AB Cap Fund, Inc.
AB Select US Equity Portfolio
Portfolio of Investments
September 30, 2020 (unaudited)
Company | Shares | U.S. $ Value | ||||||
COMMON STOCKS – 97.7% | ||||||||
Information Technology – 23.2% | ||||||||
IT Services – 3.2% | ||||||||
PayPal Holdings, Inc.(a) | 7,567 | $ | 1,490,926 | |||||
Visa, Inc. - Class A | 28,105 | 5,620,157 | ||||||
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7,111,083 | ||||||||
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| |||||||
Semiconductors & Semiconductor Equipment – 5.4% |
| |||||||
Broadcom, Inc. | 5,616 | 2,046,021 | ||||||
Intel Corp. | 34,394 | 1,780,922 | ||||||
NVIDIA Corp. | 3,660 | 1,980,865 | ||||||
QUALCOMM, Inc. | 19,679 | 2,315,825 | ||||||
Texas Instruments, Inc. | 27,885 | 3,981,699 | ||||||
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12,105,332 | ||||||||
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Software – 8.2% |
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Adobe, Inc.(a) | 3,893 | 1,909,244 | ||||||
Microsoft Corp. | 69,247 | 14,564,721 | ||||||
salesforce.com, Inc.(a) | 6,821 | 1,714,254 | ||||||
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18,188,219 | ||||||||
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Technology Hardware, Storage & Peripherals – 6.4% |
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Apple, Inc. | 121,845 | 14,110,869 | ||||||
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51,515,503 | ||||||||
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Health Care – 14.0% |
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Biotechnology – 0.6% |
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Vertex Pharmaceuticals, Inc.(a) | 4,585 | 1,247,670 | ||||||
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Health Care Equipment & Supplies – 4.6% |
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Abbott Laboratories | 33,689 | 3,666,374 | ||||||
Baxter International, Inc. | 33,815 | 2,719,402 | ||||||
Boston Scientific Corp.(a) | 46,806 | 1,788,457 | ||||||
Zimmer Biomet Holdings, Inc. | 15,939 | 2,169,936 | ||||||
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10,344,169 | ||||||||
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Health Care Providers & Services – 2.9% |
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Humana, Inc. | 3,773 | 1,561,607 | ||||||
Quest Diagnostics, Inc. | 8,878 | 1,016,442 | ||||||
UnitedHealth Group, Inc. | 12,079 | 3,765,870 | ||||||
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6,343,919 | ||||||||
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Pharmaceuticals – 5.9% |
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Eli Lilly & Co. | 18,022 | 2,667,617 | ||||||
Johnson & Johnson | 40,657 | 6,053,014 | ||||||
Merck & Co., Inc. | 53,195 | 4,412,525 | ||||||
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13,133,156 | ||||||||
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31,068,914 | ||||||||
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Communication Services – 13.2% |
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Diversified Telecommunication Services – 1.1% |
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Comcast Corp. - Class A | 51,445 | 2,379,846 | ||||||
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Entertainment – 4.8% |
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Activision Blizzard, Inc. | 81,294 | 6,580,749 |
1
Company | Shares | U.S. $ Value | ||||||
Netflix, Inc.(a) | 2,928 | $ | 1,464,088 | |||||
Vivendi SA | 43,053 | 1,202,422 | ||||||
Walt Disney Co. (The) | 12,019 | 1,491,317 | ||||||
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10,738,576 | ||||||||
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Interactive Media & Services – 6.2% |
| |||||||
Alphabet, Inc. - Class C(a) | 5,470 | 8,038,712 | ||||||
Facebook, Inc. - Class A(a) | 21,563 | 5,647,350 | ||||||
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13,686,062 | ||||||||
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Wireless Telecommunication Services – 1.1% |
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T-Mobile US, Inc.(a) | 22,042 | 2,520,723 | ||||||
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29,325,207 | ||||||||
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Financials – 11.7% |
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Banks – 5.6% | ||||||||
Bank of America Corp. | 127,528 | 3,072,149 | ||||||
JPMorgan Chase & Co. | 59,411 | 5,719,497 | ||||||
PNC Financial Services Group, Inc. (The) | 33,476 | 3,679,347 | ||||||
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12,470,993 | ||||||||
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Capital Markets – 3.3% | ||||||||
BlackRock, Inc. - Class A | 1,397 | 787,280 | ||||||
Charles Schwab Corp. (The) | 42,540 | 1,541,224 | ||||||
Goldman Sachs Group, Inc. (The) | 25,589 | 5,142,621 | ||||||
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7,471,125 | ||||||||
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Diversified Financial Services – 2.8% |
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Berkshire Hathaway, Inc. - Class B(a) | 29,070 | 6,190,166 | ||||||
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26,132,284 | ||||||||
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Industrials – 10.5% | ||||||||
Aerospace & Defense – 1.1% | ||||||||
Northrop Grumman Corp. | 7,746 | 2,443,785 | ||||||
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Construction & Engineering – 2.1% |
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Jacobs Engineering Group, Inc. | 51,218 | 4,751,494 | ||||||
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Industrial Conglomerates – 2.8% |
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Honeywell International, Inc. | 37,256 | 6,132,710 | ||||||
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Road & Rail – 4.5% |
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Norfolk Southern Corp. | 23,725 | 5,076,913 | ||||||
Union Pacific Corp. | 25,576 | 5,035,147 | ||||||
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10,112,060 | ||||||||
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23,440,049 | ||||||||
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Consumer Staples – 10.1% |
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Beverages – 1.7% |
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Coca-Cola Co. (The) | 76,016 | 3,752,910 | ||||||
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Food & Staples Retailing – 2.9% | ||||||||
Costco Wholesale Corp. | 4,106 | 1,457,630 | ||||||
Kroger Co. (The) | 46,653 | 1,582,003 | ||||||
Walmart, Inc. | 24,451 | 3,420,940 | ||||||
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6,460,573 | ||||||||
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2
Company | Shares | U.S. $ Value | ||||||
Food Products – 0.4% | ||||||||
General Mills, Inc. | 12,425 | $ | 766,374 | |||||
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Household Products – 4.3% | ||||||||
Procter & Gamble Co. (The) | 69,302 | 9,632,285 | ||||||
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Personal Products – 0.8% | ||||||||
Estee Lauder Cos., Inc. (The) - Class A | 8,012 | 1,748,619 | ||||||
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22,360,761 | ||||||||
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Consumer Discretionary – 9.3% | ||||||||
Hotels, Restaurants & Leisure – 0.8% | ||||||||
McDonald’s Corp. | 7,946 | 1,744,068 | ||||||
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Internet & Direct Marketing Retail – 5.2% | ||||||||
Alibaba Group Holding Ltd. (Sponsored ADR)(a) | 2,289 | 672,920 | ||||||
Amazon.com, Inc.(a) | 3,054 | 9,616,221 | ||||||
Booking Holdings, Inc.(a) | 738 | 1,262,482 | ||||||
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11,551,623 | ||||||||
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Multiline Retail – 0.5% | ||||||||
Target Corp. | 7,374 | 1,160,815 | ||||||
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Specialty Retail – 2.8% | ||||||||
Home Depot, Inc. (The) | 13,689 | 3,801,572 | ||||||
Lowe’s Cos., Inc. | 15,140 | 2,511,121 | ||||||
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6,312,693 | ||||||||
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20,769,199 | ||||||||
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Utilities – 3.3% | ||||||||
Electric Utilities – 3.3% | ||||||||
NextEra Energy, Inc. | 19,560 | 5,429,074 | ||||||
NRG Energy, Inc. | 63,044 | 1,937,972 | ||||||
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7,367,046 | ||||||||
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Energy – 1.5% | ||||||||
Oil, Gas & Consumable Fuels – 1.5% | ||||||||
Chevron Corp. | 32,557 | 2,344,104 | ||||||
EOG Resources, Inc. | 27,473 | 987,380 | ||||||
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3,331,484 | ||||||||
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Materials – 0.9% | ||||||||
Containers & Packaging – 0.9% | ||||||||
Berry Global Group, Inc.(a) | 39,837 | 1,924,924 | ||||||
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Total Common Stocks | 217,235,371 | |||||||
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PREFERRED STOCKS – 0.1% | ||||||||
Consumer Discretionary – 0.1% | ||||||||
Household Durables – 0.1% | ||||||||
Honest Co., Inc. (The) Series D 0.00% (a) (b) (c) | 4,005 | 126,499 | ||||||
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3
Company | Shares | U.S. $ Value | ||||||||||
SHORT-TERM INVESTMENTS – 2.1% | ||||||||||||
Investment Companies – 1.7% | ||||||||||||
AB Fixed Income Shares, Inc.- Government Money Market Portfolio - Class AB, 0.05%(d) (e) (f) | 3,761,207 | $ | 3,761,207 | |||||||||
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Principal Amount (000) | ||||||||||||
Time Deposits – 0.4% |
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BBH, Grand Cayman |
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(0.23)%, 10/01/2020 | JPY | 1,528 | 14,485 | |||||||||
0.01%, 10/01/2020 | GBP | 0 | * | 5 | ||||||||
0.03%, 10/01/2020 | CAD | 5 | 3,912 | |||||||||
Citibank, London (0.69)%, 10/01/2020 | EUR | 907 | 1,063,109 | |||||||||
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Total Time Deposits |
| 1,081,511 | ||||||||||
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Total Short-Term Investments |
| 4,842,718 | ||||||||||
|
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Total Investments – 99.9% |
| 222,204,588 | ||||||||||
Other assets less liabilities – 0.1% |
| 129,245 | ||||||||||
|
| |||||||||||
Net Assets – 100.0% |
| $ | 222,333,833 | |||||||||
|
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* | Principal amount less than 500. |
(a) | Non-income producing security. |
(b) | Fair valued by the Adviser. |
(c) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(d) | The rate shown represents the 7-day yield as of period end. |
(e) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
(f) | Affiliated investments. |
(g) | As of September 30, 2020, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $69,503,053 and gross unrealized depreciation of investments was $(1,016,253), resulting in net unrealized appreciation of $68,486,800. |
Currency Abbreviations:
CAD – Canadian Dollar
EUR – Euro
GBP – Great British Pound
JPY – Japanese Yen
Glossary:
ADR – American Depositary Receipt
4
AB Cap Fund, Inc.
AB Select US Equity Portfolio
September 30, 2020 (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. U.S GAAP 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 (including those valued based on their market values). 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) |
Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of September 30, 2020:
Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stocks: | ||||||||||||||||
Information Technology | $ | 51,515,503 | $ | -0- | $ | -0- | $ | 51,515,503 | ||||||||
Health Care | 31,068,914 | -0- | -0- | 31,068,914 | ||||||||||||
Communication Services | 28,122,785 | 1,202,422 | -0- | 29,325,207 | ||||||||||||
Financials | 26,132,284 | -0- | -0- | 26,132,284 | ||||||||||||
Industrials | 23,440,049 | -0- | -0- | 23,440,049 | ||||||||||||
Consumer Staples | 22,360,761 | -0- | -0- | 22,360,761 | ||||||||||||
Consumer Discretionary | 20,769,199 | -0- | -0- | 20,769,199 | ||||||||||||
Utilities | 7,367,046 | -0- | -0- | 7,367,046 | ||||||||||||
Energy | 3,331,484 | -0- | -0- | 3,331,484 | ||||||||||||
Materials | 1,924,924 | -0- | -0- | 1,924,924 | ||||||||||||
Preferred Stocks | -0- | -0- | 126,499 | 126,499 | ||||||||||||
Short-Term Investments: | ||||||||||||||||
Investment Companies | 3,761,207 | -0- | -0- | 3,761,207 | ||||||||||||
Time Deposits | -0- | 1,081,511 | -0- | 1,081,511 | ||||||||||||
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|
|
|
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|
|
| |||||||||
Total Investments in Securities | 219,794,156 | 2,283,933 | 126,499 | 222,204,588 | ||||||||||||
Other Financial Instruments* | -0- | -0- | -0- | -0- | ||||||||||||
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|
|
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|
|
| |||||||||
Total | $ | 219,794,156 | $ | 2,283,933 | $ | 126,499 | $ | 222,204,588 | ||||||||
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* | Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value. |
5
A summary of the Fund’s transactions in AB mutual funds for the three months ended September 30, 2020 is as follows:
Fund | Market Value 6/30/20 (000) | Purchases at Cost (000) | Sales Proceeds (000) | Market Value 9/30/20 (000) | Dividend Income (000) | |||||||||||||||
Government Money Market Portfolio | $ | 4,604 | $ | 18,612 | $ | 19,455 | $ | 3,761 | $ | 1 | ||||||||||
Government Money Market Portfolio* | -0- | -0- | -0- | -0- | 0 | ** | ||||||||||||||
Total | $ | 3,761 | $ | 1 |
* | Investment of cash collateral for securities lending transactions. |
** | Amount is less than $500. |
6