisse Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 5,800 6.90 6/20/07 532,440
CS First Boston
Republic of Hungary
4.75%, 2/03/15 11,300 0.30 10/20/15 63,807
CS First Boston
Republic of Venezuela
9.25%, 9/15/27 13,570 3.17 10/20/15 259,100
Deutsche Bank AG London
Federal Republic of Brazil
12.25%, 3/06/30 19,047 1.90 4/20/07 383,850
Morgan Stanley
Federal Republic of Brazil
10.125%, 5/15/27 7,200 17.75 2/13/08 2,921,190
Morgan Stanley
Federal Republic of Brazil
12.25%, 3/06/30 5,120 3.80 8/20/06 180,907
REVERSE REPURCHASE AGREEMENTS
Interest
Broker Rate Maturity Amount
------------- ---- -------- -----------
UBS AG London 1.25% 12/27/06 $24,534,474
UBS AG London 3.00 01/23/06 23,232,784
UBS AG London 3.75 01/23/06 25,355,281
-----------
$73,122,539
-----------
(a) Variable rate coupon, rate shown as of December 31, 2005.
(b) Floating rate security, Stated interest rate was in effect at December 31,
2005.
(c) Position, or portion thereof, with an aggregate market value of $50,026,462
has been segregated to collateralize reverse repurchase agreements.
(d) Securities are 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, 2005, the aggregate market value of these
securities amounted to $227,745,226 or 23.3% of net assets.
(e) Coupon increases periodically based upon a predetermined schedule. Stated
interest rate in effect at December 31, 2005.
(f) Pay-In-Kind Payment (PIK)
(g) Non-income producing security.
Glossary of Terms:
DCB - Debt Conversion Bonds
FRN - Floating 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-3(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 changes in the registrant's internal controls over financial
reporting that occurred during the second fiscal quarter of the period that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
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 21, 2006
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 21, 2006
By: /s/ Mark D. Gersten
---------------------------------
Mark D. Gersten
Treasurer and Chief Financial
Officer
Date: February 21, 2006