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
AllianceBernstein 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, 2007
Date of reporting period: June 30, 2006
ITEM 1. SCHEDULE OF INVESTMENTS.
2
ALLIANCE WORLD DOLLAR GOVERNMENT FUND II
PORTFOLIO OF INVESTMENTS
June 30, 2006 (unaudited)
Principal
Amount
(000) U.S. $ Value
--------- ------------
SOVEREIGN DEBT OBLIGATIONS--83.0%
Argentina--5.5%
Republic of Argentina
0.00%, 12/15/35(a) $ 3 $ 257
4.889%, 8/03/12(b) 40,342 37,279,354
8.28%, 12/31/33(c) 13,461 11,980,020
Series V
7.00%, 3/28/11 2,985 2,769,914
------------
52,029,545
------------
Brazil--14.0%
Federal Republic of Brazil
7.125%, 1/20/37(c) 29,261 27,505,340
8.00%, 1/15/18 9,038 9,526,052
8.25%, 1/20/34 28,324 29,740,200
8.875%, 10/14/19 8,144 8,958,400
11.00%, 8/17/40(c) 45,915 56,934,599
------------
132,664,591
------------
Bulgaria--0.4%
Republic of Bulgaria
8.25%, 1/15/15(d) 3,204 3,609,306
------------
Colombia--2.5%
Republic of Colombia
10.75%, 1/15/13 8,057 9,458,918
11.75%, 2/25/20 10,919 14,276,593
------------
23,735,511
------------
Costa Rica--0.4%
Republic of Costa Rica
8.05%, 1/31/13(d) 1,669 1,752,450
8.11%, 2/01/12(d) 1,964 2,067,110
------------
3,819,560
------------
Dominican Republic--0.2%
Dominican Republic
4.75%, 9/27/11(d) 2,101 2,205,828
------------
Ecuador--2.2%
Republic of Ecuador
9.00%, 8/15/30(d)(e) 17,823 17,193,453
9.375%, 12/15/15(d) 3,834 3,795,660
------------
20,989,113
------------
El Salvador--1.1%
Republic of El Salvador
7.625%, 9/21/34(d) 2,290 2,370,150
7.65%, 6/15/35(d) 3,691 3,580,270
8.50%, 7/25/11(d) 3,700 4,005,250
------------
9,955,670
------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
Indonesia--1.8%
Republic of Indonesia
6.75%, 3/10/14(d) $ 8,585 $ 8,370,375
6.875%, 3/09/17(d) 3,954 3,855,150
7.25%, 4/20/15(d) 2,480 2,458,920
8.50%, 10/12/35(d) 2,048 2,191,360
------------
16,875,805
------------
Jamaica--0.3%
Government of Jamaica
10.625%, 6/20/17 2,332 2,530,220
------------
Lebanon--1.2%
Lebanese Republic
7.875%, 5/20/11(d) 2,475 2,518,313
10.125%, 8/06/08(d) 7,501 7,951,060
11.625%, 5/11/16(d) 1,114 1,378,575
------------
11,847,948
------------
Malaysia--1.1%
Malaysia
8.75%, 6/01/09 9,420 10,127,593
------------
Mexico--13.5%
United Mexican States
7.50%, 1/14/12 7,400 7,844,000
8.125%, 12/30/19 42,200 47,685,999
11.375%, 9/15/16 11,110 15,081,825
Series A
6.375%, 1/16/13 2,782 2,788,955
8.00%, 9/24/22 37,632 41,865,599
9.875%, 2/01/10 11,800 13,275,000
------------
128,541,378
------------
Nigeria--1.8%
Central Bank of Nigeria
6.25%, 11/15/20(e) 17,250 17,186,175
------------
Panama--3.0%
Republic of Panama
6.70%, 1/26/36 2,929 2,596,559
7.125%, 1/29/26 4,794 4,626,210
7.25%, 3/15/15 600 606,000
8.875%, 9/30/27 6,113 6,871,012
9.375%, 7/23/12-4/01/29 6,885 7,854,225
9.625%, 2/08/11 5,206 5,752,630
------------
28,306,636
------------
Peru--2.4%
Republic of Peru
7.35%, 7/21/25(c) 2,097 2,055,060
8.375%, 5/03/16 4,791 5,126,370
8.75%, 11/21/33(c) 13,866 15,217,935
9.875%, 2/06/15 157 183,690
------------
22,583,055
------------
Philippines--6.5%
Republic of Philippines
7.75%, 1/14/31(c) 6,378 6,314,220
8.25%, 1/15/14 12,842 13,323,575
Principal
Amount
(000) U.S. $ Value
--------- ------------
8.375%, 2/15/11 $ 684 $ 707,940
8.875%, 3/17/15(c) 17,505 18,756,608
9.00%, 2/15/13 4,775 5,001,813
9.875%, 1/15/19 12,750 14,694,375
10.625%, 3/16/25(c) 2,055 2,537,925
------------
61,336,456
------------
Russia--12.4%
Russian Federation
5.00%, 3/31/30(d)(e) 37,641 39,898,930
11.00%, 7/24/18(d) 4,340 5,978,350
Russian Ministry of Finance
Series V
3.00%, 5/14/08 70,752 66,775,737
Series VII
3.00%, 5/14/11 5,870 5,033,525
------------
117,686,542
------------
Turkey--4.2%
Republic of Turkey
6.875%, 3/17/36 18,028 14,963,240
7.00%, 6/05/20(c) 12,100 10,799,250
7.375%, 2/05/25 2,142 1,927,800
8.00%, 2/14/34 900 846,000
11.00%, 1/14/13 5,500 6,223,250
11.875%, 1/15/30(c) 3,935 5,347,665
------------
40,107,205
------------
Ukraine--0.9%
Government of Ukraine
7.65%, 6/11/13(d) 4,970 4,994,850
11.00%, 3/15/07(d) 3,743 3,804,896
------------
8,799,746
------------
Uruguay--1.4%
Republic of Uruguay
5.875%, 1/15/33(f) 4,246 3,842,730
7.50%, 3/15/15 3,691 3,534,133
8.00%, 11/18/22 2,296 2,204,160
9.25%, 5/17/17 3,488 3,737,392
------------
13,318,415
------------
Venezuela--6.2%
Republic of Venezuela
5.75%, 2/26/16 3,751 3,338,390
6.09%, 4/20/11(b)(d) 3,050 3,042,375
7.00%, 12/01/18(d) 3,540 3,363,000
8.50%, 10/08/14 5,081 5,373,158
9.25%, 9/15/27(c) 11,981 14,065,694
10.75%, 9/19/13 19,646 23,437,678
13.625%, 8/15/18 4,499 6,411,075
------------
59,031,370
------------
Total Sovereign Debt Obligations
(cost $758,899,847) 787,287,668
------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
CORPORATE DEBT OBLIGATIONS--11.4%
Brazil--0.3%
Banco BMG, SA
9.15%, 1/15/16(d) $ 3,300 $ 3,250,500
-----------
Cayman Islands--0.2%
C&M Finance Ltd.
8.10%, 2/01/16(d) 1,405 1,341,775
-----------
Hong Kong--0.4%
Noble Group Ltd.
6.625%, 3/17/15(d) 4,731 4,101,091
-----------
Indonesia--0.5%
Freeport-McMoran Copper & Gold
10.125%, 2/01/10 4,800 5,094,000
-----------
Jamaica--0.3%
Digicel Ltd.
9.25%, 9/01/12(d) 3,009 3,144,405
-----------
Kazakhstan--0.6%
Kazkommerts International BV
8.50%, 4/16/13(d) 3,000 3,075,000
TengizChevroil Finance Co.
6.124%, 11/15/14(d) 2,569 2,482,296
-----------
5,557,296
-----------
Mexico--0.4%
America Movil SA de CV
6.375%, 3/01/35 923 800,703
Monterrey Power SA de CV
9.625%, 11/15/09(d) 2,526 2,725,582
-----------
3,526,285
-----------
Panama--0.3%
AES El Salvador Trust
6.75%, 2/01/16(d) 3,100 2,855,881
-----------
People's Republic of China--0.4%
Choada Modern Agricultural Holdings Ltd.
7.75%, 2/08/10(d) 3,808 3,750,880
-----------
Peru--0.5%
Southern Copper Corp.
6.375%, 7/27/15 4,524 4,325,034
-----------
Romania--0.4%
MobiFon Holdings BV
12.50%, 7/31/10 3,075 3,482,438
-----------
Russia--6.8%
Aries Vermogensverwaltng
9.60%, 10/25/14(d) 21,750 27,009,149
Citigroup (JSC Severstal)
9.25%, 4/19/14(d) 2,256 2,340,374
Evraz Group, SA
8.25%, 11/10/15(d) 3,933 3,824,843
Gallery Capital, SA
10.125%, 5/15/13(d) 1,667 1,488,631
Shares or
Principal
Amount
(000) U.S. $ Value
--------- --------------
Gazprom Oao
9.625%, 3/01/13(d) $ 16,100 $ 18,233,250
Gazstream, SA
5.625%, 7/22/13(d) 1,898 1,845,708
Mobile Telesystems Finance
9.75%, 1/30/08(d) 5,390 5,545,055
Russian Standard Finance
7.50%, 10/07/10(d) 3,412 3,181,690
Tyumen Oil
11.00%, 11/06/07(d) 1,075 1,129,288
--------------
64,597,988
--------------
Ukraine--0.3%
Kyivstar
7.75%, 4/27/12(d) 900 867,375
10.375%, 8/17/09(d) 1,800 1,912,500
--------------
2,779,875
--------------
Total Corporate Debt Obligations
(cost $108,772,339) 107,807,448
--------------
WARRANTS(g)--0.1%
Central Bank of Nigeria
Warrants, expiring 11/15/20 9,500 1,425,000
Republic of Venezuela
Warrants, expiring 4/15/20 25,000 0
--------------
Total Warrants
(cost $0) 1,425,000
--------------
SHORT-TERM INVESTMENT--20.0%
Time Deposit--20.0%
Societe Generale
5.281%,7/03/06
(cost $189,800,000)
$189,800 189,800,000
--------------
Total Investments--114.5%
(cost $1,057,472,186) 1,086,320,116
Other assets less liabilities--(14.5%) (137,588,588)
--------------
Net Assets--100% $ 948,731,528
--------------
CREDIT DEFAULT SWAP CONTRACTS
Notional Unrealized
Swap Counterparty & Amount Interest Termination Appreciation/
Referenced Obligation (000) Rate Date (Depreciation)
-------------------------------- -------- -------- ----------- --------------
Buy Contracts:
Citigroup Global Markets, Inc.
Republic of Colombia
8.375%, 2/15/27 $ 4,250 3.02% 1/20/10 $ (294,395)
Citigroup Global Markets, Inc.
Republic of Hungary
4.50%, 2/06/13 3,075 0.50 11/26/13 30,969
JPMorgan Chase & Co.
Republic of Hungary
4.50%, 2/06/13 11,300 0.30 10/20/15 343,671
Sale Contracts:
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 19,047 1.98 4/20/07 332,105
Citigroup Global Markets, Inc.
Federal Republic of Brazil
12.25%, 3/06/30 18,840 3.09 8/20/10 1,328,688
Citigroup Global Markets, Inc.
Republic of Colombia
8.375%, 2/15/27 8,600 1.13 1/20/07 85,057
Citigroup Global Markets, Inc.
Republic of Philippines
10.625%, 3/16/25 4,070 4.95 3/20/09 397,434
Credit Suisse First Boston
Federal Republic of Brazil
12.25%, 3/6/30 5,800 6.90 6/20/07 378,938
Credit Suisse First Boston
Federal Republic of Brazil
12.25%, 3/06/30 13,570 3.17 10/20/15 663,659
Deutsche Bank AG London
Federal Republic of Brazil
12.25%, 3/06/30 19,047 1.90 4/20/07 316,920
JPMorgan Chase & Co.
Oao Gazprom
5.875%-10.50%, 4/25/07-6/01/15 12,210 1.04 10/20/10 (62,950)
Morgan Stanley
Federal Republic of Brazil
10.125%, 5/15/27 7,200 17.75 2/13/08 2,436,855
Morgan Stanley
Federal Republic of Brazil
12.25%, 3/06/30 5,120 3.80 8/20/06 96,367
REVERSE REPURCHASE AGREEMENTS
Interest
Broker Rate Maturity Amount
------------------- ---- -------- ------------
JPMorgan Chase & Co 1.35% 7/03/06 $ 1,474,776
JPMorgan Chase & Co 1.50 7/03/06 5,250,494
JPMorgan Chase & Co 2.00 7/03/06 5,626,804
JPMorgan Chase & Co 2.50 7/13/06 5,294,494
JPMorgan Chase & Co 3.50 7/03/06 2,441,186
JPMorgan Chase & Co 3.50 7/03/06 2,035,455
JPMorgan Chase & Co 4.25 12/29/06 5,412,443
JPMorgan Chase & Co 4.40 7/03/06 18,706,765
JPMorgan Chase & Co 4.75 7/13/06 56,788,380
JPMorgan Chase & Co 4.75 12/29/06 15,245,374
JPMorgan Chase & Co 4.80 7/03/06 10,410,936
UBS AG LONDON 4.85 12/29/06 20,771,948
UBS AG LONDON 5.10 12/29/06 13,348,725
------------
$162,807,780
============
(a) Variable rate coupon, rate shown as of June 30,2006.
(b) Floating rate security, stated interest rate was in effect at June 30,
2006.
(c) Security or a portion of the security has been pledged as collateral for
reverse repurchase agreements. At the period end, the value of securities
pledged amounted to $164,197,617.
(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 June 30, 2006, the aggregate market value of these securities
amounted to $224,490,904 or 23.7% of net assets.
(e) Coupon increases periodically based upon a predetermined schedule. Stated
interest rate in effect at June 30, 2006. (f) Pay-In-Kind Payments (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
----------- ----------------------
3 (a) (1) Certification of Principal Executive Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002
3 (a) (2) Certification of Principal Financial Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002
3
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: August 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: August 21, 2006
By: /s/ Joseph J. Mantineo
-------------------------------------
Joseph J. Mantineo
Treasurer and Chief Financial Officer
Date: August 21, 2006
4