N-Q 1 dnq.htm ALLIANCEBERNSTEIN BALANCED SHARES, INC. ALLIANCEBERNSTEIN BALANCED SHARES, INC.

 

 

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: 811-00134

ALLIANCEBERNSTEIN BALANCED SHARES, 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)

Joseph J. Mantineo

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: November 30, 2009

Date of reporting period: February 28, 2009

 

 

 

ITEM 1. SCHEDULE OF INVESTMENTS.

AllianceBernstein Balanced Shares Fund

Portfolio of Investments

February 28, 2009 (unaudited)

 

Company

    Shares      U.S. $ Value

COMMON STOCKS - 64.0%

        

Energy - 13.4%

        

Energy Equipment & Services - 1.9%

        

Baker Hughes, Inc.

    122,100      $ 3,578,751

Cameron International Corp. (a)

    202,130        3,897,066

Noble Corp.

    157,320        3,868,499

Tidewater, Inc.

    47,800        1,688,296
           
          13,032,612
           

Oil, Gas & Consumable Fuels - 11.5%

        

Anadarko Petroleum Corp.

    311,000        10,869,450

Apache Corp.

    108,250        6,396,492

Chevron Corp.

    66,400        4,031,144

ConocoPhillips

    205,840        7,688,124

Devon Energy Corp.

    63,400        2,768,678

Exxon Mobil Corp.

    180,560        12,260,024

Marathon Oil Corp.

    68,800        1,600,976

Occidental Petroleum Corp.

    238,600        12,376,182

Total SA (Sponsored) (ADR)

    280,870        13,257,064

Valero Energy Corp.

    322,970        6,259,159
           
          77,507,293
           
          90,539,905
           

Industrials - 11.0%

        

Aerospace & Defense - 6.6%

        

Goodrich Corp.

    235,840        7,815,738

Honeywell International, Inc.

    241,800        6,487,494

L-3 Communications Holdings, Inc.-Class 3

    212,930        14,404,714

Raytheon Co.

    352,800        14,101,416

United Technologies Corp.

    40,530        1,654,840
           
          44,464,202
           

Construction & Engineering - 1.5%

        

Fluor Corp.

    314,300        10,450,475
           

Electrical Equipment - 0.3%

        

Hubbell, Inc.-Class B

    65,000        1,710,800
           

Machinery - 1.6%

        

AGCO Corp. (a)

    163,200        2,797,248

Dover Corp.

    68,200        1,700,908

Joy Global, Inc.

    255,900        4,468,014

Timken Co.

    130,900        1,594,362
           
          10,560,532
           

Road & Rail - 0.6%

        

Norfolk Southern Corp.

    130,100      4,126,772
         

Trading Companies & Distributors - 0.4%

        

WESCO International, Inc. (a)

    180,800      3,001,280
         
        74,314,061
         

Information Technology - 9.8%

        

Communications Equipment - 0.5%

        

F5 Networks, Inc. (a)

    163,100      3,262,000
         

Computers & Peripherals - 0.8%

        

EMC Corp. (a)

    164,200      1,724,100

NetApp, Inc. (a)

    304,600      4,093,824
         
        5,817,924
         

Internet Software & Services - 0.6%

        

VeriSign, Inc. (a)

    202,500      3,914,325
         

IT Services - 5.0%

        

Accenture Ltd.-Class A

    405,600      11,839,464

Alliance Data Systems Corp. (a)

    289,520      8,569,792

SAIC, Inc. (a)

    691,600      13,078,156
         
        33,487,412
         

Software - 2.9%

        

Adobe Systems, Inc. (a)

    234,200      3,911,140

Autodesk, Inc. (a)

    288,900      3,666,141

Symantec Corp. (a)

    849,800      11,752,734
         
        19,330,015
         
        65,811,676
         

Health Care - 9.4%

        

Biotechnology - 1.1%

        

Biogen Idec, Inc. (a)

    163,190      7,513,268
         

Health Care Providers & Services - 2.9%

        

Aetna, Inc.

    425,100      10,147,137

Quest Diagnostics, Inc.

    65,800      3,015,614

UnitedHealth Group, Inc.

    325,500      6,396,075
         
        19,558,826
         

Pharmaceuticals - 5.4%

        

Eli Lilly & Co.

    212,500      6,243,250

Endo Pharmaceuticals Holdings, Inc. (a)

    85,200      1,617,096

Forest Laboratories, Inc. (a)

    176,950      3,793,808

Merck & Co., Inc.

    267,100      6,463,820

Novartis AG (Sponsored) (ADR)

    211,410      7,663,613

Schering-Plough Corp.

    203,800      3,544,082

Wyeth

    170,260      6,950,013
         
        36,275,682
         
        63,347,776
         

Financials - 8.0%

        

Capital Markets - 0.8%

        

Ameriprise Financial, Inc.

    86,700      1,381,998

BlackRock, Inc.

    24,700      2,391,207

TD Ameritrade Holding Corp. (a)

    109,620      1,301,189
         
        5,074,394
         

Insurance - 7.2%

        

ACE Ltd.

    203,900      7,444,389

Arch Capital Group Ltd. (a)

    222,100      11,993,400

Axis Capital Holdings Ltd.

    639,800      14,318,724

Loews Corp.

    366,500      7,275,025

MetLife, Inc.

    103,180      1,904,703

RenaissanceRe Holdings Ltd.

    127,900      5,759,337
         
        48,695,578
         
        53,769,972
         

Consumer Staples - 4.4%

        

Food & Staples Retailing - 0.6%

        

Safeway, Inc.

    213,000      3,940,500
         

Tobacco - 3.8%

        

Lorillard, Inc.

    227,680      13,305,619

Philip Morris International, Inc.

    372,400      12,464,228
         
        25,769,847
         
        29,710,347
         

Consumer Discretionary - 2.6%

        

Auto Components - 0.3%

        

WABCO Holdings, Inc.

    188,000      1,902,560
         

Media - 2.3%

        

The DIRECTV Group, Inc. (a)

    193,880      3,865,967

DISH Network Corp.-Class A (a)

    328,000      3,690,000

Omnicom Group, Inc.

    33,200      797,796

Time Warner, Inc.

    988,900      7,545,307
         
        15,899,070
         
        17,801,630
         

Utilities - 2.1%

        

Electric Utilities - 1.6%

        

Entergy Corp.

    157,100      10,586,969
         

Multi-Utilities - 0.5%

        

NSTAR

    49,900      1,605,283

Public Service Enterprise Group, Inc.

    60,900      1,661,961
         
        3,267,244
         
        13,854,213
         

Materials - 1.9%

        

Chemicals - 1.9%

        

CF Industries Holdings, Inc.

    86,600      5,570,978

FMC Corp.

    61,130      2,471,486

The Mosaic Co.

    108,100      4,653,705
         
        12,696,169
         

Telecommunication Services - 1.4%

        

Diversified Telecommunication Services - 1.4%

        

CenturyTel, Inc.

    71,420      1,880,489

Qwest Communications International, Inc.

    2,178,000      7,383,420
         
        9,263,909
         

Total Common Stocks
(cost $540,055,830)

         431,109,658
         

     Principal
Amount
(000)		       

CORPORATES - INVESTMENT GRADES - 12.5%

        

Industrial - 5.8%

        

Basic - 0.9%

        

ArcelorMittal

        

6.125%, 6/01/18

    $ 870      669,836

6.50%, 4/15/14

      400      344,715

BHP Billiton Finance USA Ltd.

        

7.25%, 3/01/16

      564      576,250

The Dow Chemical Co.

        

7.375%, 11/01/29

      60      38,530

Freeport-McMoRan Copper & Gold, Inc.

        

8.375%, 4/01/17

      345      297,562

Inco Ltd.

        

7.75%, 5/15/12

      734      749,526

International Paper Co.

        

5.30%, 4/01/15

      660      475,040

7.95%, 6/15/18

      490      386,550

PPG Industries, Inc.

        

5.75%, 3/15/13

      765      769,345

Rio Tinto Finance USA Ltd.

        

6.50%, 7/15/18

      460      406,410

United States Steel Corp.

        

5.65%, 6/01/13

      770      629,976

Weyerhaeuser Co.

        

7.375%, 3/15/32

      905      600,884
         
        5,944,624
         

Capital Goods - 0.7%

        

Fisher Scientific International, Inc.

        

6.125%, 7/01/15

      840      827,490

Hutchison Whampoa International Ltd.

        

7.45%, 11/24/33 (b)

      355      320,543

John Deere Capital Corp.

        

4.875%, 3/16/09

      875      875,997

Lafarge SA

        

6.15%, 7/15/11

      629      554,260

Tyco International Finance SA

        

6.00%, 11/15/13

      1,005      945,117

8.50%, 1/15/19

      280      292,233

Vulcan Materials Co.

        

5.60%, 11/30/12

      840      815,653
         
        4,631,293
         

Communications - Media - 0.6%

        

BSKYB Finance UK PLC

        

5.625%, 10/15/15 (b)

    480      426,958

Comcast Cable Communications Holdings, Inc.

        

9.455%, 11/15/22

    440      476,394

Comcast Corp.

        

5.30%, 1/15/14

    485      468,526

5.50%, 3/15/11

    625      634,106

Reed Elsevier Capital, Inc.

        

8.625%, 1/15/19

    290      290,616

RR Donnelley & Sons Co.

        

5.50%, 5/15/15

    990      753,841

Time Warner Entertainment Co.

        

8.375%, 3/15/23

    725      704,655

WPP Finance Corp.

        

5.875%, 6/15/14

    425      369,817
         
        4,124,913
         

Communications - Telecommunications - 1.1%

        

AT&T Corp.

        

7.30%, 11/15/11

    540      580,252

BellSouth Corp.

        

5.20%, 9/15/14

    860      854,445

Embarq Corp.

        

7.082%, 6/01/16

    1,274      1,146,600

New Cingular Wireless Services, Inc.

        

8.75%, 3/01/31

    355      388,805

Qwest Corp.

        

7.50%, 10/01/14

    890      790,987

7.875%, 9/01/11

    660      650,100

Telus Corp.

        

8.00%, 6/01/11

    425      440,198

Verizon Communications, Inc.

        

4.90%, 9/15/15

    380      356,839

5.25%, 4/15/13

    465      472,079

Vodafone Group PLC

        

7.75%, 2/15/10

    790      821,081

7.875%, 2/15/30

    815      877,224
         
        7,378,610
         

Consumer Cyclical - Other - 0.1%

        

Wyndham Worldwide Corp.

        

6.00%, 12/01/16

    666      322,595
         

Consumer Non-Cyclical - 1.1%

        

Avon Products, Inc.

        

6.50%, 3/01/19

    615      602,210

Baxter FinCo BV

        

4.75%, 10/15/10

    400      410,821

Bunge Ltd. Finance Corp.

        

5.875%, 5/15/13

    415      364,835

Cadbury Schweppes US Finance LLC

        

5.125%, 10/01/13 (b)

    1,415      1,307,879

Fortune Brands, Inc.

        

4.875%, 12/01/13

    890      815,034

Kroger Co.

        

6.80%, 4/01/11

    1,055      1,112,390

7.25%, 6/01/09

    875      881,600

Safeway, Inc.

        

4.95%, 8/16/10

    785      792,912

5.80%, 8/15/12

    870      892,578

Wyeth

        

5.50%, 2/01/14

    480      505,224
         
        7,685,483
         

Energy - 0.7%

        

Canadian Natural Resources Ltd.

        

5.15%, 2/01/13

    250      239,029

Gaz Capital SA

        

6.212%, 11/22/16 (b)

    1,880      1,228,712

Nabors Industries, Inc.

        

9.25%, 1/15/19 (b)

    635      583,519

Noble Energy, Inc.

        

8.25%, 3/01/19

    610      612,435

The Premcor Refining Group, Inc.

        

7.50%, 6/15/15

    614      592,387

Valero Energy Corp.

        

4.75%, 6/15/13

    710      642,002

6.875%, 4/15/12

    580      586,392

Weatherford International Ltd.

        

5.15%, 3/15/13

    325      298,103
         
        4,782,579
         

Services - 0.1%

        

The Western Union Co.

        

5.93%, 10/01/16

    820      768,536
         

Technology - 0.3%

        

Computer Sciences Corp.

        

5.50%, 3/15/13 (b)

    465      444,929

Electronic Data Systems Corp.

        

Series B

        

6.00%, 8/01/13

    820      865,631

Motorola, Inc.

        

6.50%, 9/01/25

    535      307,250

7.50%, 5/15/25

    90      48,025

Oracle Corp.

        

4.95%, 4/15/13

    391      408,870
         
        2,074,705
         

Transportation - Airlines - 0.1%

        

Southwest Airlines Co.

        

5.25%, 10/01/14

    842      733,568
         

Transportation - Railroads - 0.1%

        

Canadian Pacific Railway Co.

        

6.50%, 5/15/18

    185      162,510

CSX Corp.

        

5.50%, 8/01/13

    280      262,370
         
        424,880
         

Transportation - Services - 0.0%

        

FedEx Corp.

        

3.50%, 4/01/09

    181      181,159
         
        39,052,945
         

Financial Institutions - 5.3%

        

Banking - 3.1%

        

ANZ National International Ltd.

        

6.20%, 7/19/13 (b)

    375      359,471

Bank of America Corp.

        

4.50%, 8/01/10

    1,345      1,265,131

BankAmerica Capital II

        

Series 2

        

8.00%, 12/15/26

    559      332,447

Barclays Bank PLC

        

8.55%, 6/15/11 (b)(c)

    705      255,895

The Bear Stearns Co., Inc.

        

5.55%, 1/22/17

    1,020      907,896

7.625%, 12/07/09

    850      862,908

Capital One Bank

        

6.50%, 6/13/13

    1,130      1,047,780

Capital One Financial Corp.

        

5.50%, 6/01/15

    173      143,751

Citigroup, Inc.

        

1.42%, 6/09/09 (d)

    365      357,604

4.625%, 8/03/10

    760      697,434

5.50%, 4/11/13

    575      520,668

Countrywide Financial Corp.

        

6.25%, 5/15/16

    1,278      1,074,743

Series MTN

        

5.80%, 6/07/12

    382      350,074

Countrywide Home Loans, Inc.

        

Series MTNL

        

4.00%, 3/22/11

    32      29,816

Credit Suisse First Boston USA, Inc.

        

5.50%, 8/15/13

    248      243,800

The Goldman Sachs Group, Inc.

        

4.75%, 7/15/13

    410      375,261

5.125%, 1/15/15

    370      330,903

7.35%, 10/01/09

    196      198,940

7.50%, 2/15/19

    605      599,219

JP Morgan Chase & Co.

        

6.75%, 2/01/11

    580      592,705

Morgan Stanley

        

5.05%, 1/21/11

    840      828,418

5.30%, 3/01/13

    280      262,551

Series MTN

        

6.625%, 4/01/18

    715      660,232

MUFG Capital Finance 1 Ltd.

        

6.346%, 7/25/16 (c)

    495      340,814

NB Capital Trust IV

        

8.25%, 4/15/27

    485      288,524

North Fork Bancorporation, Inc.

        

5.875%, 8/15/12

    810      719,734

Regions Financial Corp.

        

6.375%, 5/15/12

    1,250      1,135,120

Sovereign Bancorp, Inc.

        

4.80%, 9/01/10

    1,335      1,249,804

Sovereign Bank

        

5.125%, 3/15/13

    785      669,667

UBS Preferred Funding Trust II

        

7.247%, 6/26/11 (c)

    1,000      320,000

Unicredito Italiano Capital Trust II

        

9.20%, 10/05/10 (b)(c)

    1,320      429,410

Union Bank of California

        

Series BKNT

        

5.95%, 5/11/16

    405      362,300

Union Planters Corp.

        

7.75%, 3/01/11

    828      804,537

Wachovia Corp.

        

6.15%, 3/15/09

    860      860,269

Series MTN

        

5.50%, 5/01/13

    820      789,593

Wells Fargo & Co.

        

4.20%, 1/15/10

    445      444,440

Western Financial Bank

        

9.625%, 5/15/12

    345      334,750
         
        21,046,609
         

Brokerage - 0.1%

        

Lazard Group

        

6.85%, 6/15/17

    920      687,553
         

Finance - 0.7%

        

American General Finance Corp.

        

4.875%, 7/15/12

    405      182,804

Series MTN

        

5.85%, 6/01/13

    890      383,515

CIT Group, Inc.

        

5.00%, 2/01/15

    940      537,064

7.625%, 11/30/12

    875      685,550

General Electric Capital Corp.

        

4.80%, 5/01/13

    840      791,202

5.625%, 5/01/18 (d)

    710      608,222

HSBC Finance Corp.

        

7.00%, 5/15/12

    365      362,953

International Lease Finance Corp.

        

6.375%, 3/15/09

    535      510,774

SLM Corp.

        

Series MTNA

        

5.375%, 1/15/13

    1,335      868,480
        4,930,564

Insurance - 1.0%

        

Allied World Assurance Co. Holdings Ltd.

        

7.50%, 8/01/16

    165      116,578

Assurant, Inc.

        

5.625%, 2/15/14

    895      738,944

Berkshire Hathaway Finance Corp.

        

4.20%, 12/15/10

    590      602,359

CNA Financial Corp.

        

5.85%, 12/15/14

    340      251,327

Genworth Financial, Inc.

        

5.231%, 5/16/09

    399      393,380

Series MTN

        

6.515%, 5/22/18

    825      359,204

ING Capital Funding Trust III

        

8.439%, 12/31/10 (c)

    1,000      250,563

Liberty Mutual Group, Inc.

        

5.75%, 3/15/14 (b)

    795      637,937

Nationwide Mutual Insurance Co.

        

5.81%, 12/15/24 (b)(c)

    2,213      1,372,071

Prudential Financial, Inc.

        

Series MTN

        

5.15%, 1/15/13

    520      465,221

UnitedHealth Group, Inc.

        

5.25%, 3/15/11

    635      640,900

WellPoint, Inc.

        

5.25%, 1/15/16

    425      384,529

ZFS Finance USA Trust I

        

6.15%, 12/15/65 (b)(c)

    1,000      472,395
        6,685,408

REITS - 0.4%

        

ERP Operating LP

        

5.25%, 9/15/14

    935      787,741

HCP, Inc.

        

Series MTN

        

5.95%, 9/15/11

    885      751,733

Simon Property Group LP

        

5.00%, 3/01/12

    835      745,026
        2,284,500
        35,634,634

Utility - 1.4%

        

Electric - 0.9%

        

FirstEnergy Corp.

        

Series B

        

6.45%, 11/15/11

    1,025      1,023,924

Series C

        

7.375%, 11/15/31

    710      605,975

FPL Group Capital, Inc.

        

6.35%, 10/01/66 (c)

    430      318,200

6.65%, 6/15/67 (c)

    1,290      967,500

MidAmerican Energy Holdings Co.

        

5.875%, 10/01/12

    375      386,395

Nisource Finance Corp.

        

6.80%, 1/15/19

    865      678,318

Pacific Gas & Electric Co.

        

3.60%, 3/01/09

    885      885,000

SPI Electricity & Gas Australia Holdings Pty Ltd.

        

6.15%, 11/15/13 (b)

    1,200      1,188,523
        6,053,835

Natural Gas - 0.4%

        

Enterprise Products Operating LLC

        

Series B

        

5.60%, 10/15/14

    835      775,347

Texas Eastern Transmission Corp.

        

7.30%, 12/01/10

    1,700      1,758,301

TransCanada Pipelines Ltd.

        

6.35%, 5/15/67 (c)

    965      583,825
        3,117,473

Other Utility - 0.1%

        

Veolia Environnement

        

6.00%, 6/01/18

    555      517,981
        9,689,289

Total Corporates - Investment Grades
(cost $99,141,031)

         84,376,868

MORTGAGE PASS-THRU’S - 11.2%

        

Agency Fixed Rate 30-Year - 10.8%

        

Federal Home Loan Mortgage Corp. Gold.

        

Series 2005

        

4.50%, 10/01/35

    3,763      3,772,537

5.50%, 1/01/35

    7,724      7,934,735

Series 2006

        

7.00%, 8/01/36

    3,761      3,986,727

Series 2008

        

6.50%, 5/01/35

    1,052      1,109,969

Federal Home Loan Mortgage Corp.

        

Series 2009

        

6.00%, 12/01/35

    4,171      4,347,970

Federal National Mortgage Association

        

Series 2004

        

6.00%, 11/01/34

    3,115      3,230,511

Series 2006

        

5.00%, 2/01/36

    6,997      7,134,159

6.00%, 11/01/36

    1,012      1,047,195

6.50%, 9/01/36

    2,181      2,283,905

Series 2007

        

4.50%, 1/01/36

    5,927      5,951,888

Series 2008

        

5.50%, 8/01/37

    19,431      19,948,390

6.00%, 3/01/37

    7,420      7,682,819

6.50%, 12/01/37

    4,226      4,424,995
        72,855,800

Agency ARMS - 0.4%

        

Federal Home Loan Mortgage Corp.

        

Series 2006

        

5.92%, 1/01/37 (d)

    497      516,454

6.209%, 12/01/36 (d)

    547      569,246

Series 2007

        

5.979%, 2/01/37 (d)

    610      634,090

6.08%, 1/01/37 (d)

    262      272,740

Federal National Mortgage Association

        

Series 2007

        

5.93%, 2/01/37 (d)

    598      623,400
        2,615,930

Total Mortgage Pass-Thru’s
(cost $74,341,753)

         75,471,730

COMMERCIAL MORTGAGE-BACKED SECURITIES - 4.6%

        

Non-Agency Fixed Rate CMBS - 4.6%

        

Banc of America Commercial Mortgage, Inc.

        

Series 2007-5, Class A4

        

5.492%, 2/10/51

    1,510      852,296

Bear Stearns Commercial Mortgage Securities, Inc.

        

Series 2006-PW12, Class A4

        

5.718%, 9/11/38

    1,200      861,051

Commercial Mortgage Pass Through Certificates

        

Series 2006-C8, Class A4

        

5.306%, 12/10/46

    1,230      793,779

Series 2007-C9, Class A4

        

5.816%, 12/10/49

    1,710      1,075,478

Credit Suisse Mortgage Capital Certificates

        

Series 2006-C3, Class A3

        

5.826%, 6/15/38

    1,325      922,078

Greenwich Capital Commercial Funding Corp.

        

Series 2003-C2, Class A3

        

4.533%, 1/05/36

    5,000      4,626,713

Series 2007-GG11, Class A4

        

5.736%, 12/10/49

    1,300      813,463

Series 2007-GG9, Class A2

        

5.381%, 3/10/39

    1,710      1,337,114

Series 2007-GG9, Class A4

        

5.444%, 3/10/39

    1,755      1,099,471

GS Mortgage Securities Corp. II

        

Series 2006-GG8, Class A2

        

5.479%, 11/10/39

    1,646      1,348,717

JP Morgan Chase Commercial Mortgage Securities Corp.

        

Series 2006-CB14, Class A4

        

5.481%, 12/12/44

    860      538,854

Series 2006-CB15, Class A4

        

5.814%, 6/12/43

    1,630      1,025,646

Series 2006-CB16, Class A4

        

5.552%, 5/12/45

    1,220      794,922

Series 2007-C1, Class A4

        

5.716%, 2/15/51

    1,720      838,217

Series 2007-CB18, Class A4

        

5.44%, 6/12/47

    1,735      1,042,626

Series 2007-LD11, Class A4

        

5.819%, 6/15/49

    1,735      1,024,831

LB-UBS Commercial Mortgage Trust

        

Series 2004-C7, Class A2

        

3.992%, 10/15/29

    1,095      1,063,225

Series 2006-C1, Class A4

        

5.156%, 2/15/31

    1,970      1,348,938

Series 2006-C7, Class A3

        

5.347%, 11/15/38

    1,750      1,126,777

Series 2007-C1, Class A4

        

5.424%, 2/15/40

    1,700      1,038,814

Series 2008-C1, Class A2

        

6.149%, 4/15/41

    2,865      1,819,872

Merrill Lynch/Countrywide Commercial Mortgage Trust

        

Series 2006-3, Class A4

        

5.414%, 7/12/46

    1,805      1,179,968

Series 2007-9, Class A4

        

5.70%, 9/12/49

    1,740      1,015,874

Wachovia Bank Commercial Mortgage Trust

        

Series 2006-C27, Class A3

        

5.765%, 7/15/45

    1,705      1,167,737

Series 2007-C31, Class A4

        

5.509%, 4/15/47

    1,730      837,302

Series 2007-C32, Class A2

        

5.736%, 6/15/49

    985      707,464

Series 2007-C32, Class A3

        

5.741%, 6/15/49

    693      361,673
         

Total Commercial Mortgage-Backed Securities
(cost $43,667,636)

         30,662,900
         

AGENCIES - 1.3%

        

Agency Debentures - 1.3%

        

Federal National Mortgage Association

        

6.25%, 5/15/29

    6,545      8,111,703

6.625%, 11/15/30

    375      488,537
         

Total Agencies
(cost $8,061,429)

         8,600,240
         

INFLATION-LINKED SECURITIES - 1.2%

        

Inflation-Linked Securities - 1.2%

        

United States - 1.2%

        

U.S. Treasury Notes

        

1.875%, 7/15/13 (TIPS)

    2,518      2,503,233

2.375%, 4/15/11 (TIPS)

    4,899      4,942,960

3.00%, 7/15/12 (TIPS)

    830      859,727
         

Total Inflation-Linked Securities
(cost $8,299,492)

         8,305,920
         

GOVERNMENTS - TREASURIES - 1.2%

        

Treasuries - 1.2%

        

United States - 1.2%

        

U.S. Treasury Bonds

        

4.50%, 2/15/36

    2,010      2,226,075

8.75%, 5/15/17

    815      1,134,505

US Treasury Strip

        

Zero Coupon, 2/15/21

    7,585      4,654,270
         

Total Governments - Treasuries
(cost $7,209,499)

         8,014,850
         

CORPORATES - NON-INVESTMENT GRADES - 0.7%

        

Industrial - 0.4%

        

Basic - 0.0%

        

Steel Capital SA for OAO Severstal

        

9.75%, 7/29/13 (b)

    315      181,912
         

Capital Goods - 0.2%

        

Bombardier, Inc.

        

6.75%, 5/01/12 (b)

    370      290,450

Hanson Australia Funding Ltd.

        

5.25%, 3/15/13

    945      433,863

Owens Corning, Inc.

        

6.50%, 12/01/16

    558      410,047
         
        1,134,360
         

Communications - Media - 0.0%

        

Clear Channel Communications, Inc.

        

5.50%, 9/15/14

    840      71,400
         

Communications - Telecommunications - 0.1%

        

Nextel Communications, Inc.

        

Series F

        

5.95%, 3/15/14

    940      441,800
         

Consumer Cyclical - Other - 0.1%

        

Harrah’s Operating Co., Inc.

        

5.625%, 6/01/15

    656      39,360

5.75%, 10/01/17

    66      3,960

6.50%, 6/01/16

    208      12,480

Starwood Hotels & Resorts Worldwide, Inc.

        

7.375%, 11/15/15

    789      595,695

7.875%, 5/01/12

    422      365,030
         
        1,016,525
         
        2,845,997
         

Financial Institutions - 0.2%

        

Banking - 0.1%

        

Northern Rock PLC

        

5.60%, 4/30/14 (b)(c)

    2,975      557,812

RBS Capital Trust III

        

5.512%, 9/30/14 (c)

    1,100      220,000
         
        777,812
         

Brokerage - 0.0%

        

Lehman Brothers Holdings, Inc.

        

7.875%, 11/01/09 (e)

    845      109,850
         

Insurance - 0.1%

        

Liberty Mutual Group, Inc.

        

7.80%, 3/15/37 (b)

    520      208,000
         
        1,095,662
         

Utility - 0.1%

        

Electric - 0.1%

        

Dynegy Holdings, Inc.

        

8.375%, 5/01/16

    395      250,825

Edison Mission Energy

        

7.00%, 5/15/17

    280      236,600

NRG Energy, Inc.

        

7.25%, 2/01/14

    365      344,013
         
        831,438
         

Total Corporates - Non-Investment Grades
(cost $12,313,096)

         4,773,097
         

GOVERNMENTS - SOVEREIGN BONDS - 0.7%

        

Governments - Sovereign Bonds - 0.7%

        

Brazil - 0.3%

        

Republic of Brazil

        

8.25%, 1/20/34

    1,650      1,790,250
         

Peru - 0.2%

        

Republic of Peru

        

8.375%, 5/03/16

    385      429,275

9.875%, 2/06/15

    835      989,475
         
        1,418,750
         

Russia - 0.2%

        

Russian Federation

        

7.50%, 3/31/30 (b)

    1,504      1,326,627
         

Total Governments - Sovereign Bonds
(cost $4,772,308)

         4,535,627
         

ASSET-BACKED SECURITIES - 0.4%

        

Home Equity Loans - Floating Rate - 0.4%

        

HFC Home Equity Loan Asset Backed Certificates

        

Series 2007-1, Class M1

        

0.85%, 3/20/36 (d)(f)

    2,680      762,597

Indymac Residential Asset Backed Trust

        

Series 2006-D, Class 2A2

        

0.584%, 11/25/36 (d)(f)

    1,450      536,500

Newcastle Mortgage Securities Trust

        

Series 2007-1, Class 2A1

        

0.604%, 4/25/37 (d)(f)

    1,862      1,222,788

Option One Mortgage Loan Trust

        

Series 2007-2, Class M1

        

0.834%, 3/25/37 (d)(f)

    930      26,040
         
        2,547,925
         

Home Equity Loans - Fixed Rate - 0.0%

        

Countrywide Asset-Backed Certificates

        

Series 2007-S1, Class A3

        

5.81%, 11/25/36 (f)

      2,570      459,831
         

Other ABS - Floating Rate - 0.0%

        

Petra CRE CDO Ltd.

        

Series 2007-1A, Class C

        

1.574%, 2/25/47 (b)(d)(f)

      795      15,900
         

Total Asset-Backed Securities
(cost $10,267,050)

         3,023,656
         
     Shares       

NON-CONVERTIBLE - PREFERRED STOCKS - 0.3%

        

Utility - 0.2%

        

Other Utility - 0.2%

        

Dte Energy Trust I

        

7.80%

      45,000      1,080,900
         

Industrial - 0.1%

        

Communications - Telecommunications - 0.1%

        

Centaur Funding Corp.

        

9.08% (b)

      1,200      728,625
         

Financial Institutions - 0.0%

        

Banking - 0.0%

        

Royal Bank of Scotland Group PLC

        

5.75%

      50,000      167,500
         

Total Non-Convertible - Preferred Stocks
(cost $3,822,090)

         1,977,025
         
     Principal
Amount
(000)		       

QUASI-SOVEREIGNS - 0.2%

        

Quasi-Sovereign Bonds - 0.2%

        

Russia - 0.2%

        

RSHB Capital SA for OJSC Russian Agricultural Bank

        

6.299%, 5/15/17 (b)

    $ 905      524,900

7.75%, 5/29/18 (b)

      1,925      1,145,375
         

Total Quasi-Sovereigns
(cost $2,778,854)

         1,670,275
         

EMERGING MARKETS - SOVEREIGNS - 0.2%

        

Non Corporate Sectors - 0.2%

        

Sovereign - 0.2%

        

Indonesia Government International Bond

        

11.625%, 3/04/19 (b)

(cost $1,055,304)

      1,063      1,067,521
         

CMOS - 0.1%

        

Non-Agency ARMS - 0.1%

        

Deutsche Mortgage Securities, Inc.

        

Series 2005-WF1, Class 1A1

        

5.102%, 6/26/35 (b)

      733      626,792
         

Non-Agency Floating Rate - 0.0%

        

Countrywide Alternative Loan Trust

        

Series 2007-OA3, Class M1

        

0.784%, 4/25/47 (d)(f)

    780        18,972
           

Total CMOs
(cost $1,502,061)

           645,764
           
     Shares       

PREFERRED STOCKS - 0.0%

        

Non Corporate Sectors - 0.0%

        

Agencies - Government Sponsored - 0.0%

        

Federal Home Loan Mortgage Corp.

        

Series Z

        

8.375%

    18,050        9,025

Federal National Mortgage Association

        

8.25%

    26,650        21,853
           

Total Preferred Stocks
(cost $1,117,500)

           30,878
           

SHORT-TERM INVESTMENTS - 0.7%

        

Investment Companies - 0.7%

        

AllianceBernstein Fixed-Income Shares, Inc. - Government STIF Portfolio (g)
(cost $4,555,334)

    4,555,334        4,555,334
           

Total Investments - 99.3%
(cost $822,960,267) (h)

           668,821,343

Other assets less liabilities - 0.7%

           4,499,810
           

Net Assets - 100.0%

         $ 673,321,153
           

 

(a) Non-income producing security.
(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 February 28, 2009, the aggregate market value of these securities amounted to $15,702,156 or 2.3% of net assets.
(c) Variable rate coupon, rate shown as of February 28, 2009.
(d) Floating Rate Security. Stated interest rate was in effect at February 28, 2009.
(e) Security is in default and is non-income producing.
(f) The fund currently owns investments collateralized by subprime mortgage loans. Subprime loans are offered to homeowners who do not have a history of debt or who have had problems meeting their debt obligations. Because repayment is less certain, subprime borrowers pay a higher rate of interest than prime borrowers. As of February 28, 2009, the fund’s total exposure to subprime investments was 0.45%. These investments are valued in accordance with the fund’s Valuation Policies (see Note A for additional details).
(g) Investment in affiliated money market mutual fund.
(h) As of February 28, 2009, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $14,684,539 and gross unrealized depreciation of investments was $(168,823,463), resulting in net unrealized depreciation of $(154,138,924).

Glossary:

 

ADR -  American Depositary Receipt

 

TIPS -  Treasury Inflation Protected Security

FINANCIAL ACCOUNTING STANDARDS NO. 157

The Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

 

  •  

Level 1—quoted prices in active markets for identical investments

  •  

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

  •  

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of February 28, 2009:

 

Level

    Investments in
Securities		    Other
Financial
Instruments*		  

Level 1

    $ 435,664,992    $             – 0  –

Level 2

      224,599,414      – 0  –

Level 3

      8,556,937      – 0  –
               

Total

    $     668,821,343    $ – 0  –
               

 

* Other financial instruments are derivative instruments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation / depreciation on the instrument.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

     Investments In
Securities		     Other
Financial
Instruments		  

Balance as of 11/1/08

    $     8,199,142     $             – 0  –

Accrued discounts /premiums

      918       – 0  –

Realized gain (loss)

      978       – 0  –*

Change in unrealized appreciation/depreciation

      (1,581,393 )     – 0  –

Net purchases (sales)

      798,847       – 0  –

Net transfers in and/or out of Level 3

      1,138,445       – 0  –
                

Balance as of 2/28/09

    $ 8,556,937     $ – 0  –
                

Net change in unrealized appreciation/depreciation from investments held as of 02/28/2009

    $ (1,581,393 )   $ – 0  –
                

 

* The realized gain (loss) recognized during the period ended 02/28/2009 for other financial instruments was $0.

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

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): AllianceBernstein Balanced Shares, Inc.

 

By:  

/s/    Robert M. Keith

  Robert M. Keith
  President

 

Date:   April 24, 2009

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/    Robert M. Keith

  Robert M. Keith
  President

 

Date:   April 24, 2009

 

By:  

/s/    Joseph J. Mantineo

  Joseph J. Mantineo
  Treasurer and Chief Financial Officer

 

Date:   April 24, 2009