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: August 31, 2009

 

 

 

ITEM 1. SCHEDULE OF INVESTMENTS.

AllianceBernstein Balanced Shares Fund

Portfolio of Investments

August 31, 2009 (unaudited)

 

Company

    Shares      U.S. $ Value

COMMON STOCKS - 65.5%

        

Health Care - 11.2%

        

Biotechnology - 2.7%

        

Amgen, Inc. (a)

    276,500      $ 16,518,110

Biogen Idec, Inc. (a)

    81,990        4,116,718
           
          20,634,828
           

Health Care Providers & Services - 4.9%

        

Aetna, Inc.

    121,600        3,465,600

AmerisourceBergen Corp.-Class A

    99,780        2,126,312

Humana, Inc. (a)

    51,300        1,831,410

Medco Health Solutions, Inc. (a)

    237,135        13,094,595

Quest Diagnostics, Inc.

    134,090        7,235,496

UnitedHealth Group, Inc.

    327,000        9,156,000
           
          36,909,413
           

Life Sciences Tools & Services - 0.4%

        

Thermo Fisher Scientific, Inc. (a)

    65,700        2,970,297
           

Pharmaceuticals - 3.2%

        

Abbott Laboratories

    70,000        3,166,100

Eli Lilly & Co.

    261,500        8,749,790

Endo Pharmaceuticals Holdings, Inc. (a)

    90,990        2,053,644

Forest Laboratories, Inc. (a)

    126,850        3,712,900

Schering-Plough Corp.

    238,400        6,718,112
           
          24,400,546
           
          84,915,084
           

Energy - 10.5%

        

Energy Equipment & Services - 1.1%

        

Cameron International Corp. (a)

    120,625        4,307,519

Noble Corp.

    116,520        4,081,695
           
          8,389,214
           

Oil, Gas & Consumable Fuels - 9.4%

        

Chevron Corp.

    162,630        11,374,342

ConocoPhillips

    44,575        2,007,212

Exxon Mobil Corp.

    319,860        22,118,319

Occidental Petroleum Corp.

    285,665        20,882,112

Total SA (Sponsored ADR)

    259,145        14,841,234
           
          71,223,219
           
          79,612,433
           

Financials - 10.4%

        

Capital Markets - 3.2%

        

Bank of New York Mellon Corp.

    127,100        3,763,431

BlackRock, Inc.-Class A

    22,100        4,410,497

The Goldman Sachs Group, Inc.

    29,300        4,847,978

Morgan Stanley

    105,700      3,061,072

State Street Corp.

    89,200      4,681,216

TD Ameritrade Holding Corp. (a)

    188,520      3,627,125
         
        24,391,319
         

Diversified Financial Services - 1.0%

        

Bank of America Corp.

    245,500      4,318,345

IntercontinentalExchange, Inc. (a)

    37,600      3,526,880
         
        7,845,225
         

Insurance - 6.2%

        

ACE Ltd.

    208,750      10,892,575

Arch Capital Group Ltd. (a)

    154,000      10,005,380

Axis Capital Holdings Ltd.

    606,500      18,486,120

Loews Corp.

    108,600      3,708,690

RenaissanceRe Holdings Ltd.

    73,100      3,980,295
         
        47,073,060
         
        79,309,604
         

Industrials - 8.7%

        

Aerospace & Defense - 5.9%

        

Goodrich Corp.

    143,940      7,939,730

ITT Corp.

    40,300      2,018,224

L-3 Communications Holdings, Inc.

    156,030      11,608,632

Raytheon Co.

    398,700      18,810,666

United Technologies Corp.

    72,630      4,311,317
         
        44,688,569
         

Construction & Engineering - 1.2%

        

Fluor Corp.

    74,750      3,954,275

URS Corp. (a)

    130,800      5,654,484
         
        9,608,759
         

Electrical Equipment - 0.3%

        

Hubbell, Inc.-Class B

    56,870      2,187,789
         

Machinery - 1.2%

        

Dover Corp.

    52,100      1,802,139

Flowserve Corp.

    41,200      3,553,500

Joy Global, Inc.

    91,305      3,547,199
         
        8,902,838
         

Trading Companies & Distributors - 0.1%

        

WESCO International, Inc. (a)

    51,300      1,232,739
         
        66,620,694
         

Information Technology - 7.3%

        

Communications Equipment - 0.7%

        

Cisco Systems, Inc. (a)

    141,400      3,054,240

F5 Networks, Inc. (a)

    52,525      1,811,587
         
        4,865,827
         

Computers & Peripherals - 0.5%

        

EMC Corp. (a)

    134,300      2,135,370

NetApp, Inc. (a)

    82,600      1,879,150
         
        4,014,520
         

Electronic Equipment, Instruments & Components - 0.3%

        

Arrow Electronics, Inc. (a)

    36,100      997,804

Dolby Laboratories, Inc.-Class A (a)

    32,600      1,271,726
         
        2,269,530
         

Internet Software & Services - 1.1%

        

Ebay, Inc. (a)

    201,200      4,454,568

VeriSign, Inc. (a)

    179,000      3,793,010
         
        8,247,578
         

IT Services - 3.4%

        

Accenture Ltd.-Class A

    345,029      11,385,957

Amdocs Ltd. (a)

    43,900      1,067,648

SAIC, Inc. (a)

    743,000      13,738,070
         
        26,191,675
         

Semiconductors & Semiconductor Equipment - 0.3%

        

Taiwan Semiconductor Manufacturing Co. Ltd. (Sponsored ADR)

    184,703      1,976,322
         

Software - 1.0%

        

Symantec Corp. (a)

    521,300      7,882,056
         
        55,447,508
         

Consumer Staples - 6.9%

        

Food & Staples Retailing - 1.3%

        

Safeway, Inc.

    165,815      3,158,776

Wal-Mart Stores, Inc.

    133,100      6,770,797
         
        9,929,573
         

Food Products - 1.9%

        

Archer-Daniels-Midland Co.

    341,400      9,842,562

ConAgra Foods, Inc.

    229,515      4,711,943
         
        14,554,505
         

Tobacco - 3.7%

        

Lorillard, Inc.

    202,580      14,741,746

Philip Morris International, Inc.

    298,000      13,621,580
         
        28,363,326
         
        52,847,404
         

Consumer Discretionary - 6.5%

        

Auto Components - 0.2%

        

WABCO Holdings, Inc.

    75,900      1,447,413
         

Diversified Consumer Services - 1.2%

        

Apollo Group, Inc.-Class A (a)

    148,005      9,593,684
         

Media - 2.6%

        

Comcast Corp.-Class A

    829,515      12,708,170

Discovery Communications, Inc.-Class A (a)

    82,000      2,125,440

Time Warner, Inc.

    170,165      4,749,305
         
        19,582,915
         

Specialty Retail - 2.5%

        

Advance Auto Parts, Inc.

    209,245      8,851,064

Home Depot, Inc.

    70,700      1,929,403

Ross Stores, Inc.

    171,600      8,003,424
         
        18,783,891
         
        49,407,903
         

Telecommunication Services - 2.6%

        

Diversified Telecommunication Services - 2.6%

        

CenturyTel, Inc.

      153,435      4,945,210

Qwest Communications International, Inc.

      3,273,350      11,751,326

Verizon Communications, Inc.

      107,988      3,351,948
         
        20,048,484
         

Materials - 0.8%

        

Chemicals - 0.8%

        

CF Industries Holdings, Inc.

      50,800      4,148,328

Terra Industries, Inc.

      71,200      2,215,032
         
        6,363,360
         

Utilities - 0.6%

        

Multi-Utilities - 0.6%

        

Public Service Enterprise Group, Inc.

      141,900      4,493,973
         

Total Common Stocks
(cost $453,609,029)

         499,066,447
         
     Principal
Amount
(000)		       

CORPORATES - INVESTMENT GRADES - 13.0%

        

Industrial - 6.6%

        

Basic - 1.2%

        

Alcoa, Inc.

        

6.75%, 7/15/18

    $ 265      258,096

ArcelorMittal

        

6.125%, 6/01/18

      870      832,701

ArcelorMittal USA, Inc.

        

6.50%, 4/15/14

      400      404,878

BHP Billiton Finance USA Ltd.

        

7.25%, 3/01/16

      564      640,156

The Dow Chemical Co.

        

7.375%, 11/01/29

      60      59,835

7.60%, 5/15/14

      365      394,131

8.55%, 5/15/19

      965      1,051,131

EI Du Pont de Nemours & Co.

        

5.875%, 1/15/14

      354      392,443

Freeport-McMoRan Copper & Gold, Inc.

        

8.375%, 4/01/17

      650      677,625

Inco Ltd.

        

7.75%, 5/15/12

      734      799,038

International Paper Co.

        

5.30%, 4/01/15

      660      636,028

7.95%, 6/15/18

      490      520,079

PPG Industries, Inc.

        

5.75%, 3/15/13

    765      812,652

Rio Tinto Finance USA Ltd.

        

6.50%, 7/15/18

    695      748,197

Weyerhaeuser Co.

        

7.375%, 3/15/32

    905      761,350
         
        8,988,340
         

Capital Goods - 0.5%

        

John Deere Capital Corp.

        

5.25%, 10/01/12

    605      653,441

Lafarge SA

        

6.15%, 7/15/11

    629      649,392

Tyco International Finance SA

        

6.00%, 11/15/13

    1,005      1,081,129

8.50%, 1/15/19

    280      338,054

United Technologies Corp.

        

4.875%, 5/01/15

    362      393,948

Vulcan Materials Co.

        

5.60%, 11/30/12

    840      874,206
         
        3,990,170
         

Communications - Media - 0.8%

        

BSKYB Finance UK PLC

        

5.625%, 10/15/15 (b)

    480      499,432

CBS Corp.

        

8.875%, 5/15/19

    625      672,202

Comcast Cable Communications Holdings, Inc.

        

9.455%, 11/15/22

    440      553,023

Comcast Corp.

        

5.50%, 3/15/11

    625      655,925

News America Holdings, Inc.

        

9.25%, 2/01/13

    150      175,038

Reed Elsevier Capital, Inc.

        

8.625%, 1/15/19

    290      352,762

RR Donnelley & Sons Co.

        

5.50%, 5/15/15

    990      913,848

Time Warner Cable, Inc.

        

7.50%, 4/01/14

    245      281,198

Time Warner Entertainment Co.

        

8.375%, 3/15/23

    725      844,603

WPP Finance UK

        

5.875%, 6/15/14

    425      428,033

8.00%, 9/15/14

    630      690,024
         
        6,066,088
         

Communications - Telecommunications - 1.0%

        

AT&T Corp.

        

7.30%, 11/15/11

    540      600,286

BellSouth Corp.

        

5.20%, 9/15/14

    860      933,535

British Telecommunications PLC

        

5.15%, 1/15/13

    625      647,599

Embarq Corp.

        

7.082%, 6/01/16

    1,274      1,360,209

Qwest Corp.

        

7.50%, 10/01/14

    890      882,213

7.875%, 9/01/11

    660      673,200

Telecom Italia Capital SA

        

6.175%, 6/18/14

    545      590,255

Telus Corp.

        

8.00%, 6/01/11

    425      462,570

Verizon Communications, Inc.

        

4.90%, 9/15/15

    380      402,974

5.25%, 4/15/13

    465      501,252

Vodafone Group PLC

        

7.75%, 2/15/10

    790      813,959
         
        7,868,052
         

Consumer Cyclical - Automotive - 0.0%

        

Daimler Finance North America LLC

        

5.75%, 9/08/11

    240      251,658
         

Consumer Cyclical - Entertainment - 0.2%

        

Time Warner, Inc.

        

6.875%, 5/01/12

    465      508,533

7.625%, 4/15/31

    600      658,899
         
        1,167,432
         

Consumer Non-Cyclical - 1.5%

        

Altria Group, Inc.

        

9.70%, 11/10/18

    365      446,484

Baxter FinCo BV

        

4.75%, 10/15/10

    400      415,745

Bottling Group LLC

        

6.95%, 3/15/14

    525      614,951

Bunge Ltd. Finance Corp.

        

5.875%, 5/15/13

    415      433,929

Cadbury Schweppes US Finance LLC

        

5.125%, 10/01/13 (b)

    1,415      1,472,143

Campbell Soup Co.

        

6.75%, 2/15/11

    505      544,812

Diageo Capital PLC

        

7.375%, 1/15/14

    535      618,037

Fisher Scientific International, Inc.

        

6.125%, 7/01/15

    840      865,200

Fortune Brands, Inc.

        

4.875%, 12/01/13

    890      877,710

Kroger Co.

        

6.80%, 4/01/11

    1,055      1,129,211

Pepsico, Inc.

        

4.65%, 2/15/13

    570      611,707

Pfizer, Inc.

        

5.35%, 3/15/15

    600      667,784

The Procter & Gamble Co.

        

4.70%, 2/15/19

    590      614,458

Safeway, Inc.

        

4.95%, 8/16/10

    785      812,153

5.80%, 8/15/12

    870      942,498

Whirlpool Corp.

        

8.60%, 5/01/14

    75      82,370

Wyeth

        

5.50%, 2/01/14

    480      524,861
         
        11,674,053
         

Energy - 0.6%

        

Anadarko Petroleum Corp.

        

5.95%, 9/15/16

    65      67,596

6.45%, 9/15/36

    190      188,076

Apache Corp.

        

5.25%, 4/15/13

    330      352,910

Baker Hughes, Inc.

        

6.50%, 11/15/13

    300      336,220

Canadian Natural Resources Ltd.

        

5.15%, 2/01/13

    250      261,508

Nabors Industries, Inc.

        

9.25%, 1/15/19

    635      745,252

Noble Energy, Inc.

        

8.25%, 3/01/19

    610      727,792

The Premcor Refining Group, Inc.

        

7.50%, 6/15/15

    614      627,982

Valero Energy Corp.

        

6.875%, 4/15/12

    580      625,177

Weatherford International Ltd.

        

5.15%, 3/15/13

    325      338,663
         
        4,271,176
         

Services - 0.1%

        

The Western Union Co.

        

5.93%, 10/01/16

    820      884,880
         

Technology - 0.5%

        

Cisco Systems, Inc.

        

5.25%, 2/22/11

    560      592,514

Computer Sciences Corp.

        

5.50%, 3/15/13

    465      488,464

Dell, Inc.

        

5.625%, 4/15/14

    370      403,397

Electronic Data Systems Corp.

        

Series B

        

6.00%, 8/01/13 (c)

    820      911,131

Motorola, Inc.

        

6.50%, 9/01/25

    535      419,601

7.50%, 5/15/25

    90      77,516

Oracle Corp.

        

4.95%, 4/15/13

    391      418,448

Xerox Corp.

        

8.25%, 5/15/14

    630      709,415
         
        4,020,486
         

Transportation - Airlines - 0.1%

        

Southwest Airlines Co.

        

5.25%, 10/01/14

    842      859,387
         

Transportation - Railroads - 0.1%

        

CSX Corp.

        

5.50%, 8/01/13

    280      295,903
         
        50,337,625
         

Financial Institutions - 4.9%

        

Banking - 2.8%

        

American Express Co.

        

8.125%, 5/20/19

    615      688,264

ANZ National International Ltd.

        

6.20%, 7/19/13 (b)

    375      405,105

Bank of America Corp.

        

4.50%, 8/01/10

    1,345      1,378,137

Barclays Bank PLC

        

8.55%, 6/15/11 (b)(d)

    705      613,350

The Bear Stearns Co., Inc.

        

5.55%, 1/22/17

    1,020      1,031,591

7.625%, 12/07/09

    850      865,228

Citigroup, Inc.

        

4.625%, 8/03/10

    760      771,990

5.50%, 4/11/13

    575      572,326

8.50%, 5/22/19

    675      737,828

Countrywide Financial Corp.

        

5.80%, 6/07/12

    382      396,362

6.25%, 5/15/16

    1,278      1,239,753

Countrywide Home Loans, Inc.

        

Series L

        

4.00%, 3/22/11

    32      32,310

Credit Suisse USA, Inc.

        

5.50%, 8/15/13

    248      265,521

The Goldman Sachs Group, Inc.

        

4.75%, 7/15/13

    410      423,873

5.125%, 1/15/15

    370      383,445

7.35%, 10/01/09

    196      197,089

7.50%, 2/15/19

    605      696,533

JP Morgan Chase & Co.

        

6.75%, 2/01/11

    580      617,383

Morgan Stanley

        

5.05%, 1/21/11

    840      867,544

5.30%, 3/01/13

    280      292,511

6.625%, 4/01/18

    715      764,005

Rabobank Nederland

        

11.00%, 6/30/19 (b)(d)

    110      129,937

Regions Financial Corp.

        

6.375%, 5/15/12

    1,250      1,158,158

Sovereign Bancorp, Inc.

        

4.80%, 9/01/10

    1,335      1,371,890

Sovereign Bank

        

5.125%, 3/15/13

    785      806,266

UBS Preferred Funding Trust II

        

7.247%, 6/26/11 (d)

    1,000      735,927

Unicredito Italiano Capital Trust II

        

9.20%, 10/05/10 (b)(d)

    1,320      993,452

Union Bank of California

        

5.95%, 5/11/16

    405      395,031

Union Planters Corp.

        

7.75%, 3/01/11

    828      802,785

Wachovia Corp.

        

5.50%, 5/01/13

    820      871,243

Wells Fargo & Co.

        

4.20%, 1/15/10

    445      449,425

5.625%, 12/11/17

    335      351,004
         
        21,305,266
         

Brokerage - 0.1%

        

Lazard Group

        

6.85%, 6/15/17

    920      900,176
         

Finance - 0.4%

        

General Electric Capital Corp.

        

4.80%, 5/01/13

    840      872,227

5.625%, 5/01/18

    710      706,993

HSBC Finance Corp.

        

7.00%, 5/15/12

    365      393,221

SLM Corp.

        

Series A

        

5.375%, 1/15/13

    1,335      1,024,328
         
        2,996,769
         

Insurance - 1.2%

        

Allied World Assurance Co. Holdings Ltd.

        

7.50%, 8/01/16

    165      159,162

Assurant, Inc.

        

5.625%, 2/15/14

    895      915,312

Berkshire Hathaway Finance Corp.

        

4.20%, 12/15/10

    590      611,280

CNA Financial Corp.

        

5.85%, 12/15/14

    340      307,980

Genworth Financial, Inc.

        

6.515%, 5/22/18

    825      591,914

Humana, Inc.

        

6.30%, 8/01/18

    90      81,705

6.45%, 6/01/16

    65      61,731

7.20%, 6/15/18

    130      125,884

Liberty Mutual Group, Inc.

        

5.75%, 3/15/14 (b)

    795      714,397

Lincoln National Corp.

        

8.75%, 7/01/19

    172      192,340

Massachusetts Mutual Life Insurance Co.

        

8.875%, 6/01/39 (b)

    345      387,155

Nationwide Mutual Insurance Co.

        

5.81%, 12/15/24 (b)(d)

    2,213      1,650,106

Principal Financial Group, Inc.

        

7.875%, 5/15/14

    490      540,830

Prudential Financial, Inc.

        

5.15%, 1/15/13

    520      523,957

6.20%, 1/15/15

    65      68,091

Series D

        

7.375%, 6/15/19

    50      54,340

UnitedHealth Group, Inc.

        

5.25%, 3/15/11

    635      657,076

WellPoint, Inc.

        

5.25%, 1/15/16

    425      430,398

ZFS Finance USA Trust I

        

6.15%, 12/15/65 (b)(d)

    1,000      870,000
         
        8,943,658
         

REITS - 0.4%

        

ERP Operating LP

        

5.25%, 9/15/14

    935      931,580

HCP, Inc.

        

5.95%, 9/15/11

    885      898,799

Simon Property Group LP

        

5.00%, 3/01/12

    835      856,033
         
        2,686,412
         
        36,832,281
         

Utility - 1.2%

        

Electric - 0.6%

        

FirstEnergy Corp.

        

Series B

        

6.45%, 11/15/11

    46      49,220

Series C

        

7.375%, 11/15/31

    395      436,059

FPL Group Capital, Inc.

        

6.35%, 10/01/66 (d)

    430      365,500

6.65%, 6/15/67 (d)

    1,290      1,122,300

MidAmerican Energy Holdings Co.

        

5.875%, 10/01/12

    375      406,737

Nisource Finance Corp.

        

6.80%, 1/15/19

    865      877,228

The Southern Co.

        

Series A

        

5.30%, 1/15/12

    229      245,135

SPI Electricity & Gas Australia Holdings Pty Ltd.

        

6.15%, 11/15/13 (b)

    1,200      1,249,747
         
        4,751,926
         

Natural Gas - 0.5%

        

Enterprise Products Operating LLC

        

Series G

        

5.60%, 10/15/14

    835      883,191

Texas Eastern Transmission Corp.

        

7.30%, 12/01/10

    1,700      1,750,913

TransCanada Pipelines Ltd.

        

6.35%, 5/15/67 (d)

    965      810,600

Williams Co., Inc.

        

7.875%, 9/01/21

    368      398,483
         
        3,843,187
         

Other Utility - 0.1%

        

Veolia Environnement

        

6.00%, 6/01/18

    555      591,851
         
        9,186,964
         

Non Corporate Sectors - 0.3%

        

Agencies - Not Government Guaranteed - 0.3%

        

Gaz Capital SA

        

6.212%, 11/22/16 (b)

    1,880      1,680,250

TransCapitalInvest Ltd. for OJSC AK Transneft

        

8.70%, 8/07/18 (b)

    690      715,875
         
        2,396,125
         

Total Corporates - Investment Grades
(cost $97,908,231)

         98,752,995
         

MORTGAGE PASS-THRU’S - 6.7%

        

Agency Fixed Rate 30-Year - 5.8%

        

Federal Home Loan Mortgage Corp. Gold

        

Series 2005

        

4.50%, 10/01/35

    3,372      3,399,140

5.50%, 1/01/35

    4,701      4,922,240

Series 2008

        

6.50%, 5/01/35

    937      1,007,648

Federal National Mortgage Association

        

Series 2004

        

6.00%, 11/01/34

    2,674      2,833,041

Series 2006

        

5.00%, 2/01/36

    6,212      6,400,407

6.50%, 9/01/36

    1,461      1,566,230

Series 2007

        

4.50%, 1/01/36

    5,526      5,584,535

Series 2008

        

5.50%, 8/01/37

    12,682      13,259,767

6.00%, 3/01/37

    5,155      5,451,324
         
        44,424,332
         

Agency ARMS - 0.9%

        

Federal Home Loan Mortgage Corp.

        

Series 2006

        

5.916%, 1/01/37 (e)

    439      462,355

6.233%, 12/01/36 (e)

    490      517,078

Series 2007

        

5.973%, 2/01/37 (e)

    553      582,484

6.074%, 1/01/37 (e)

    242      254,999

Series 2009

        

4.772%, 4/01/36 (d)

    1,784      1,852,190

Federal National Mortgage Association

        

Series 2007

        

4.727%, 3/01/34 (d)

    1,458      1,515,068

4.995%, 8/01/37 (d)

    643      674,080

5.93%, 2/01/37 (e)

    504      532,178
         
        6,390,432
         

Total Mortgage Pass-Thru’s
(cost $49,306,680)

         50,814,764
         

COMMERCIAL MORTGAGE-BACKED SECURITIES - 4.2%

        

Non-Agency Fixed Rate CMBS - 4.2%

        

Banc of America Commercial Mortgage, Inc.

        

Series 2007-5, Class A4

        

5.492%, 2/10/51

    1,510      1,160,857

Bear Stearns Commercial Mortgage Securities, Inc.

        

Series 2006-PW12, Class A4

        

5.903%, 9/11/38

    1,200      1,126,078

Commercial Mortgage Pass Through Certificates

        

Series 2005-C6, Class A5A

        

5.116%, 6/10/44

    730      704,698

Series 2006-C8, Class A4

        

5.306%, 12/10/46

    1,230      1,054,535

Series 2007-C9, Class A4

        

6.01%, 12/10/49

    1,710      1,503,133

Credit Suisse Mortgage Capital Certificates

        

Series 2006-C3, Class A3

        

6.02%, 6/15/38

    1,325      1,059,069

CS First Boston Mortgage Securities Corp.

        

Series 2004-C3, Class A5

        

5.113%, 7/15/36

    401      392,529

Series 2005-C1, Class A4

        

5.014%, 2/15/38

    685      663,396

Greenwich Capital Commercial Funding Corp.

        

Series 2005-GG5, Class AJ

        

5.478%, 4/10/37

    360      232,970

Series 2007-GG11, Class A4

        

5.736%, 12/10/49

    1,300      1,141,242

Series 2007-GG9, Class A4

        

5.444%, 3/10/39

    1,070      912,976

GS Mortgage Securities Corp. II

        

Series 2006-GG8, Class A2

        

5.479%, 11/10/39

    1,646      1,635,184

JP Morgan Chase Commercial Mortgage Securities Corp.

        

Series 2006-CB1, Class A4

        

5.814%, 6/12/43

    1,630      1,493,312

Series 2006-CB16, Class A4

        

5.552%, 5/12/45

    1,220      1,123,132

Series 2007-C1, Class A4

        

5.716%, 2/15/51

    1,720      1,257,800

Series 2007-CB18, Class A4

        

5.44%, 6/12/47

    1,735      1,430,399

Series 2007-LD11, Class A4

        

6.006%, 6/15/49

    1,735      1,467,404

LB-UBS Commercial Mortgage Trust

        

Series 2004-C7, Class A2

        

3.992%, 10/15/29

    859      858,360

Series 2006-C1, Class A4

        

5.156%, 2/15/31

    1,970      1,772,198

Series 2006-C7, Class A3

        

5.347%, 11/15/38

    1,020      898,850

Series 2007-C1, Class A4

        

5.424%, 2/15/40

    1,700      1,290,392

Series 2008-C1, Class A2

        

6.318%, 4/15/41

    2,865      2,725,599

Merrill Lynch/Countrywide Commercial Mortgage Trust

        

Series 2006-3, Class A4

        

5.414%, 6/12/46

    1,805      1,603,856

Series 2006-4, Class AM

        

5.204%, 12/12/49

    435      281,358

Wachovia Bank Commercial Mortgage Trust

        

Series 2006-C27, Class A3

        

5.765%, 7/15/45

    1,705      1,521,893

Series 2007-C31, Class A4

        

5.509%, 4/15/47

    1,730      1,307,044

Series 2007-C32, Class A2

        

5.924%, 6/15/49

    985      966,034

Series 2007-C32, Class A3

        

5.929%, 6/15/49

    693      540,266
         

Total Commercial Mortgage-Backed Securities
(cost $35,055,837)

         32,124,564
         

GOVERNMENTS - TREASURIES - 3.8%

        

United States - 3.8%

        

U.S. Treasury Bonds

        

3.75%, 11/15/18

    5,535      5,683,753

4.50%, 2/15/36

    4,180      4,398,146

U.S. Treasury Notes

        

1.75%, 1/31/14

    16,520      16,234,766

2.625%, 7/31/14

    2,710      2,742,181
         

Total Governments - Treasuries
(cost $28,894,124)

         29,058,846
         

CORPORATES - NON-INVESTMENT GRADES - 1.6%

        

Industrial - 0.8%

        

Basic - 0.1%

        

Steel Capital SA for OAO Severstal

        

9.75%, 7/29/13 (b)

    315      304,369

United States Steel Corp.

        

5.65%, 6/01/13

    770      733,720
         
        1,038,089
         

Capital Goods - 0.3%

        

Bombardier, Inc.

        

6.75%, 5/01/12 (b)

    370      361,675

Hanson Australia Funding Ltd.

        

5.25%, 3/15/13

    945      793,800

Owens Corning, Inc.

        

6.50%, 12/01/16

    558      528,998

Textron Financial Corp.

        

4.60%, 5/03/10

    76      74,895

5.125%, 2/03/11

    141      136,915

5.40%, 4/28/13

    103      90,811
         
        1,987,094
         

Communications - Media - 0.1%

        

Clear Channel Communications, Inc.

        

5.50%, 9/15/14

    840      281,400

CSC Holdings, Inc.

        

8.50%, 4/15/14 (b)

    245      248,675

Univision Communications, Inc.

        

12.00%, 7/01/14 (b)

    63      66,150
         
        596,225
         

Consumer Cyclical - Automotive - 0.0%

        

The Goodyear Tire & Rubber Co.

        

9.00%, 7/01/15

    250      253,750
         

Consumer Cyclical - Other - 0.2%

        

Sheraton Holding Corp.

        

7.375%, 11/15/15

    789      751,523

Starwood Hotels & Resorts Worldwide, Inc.

        

7.875%, 5/01/12

    422      424,110

Wyndham Worldwide Corp.

        

6.00%, 12/01/16

    666      580,179
         
        1,755,812
         

Consumer Non-Cyclical - 0.1%

        

Bausch & Lomb, Inc.

        

9.875%, 11/01/15

    235      235,588

HCA, Inc.

        

7.875%, 2/15/20 (b)

    185      180,375

8.50%, 4/15/19 (b)

    65      65,406
         
        481,369
         

Technology - 0.0%

        

Flextronics International Ltd.

        

6.50%, 5/15/13

    170      162,775
         
        6,275,114
         

Financial Institutions - 0.6%

        

Banking - 0.2%

        

BankAmerica Capital II

        

Series 2

        

8.00%, 12/15/26

    559      503,100

NB Capital Trust IV

        

8.25%, 4/15/27

    485      443,775

Northern Rock PLC

        

5.60%, 4/30/14 (b)(d)

    2,975      290,062

RBS Capital Trust III

        

5.512%, 9/30/14 (d)

    1,100      462,000
         
        1,698,937
         

Brokerage - 0.0%

        

Lehman Brothers Holdings, Inc.

        

7.875%, 11/01/09 (f)

    845      147,875
         

Finance - 0.3%

        

American General Finance Corp.

        

5.85%, 6/01/13

    890      601,352

Series I

        

4.875%, 7/15/12

    405      284,509

CIT Group, Inc.

        

5.00%, 2/01/15

    940      528,991

7.625%, 11/30/12

    875      495,746
         
        1,910,598
         

Insurance - 0.1%

        

ING Capital Funding Trust III

        

8.439%, 12/31/10 (d)

    1,000      570,000

Liberty Mutual Group, Inc.

        

7.80%, 3/15/37 (b)

    520      364,000
         
        934,000
         
        4,691,410
         

Utility - 0.2%

        

Electric - 0.2%

        

The AES Corp.

        

7.75%, 3/01/14

    50      48,688

Dynegy Holdings, Inc.

        

8.375%, 5/01/16

    395      319,950

Edison Mission Energy

        

7.00%, 5/15/17

    280      213,850

NRG Energy, Inc.

        

7.25%, 2/01/14

    365      354,962

RRI Energy, Inc.

        

7.625%, 6/15/14

    145      132,675
         
        1,070,125
         

Total Corporates - Non-Investment Grades
(cost $18,847,439)

         12,036,649
         

INFLATION-LINKED SECURITIES - 0.8%

        

United States - 0.8%

        

U.S. Treasury Notes

        

3.00%, 7/15/12 (TIPS)

(cost $6,276,326)

    5,949      6,247,810
         

AGENCIES - 0.8%

        

Agency Debentures - 0.8%

        

Federal National Mortgage Association

        

6.25%, 5/15/29

    4,745      5,682,185

6.625%, 11/15/30

    375      471,085
         

Total Agencies
(cost $5,948,469)

         6,153,270
         

GOVERNMENTS - SOVEREIGN BONDS - 0.7%

        

Brazil - 0.3%

        

Republic of Brazil

        

8.25%, 1/20/34

    1,650      2,041,875
         

Peru - 0.2%

        

Republic of Peru

        

8.375%, 5/03/16

    385      450,450

9.875%, 2/06/15

    835      1,033,313
         
        1,483,763
         

Poland - 0.1%

        

Poland Government International Bond

        

6.375%, 7/15/19

    1,090      1,169,025
         

Russia - 0.1%

        

Russian Federation

        

7.50%, 3/31/30 (b)(c)

    850      870,840
         

Total Governments - Sovereign Bonds
(cost $5,116,070)

         5,565,503
         

ASSET-BACKED SECURITIES - 0.7%

        

Home Equity Loans - Floating Rate - 0.5%

        

HFC Home Equity Loan Asset Backed Certificates

        

Series 2007-1, Class M1

        

0.65%, 3/20/36 (e)

    2,680      1,536,852

Indymac Residential Asset Backed Trust

        

Series 2006-D, Class 2A2

        

0.376%, 11/25/36 (e)

    1,434      1,018,601

Newcastle Mortgage Securities Trust

        

Series 2007-1, Class 2A1

        

0.40%, 4/25/37 (e)

    1,618      1,009,319

Option One Mortgage Loan Trust

        

Series 2007-2, Class M1

        

0.63%, 3/25/37 (e)

    930      21,865
         
        3,586,637
         

Credit Cards - Fixed Rate - 0.1%

        

Capital One Multi-Asset Execution Trust

        

Series 2008-A5, Class A5

        

4.85%, 2/18/14

    925      969,818
         

Home Equity Loans - Fixed Rate - 0.1%

        

Countrywide Asset-Backed Certificates

        

Series 2007-S1, Class A3

        

5.81%, 11/25/36

    2,343      505,125
         

Other ABS - Floating Rate - 0.0%

        

Petra CRE CDO Ltd.

        

Series 2007-1A, Class C

        

1.366%, 2/25/47 (b)(e)

    795      11,925
         

Total Asset-Backed Securities
(cost $10,723,326)

         5,073,505
         
     Shares       

PREFERRED STOCKS - 0.4%

        

Utility - 0.2%

        

Other Utility - 0.2%

        

Dte Energy Trust I

        

7.80%

    45,000      1,128,150
         

Industrial - 0.1%

        

Communications - Telecommunications - 0.1%

        

Centaur Funding Corp.

        

9.08% (b)

      1,200      1,120,500
         

Financial Institutions - 0.1%

        

Banking - 0.1%

        

Royal Bank of Scotland Group PLC

        

5.75%

      50,000      455,500
         

Non Corporate Sectors - 0.0%

        

Agencies - Government Sponsored - 0.0%

        

Federal Home Loan Mortgage Corp.

        

Series Z

        

8.375% (d)

      18,050      38,627

Federal National Mortgage Association

        

8.25% (d)

      26,650      53,300
         
        91,927
         

Total Preferred Stocks
(cost $4,939,590)

         2,796,077
         
     Principal
Amount
(000)		       

QUASI-SOVEREIGNS - 0.3%

        

Quasi-Sovereign Bonds - 0.3%

        

Russia - 0.3%

        

RSHB Capital SA for OJSC Russian Agricultural Bank

        

6.299%, 5/15/17 (b)

    $ 905      812,238

7.75%, 5/29/18 (b)

      1,925      1,857,625
         

Total Quasi-Sovereigns
(cost $2,781,238)

         2,669,863
         

CMOS - 0.0%

        

Non-Agency ARMS - 0.0%

        

Deutsche Mortgage Securities, Inc.

        

Series 2005-WF1, Class 1A1

        

5.131%, 6/26/35 (b)

      244      236,903
         

Non-Agency Floating Rate - 0.0%

        

Countrywide Alternative Loan Trust

        

Series 2007-OA3, Class M1

        

0.576%, 4/25/47 (e)

      780      7,641
         

Total CMOs
(cost $1,019,499)

         244,544
         

EMERGING MARKETS - CORPORATE BONDS - 0.0%

        

Industrial - 0.0%

        

Energy - 0.0%

        

Ecopetrol SA

        

7.625%, 7/23/19 (b)

(cost $217,225)

      218      232,453
         

     Shares         

SHORT-TERM INVESTMENTS - 2.0%

        

Investment Companies - 2.0%

        

AllianceBernstein Fixed-Income Shares,
Inc. - Government STIF Portfolio (g)
(cost $15,161,315)

    15,161,315        15,161,315   
             

Total Investments - 100.5%
(cost $735,804,398) (h)

           765,998,605   

Other assets less liabilities - (0.5)%

           (3,978,699 ) 
             

Net Assets - 100.0%

         $ 762,019,906   
             

 

(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 August 31, 2009, the aggregate market value of these securities amounted to $18,404,145 or 2.4% of net assets.
(c) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at August 31, 2009.
(d) Variable rate coupon, rate shown as of August 31, 2009.
(e) Floating Rate Security. Stated interest rate was in effect at August 31, 2009.
(f) Security is in default and is non-income producing.
(g) Investment in affiliated money market mutual fund.
(h) As of August 31, 2009, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $66,858,590 and gross unrealized depreciation of investments was $(36,664,383), resulting in net unrealized appreciation of $30,194,207.

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 August 31, 2009, the fund’s total exposure to subprime investments was 0.54% of net assets. These investments are valued in accordance with the fund’s Valuation Policies.

Glossary:

 

ABS -  Asset-Backed Securities
ADR -  American Depositary Receipt
ARMS -   Adjustable Rate Mortgages
CMBS -  Commercial Mortgage-Backed Securities
LP -  Limited Partnership
OJSC -   Open Joint Stock Company
REIT -   Real Estate Investment Trust
TIPS -  Treasury Inflation Protected Security

FINANCIAL ACCOUNTING STANDARDS NO. 157

August 31, 2009 (unaudited)

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 August 31, 2009:

 

Investments in Securities

    Level 1    Level 2    Level 3    Total

Common Stocks

    $ 499,066,447    $ —      $ —      $ 499,066,447

Corporates - Investment Grades

      —        95,951,765      2,801,230      98,752,995

Mortgage Pass-Thru’s

      —        50,814,764      —        50,814,764

Commercial Mortgage-Backed Securities

      —        30,834,172      1,290,392      32,124,564

Governments - Treasuries

      —        29,058,846      —        29,058,846

Corporates - Non-Investment Grades

      —        11,666,874      369,775      12,036,649

Inflation-Linked Securities

      —        6,247,810      —        6,247,810

Agencies

      —        6,153,270      —        6,153,270

Governments - Sovereign Bonds

      —        2,354,603      3,210,900      5,565,503

Asset-Backed Securities

      —        969,819      4,103,686      5,073,505

Preferred Stocks

      —        2,796,077      —        2,796,077

Quasi-Sovereigns

      —        —        2,669,863      2,669,863

CMOs

      —        —        244,544      244,544

Emerging Markets - Corporate Bonds

      —        232,453      —        232,453

Short-Term Investments

      15,161,315      —        —        15,161,315
                           

Total Investments in Securities

      514,227,762      237,080,453      14,690,390      765,998,605

Other Financial Instruments*

      —        —        —        —  
                           

Total

    $     514,227,762    $     237,080,453    $     14,690,390    $     765,998,605
                           

 

* 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:

 

     Corporates
Investment Grades		     Commercial Mortgage -
Backed Securities		    Corporates - Non
Investment Grades		     Governments -
Sovereign Bonds		  

Balance as of 11/30/08

    $ 353,576      $ —      $ —        $ 1,724,250   

Accrued discounts /premiums

      5,123        14,986      (88 )      (1,556 ) 

Realized gain (loss)

      —          —        —          —     

Change in unrealized appreciation/depreciation

      711,578        186,062      171,522        397,224   

Net purchases (sales)

      611,319        —        62,891        1,090,982   

Net transfers in and/or out of Level 3

      1,119,634        1,089,344      135,450        —     
                               

Balance as of 8/31/09

    $     2,801,230      $     1,290,392    $     369,775      $ 3,210,900   
                               

Net change in unrealized appreciation/depreciation from Investments held as of 8/31/09

    $ 711,578      $ 186,062    $ 171,522      $ 397,224   
                               
     Asset-Backed
Securities		     Quasi -
Sovereigns		    CMOs     Total  

Balance as of 11/30/08

    $ 5,025,609      $ 443,450    $ 652,257      $ 8,199,142   

Accrued discounts /premiums

      402        3,554      230        22,651   

Realized gain (loss)

      25        —        7,276        7,301   

Change in unrealized appreciation/depreciation

      (253,424 )      1,084,414      148,380        2,445,756   

Net purchases (sales)

      (668,926 )      —        (563,599 )      532,667   

Net transfers in and/or out of Level 3

      —          1,138,445      —          3,482,873   
                               

Balance as of 8/31/09

    $ 4,103,686      $ 2,669,863    $ 244,544      $     14,690,390   
                               

Net change in unrealized appreciation/depreciation from Investments held as of 8/31/09

    $ (253,424 )    $ 1,084,414    $ 148,380      $ 2,445,756   
                               

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 significant changes in the registrant’s internal control over financial reporting 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): AllianceBernstein Balanced Shares, Inc.

By:   /s/    Robert M. Keith
  Robert M. Keith
  President
Date:   October 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:   October 24, 2009
By:   /s/    Joseph J. Mantineo
  Joseph J. Mantineo
  Treasurer and Chief Financial Officer
Date:   October 24, 2009