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, 2010

Date of reporting period: August 31, 2010

 

 

 

ITEM 1. SCHEDULE OF INVESTMENTS.

AllianceBernstein Balanced Shares Fund

Portfolio of Investments

August 31, 2010 (unaudited)

 

Company

    Shares      U.S. $ Value

COMMON STOCKS - 63.8%

        

Financials - 13.5%

        

Capital Markets - 3.0%

        

BlackRock, Inc. - Class A

    43,400      $ 6,160,630

Franklin Resources, Inc.

    32,950        3,180,005

Goldman Sachs Group, Inc. (The)

    28,750        3,937,025

SEI Investments Co.

    67,700        1,198,290

State Street Corp.

    97,930        3,435,384
           
          17,911,334
           

Commercial Banks - 1.3%

        

PNC Financial Services Group, Inc.

    112,635        5,739,880

Wells Fargo & Co.

    75,050        1,767,427
           
          7,507,307
           

Diversified Financial Services - 2.8%

        

Bank of America Corp.

    226,500        2,819,925

IntercontinentalExchange, Inc. (a)

    31,050        2,967,138

JPMorgan Chase & Co.

    299,150        10,877,094
           
          16,664,157
           

Insurance - 6.4%

        

ACE Ltd.

    188,150        10,060,380

Arch Capital Group Ltd. (a)

    42,900        3,423,420

Axis Capital Holdings Ltd.

    347,000        10,715,360

Loews Corp.

    83,395        2,930,500

RenaissanceRe Holdings Ltd.

    47,900        2,720,241

Transatlantic Holdings, Inc.

    32,250        1,537,358

Travelers Cos., Inc. (The)

    133,250        6,526,585
           
          37,913,844
           
          79,996,642
           

Health Care - 10.3%

        

Biotechnology - 2.5%

        

Amgen, Inc. (a)

    291,850        14,896,024
           

Health Care Providers & Services - 3.0%

        

AmerisourceBergen Corp. - Class A

    46,030        1,255,698

Cardinal Health, Inc.

    83,300        2,495,668

Medco Health Solutions, Inc. (a)

    59,335        2,579,886

Quest Diagnostics, Inc.

    29,390        1,278,465

UnitedHealth Group, Inc.

    318,900        10,115,508
           
          17,725,225
           

Life Sciences Tools & Services - 0.4%

        

Thermo Fisher Scientific, Inc. (a)

    62,350        2,626,182
           

Pharmaceuticals - 4.4%

        

Abbott Laboratories

    85,150        4,201,301

Eli Lilly & Co.

    82,100        2,755,276

Endo Pharmaceuticals Holdings, Inc. (a)

    50,790        1,379,964

Forest Laboratories, Inc. (a)

    195,750        5,342,018

Merck & Co., Inc.

    167,130        5,876,291

Pfizer, Inc.

    393,800        6,273,234
           
          25,828,084
           
          61,075,515
           

 

Industrials - 9.1%

        

Aerospace & Defense - 3.3%

        

Goodrich Corp.

    28,540      1,954,419

Honeywell International, Inc.

    182,700      7,141,743

ITT Corp.

    32,750      1,391,875

L-3 Communications Holdings, Inc.

    21,630      1,440,558

Raytheon Co.

    114,850      5,044,212

United Technologies Corp.

    40,580      2,646,222
         
        19,619,029
         

Commercial Services & Supplies - 0.2%

        

Cintas Corp.

    43,900      1,119,011
         

Construction & Engineering - 0.8%

        

Foster Wheeler AG (a)

    55,300      1,179,549

URS Corp. (a)

    95,350      3,401,134
         
        4,580,683
         

Electrical Equipment - 2.2%

        

AMETEK, Inc.

    82,800      3,559,572

Emerson Electric Co.

    137,600      6,419,040

Hubbell, Inc. - Class B

    70,320      3,162,994
         
        13,141,606
         

Machinery - 2.0%

        

Dover Corp.

    220,100      9,851,676

Joy Global, Inc.

    29,955      1,699,647

Valmont Industries, Inc.

    600      40,218
         
        11,591,541
         

Road & Rail - 0.6%

        

Norfolk Southern Corp.

    66,400      3,564,352
         
        53,616,222
         

Information Technology - 8.3%

        

Communications Equipment - 0.3%

        

Cisco Systems, Inc. (a)

    98,350      1,971,917
         

Computers & Peripherals - 1.6%

        

EMC Corp. (a)

    164,000      2,991,360

Hewlett-Packard Co.

    167,100      6,430,008
         
        9,421,368
         

Electronic Equipment, Instruments & Components - 0.3%

        

Arrow Electronics, Inc. (a)

    91,035      2,082,881
         

IT Services - 1.8%

        

Amdocs Ltd. (a)

    99,950      2,621,688

Hewitt Associates, Inc. - Class A (a)

    45,550      2,198,699

Teradata Corp. (a)

    100,300      3,283,822

VeriFone Systems, Inc. (a)

    96,493      2,333,201
         
        10,437,410
         

Semiconductors & Semiconductor Equipment - 1.6%

        

Intel Corp.

    303,600      5,379,792

KLA-Tencor Corp.

    46,900      1,313,669

Texas Instruments, Inc.

    128,660      2,963,040
         
        9,656,501
         

Software - 2.7%

        

Autodesk, Inc. (a)

    79,900      2,217,225

Intuit, Inc. (a)

    42,000      1,797,600

MICROS Systems, Inc. (a)

    56,600      2,156,460

Microsoft Corp.

    307,500      7,220,100

Oracle Corp.

    110,150      2,410,082
         
        15,801,467
         
        49,371,544
         

Energy - 8.1%

        

Energy Equipment & Services - 1.0%

        

Helmerich & Payne, Inc.

    96,100      3,559,544

Noble Corp.

    82,320      2,561,798
         
        6,121,342
         

Oil, Gas & Consumable Fuels - 7.1%

        

BP PLC (Sponsored ADR)

    267,200      9,306,576

Chevron Corp.

    204,380      15,156,821

Exxon Mobil Corp.

    236,810      14,009,680

Occidental Petroleum Corp.

    43,515      3,180,076
         
        41,653,153
         
        47,774,495
         

Consumer Discretionary - 6.0%

        

Media - 4.3%

        

Comcast Corp. - Class A

    639,715      10,951,921

Interpublic Group of Cos., Inc. (The) (a)

    257,000      2,192,210

News Corp. - Class A

    426,900      5,366,133

Time Warner, Inc.

    231,815      6,949,813
         
        25,460,077
         

Multiline Retail - 1.7%

        

Kohl’s Corp.(a)

    76,705      3,603,601

Target Corp.

    128,550      6,576,618
         
        10,180,219
         
        35,640,296
         

Telecommunication Services - 3.4%

        

Diversified Telecommunication Services - 3.4%

        

AT&T, Inc.

    378,050      10,218,691

Qwest Communications International, Inc.

    1,738,800      9,824,220
         
        20,042,911
         

Consumer Staples - 3.3%

        

Food Products - 0.7%

        

ConAgra Foods, Inc.

    119,315      2,576,011

General Mills, Inc.

    39,500      1,428,320
         
        4,004,331
         

Household Products - 0.4%

        

Kimberly-Clark Corp.

    36,600      2,357,040
         

Tobacco - 2.2%

        

Lorillard, Inc.

    97,730      7,428,457

Philip Morris International, Inc.

    113,000      5,812,720
         
        13,241,177
         
        19,602,548
         

Utilities - 1.2%

        

Gas Utilities - 0.6%

        

Energen Corp.

    81,900      3,495,492
         

Multi-Utilities - 0.6%

        

DTE Energy Co.

    80,400      3,766,740
         
        7,262,232
         

Materials - 0.6%

        

Chemicals - 0.6%

        

CF Industries Holdings, Inc.

    34,917      3,229,823
         

Total Common Stocks (cost $369,626,273)

         377,612,228
         
     Principal
Amount
(000)		       

CORPORATES - INVESTMENT GRADES - 12.5%

        

Industrial - 6.0%

        

Basic - 1.1%

        

Alcoa, Inc.

        

6.75%, 7/15/18

    265      285,101

Anglo American Capital PLC

        

9.375%, 4/08/19 (b)

    400      533,359

AngloGold Ashanti Holdings PLC

        

5.375%, 4/15/20

    345      360,415

ArcelorMittal

        

6.125%, 6/01/18

    325      344,805

ArcelorMittal USA, Inc.

        

6.50%, 4/15/14

    400      440,418

BHP Billiton Finance USA Ltd.

        

7.25%, 3/01/16

    564      678,567

Dow Chemical Co. (The)

        

7.375%, 11/01/29

    60      68,865

7.60%, 5/15/14

    185      215,638

8.55%, 5/15/19

    385      482,592

Eastman Chemical Co.

        

5.50%, 11/15/19

    133      147,357

International Paper Co.

        

5.30%, 4/01/15

    140      151,185

7.95%, 6/15/18

    490      593,660

PPG Industries, Inc.

        

5.75%, 3/15/13

    545      598,054

Rio Tinto Finance USA Ltd.

        

6.50%, 7/15/18

    695      822,617

Vale Inco Ltd.

        

7.75%, 5/15/12

    734      803,294
         
        6,525,927
         

Capital Goods - 0.5%

        

Holcim US Finance Sarl & Cie SCS

        

6.00%, 12/30/19 (b)

    61      65,974

Lafarge SA

        

6.15%, 7/15/11

    629      647,814

Owens Corning

    558      597,629

6.50%, 12/01/16

        

Republic Services, Inc.

        

5.25%, 11/15/21

    218      242,206

5.50%, 9/15/19

    328      368,187

Tyco International Finance SA

        

8.50%, 1/15/19

    280      374,044

Vulcan Materials Co.

        

5.60%, 11/30/12

    625      672,774
         
        2,968,628
         

Communications - Media - 0.9%

        

BSKYB Finance UK PLC

        

5.625%, 10/15/15 (b)

    480      547,130

CBS Corp.

        

8.875%, 5/15/19

    625      812,110

Comcast Cable Communications Holdings, Inc.

        

9.455%, 11/15/22

    440      618,406

DirecTV Holdings LLC / DirecTV Financing Co., Inc.

        

4.75%, 10/01/14

    240      259,248

News America Holdings, Inc.

        

9.25%, 2/01/13

    150      175,759

Reed Elsevier Capital, Inc.

        

8.625%, 1/15/19

    290      381,403

RR Donnelley & Sons Co.

        

5.50%, 5/15/15

    680      707,301

Time Warner Entertainment Co. LP

        

8.375%, 3/15/23

    725      948,509

WPP Finance UK

        

8.00%, 9/15/14

    630      741,189
         
        5,191,055
         

Communications - Telecommunications - 0.7%

        

America Movil SAB de CV

        

5.00%, 3/30/20

    600      653,851

American Tower Corp.

        

5.05%, 9/01/20

    430      433,672

British Telecommunications PLC

        

5.15%, 1/15/13

    625      662,709

Embarq Corp.

        

7.082%, 6/01/16

    644      702,086

Qwest Corp.

        

7.50%, 10/01/14

    625      696,094

7.875%, 9/01/11

    85      89,781

Telecom Italia Capital SA

        

6.175%, 6/18/14

    545      597,510

Telus Corp.

        

8.00%, 6/01/11

    164      172,355
         
        4,008,058
         

Consumer Cyclical - Automotive - 0.3%

        

Daimler Finance North America LLC

        

5.75%, 9/08/11

    240      251,169

7.30%, 1/15/12

    211      227,089

7.75%, 1/18/11

    79      81,010

Harley-Davidson Funding Corp.

        

5.75%, 12/15/14 (b)

    418      439,930

Nissan Motor Acceptance Corp.

        

4.50%, 1/30/15 (b)

    456      484,405

Volvo Treasury AB

        

5.95%, 4/01/15 (b)

    497      537,999
         
        2,021,602
         

Consumer Cyclical - Entertainment - 0.2%

        

Time Warner, Inc.

        

7.625%, 4/15/31

    600      747,852

Viacom, Inc.

        

5.625%, 9/15/19

    535      616,615
         
        1,364,467
         

Consumer Cyclical - Retailers - 0.1%

        

CVS Caremark Corp.

        

6.60%, 3/15/19

    255      306,000
         

Consumer Non-Cyclical - 0.6%

        

Ahold Finance USA LLC

        

6.875%, 5/01/29

    535      654,270

Altria Group, Inc.

        

9.70%, 11/10/18

    365      482,807

Baxter FinCo BV

        

4.75%, 10/15/10

    400      402,044

Bunge Ltd. Finance Corp.

        

5.875%, 5/15/13

    415      445,339

Cadbury Schweppes US Finance LLC

        

5.125%, 10/01/13 (b)

    590      646,752

Delhaize Group SA

        

5.875%, 2/01/14

    150      169,345

Fortune Brands, Inc.

        

3.00%, 6/01/12

    305      309,224

4.875%, 12/01/13

    355      382,301

Newell Rubbermaid, Inc.

        

5.50%, 4/15/13

    200      216,626

Whirlpool Corp.

        

8.60%, 5/01/14

    75      89,913
         
        3,798,621
         

Energy - 0.8%

        

Anadarko Petroleum Corp.

        

5.95%, 9/15/16

    540      534,814

6.45%, 9/15/36

    190      164,792

Baker Hughes, Inc.

        

6.50%, 11/15/13

    300      344,560

BP Capital Markets PLC

        

4.75%, 3/10/19

    80      78,486

Hess Corp.

        

8.125%, 2/15/19

    195      254,147

Marathon Oil Corp.

        

7.50%, 2/15/19

    177      224,947

Nabors Industries, Inc.

        

9.25%, 1/15/19

    635      817,615

Noble Energy, Inc.

        

8.25%, 3/01/19

    430      556,558

Noble Holding International Ltd.

    41      43,824

4.90%, 8/01/20

        

Valero Energy Corp.

        

6.125%, 2/01/20

    452      493,138

6.875%, 4/15/12

    65      69,999

Weatherford International Ltd.

        

5.15%, 3/15/13

    325      347,985

9.625%, 3/01/19

    280      367,372

Williams Cos., Inc. (The)

        

7.875%, 9/01/21

    273      331,544
         
        4,629,781
         

Other Industrial - 0.1%

        

Noble Group Ltd.

        

6.75%, 1/29/20 (b)

    635      668,338
         

Technology - 0.4%

        

Agilent Technologies, Inc.

        

5.00%, 7/15/20

    81      85,986

Computer Sciences Corp.

        

5.50%, 3/15/13

    465      506,554

Motorola, Inc.

        

6.50%, 9/01/25

    535      592,104

7.50%, 5/15/25

    90      107,076

Xerox Corp.

        

8.25%, 5/15/14

    630      754,976
         
        2,046,696
         

Transportation - Airlines - 0.1%

        

Southwest Airlines Co.

        

5.25%, 10/01/14

    627      677,251
         

Transportation - Railroads - 0.1%

        

CSX Corp.

        

5.50%, 8/01/13

    280      310,128
         

Transportation - Services - 0.1%

        

Con-way, Inc.

        

6.70%, 5/01/34

    404      392,759

Ryder System, Inc.

        

5.85%, 11/01/16

    164      183,451

7.20%, 9/01/15

    147      172,899
         
        749,109
         
        35,265,661
         

Financial Institutions - 5.0%

        

Banking - 2.3%

        

American Express Co.

        

7.25%, 5/20/14

    270      314,036

8.125%, 5/20/19

    425      546,865

Bank of America Corp.

        

5.625%, 7/01/20

    920      947,802

BankAmerica Capital II Series 2

        

8.00%, 12/15/26

    559      569,481

Bear Stearns Cos. LLC (The)

        

5.55%, 1/22/17

    1,020      1,096,719

Citigroup, Inc.

        

5.50%, 4/11/13

    575      610,497

8.50%, 5/22/19

    675      825,375

Countrywide Financial Corp.

        

6.25%, 5/15/16

    493      528,583

Goldman Sachs Group, Inc. (The)

        

6.00%, 6/15/20

    475      511,681

7.50%, 2/15/19

    400      466,467

JPMorgan Chase & Co.

        

4.40%, 7/22/20

    450      456,150

Lloyds TSB Bank PLC

        

4.375%, 1/12/15 (b)

    690      708,809

Macquarie Group Ltd.

        

4.875%, 8/10/17 (b)

    540      546,542

Morgan Stanley

        

5.50%, 7/24/20

    330      332,466

6.625%, 4/01/18

    390      428,577

National Australia Bank Ltd.

        

3.75%, 3/02/15 (b)

    555      584,554

Nationwide Building Society

        

6.25%, 2/25/20 (b)

    605      669,759

PNC Funding Corp.

        

5.125%, 2/08/20

    810      874,083

Sovereign Bank

        

5.125%, 3/15/13

    785      812,630

Union Bank NA

        

5.95%, 5/11/16

    405      437,922

Wachovia Corp.

        

5.50%, 5/01/13

    820      900,192

Wells Fargo & Co.

        

5.625%, 12/11/17

    335      378,320
         
        13,547,510
         

Brokerage - 0.0%

        

Jefferies Group, Inc.

        

6.875%, 4/15/21

    211      224,088
         

Finance - 0.5%

        

General Electric Capital Corp.

        

4.80%, 5/01/13

    840      906,237

5.625%, 5/01/18

    710      782,834

HSBC Finance Corp.

        

7.00%, 5/15/12

    365      394,121

SLM Corp. Series A

        

5.375%, 1/15/13

    815      799,172
         
        2,882,364
         

Insurance - 1.7%

        

Aetna, Inc.

        

6.00%, 6/15/16

    190      220,302

Aflac, Inc.

        

3.45%, 8/15/15

    85      87,393

Allied World Assurance Co. Holdings Ltd.

        

7.50%, 8/01/16

    165      185,957

Assurant, Inc.

        

5.625%, 2/15/14

    245      261,374

CIGNA Corp.

        

5.125%, 6/15/20

    205      221,681

CNA Financial Corp.

        

5.85%, 12/15/14

    340      361,609

Coventry Health Care, Inc.

        

5.95%, 3/15/17

    130      130,094

6.125%, 1/15/15

    55      57,200

6.30%, 8/15/14

    415      442,563

Genworth Financial, Inc.

        

6.515%, 5/22/18

    590      590,296

Guardian Life Insurance Co. of America

        

7.375%, 9/30/39 (b)

    315      381,021

Hartford Financial Services Group, Inc.

        

4.00%, 3/30/15

    120      122,012

5.50%, 3/30/20

    555      558,553

Humana, Inc.

        

6.30%, 8/01/18

    90      97,998

6.45%, 6/01/16

    65      71,987

7.20%, 6/15/18

    430      492,582

Liberty Mutual Group, Inc.

        

5.75%, 3/15/14 (b)

    519      544,343

Lincoln National Corp.

        

8.75%, 7/01/19

    172      219,618

Markel Corp.

        

7.125%, 9/30/19

    261      299,430

Massachusetts Mutual Life Insurance Co.

        

8.875%, 6/01/39 (b)

    345      489,964

Metlife Capital Trust IV

        

7.875%, 12/15/37 (b)

    260      263,900

MetLife, Inc.

        

4.75%, 2/08/21

    115      120,245

7.717%, 2/15/19

    158      198,086

Nationwide Mutual Insurance Co.

        

5.81%, 12/15/24 (b)

    743      642,121

Principal Financial Group, Inc.

        

7.875%, 5/15/14

    490      579,782

Prudential Financial, Inc.

        

5.15%, 1/15/13

    520      556,067

8.875%, 6/15/38

    250      272,500

UnitedHealth Group, Inc.

        

5.25%, 3/15/11

    635      649,172

WellPoint, Inc.

        

5.25%, 1/15/16

    425      476,034

XL Capital Ltd.

        

5.25%, 9/15/14

    68      72,228

ZFS Finance USA Trust I

        

6.15%, 12/15/65 (b)

    500      482,500
         
        10,148,612
         

Other Finance - 0.1%

        

ORIX Corp.

        

4.71%, 4/27/15

    544      558,101
         

REITS - 0.4%

        

ERP Operating LP

        

5.25%, 9/15/14

    725      800,609

HCP, Inc.

        

5.95%, 9/15/11

    660      684,273

Simon Property Group LP

        

4.375%, 3/01/21

    560      565,855
         
        2,050,737
         
        29,411,412
         

Utility - 1.1%

        

Electric - 0.8%

        

Allegheny Energy Supply Co. LLC

        

5.75%, 10/15/19 (b)

    640      661,549

Ameren Corp.

        

8.875%, 5/15/14

    335      388,853

FirstEnergy Corp.

        

Series B

        

6.45%, 11/15/11

    46      48,309

Series C

        

7.375%, 11/15/31

    395      437,577

FPL Group Capital, Inc.

        

6.65%, 6/15/67

    700      665,000

Nisource Finance Corp.

        

6.80%, 1/15/19

    665      783,561

SPI Electricity & Gas Australia Holdings Pty Ltd.

        

6.15%, 11/15/13 (b)

    1,200      1,287,616

Teco Finance, Inc.

        

4.00%, 3/15/16

    135      141,196

5.15%, 3/15/20

    160      174,742

Union Electric Co.

        

6.70%, 2/01/19

    60      73,008
         
        4,661,411
         

Natural Gas - 0.2%

        

DCP Midstream LLC

        

5.35%, 3/15/20 (b)

    181      195,307

EQT Corp.

        

8.125%, 6/01/19

    266      326,837

TransCanada PipeLines Ltd.

        

6.35%, 5/15/67

    730      666,300

Williams Partners LP

        

5.25%, 3/15/20

    293      316,267
         
        1,504,711
         

Other Utility - 0.1%

        

Veolia Environnement

        

6.00%, 6/01/18

    555      639,212
         
        6,805,334
         

Non Corporate Sectors - 0.4%

        

Agencies - Not Government Guaranteed - 0.4%

        

Gaz Capital SA for Gazprom

        

6.212%, 11/22/16 (b)

    830      869,425

Petrobras International Finance Co.

        

5.75%, 1/20/20

    960      1,029,002

TransCapitalInvest Ltd. for OJSC AK Transneft

        

8.70%, 8/07/18 (b)

    505      623,675

 

         
        2,522,102
         

Total Corporates - Investment Grades
(cost $67,619,339)

         74,004,509
         

MORTGAGE PASS-THRU’S - 6.8%

        

Agency Fixed Rate 30-Year - 6.4%

        

Federal Home Loan Mortgage Corp. Gold

        

Series 2005

        

4.50%, 10/01/35

    2,764      2,921,438

5.50%, 1/01/35

    3,238      3,485,583

Series 2008

        

6.50%, 5/01/35

    748      828,486

Federal National Mortgage Association

        

5.50%, TBA

    4,005      4,282,222

6.00%, 10/01/37-1/01/38

    3,975      4,287,064

Series 2004

        

6.00%, 11/01/34

    2,030      2,215,649

Series 2006

        

5.00%, 2/01/36

    4,165      4,446,769

Series 2007

        

4.50%, 1/01/36

    2,734      2,896,433

Series 2008

        

5.50%, 8/01/37

    7,924      8,526,620

6.00%, 3/01/37

    3,492      3,784,923
         
        37,675,187
         

Agency ARMs - 0.4%

        

Federal Home Loan Mortgage Corp.

        

Series 2006

        

5.934%, 1/01/37 (c)

    204      216,084

6.15%, 12/01/36 (c)

    166      175,788

Series 2007

        

5.996%, 2/01/37 (c)

    235      247,156

6.069%, 1/01/37 (c)

    122      129,620

Series 2009

        

3.481%, 4/01/36 (d)

    1,130      1,187,413

Federal National Mortgage Association

        

Series 2007

        

4.289%, 8/01/37 (c)

    415      438,769

5.949%, 2/01/37 (c)

    199      209,358
         
        2,604,188
         

Total Mortgage Pass-Thru’s
(cost $38,434,715)

         40,279,375
         

GOVERNMENTS - TREASURIES - 6.1%

        

United States - 6.1%

        

U.S. Treasury Bonds

        

4.50%, 2/15/36

    4,760      5,616,800

4.625%, 2/15/40

    1,030      1,235,679

U.S. Treasury Notes

        

2.125%, 5/31/15

    6,770      7,039,243

2.50%, 3/31/15

    14,990      15,847,278

3.625%, 2/15/20

    5,770      6,350,156

 

         

Total Governments - Treasuries
(cost $33,711,305)

         36,089,156
         

COMMERCIAL MORTGAGE-BACKED SECURITIES - 3.4%

        

Non-Agency Fixed Rate CMBS - 3.4%

        

Banc of America Commercial Mortgage, Inc.

        

Series 2007-5, Class A4

        

5.492%, 2/10/51

      1,510      1,567,110

Commercial Mortgage Pass Through Certificates

        

Series 2006-C8, Class A4

        

5.306%, 12/10/46

      1,230      1,266,953

Greenwich Capital Commercial Funding Corp.

        

Series 2005-GG5, Class AJ

        

5.476%, 4/10/37

      360      296,076

Series 2007-GG11, Class A4

        

5.736%, 12/10/49

      1,300      1,344,935

Series 2007-GG9, Class A4

        

5.444%, 3/10/39

      1,070      1,120,702

JP Morgan Chase Commercial Mortgage

        

Securities Corp.

        

Series 2006-CB16, Class A4

        

5.552%, 5/12/45

      1,220      1,309,598

Series 2007-C1, Class A4

        

5.716%, 2/15/51

      1,720      1,790,798

Series 2007-CB18, Class A4

        

5.44%, 6/12/47

      1,735      1,816,366

Series 2007-LD11, Class A4

        

6.006%, 6/15/49

      1,735      1,776,620

LB-UBS Commercial Mortgage Trust

        

Series 2006-C7, Class A3

        

5.347%, 11/15/38

      1,020      1,081,501

Series 2007-C1, Class A4

        

5.424%, 2/15/40

      1,700      1,784,246

Merrill Lynch/Countrywide Commercial Mortgage Trust

        

Series 2006-3, Class A4

        

5.414%, 7/12/46

      1,805      1,910,507

Series 2006-4, Class AM

        

5.204%, 12/12/49

      435      378,015

Wachovia Bank Commercial Mortgage Trust

        

Series 2007-C31, Class A4

        

5.509%, 4/15/47

      1,730      1,711,267

Series 2007-C32, Class A3

        

5.933%, 6/15/49

      693      689,763
         

Total Commercial Mortgage-Backed Securities
(cost $18,132,341)

         19,844,457
         

CORPORATES - NON-INVESTMENT GRADES - 1.5%

        

Industrial - 0.9%

        

Basic - 0.1%

        

Steel Capital SA for OAO Severstal

        

9.75%, 7/29/13 (b)

      315      342,563

United States Steel Corp.

        

5.65%, 6/01/13

      414      430,042
         
        772,605
         

Capital Goods - 0.1%

        

Case New Holland, Inc.

        

7.875%, 12/01/17 (b)

      166      174,715

Textron Financial Corp.

        

5.40%, 4/28/13

      103      107,787
         
        282,502
         

Communications - Media - 0.2%

        

CCO Holdings LLC / CCO Holdings Capital Corp.

        

7.875%, 4/30/18 (b)

      77      79,695

8.125%, 4/30/20 (b)

      26      27,365

Clear Channel Communications, Inc.

        

5.50%, 9/15/14

      840      518,700

CSC Holdings LLC

        

8.50%, 4/15/14

      245      267,663

Interpublic Group of Cos., Inc. (The)

        

6.25%, 11/15/14

      209      217,360

Univision Communications, Inc.

        

12.00%, 7/01/14 (b)

      63      68,276
         
        1,179,059
         

Communications - Telecommunications - 0.0%

        

Windstream Corp.

        

7.875%, 11/01/17

      170      172,550
         

Consumer Cyclical - Automotive - 0.1%

        

Ford Motor Co.

        

7.45%, 7/16/31

      220      214,500

Goodyear Tire & Rubber Co. (The)

        

9.00%, 7/01/15

      250      261,875
         
        476,375
         

Consumer Cyclical - Other - 0.1%

        

Wyndham Worldwide Corp.

        

6.00%, 12/01/16

      428      436,795
         

Consumer Cyclical - Retailers - 0.1%

        

JC Penney Co., Inc.

        

5.65%, 6/01/20

      435      439,350
         

Consumer Non-Cyclical - 0.2%

        

Bausch & Lomb, Inc.

        

9.875%, 11/01/15

      235      243,812

HCA, Inc.

        

7.875%, 2/15/20

      185      199,337

8.50%, 4/15/19

      65      71,256

Mylan, Inc.

        

7.625%, 7/15/17 (b)

      35      36,138

7.875%, 7/15/20 (b)

      185      192,863

Universal Health Services, Inc.

        

7.125%, 6/30/16

      410      438,163
         
        1,181,569
         

Energy - 0.0%

        

Tesoro Corp.

        

6.50%, 6/01/17

      285      274,312
         
        5,215,117
         

 

Financial Institutions - 0.4%

        

Banking - 0.2%

        

RBS Capital Trust III

        

5.512%, 9/30/14

    1,100      646,250

Regions Financial Corp.

        

6.375%, 5/15/12

    210      213,034
         
        859,284
         

Brokerage - 0.0%

        

Lehman Brothers Holdings, Inc.

        

7.875%, 11/01/09 (e)

    845      177,450
         

Insurance - 0.2%

        

ING Capital Funding TR III

        

8.439%, 12/31/10

    555      527,250

Liberty Mutual Group, Inc.

        

7.80%, 3/15/37 (b)

    520      457,600

XL Capital Ltd. Series E

        

6.50%, 4/15/17

    355      267,599
         
        1,252,449
         
        2,289,183
         

Utility - 0.2%

        

Electric - 0.2%

        

AES Corp. (The)

        

7.75%, 3/01/14-10/15/15

    250      261,563

CMS Energy Corp.

        

8.75%, 6/15/19

    205      240,283

Dynegy Holdings, Inc.

        

8.375%, 5/01/16

    395      295,262

Edison Mission Energy

        

7.00%, 5/15/17

    280      191,100

NRG Energy, Inc.

        

7.25%, 2/01/14

    365      372,300

RRI Energy, Inc.

        

7.625%, 6/15/14

    145      142,463
         
        1,502,971
         

Total Corporates - Non-Investment Grades
(cost $10,458,413)

         9,007,271
         

AGENCIES - 0.8%

        

Agency Debentures - 0.8%

        

Federal National Mortgage Association
6.25%, 5/15/29
(cost $4,279,757)

    3,706      4,898,532
         

ASSET-BACKED SECURITIES - 0.7%

        

Home Equity Loans - Floating Rate - 0.5%

        

HSBC Home Equity Loan Trust

        

Series 2007-1, Class M1

        

0.646%, 3/20/36 (c)

    2,680      1,450,749

Indymac Residential Asset Backed Trust

        

Series 2006-D, Class 2A2

        

0.374%, 11/25/36 (c)

    1,033      723,968

Newcastle Mortgage Securities Trust

        

Series 2007-1, Class 2A1

        

0.394%, 4/25/37 (c)

    1,276      922,947

Option One Mortgage Loan Trust

        

Series 2007-2, Class M1

        

0.624%, 3/25/37 (c)(f)

    930      10,377
         
        3,108,041
         

Credit Cards - Floating Rate - 0.2%

        

Discover Card Master Trust

        

Series 2009-A1, Class A1

        

1.576%, 12/15/14 (c)

    265      269,382

Series 2009-A2, Class A

        

1.576%, 2/17/15 (c)

    230      234,066

Series 2010-A1, Class A1

        

0.926%, 9/15/15 (c)

    244      245,397

MBNA Credit Card Master Note Trust

        

Series 2006-A2, Class A2

        

0.336%, 6/15/15 (c)

    240      238,591
         
        987,436
         

Other ABS - Floating Rate - 0.0%

        

Petra CRE CDO Ltd.

        

Series 2007-1A, Class C

        

1.364%, 2/25/47 (c)(g)

    795      3,975
         

Total Asset-Backed Securities
(cost $7,681,494)

         4,099,452
         

GOVERNMENTS - SOVEREIGN BONDS - 0.5%

        

Brazil - 0.1%

        

Republic of Brazil

        

8.25%, 1/20/34

    405      579,150
         

Croatia - 0.1%

        

Republic of Croatia

        

6.75%, 11/05/19 (b)

    630      703,920
         

Peru - 0.2%

        

Republic of Peru

        

8.75%, 11/21/33

    839      1,245,915
         

Poland - 0.1%

        

Republic of Poland

        

3.875%, 7/16/15

    427      439,810

6.375%, 7/15/19

    100      117,300
         
        557,110
         

Total Governments - Sovereign Bonds
(cost $2,645,655)

         3,086,095
         

 

Company

      Shares        U.S. $ Value  

PREFERRED STOCKS - 0.5%

          

Industrial - 0.2%

          

Communications - Telecommunications - 0.2%

          

Centaur Funding Corp.

          

9.08% (b)

        1,200         $ 1,303,875   
               

Utility - 0.2%

          

Other Utility - 0.2%

          

DTE Energy Trust I

          

7.80%

        45,000           1,175,850   
               

Financial Institutions - 0.1%

          

Finance - 0.1%

          

Citigroup Capital XII

          

8.50%

        9,000           236,250   
               

Non Corporate Sectors - 0.0%

          

Agencies-Government Sponsored - 0.0%

          

Federal Home Loan Mortgage Corp.

          

Series Z

          

8.375%

        18,050           5,957   

Federal National Mortgage Association

          

8.25%

        26,650           9,194   
               
            15,151   
               

Total Preferred Stocks
(cost $3,914,590)

             2,731,126   
               
      
 
 		 Principal
Amount
(000)		   
  
  		     

INFLATION-LINKED SECURITIES - 0.4%

          

United States - 0.4%

          

U.S. Treasury Inflation Index
3.00%, 7/15/12 (TIPS)
(cost $2,145,467)

        2,073           2,197,900   
               

CMOs - 0.3%

          

Agency Floating Rate - 0.3%

          

Fannie Mae REMICs

          

Series 2006-46, Class CF

          

0.684%, 6/25/36 (c)

        638           637,420   

Series 2006-42, Class JF

          

0.774%, 6/25/36 (c)

        529           529,403   

Series 2005-83, Class KT

          

0.564%, 10/25/35 (c)

        641           639,311   
               
            1,806,134   
               

Non-Agency Floating Rate - 0.0%

          

Countrywide Alternative Loan Trust

          

Series 2007-OA3, Class M1

          

0.574%, 4/25/47 (c)(f)

        780           2,279   
               

Total CMOs
(cost $2,574,413)

             1,808,413   
               

QUASI-SOVEREIGNS - 0.3%

        

Quasi-Sovereign Bonds - 0.3%

        

Kazakhstan - 0.1%

        

KazMunaiGaz Finance Sub BV (b)

    301        322,070   
             

Malaysia - 0.1%

        

Petronas Capital Ltd. (b)

    605        680,285   
             

Russia - 0.1%

        

RSHB Capital SA for OJSC Russian Agricultural Bank (b)

    655        679,563   
             

Total Quasi-Sovereigns
(cost $1,543,526)

           1,681,918   
             

LOCAL GOVERNMENTS - MUNICIPAL BONDS - 0.1%

        

California - 0.1%

        

State of California
7.625%, 3/01/40
(cost $582,006)

    570        651,407   
             

EMERGING MARKETS - CORPORATE BONDS - 0.0%

        

Industrial - 0.0%

        

Energy - 0.0%

        

Ecopetrol SA
7.625%, 7/23/19
(cost $217,280)

    218        259,965   
             
     Shares         

SHORT-TERM INVESTMENTS - 2.9%

        

Investment Companies - 2.9%

        

AllianceBernstein Fixed-Income Shares,
Inc.- Government STIF Portfolio
0.19% (h) (cost $17,197,961)

    17,197,961        17,197,961   
             

Total Investments - 100.6%
(cost $580,764,535) (i)

           595,449,765   

Other Assets - (0.6)%

           (3,711,247 ) 
             

Net Assets - 100.0%

         $ 591,738,518   
             

 

(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, 2010, the aggregate market value of these securities amounted to $17,943,899 or 3.0% of net assets.
(c) Floating Rate Security. Stated interest rate was in effect at August 31, 2010.
(d) Variable rate coupon, rate shown as of August 31, 2010.
(e) Security is in default and is non-income producing.
(f) Illiquid security.
(g) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.00% of net assets as of August 31, 2010, are considered illiquid and restricted.

Restricted Securities

    Acquisition
Date		    Cost    Market
Value		    Percentage of
Net Assets		  

Petra CRE CDO Ltd.

            

Series 2007-1A, Class C

           

1.364%, 2/25/47

    5/25/07    $ 776,987    $ 3,975    0.00 % 

 

(h) Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end.
(i) As of August 31, 2010, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $43,785,077 and gross unrealized depreciation of investments was $(29,099,847), resulting in net unrealized appreciation of $14,685,230.

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, 2010, the fund’s total exposure to subprime investments was 0.53% 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
CDO    -    Collateralized Debt Obligations
CMBS    -    Commercial Mortgage-Backed Securities
CMOs    -    Collateralized Mortgage Obligations
OJSC    -    Open Joint Stock Company
REIT    -    Real Estate Investment Trust
REMICs    -    Real Estate Mortgage Investment Conduits
TIPS    -    Treasury Inflation Protected Security

AllianceBernstein Balanced Shares Fund

August 31, 2010 (unaudited)

In accordance with U.S. GAAP regarding fair value measurements, 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. The U.S. GAAP disclosure requirements establish 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 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, 2010:

 

Investments in Securities

    Level 1    Level 2    Level 3    Total

Common Stocks

    $     377,612,228    $ —      $ —      $     377,612,228

Corporates - Investment Grades

      —        74,004,509      —        74,004,509

Mortgage Pass-Thru’s

      —        40,279,375      —        40,279,375

Governments - Treasuries

      —        36,089,156      —        36,089,156

Commercial Mortgage-Backed Securities

      —        12,007,692      7,836,765      19,844,457

Corporates - Non-Investment Grades

      —        9,007,271      —        9,007,271

Agencies

      —        4,898,532      —        4,898,532

Asset-Backed Securities

      —        987,436      3,112,016      4,099,452

Governments - Sovereign Bonds

      —        3,086,095      —        3,086,095

Preferred Stocks

      2,731,126      —        —        2,731,126

Inflation-Linked Securities

      —        2,197,900      —        2,197,900

CMOs

      —        1,806,134      2,279      1,808,413

Quasi-Sovereigns

      —        1,681,918      —        1,681,918

Local Governments - Municipal Bonds

      —        651,407      —        651,407

Emerging Markets - Corporate Bonds

      —        259,965      —        259,965

Short-Term Investments

      17,197,961      —        —        17,197,961
                           

Total Investments in Securities

      397,541,315      186,957,390      10,951,060      595,449,765

Other Financial Instruments*

      —        —        —        —  
                           

Total

    $ 397,541,315    $     186,957,390    $     10,951,060    $ 595,449,765
                           

 

* 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		    Asset-Backed
Securities		  

Balance as of 11/30/09

    $ 2,690,163      $  3,825,123    $ 3,664,821   

Accrued discounts /premiums

      51        75,906      394   

Realized gain (loss)

      40,547        —        (969,515 ) 

Change in unrealized appreciation/depreciation

      (39,577 )      1,314,252      2,157,406   

Net purchases (sales)

      (415,331 )      —        (1,741,090 ) 

Transfers into Level 3

      —          2,621,484      —     

Transfers out of Level 3

      (2,275,853 )      —        —     
                       

Balance as of 8/31/10

    $  —        $ 7,836,765    $ 3,112,016   
                       

Net change in unrealized appreciation/depreciation from Investments held as of 8/31/10

    $ —        $ 1,314,254    $ 640,860   
                       

 

     Governments -
Sovereign Bonds		     CMOs     Quasi-Sovereigns  

Balance as of 11/30/09

    $ 2,427,500      $ 58,316      $ 2,486,000   

Accrued discounts /premiums

      —          22        —     

Realized gain (loss)

      —          706        95,275   

Change in unrealized appreciation/depreciation

      —          (789 )      (96,200 ) 

Net purchases (sales)

      —          (55,976 )      (1,135,275 ) 

Transfers into Level 3

      —          —          —     

Transfers out of Level 3

      (2,427,500 )      —          (1,349,800 ) 
                        

Balance as of 8/31/10

    $ —        $ 2,279      $ —     
                        

Net change in unrealized appreciation/depreciation from Investments held as of 8/31/10

    $ —        $ (642 )    $ —     
                        
     Emerging Markets -
Corporate Bonds		     Total        

Balance as of 11/30/09

    $ 317,772      $ 15,469,695     

Accrued discounts /premiums

      —          76,373     

Realized gain (loss)

      —          (832,987 )   

Change in unrealized appreciation/depreciation

      —          3,335,092     

Net purchases (sales)

      —          (3,347,672 )   

Transfers into Level 3

      —          2,621,484     

Transfers out of Level 3

      (317,772 )      (6,370,925 )   
                  

Balance as of 8/31/10

    $ —        $ 10,951,060     
                  

Net change in unrealized appreciation/depreciation from Investments held as of 8/31/10

    $ —        $ 1,954,472     
                  

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 25, 2010

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 25, 2010

 

By:   /s/    Joseph J. Mantineo
  Joseph J. Mantineo
  Treasurer and Chief Financial Officer
Date:   October 25, 2010