UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-21034
SANFORD C. BERNSTEIN FUND II, INC.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
Mark R. Manley
Alliance Capital Management 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: September 30, 2004
Date of reporting period: September 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
- --------------------------------------------------------------------------------
SANFORD C. BERNSTEIN FUND, INC.
AND
SANFORD C. BERNSTEIN FUND II, INC.
- --------------------------------------------------------------------------------
ANNUAL REPORT
SEPTEMBER 30, 2004
Fixed-Income
- ---------------&-----------------------
International Equity
Investments
================================================================================
Table of Contents
To Our Shareholders ....................................................... 1
Portfolio Returns ......................................................... 2
Statements of Assets and Liabilities ...................................... 10
Statements of Operations .................................................. 18
Statements of Changes in Net Assets ....................................... 22
Financial Highlights ...................................................... 30
Notes to Financial Statements ............................................. 44
Directors and Officers .................................................... 69
- --------------------------------------------------------------------------------
This publication is intended to be accompanied or preceded by a prospectus of
the Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.,
which should be read carefully before investing. Before investing in any
portfolio of the Sanford C. Bernstein Fund, Inc. or the Sanford C. Bernstein
Fund II, Inc., a prospective investor should consider carefully the portfolio's
investment objectives and policies, charges, expenses and risks. These and other
matters of importance to prospective investors are contained in the Funds'
prospectus, an additional copy of which may be obtained by visiting our website
at www.bernstein.com and clicking on "Prospectuses" at the bottom of any screen
by calling your financial advisor or by calling Bernstein's mutual fund
shareholder helpline at (212)756-4097. Please read the prospectus carefully
before investing.
All the performance returns quoted herein represent past performance and do not
guarantee future results. The investment return and principal value of an
investment in the portfolios will fluctuate, so that shares, when redeemed, may
be worth more or less than their original cost. Certain Emerging Markets
portfolio performance data presented herein does not reflect the deduction of
purchase and redemption fees, which, when reflected as shown herein, reduces
such before-fees performance quoted. Performance information is as of the date
shown, and current performance may be lower or higher than the performance
returns quoted. For performance information current to the most recent
month-end, please visit our website at www.bernstein.com and click on "Updated
Fund Performance" at the bottom of any screen.
- --------------------------------------------------------------------------------
You may obtain a description of the Funds' proxy voting policies and procedures,
without charge. Simply visit Bernstein's website at www.bernstein.com, or go to
the Securities and Exchange Commission's (the "Commission") website at
www.sec.gov, or call Bernstein at (212) 756-4097.
Beginning in February 2005, the Funds will file their complete schedule of
portfolio holdings with the Commission for the first and third quarters of each
fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Commission's
website at www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at
the Commission's Public Reference Room in Washington, D.C.; information on the
operation of the Public Reference Room may be obtained by calling (800)
SEC-0330. Bernstein publishes full portfolio holdings for the Funds monthly at
www.bernstein.com.
- --------------------------------------------------------------------------------
Investment Products Offered:
o Are Not FDIC Insured o May Lose Value o Are Not Bank Guaranteed
- --------------------------------------------------------------------------------
================================================================================
To Our Shareholders:
THE GLOBAL EQUITY MARKETS posted strong gains for the 12-month period ending
September 30, 2004, buoyed by a dramatic surge in the first half of the period.
Although concerns about escalating oil prices and continued geopolitical risk
cast a shadow over the second half of the period, worldwide economic growth
remains strong; it's likely that the recent "soft patch" is a temporary
phenomenon rather than a true deterioration of the underlying economic
fundamentals.
In this environment, the Sanford C. Bernstein Fund, Inc. international
stock portfolios posted very strong performance for the 12-month period ending
September 30. Our Tax-Managed International portfolio was up 18.3%, behind its
benchmark, the Morgan Stanley Capital International (MSCI) EAFE Index.*
Certainly, U.S. investors holding non-U.S. stocks benefited from the falling
U.S. dollar. Yet our research commitment to identifying stocks with superior
fundamentals and reasonable valuations provided the foundation for the
portfolio's returns. In particular, construction and housing stocks boosted
results.
The emerging markets have experienced significant fluctuations in
performance over the past 12 months, but ended the period significantly up.
Propelled by strong stock selection, our Emerging Markets portfolio posted an
impressive 34.7% return,+ beating its benchmark, the MSCI Emerging Markets
Index, by more than 8%. Outperformance was driven by investments in the finance
and energy sectors. We took advantage of investor anxiety to add strong
companies that were selling at valuations below what our research said was
justified given their long-term potential. Although there are a number of
legitimate concerns regarding emerging-market investments, many investor fears
- -- such as the global impact of rising U.S. interest rates and an economic
slowdown in China -- appear to have been overblown. Corporate earnings remain
robust around the world, emerging market fundamentals are strong, and emerging
market valuations stand well below U.S. stocks.
Amid countervailing forces that have led to volatility in the U.S. equity
market, the Fund's bond portfolios have provided needed stability. Our
intermediate duration taxable bond portfolio returned 3.7% over the 12-month
period, slightly ahead of its benchmark, the Lehman Aggregate Bond Index. The
portfolio's gains came primarily from our holdings in mortgage-related bonds and
corporate securities.
* With countries weighted by market capitalization and currencies unhedged
+ After deduction of 2% purchase and 2% redemption fees
Our municipal bond portfolios delivered positive returns that were roughly
in line with their benchmarks. Improvements in the national economy have
translated into stronger state and local tax receipts, indicating that
municipal-finance fundamentals are on the upswing. California bonds were
upgraded this year, and New York City and Massachusetts benefited from their
improved economic and tax pictures. In all of our intermediate duration
municipal bond portfolios, we've maintained an average credit quality of AA+.
The S&P 500's 13.9% return for the 12 months ending September 30 marks the
second year in a row that the U.S. stock market has underperformed the
international and emerging stock markets. While there are no guarantees that
this trend will continue, the divergence of returns underscores the benefits of
diversification. A powerful strategy for managing overall portfolio risk is to
diversify geographically and by asset type. And even if interest rates rise, as
we expect they will, bonds remain an important part of this diversification
plan. Because bonds and international equities have not typically performed in
tandem with U.S. stocks, incorporating both in your portfolio reduces volatility
and increases exposure to a variety of investment opportunities.
Total Returns: Oct 03-Sep 04
Our emerging markets, international, and municipal bond portfolios delivered
strong results
[The following table was depicted as a bar chart in the printed material.]
Bernstein
Bernstein MSCI Major Intermediate Lipper
Emerging Emerging Bernstein Foreign Diversified Intermediate
Markets Markets Tax-Managed Markets Municipal Municipal
Value++ Index International Index ss. Fund Composite^
- --------- -------- ------------- --------- ------------ ------------
34.7% 26.5% 18.3% 22.1% 2.7% 2.7%
++ After 2% purchase and 2% redemption fees
ss. MSCI EAFE Index, with countries weighted by market capitalization and
currencies unhedged
^ See Lipper note on page 2
- --------------------------------------------------------------------------------
2004 Annual Report 1
================================================================================
Portfolio Returns(1)
TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
--------------------- -------------------------------------
PAST SIX PAST 12 PAST PAST SINCE
THROUGH SEPTEMBER 30, 2004 MONTHS MONTHS FIVE YEARS 10 YEARS INCEPTION INCEPTION DATE
====================================================================================================================================
SANFORD C. BERNSTEIN FUND PORTFOLIOS
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Managed International(2,3) 1.34% 18.34% 3.73% 7.34% 8.61% June 22, 1992
Pre-liquidation, after-tax 1.34 18.10 3.03 5.84 7.31
Post-liquidation, after-tax 0.87 12.29 2.93 5.56 6.89
- ------------------------------------------------------------------------------------------------------------------------------------
International(2,3) 1.66 19.05 3.74 -- 4.11 April 30, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Value(2) December 15, 1995
Before deduction of purchase and
redemption fees (see note 2, page 3) 6.44 40.22 11.52 -- 5.60
After deduction of 2% purchase and
2% redemption fees -- both paid
to the Portfolio, not to Bernstein 2.23 34.66 10.63 -- 5.12
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Duration 0.33 3.74 6.14 6.65 7.39 January 17, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration Plus (0.15) 1.37 4.83 5.32 6.05 December 12, 1988
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Government Short Duration (0.35) 0.93 4.63 5.07 5.74 January 3, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration Diversified Municipal 0.37 1.21 3.34 -- 3.70 October 3, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration California Municipal 0.12 0.81 2.85 -- 3.41 October 3, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration New York Municipal 0.39 1.16 3.07 -- 3.46 October 3, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Municipal 0.80 2.73 5.23 5.32 5.75 January 9, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
California Municipal 0.59 2.55 4.78 5.12 5.48 August 6, 1990
- ------------------------------------------------------------------------------------------------------------------------------------
New York Municipal 0.80 2.63 5.15 5.28 5.79 January 9, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
SANFORD C. BERNSTEIN FUND II PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Duration Institutional(4) 0.35% 3.76% -- -- 6.27% May 17, 2002
LIPPER MUTUAL-FUND COMPOSITES(5)
- ------------------------------------------------------------------------------------------------------------------------------------
International Large-Cap Core (1.81)% 17.23% (2.31)% 4.01%
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Composite 0.40 3.21 6.42 6.57
- ------------------------------------------------------------------------------------------------------------------------------------
Short-Term Bond Composite (0.08) 1.20 4.58 5.18
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Composite 0.77 2.72 5.38 5.29
- ------------------------------------------------------------------------------------------------------------------------------------
Short-Term Municipal Composite 0.27 0.94 3.35 3.78
MARKET BENCHMARKS
- ------------------------------------------------------------------------------------------------------------------------------------
Major Foreign Markets Index (MSCI EAFE)(6) (0.06)% 22.08% (0.85)% 4.02%
- ------------------------------------------------------------------------------------------------------------------------------------
Major Foreign Markets Index (MSCI EAFE)(7) 0.43 20.27 (0.92) 6.55
- ------------------------------------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Index (2.11) 26.53 6.04 0.10
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets Index (1.62) 27.17 7.54 --
- ------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 0.68 3.68 7.48 7.66
- ------------------------------------------------------------------------------------------------------------------------------------
Inflation (CPI) 1.33 2.54 2.49 2.43
- --------------------------------------------------------------------------------
The performance returns quoted above represent past performance and do not
guarantee future results. The investment return and principal value of an
investment in the portfolios will fluctuate, so that shares, when redeemed, may
be worth more or less than their original cost. Performance information is as of
the date shown, and current performance may be lower or higher than the
performance returns quoted. For performance information current to the most
recent month-end, please visit our website at www.bernstein.com and click on
"Updated Fund Performance" at the bottom of any screen.
- --------------------------------------------------------------------------------
(1.) Except as noted for Emerging Markets Value, results are after all fees and
expenses. (2.) Tax-Managed International, International, and Emerging Markets
Value returns throughout this report include dividends net of withholding taxes.
(3.) On April 30, 1999, the International Value portfolio (IVP) was split into
two portfolios: International Value II (now known as International) for
tax-exempt investors such as 401(k) and other retirement plans; and Tax-Managed
International Value (now known as Tax-Managed International) for taxable
investors. Both portfolios have the same overall investment style, except that
the latter includes tax management. International is an extension of the
original IVP in that it is managed without regard to tax considerations. The
returns shown above reflect the performance of the Tax-Managed International
Fund and the International Fund portfolios using an all-value investment style
through August 2003. In September 2003, the investment style of the
International portfolios changed from all-value to a blend of growth and value.
(4.) During the reporting period, the Adviser waived a portion of its advisory
fee or reimbursed the Fund for a portion of its expenses to the extent necessary
to limit the Fund's expenses to 0.45%. This waiver extends through the Fund's
current fiscal year and may be extended by the Adviser for additional one-year
terms. Without the waiver, the Fund's expenses would have been higher and its
performance would have been lower than that shown above. (5.) Lipper composites
are the equal-weighted average returns of the mutual funds in the relevant
Lipper Analytical Services categories; the average fund in a category may differ
in composition from the portfolios. (6.) Morgan Stanley Capital International
(MSCI) EAFE Index of major foreign markets in Europe, Australasia, and the Far
East, with countries weighted by market capitalization and currencies unhedged.
(7.) MSCI EAFE Index with countries weighted by gross domestic product and
currencies half-hedged.
- --------------------------------------------------------------------------------
2 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund, Inc.
- --------------------------------------------------------------------------------
Foreign Stock Portfolios
- --------------------------------------------------------------------------------
Tax-Managed International
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Tax Managed MSCI EAFE Foreign
International Stock-Market Index International
Yr:Month (after all costs) (before all costs) Large-Cap Core
-------- ------------------- ------------------ ---------------
6 $25,000 $25,000 $25,000
7 $24,182 $24,360 $24,080
8 $25,289 $25,888 $24,420
9 $23,986 $25,377 $23,897
10 $23,421 $24,046 $23,020
11 $23,499 $24,272 $23,121
12 $23,752 $24,398 $23,470
93:1 $24,180 $24,395 $23,473
2 $25,121 $25,131 $23,987
3 $27,415 $27,322 $25,268
4 $29,205 $29,915 $26,367
5 $29,856 $30,547 $26,978
6 $29,129 $30,070 $26,523
7 $30,535 $31,123 $27,326
8 $32,262 $32,803 $29,086
9 $31,284 $32,064 $28,879
10 $31,994 $33,053 $30,205
11 $29,963 $30,163 $29,045
12 $31,960 $32,342 $31,717
94:1 $34,255 $35,076 $33,646
2 $33,826 $34,979 $32,805
3 $33,948 $33,472 $31,269
4 $35,045 $34,892 $32,211
5 $34,735 $34,692 $32,043
6 $34,143 $35,182 $31,514
7 $34,883 $35,521 $32,583
8 $35,351 $36,362 $33,583
9 $33,957 $35,216 $32,686
10 $34,138 $36,389 $33,415
11 $33,058 $34,640 $31,922
12 $33,175 $34,857 $31,727
95:1 $32,356 $33,518 $30,233
2 $31,751 $33,422 $30,305
3 $31,760 $35,506 $31,129
4 $32,773 $36,842 $32,203
5 $32,757 $36,403 $32,512
6 $32,498 $35,764 $32,558
7 $34,264 $37,991 $34,375
8 $34,373 $36,541 $33,725
9 $34,586 $37,255 $34,433
10 $34,330 $36,254 $33,827
11 $34,442 $37,262 $34,169
12 $35,876 $38,764 $35,156
96:1 $37,356 $38,923 $35,874
2 $37,290 $39,054 $36,085
3 $37,953 $39,884 $36,699
4 $39,477 $41,043 $37,825
5 $39,543 $40,288 $37,829
6 $39,985 $40,515 $38,151
7 $38,461 $39,331 $36,724
8 $38,616 $39,417 $37,212
9 $40,074 $40,464 $38,042
10 $40,029 $40,050 $37,871
11 $41,753 $41,643 $39,674
12 $42,143 $41,108 $39,888
97:1 $42,120 $39,669 $39,764
2 $42,710 $40,318 $40,373
3 $43,631 $40,464 $40,514
4 $43,914 $40,679 $40,680
5 $45,331 $43,326 $43,182
6 $47,290 $45,715 $45,237
7 $49,722 $46,455 $46,599
8 $46,606 $42,985 $43,160
9 $49,392 $45,393 $45,905
10 $46,842 $41,904 $42,379
11 $46,322 $41,477 $42,138
12 $46,049 $41,839 $42,513
98:1 $48,596 $43,752 $43,605
2 $50,648 $46,559 $46,557
3 $54,624 $47,993 $48,857
4 $54,313 $48,373 $49,600
5 $55,950 $48,138 $49,650
6 $55,716 $48,503 $49,287
7 $56,573 $48,994 $50,002
8 $48,154 $42,924 $42,832
9 $45,841 $41,608 $41,410
10 $47,946 $45,946 $44,664
11 $50,726 $48,300 $47,036
12 $51,093 $50,205 $48,447
99:1 $51,179 $50,057 $48,922
2 $49,830 $48,864 $47,787
3 $52,957 $50,903 $49,507
4 $55,740 $52,966 $51,691
5 $54,449 $50,238 $49,571
6 $56,543 $52,197 $52,025
7 $57,375 $53,748 $53,346
8 $58,035 $53,945 $53,736
9 $57,461 $54,488 $54,015
10 $57,920 $56,529 $56,046
11 $58,580 $58,493 $59,997
12 $62,696 $63,743 $67,221
00:1 $59,000 $59,692 $63,222
2 $59,785 $61,299 $66,528
3 $61,677 $63,676 $67,539
4 $60,251 $60,325 $63,649
5 $60,222 $58,851 $61,778
6 $62,929 $61,153 $64,379
7 $61,503 $58,589 $61,997
8 $62,114 $59,098 $62,784
9 $59,465 $56,220 $59,029
10 $58,825 $54,892 $57,064
11 $57,864 $52,834 $54,667
12 $59,639 $54,711 $56,509
01:1 $60,799 $54,683 $56,730
2 $58,575 $50,584 $52,310
3 $55,480 $47,212 $48,534
4 $59,252 $50,493 $51,936
5 $57,705 $48,711 $50,222
6 $57,414 $46,719 $48,344
7 $55,996 $45,869 $47,082
8 $55,674 $44,706 $45,759
9 $49,065 $40,178 $41,059
10 $50,806 $41,207 $42,160
11 $51,515 $42,726 $43,770
12 $52,171 $42,980 $44,392
02:1 $50,629 $40,696 $42,234
2 $51,482 $40,982 $42,467
3 $54,501 $43,198 $44,624
4 $55,945 $43,485 $44,753
5 $57,585 $44,036 $45,058
6 $55,092 $42,283 $43,337
7 $49,809 $38,109 $38,951
8 $49,382 $38,022 $38,772
9 $42,984 $33,939 $34,499
10 $45,314 $35,763 $36,510
11 $48,562 $37,386 $38,102
12 $47,731 $36,129 $36,692
03:1 $46,500 $34,621 $34,997
2 $46,168 $33,826 $34,073
3 $44,172 $33,161 $33,409
4 $50,326 $36,412 $36,459
5 $53,619 $38,618 $38,475
6 $55,016 $39,551 $39,176
7 $56,446 $40,509 $39,932
8 $57,410 $41,487 $40,714
9 $58,309 $42,766 $41,520
10 $61,402 $45,431 $43,821
11 $62,400 $46,441 $44,798
12 $66,264 $50,069 $48,014
04:01 $66,703 $50,778 $48,768
2 $67,582 $51,950 $49,690
3 $68,089 $52,242 $49,576
4 $66,906 $51,060 $48,227
5 $66,940 $51,232 $48,247
6 $68,055 $52,354 $49,105
7 $65,994 $50,655 $47,318
8 $66,906 $50,879 $47,507
9 $69,001 $52,209 $48,671
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
MSCI EAFE Foreign
International Stock-Market Index International
Yr:Month (after all costs) (before all costs) Large-Cap Core
-------- ----------------- ------------------ ---------------
4 $25,000 $25,000 $25,000
5 $24,357 $23,713 $23,975
6 $25,270 $24,637 $25,162
7 $25,708 $25,369 $25,801
8 $26,081 $25,462 $25,989
9 $25,875 $25,718 $26,124
10 $25,888 $26,682 $27,107
11 $26,004 $27,609 $29,018
12 $27,631 $30,087 $32,511
00:1 $26,032 $28,175 $30,577
2 $26,461 $28,933 $32,176
3 $27,384 $30,055 $32,665
4 $26,708 $28,473 $30,784
5 $26,734 $27,778 $29,879
6 $28,034 $28,864 $31,137
7 $27,358 $27,654 $29,984
8 $27,670 $27,894 $30,365
9 $26,578 $26,536 $28,549
10 $26,253 $25,909 $27,599
11 $25,915 $24,937 $26,440
12 $26,812 $25,824 $27,331
01:1 $27,373 $25,811 $27,437
2 $26,500 $23,876 $25,300
3 $25,191 $22,284 $23,473
4 $26,687 $23,833 $25,119
5 $25,908 $22,991 $24,290
6 $25,799 $22,051 $23,381
7 $25,159 $21,650 $22,771
8 $25,097 $21,101 $22,131
9 $22,073 $18,964 $19,858
10 $22,821 $19,450 $20,391
11 $23,055 $20,167 $21,169
12 $23,347 $20,287 $21,470
02:1 $22,705 $19,209 $20,427
2 $23,122 $19,343 $20,539
3 $24,424 $20,390 $21,582
4 $25,034 $20,525 $21,645
5 $25,645 $20,785 $21,792
6 $24,601 $19,958 $20,960
7 $22,126 $17,987 $18,839
8 $22,030 $17,946 $18,752
9 $19,202 $16,019 $16,685
10 $20,262 $16,880 $17,658
11 $21,708 $17,646 $18,428
12 $21,284 $17,053 $17,746
03:1 $20,845 $16,341 $16,926
2 $20,650 $15,966 $16,480
3 $19,756 $15,652 $16,158
4 $22,520 $17,186 $17,633
5 $24,016 $18,228 $18,609
6 $24,683 $18,668 $18,947
7 $25,317 $19,120 $19,313
8 $25,723 $19,582 $19,691
9 $26,114 $20,185 $20,081
10 $27,496 $21,444 $21,194
11 $27,935 $21,920 $21,666
12 $29,661 $23,633 $23,222
04:01 $29,891 $23,967 $23,587
2 $30,301 $24,520 $24,032
3 $30,580 $24,658 $23,977
4 $30,088 $24,100 $23,325
5 $30,202 $24,181 $23,334
6 $30,695 $24,711 $23,750
7 $29,759 $23,909 $22,885
8 $30,137 $24,015 $22,977
9 $31,089 $24,643 $23,540
- --------------------------------------------------------------------------------
Emerging Markets Value
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Emerging
Markets Value
(after deduction
of 2% purchase
and 2% redemption
fees--both paid
to the portfolio, MSCI Emerging
not to Markets Index Lipper Emerging
Yr:Month Bernstein)(2) (before all costs) Markets Index
- --------- --------------- ------------------ ---------------
95:12 $25,000 $25,000 $25,000
96:1 $26,784 $26,777 $27,272
2 $26,760 $26,351 $26,954
3 $27,071 $26,557 $27,178
4 $28,422 $27,618 $28,131
5 $28,266 $27,495 $28,407
6 $27,932 $27,667 $28,461
7 $26,186 $25,776 $26,805
8 $26,174 $26,436 $27,536
9 $26,090 $26,665 $27,818
10 $24,942 $25,954 $27,175
11 $25,803 $26,388 $27,794
12 $26,226 $26,508 $28,037
97:1 $28,281 $28,316 $30,166
2 $28,953 $29,528 $31,243
3 $28,593 $28,753 $30,442
4 $28,100 $28,804 $30,448
5 $28,401 $29,628 $31,498
6 $29,230 $31,214 $33,048
7 $30,395 $31,680 $34,010
8 $27,115 $27,648 $30,275
9 $27,079 $28,414 $31,368
10 $22,898 $23,752 $26,132
11 $20,700 $22,885 $24,939
12 $19,952 $23,437 $25,166
98:1 $19,113 $21,599 $23,415
2 $20,954 $23,853 $25,419
3 $21,956 $24,888 $26,311
4 $21,405 $24,617 $26,366
5 $18,687 $21,243 $22,430
6 $16,433 $19,015 $20,304
7 $16,595 $19,618 $20,923
8 $12,374 $13,946 $14,928
9 $12,663 $14,830 $15,488
10 $14,128 $16,392 $16,977
11 $15,618 $17,755 $18,118
12 $15,743 $17,498 $17,891
99:1 $15,350 $17,216 $17,528
2 $15,553 $17,383 $17,377
3 $17,581 $19,674 $19,313
4 $21,092 $22,108 $21,996
5 $21,498 $21,980 $21,730
6 $23,767 $24,474 $24,170
7 $23,133 $23,809 $23,568
8 $23,222 $24,026 $23,307
9 $22,398 $23,213 $22,479
10 $22,550 $23,707 $23,156
11 $24,033 $25,833 $25,710
12 $27,238 $29,118 $30,227
00:1 $26,320 $29,292 $29,876
2 $25,467 $29,678 $30,767
3 $25,594 $29,823 $30,859
4 $24,371 $26,996 $27,502
5 $22,651 $25,880 $26,039
6 $23,377 $26,792 $27,330
7 $23,174 $25,414 $26,215
8 $22,970 $25,539 $26,485
9 $21,543 $23,309 $23,953
10 $20,027 $21,619 $22,164
11 $18,842 $19,729 $20,160
12 $19,568 $20,205 $20,888
01:1 $21,135 $22,987 $23,309
2 $20,495 $21,187 $21,502
3 $19,125 $19,106 $19,451
4 $19,686 $20,050 $20,445
5 $20,326 $20,290 $21,007
6 $19,986 $19,873 $20,642
7 $18,785 $18,617 $19,362
8 $19,007 $18,434 $19,110
9 $16,292 $15,581 $16,383
10 $16,631 $16,548 $17,243
11 $17,963 $18,275 $18,952
12 $18,861 $19,726 $20,161
02:1 $20,007 $20,394 $20,956
2 $20,441 $20,729 $21,425
3 $21,442 $21,976 $22,599
4 $21,982 $22,119 $22,875
5 $22,009 $21,766 $22,664
6 $20,560 $20,133 $21,008
7 $19,625 $18,602 $19,438
8 $19,664 $18,889 $19,598
9 $17,978 $16,851 $17,632
10 $18,452 $17,944 $18,473
11 $19,664 $19,179 $19,716
12 $19,585 $18,542 $19,229
03:1 $19,876 $18,461 $19,118
2 $19,638 $17,963 $18,667
3 $19,002 $17,454 $18,065
4 $21,161 $19,008 $19,805
5 $22,604 $20,373 $21,229
6 $23,902 $21,534 $22,298
7 $25,425 $22,882 $23,319
8 $26,656 $24,418 $24,877
9 $27,557 $24,597 $25,428
10 $30,258 $26,691 $27,409
11 $30,960 $27,019 $27,816
12 $34,643 $28,977 $30,179
04:01 $34,469 $30,006 $31,042
2 $35,819 $31,391 $32,436
3 $35,576 $31,794 $32,871
4 $34,002 $29,195 $30,280
5 $33,133 $28,620 $29,689
6 $33,774 $28,750 $29,841
7 $34,403 $28,242 $29,403
8 $36,100 $29,424 $30,546
9 $37,867 $31,124 $32,337
Taxable Bond Portfolios
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Intermediate Lehman Brothers
Duration Aggregate Bond Index Lipper Intermediate
Yr:Month (after all costs) (before all costs) Bond Composite
-------- ----------------- -------------------- -------------------
89:1 $25,000 $25,000 $25,000
2 $24,865 $24,820 $24,898
3 $25,000 $24,927 $24,982
4 $25,432 $25,448 $25,397
5 $25,948 $26,117 $25,869
6 $26,694 $26,911 $26,462
7 $27,103 $27,484 $26,919
8 $26,868 $27,077 $26,658
9 $27,003 $27,215 $26,768
10 $27,602 $27,885 $27,228
11 $27,776 $28,150 $27,424
12 $27,846 $28,226 $27,501
90:1 $27,522 $27,890 $27,289
2 $27,602 $27,979 $27,365
3 $27,649 $27,999 $27,409
4 $27,427 $27,741 $27,269
5 $28,083 $28,562 $27,861
6 $28,447 $29,022 $28,207
7 $28,769 $29,424 $28,534
8 $28,480 $29,030 $28,326
9 $28,597 $29,272 $28,447
10 $28,879 $29,645 $28,618
11 $29,443 $30,283 $29,082
12 $29,892 $30,757 $29,457
91:1 $30,044 $31,138 $29,731
2 $30,478 $31,403 $30,004
3 $30,782 $31,620 $30,229
4 $31,132 $31,961 $30,574
5 $31,361 $32,146 $30,773
6 $31,371 $32,130 $30,773
7 $31,798 $32,577 $31,124
8 $32,494 $33,281 $31,749
9 $33,042 $33,956 $32,324
10 $33,469 $34,333 $32,666
11 $33,818 $34,649 $32,987
12 $35,005 $35,678 $33,920
92:1 $34,509 $35,193 $33,533
2 $34,754 $35,422 $33,661
3 $34,594 $35,222 $33,530
4 $34,848 $35,476 $33,764
5 $35,499 $36,146 $34,308
6 $35,991 $36,644 $34,798
7 $36,844 $37,391 $35,592
8 $37,051 $37,770 $35,891
9 $37,443 $38,218 $36,372
10 $36,919 $37,711 $35,830
11 $37,071 $37,719 $35,726
12 $37,692 $38,319 $36,222
93:1 $38,306 $39,054 $36,947
2 $38,962 $39,738 $37,619
3 $39,109 $39,904 $37,766
4 $39,343 $40,182 $38,034
5 $39,503 $40,234 $38,004
6 $40,374 $40,962 $38,676
7 $40,778 $41,195 $38,839
8 $41,611 $41,917 $39,557
9 $41,673 $42,030 $39,712
10 $41,895 $42,187 $39,839
11 $41,396 $41,828 $39,484
12 $41,589 $42,055 $39,670
94:1 $42,150 $42,622 $40,174
2 $41,399 $41,881 $39,459
3 $40,633 $40,846 $38,598
4 $40,296 $40,520 $38,251
5 $40,251 $40,516 $38,194
6 $40,172 $40,426 $38,121
7 $40,833 $41,231 $38,693
8 $40,805 $41,280 $38,770
9 $40,199 $40,674 $38,332
10 $40,152 $40,637 $38,275
11 $40,034 $40,548 $38,164
12 $40,276 $40,828 $38,347
95:1 $41,077 $41,636 $38,956
2 $41,895 $42,626 $39,767
3 $42,115 $42,888 $40,013
4 $42,631 $43,487 $40,530
5 $44,120 $45,170 $41,960
6 $44,477 $45,501 $42,225
7 $44,303 $45,399 $42,111
8 $44,811 $45,947 $42,582
9 $45,353 $46,394 $42,957
10 $46,074 $46,998 $43,490
11 $46,722 $47,702 $44,098
12 $47,458 $48,371 $44,658
96:1 $47,630 $48,692 $44,953
2 $46,700 $47,846 $44,185
3 $46,435 $47,513 $43,884
4 $46,241 $47,246 $43,616
5 $46,218 $47,150 $43,538
6 $46,715 $47,783 $44,034
7 $46,889 $47,914 $44,135
8 $46,899 $47,834 $44,100
9 $47,645 $48,668 $44,819
10 $48,616 $49,746 $45,724
11 $49,536 $50,598 $46,497
12 $49,158 $50,127 $46,088
97:1 $49,215 $50,281 $46,222
2 $49,317 $50,406 $46,314
3 $48,794 $49,847 $45,828
4 $49,429 $50,593 $46,423
5 $49,802 $51,072 $46,823
6 $50,402 $51,678 $47,342
7 $51,431 $53,071 $48,559
8 $51,177 $52,619 $48,132
9 $51,772 $53,395 $48,801
10 $52,474 $54,169 $49,377
11 $52,619 $54,419 $49,515
12 $52,922 $54,967 $49,961
98:1 $53,540 $55,672 $50,605
2 $53,540 $55,630 $50,534
3 $53,715 $55,822 $50,711
4 $53,924 $56,113 $50,929
5 $54,413 $56,645 $51,382
6 $54,679 $57,126 $51,752
7 $54,896 $57,247 $51,851
8 $55,438 $58,179 $52,483
9 $56,219 $59,541 $53,643
10 $55,768 $59,227 $53,252
11 $56,338 $59,563 $53,497
12 $56,559 $59,742 $53,673
99:1 $57,106 $60,168 $54,017
2 $56,279 $59,118 $53,012
3 $56,714 $59,445 $53,394
4 $56,946 $59,634 $53,554
5 $56,731 $59,115 $52,997
6 $56,592 $58,923 $52,801
7 $56,324 $58,672 $52,621
8 $56,207 $58,642 $52,537
9 $56,803 $59,323 $53,062
10 $56,898 $59,542 $53,131
11 $56,987 $59,538 $53,174
12 $56,923 $59,251 $52,945
00:1 $56,722 $59,057 $52,749
2 $57,304 $59,771 $53,261
3 $57,890 $60,558 $53,873
4 $57,489 $60,385 $53,577
5 $57,185 $60,357 $53,470
6 $58,379 $61,613 $54,550
7 $58,797 $62,172 $54,970
8 $59,469 $63,073 $55,685
9 $59,852 $63,470 $56,041
10 $59,658 $63,890 $56,164
11 $60,384 $64,934 $56,956
12 $61,686 $66,139 $58,038
01:1 $62,887 $67,221 $59,008
2 $63,179 $67,806 $59,533
3 $63,400 $68,147 $59,795
4 $63,039 $67,864 $59,472
5 $63,464 $68,273 $59,805
6 $63,526 $68,531 $59,984
7 $64,664 $70,063 $61,316
8 $65,289 $70,866 $61,935
9 $65,715 $71,691 $62,462
10 $67,025 $73,192 $63,605
11 $66,422 $72,182 $62,829
12 $66,121 $71,724 $62,408
02:1 $66,541 $72,305 $62,795
2 $66,802 $73,005 $63,285
3 $65,771 $71,791 $62,285
4 $66,485 $73,183 $63,312
5 $67,125 $73,805 $63,806
6 $66,809 $74,443 $63,959
7 $67,236 $75,341 $64,356
8 $68,515 $76,613 $65,437
9 $69,319 $77,854 $66,294
10 $69,136 $77,500 $65,942
11 $69,569 $77,479 $66,095
12 $70,853 $79,079 $67,414
03:1 $70,985 $79,147 $67,508
2 $71,934 $80,242 $68,434
3 $71,923 $80,180 $68,422
4 $72,839 $80,842 $69,106
5 $74,101 $82,349 $70,370
6 $73,859 $82,186 $70,285
7 $71,322 $79,423 $68,011
8 $72,015 $79,950 $68,429
9 $73,751 $82,066 $70,169
10 $73,338 $81,301 $69,616
11 $73,607 $81,496 $69,797
12 $74,464 $82,325 $70,461
04:01 $75,061 $82,987 $70,980
2 $75,740 $83,885 $71,623
3 $76,254 $84,514 $72,128
4 $74,479 $82,315 $70,423
5 $74,091 $81,985 $70,082
6 $74,447 $82,449 $70,399
7 $75,085 $83,266 $71,017
8 $76,268 $84,854 $72,227
9 $76,508 $85,084 $72,419
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Short Merrill Lynch 1-3
Duration Plus Lipper Short Investment Year Treasury Index
Yr:Month (after all costs) Grade Bond Composite (before all costs)
-------- ----------------- ----------------------- -------------------
89:1 $25,200 $25,208 $25,198
2 $25,247 $25,253 $25,198
3 $25,372 $25,377 $25,313
4 $25,674 $25,671 $25,701
5 $25,969 $26,005 $26,086
6 $26,366 $26,392 $26,574
7 $26,663 $26,727 $26,967
8 $26,653 $26,677 $26,800
9 $26,826 $26,815 $26,958
10 $27,153 $27,161 $27,365
11 $27,348 $27,354 $27,610
12 $27,453 $27,480 $27,720
90:1 $27,517 $27,469 $27,743
2 $27,637 $27,612 $27,873
3 $27,770 $27,739 $27,967
4 $27,812 $27,789 $28,022
5 $28,152 $28,164 $28,450
6 $28,399 $28,431 $28,750
7 $28,676 $28,889 $29,109
8 $28,799 $28,947 $29,196
9 $28,939 $29,112 $29,436
10 $29,153 $29,319 $29,760
11 $29,391 $29,621 $30,051
12 $29,723 $29,905 $30,416
91:1 $29,845 $30,099 $30,694
2 $30,225 $30,340 $30,877
3 $30,514 $30,577 $31,085
4 $30,847 $30,883 $31,379
5 $31,109 $31,099 $31,569
6 $31,246 $31,176 $31,698
7 $31,533 $31,454 $31,974
8 $31,918 $31,882 $32,413
9 $32,198 $32,261 $32,763
10 $32,575 $32,580 $33,114
11 $32,930 $32,887 $33,458
12 $33,404 $33,459 $33,967
92:1 $33,364 $33,372 $33,915
2 $33,526 $33,495 $34,033
3 $33,521 $33,482 $34,020
4 $33,881 $33,713 $34,333
5 $34,236 $34,050 $34,645
6 $34,608 $34,411 $34,998
7 $34,968 $34,848 $35,390
8 $35,102 $35,085 $35,702
9 $35,287 $35,394 $36,041
10 $35,147 $35,153 $35,825
11 $35,255 $35,090 $35,766
12 $35,509 $35,374 $36,106
93:1 $35,792 $35,788 $36,482
2 $36,056 $36,139 $36,794
3 $36,189 $36,258 $36,904
4 $36,321 $36,472 $37,133
5 $36,434 $36,457 $37,029
6 $36,773 $36,760 $37,302
7 $36,946 $36,863 $37,388
8 $37,200 $37,191 $37,714
9 $37,225 $37,325 $37,837
10 $37,368 $37,433 $37,911
11 $37,275 $37,381 $37,920
12 $37,435 $37,538 $38,060
94:1 $37,690 $37,819 $38,305
2 $37,522 $37,543 $38,060
3 $37,320 $37,232 $37,870
4 $37,293 $37,057 $37,736
5 $37,333 $37,071 $37,790
6 $37,408 $37,097 $37,902
7 $37,682 $37,405 $38,228
8 $37,755 $37,532 $38,362
9 $37,650 $37,435 $38,275
10 $37,740 $37,480 $38,361
11 $37,547 $37,386 $38,190
12 $37,640 $37,412 $38,277
95:1 $38,104 $37,786 $38,809
2 $38,581 $38,281 $39,343
3 $38,736 $38,484 $39,562
4 $39,076 $38,842 $39,915
5 $39,615 $39,572 $40,612
6 $39,835 $39,794 $40,830
7 $39,970 $39,885 $41,000
8 $40,202 $40,161 $41,243
9 $40,422 $40,394 $41,444
10 $40,784 $40,721 $41,794
11 $41,076 $41,067 $42,163
12 $41,441 $41,391 $42,487
96:1 $41,668 $41,702 $42,848
2 $41,521 $41,543 $42,667
3 $41,508 $41,506 $42,629
4 $41,593 $41,523 $42,665
5 $41,676 $41,589 $42,752
6 $41,913 $41,876 $43,059
7 $42,113 $42,035 $43,229
8 $42,298 $42,161 $43,377
9 $42,660 $42,541 $43,770
10 $43,167 $42,979 $44,263
11 $43,454 $43,318 $44,602
12 $43,424 $43,318 $44,602
97:1 $43,663 $43,509 $44,812
2 $43,781 $43,635 $44,915
3 $43,770 $43,587 $44,897
4 $44,072 $43,918 $45,264
5 $44,339 $44,217 $45,573
6 $44,610 $44,504 $45,887
7 $44,949 $44,990 $46,391
8 $45,058 $45,012 $46,434
9 $45,308 $45,341 $46,786
10 $45,582 $45,594 $47,134
11 $45,699 $45,699 $47,248
12 $45,830 $45,960 $47,571
98:1 $46,237 $46,360 $48,033
2 $46,299 $46,411 $48,074
3 $46,405 $46,587 $48,270
4 $46,609 $46,792 $48,496
5 $46,809 $47,035 $48,754
6 $46,993 $47,242 $49,008
7 $47,245 $47,436 $49,237
8 $47,568 $47,759 $49,856
9 $48,073 $48,322 $50,517
10 $48,127 $48,298 $50,765
11 $48,294 $48,399 $50,720
12 $48,549 $48,578 $50,899
99:1 $48,776 $48,797 $51,101
2 $48,619 $48,587 $50,852
3 $48,975 $48,952 $51,205
4 $49,153 $49,133 $51,370
5 $49,241 $49,039 $51,337
6 $49,400 $49,118 $51,497
7 $49,529 $49,162 $51,660
8 $49,635 $49,241 $51,810
9 $49,911 $49,590 $52,147
10 $50,049 $49,709 $52,285
11 $50,225 $49,854 $52,384
12 $50,384 $49,933 $52,459
00:1 $50,372 $49,918 $52,440
2 $50,654 $50,238 $52,789
3 $50,900 $50,524 $53,116
4 $50,924 $50,544 $53,254
5 $51,077 $50,676 $53,473
6 $51,628 $51,259 $54,028
7 $51,849 $51,566 $54,370
8 $52,199 $51,968 $54,771
9 $52,591 $52,394 $55,165
10 $52,558 $52,536 $55,461
11 $52,957 $52,982 $55,986
12 $53,567 $53,602 $56,653
01:1 $54,262 $54,321 $57,363
2 $54,554 $54,668 $57,736
3 $55,012 $55,045 $58,218
4 $55,174 $55,167 $58,373
5 $55,546 $55,492 $58,702
6 $55,772 $55,692 $58,902
7 $56,416 $56,388 $59,563
8 $56,842 $56,715 $59,906
9 $57,532 $57,288 $60,892
10 $58,154 $57,746 $61,467
11 $57,958 $57,486 $61,335
12 $58,039 $57,412 $61,356
02:1 $58,245 $57,578 $61,481
2 $58,318 $57,751 $61,778
3 $58,065 $57,422 $61,361
4 $58,511 $57,881 $62,046
5 $58,817 $58,199 $62,295
6 $59,153 $58,275 $62,818
7 $59,587 $58,502 $63,586
8 $59,785 $58,871 $63,804
9 $60,280 $59,261 $64,331
10 $60,278 $59,288 $64,477
11 $60,406 $59,331 $64,283
12 $60,996 $59,910 $64,888
03:1 $61,081 $60,012 $64,879
2 $61,431 $60,363 $65,150
3 $61,483 $60,443 $65,268
4 $61,728 $60,694 $65,390
5 $62,070 $61,075 $65,636
6 $62,153 $61,173 $65,736
7 $61,741 $60,582 $65,378
8 $61,808 $60,643 $65,422
9 $62,344 $61,288 $66,016
10 $62,179 $61,083 $65,771
11 $62,251 $61,093 $65,737
12 $62,562 $61,408 $66,118
04:01 $62,759 $61,585 $66,253
2 $63,045 $61,868 $66,569
3 $63,293 $62,071 $66,778
4 $62,654 $61,472 $66,134
5 $62,485 $61,354 $66,073
6 $62,564 $61,392 $66,067
7 $62,784 $61,616 $66,306
8 $63,158 $62,008 $66,765
9 $63,196 $62,021 $66,706
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
U.S. Government Merrill Lynch 1-3
Short Duration Lipper Short U.S. Year Treasury Index
Yr:Month (after all costs) Gov't Bond Composite (before all costs)
-------- ----------------- -------------------- -------------------
89:1 $25,000 $25,000 $25,000
2 $25,037 $25,003 $25,000
3 $25,129 $25,108 $25,115
4 $25,460 $25,469 $25,499
5 $25,740 $25,660 $25,882
6 $26,140 $26,104 $26,366
7 $26,441 $26,464 $26,756
8 $26,361 $26,292 $26,590
9 $26,520 $26,432 $26,747
10 $26,880 $26,839 $27,151
11 $27,044 $27,051 $27,394
12 $27,176 $27,156 $27,503
90:1 $27,196 $27,145 $27,525
2 $27,327 $27,270 $27,654
3 $27,434 $27,352 $27,748
4 $27,496 $27,382 $27,802
5 $27,854 $27,790 $28,227
6 $28,097 $28,073 $28,524
7 $28,393 $28,402 $28,880
8 $28,515 $28,447 $28,967
9 $28,718 $28,658 $29,205
10 $28,997 $28,950 $29,526
11 $29,267 $29,269 $29,816
12 $29,615 $29,596 $30,177
91:1 $29,844 $29,866 $30,454
2 $30,055 $30,036 $30,635
3 $30,219 $30,201 $30,841
4 $30,472 $30,479 $31,133
5 $30,636 $30,650 $31,321
6 $30,723 $30,714 $31,450
7 $30,984 $31,006 $31,724
8 $31,393 $31,431 $32,159
9 $31,724 $31,798 $32,506
10 $32,079 $32,116 $32,854
11 $32,424 $32,422 $33,196
12 $32,938 $32,953 $33,700
92:1 $32,804 $32,759 $33,649
2 $32,839 $32,844 $33,767
3 $32,737 $32,801 $33,753
4 $33,115 $33,070 $34,064
5 $33,472 $33,417 $34,374
6 $33,845 $33,735 $34,724
7 $34,198 $34,140 $35,113
8 $34,285 $34,420 $35,422
9 $34,441 $34,699 $35,759
10 $34,362 $34,428 $35,544
11 $34,439 $34,373 $35,486
12 $34,707 $34,703 $35,823
93:1 $34,953 $35,140 $36,196
2 $35,181 $35,474 $36,505
3 $35,253 $35,587 $36,615
4 $35,350 $35,787 $36,842
5 $35,422 $35,744 $36,739
6 $35,715 $36,076 $37,009
7 $35,869 $36,174 $37,095
8 $36,165 $36,528 $37,419
9 $36,200 $36,630 $37,540
10 $36,319 $36,693 $37,614
11 $36,212 $36,586 $37,623
12 $36,304 $36,718 $37,762
94:1 $36,510 $36,968 $38,005
2 $36,334 $36,661 $37,762
3 $36,234 $36,283 $37,574
4 $36,125 $36,026 $37,441
5 $36,150 $35,961 $37,494
6 $36,234 $35,957 $37,605
7 $36,530 $36,248 $37,928
8 $36,624 $36,332 $38,062
9 $36,508 $36,205 $37,975
10 $36,590 $36,226 $38,061
11 $36,428 $36,081 $37,891
12 $36,456 $36,161 $37,977
95:1 $36,932 $36,609 $38,505
2 $37,399 $37,133 $39,034
3 $37,583 $37,326 $39,252
4 $37,914 $37,647 $39,602
5 $38,495 $38,388 $40,294
6 $38,766 $38,580 $40,510
7 $38,855 $38,627 $40,678
8 $39,066 $38,909 $40,920
9 $39,262 $39,130 $41,119
10 $39,568 $39,479 $41,466
11 $39,866 $39,858 $41,833
12 $40,142 $40,188 $42,154
96:1 $40,350 $40,478 $42,512
2 $40,231 $40,292 $42,332
3 $40,246 $40,243 $42,295
4 $40,224 $40,251 $42,330
5 $40,271 $40,300 $42,417
6 $40,527 $40,570 $42,722
7 $40,681 $40,703 $42,890
8 $40,820 $40,813 $43,037
9 $41,133 $41,164 $43,427
10 $41,580 $41,597 $43,916
11 $41,856 $41,917 $44,253
12 $41,783 $41,904 $44,253
97:1 $42,006 $42,101 $44,460
2 $42,113 $42,211 $44,563
3 $42,103 $42,135 $44,545
4 $42,392 $42,442 $44,909
5 $42,650 $42,693 $45,215
6 $42,913 $42,919 $45,527
7 $43,241 $43,365 $46,027
8 $43,314 $43,383 $46,070
9 $43,549 $43,682 $46,419
10 $43,848 $43,988 $46,764
11 $43,927 $44,085 $46,878
12 $44,142 $44,301 $47,198
98:1 $44,461 $44,677 $47,656
2 $44,515 $44,708 $47,697
3 $44,648 $44,856 $47,891
4 $44,808 $45,031 $48,116
5 $44,995 $45,261 $48,372
6 $45,198 $45,460 $48,624
7 $45,430 $45,642 $48,851
8 $45,805 $46,107 $49,465
9 $46,316 $46,670 $50,121
10 $46,453 $46,749 $50,367
11 $46,485 $46,740 $50,323
12 $46,594 $46,875 $50,501
99:1 $46,768 $47,100 $50,700
2 $46,628 $46,916 $50,453
3 $46,939 $47,193 $50,804
4 $47,114 $47,377 $50,967
5 $47,097 $47,335 $50,935
6 $47,215 $47,349 $51,094
7 $47,341 $47,410 $51,256
8 $47,440 $47,496 $51,404
9 $47,735 $47,795 $51,738
10 $47,869 $47,919 $51,875
11 $47,990 $48,044 $51,974
12 $48,031 $48,058 $52,048
00:1 $48,030 $48,092 $52,029
2 $48,302 $48,366 $52,375
3 $48,542 $48,748 $52,700
4 $48,731 $48,924 $52,837
5 $48,873 $49,007 $53,054
6 $49,312 $49,497 $53,605
7 $49,561 $49,789 $53,943
8 $49,931 $50,157 $54,342
9 $50,263 $50,518 $54,732
10 $50,514 $50,806 $55,026
11 $50,972 $51,304 $55,547
12 $51,554 $51,838 $56,209
01:1 $52,181 $52,501 $56,914
2 $52,467 $52,900 $57,284
3 $52,789 $53,239 $57,761
4 $52,912 $53,388 $57,916
5 $53,156 $53,698 $58,242
6 $53,269 $53,843 $58,440
7 $53,854 $54,413 $59,096
8 $54,257 $54,707 $59,436
9 $55,098 $55,424 $60,415
10 $55,623 $55,906 $60,986
11 $55,426 $55,699 $60,854
12 $55,446 $55,644 $60,875
02:1 $55,589 $55,816 $60,999
2 $55,865 $56,095 $61,293
3 $55,582 $55,770 $60,880
4 $56,156 $56,311 $61,560
5 $56,356 $56,553 $61,807
6 $56,754 $56,904 $62,326
7 $57,377 $57,444 $63,087
8 $57,609 $57,685 $63,304
9 $58,084 $58,053 $63,827
10 $58,179 $58,142 $63,972
11 $58,008 $58,006 $63,780
12 $58,574 $58,483 $64,379
03:1 $58,623 $58,498 $64,371
2 $58,877 $58,759 $64,639
3 $58,897 $58,794 $64,757
4 $59,052 $58,908 $64,878
5 $59,342 $59,089 $65,121
6 $59,351 $59,119 $65,221
7 $58,871 $58,675 $64,866
8 $58,846 $58,691 $64,910
9 $59,302 $59,157 $65,499
10 $59,141 $58,957 $65,256
11 $59,161 $58,954 $65,221
12 $59,417 $59,219 $65,600
04:01 $59,542 $59,337 $65,733
2 $59,841 $59,578 $66,048
3 $60,058 $59,718 $66,254
4 $59,440 $59,196 $65,616
5 $59,267 $59,035 $65,555
6 $59,287 $59,063 $65,549
7 $59,537 $59,272 $65,787
8 $59,830 $59,626 $66,242
9 $59,850 $59,573 $66,184
(1.) Past performance does not guarantee future results. The Lipper composites
are the equal-weighted average returns of the funds in the cited
categories. Indexes are theoretical measures of stock- and bond-market
performance rather than actual available investments, which would reflect
such expenses as management fees, transaction and security-custody costs,
and, in the case of a mutual fund, the costs of transfer agents and
shareholder servicing. For International, the index is the MSCI EAFE Index,
with countries weighted by market capitalization and currencies unhedged.
For Emerging Markets Value, the index is the MSCI Emerging Markets Index.
Fixed-income indexes are the Lehman Brothers Aggregate Bond Index, which
comprises Treasury, agency, corporate, mortgage-backed, and asset-backed
securities of diverse maturities; the Merrill Lynch 1 -- 3-Year Treasury
Index, which includes short-term Treasury bonds; the Lehman Brothers
Five-Year G/O Index, which includes general-obligation municipal bonds at
five-year maturities; and the Lehman Brothers One-Year Municipal Index,
which includes municipal bonds with maturities of up to 1.99 years.
(2.) Reflects the growth of $25,000 in the portfolio after deduction of the 2%
purchase fee each investor must pay to the Fund upon making an investment
in the portfolio (except for reinvested capital gains and dividends) and
the 2% redemption fee payable on closing out an investment in the
portfolio. Excluding these fees, an investment of $25,000 in this portfolio
would have increased to $39,428.
- --------------------------------------------------------------------------------
2004 Annual Report 3
================================================================================
Sanford C. Bernstein Fund, Inc.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Municipal Bond Portfolios (Intermediate and Short Duration)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Short Duration Diversified Municipal
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Short Duration Lehman Brothers One-Year
Diversified Municipal Municipal Index Lipper Short-Term
Yr:Month (after all costs) (before all costs) Municipal Composite
-------- --------------------- ------------------------ -------------------
94:10 $25,000 $25,000 $25,000
11 $25,015 $25,038 $24,918
12 $25,112 $25,102 $25,007
95:1 $25,255 $25,231 $25,187
2 $25,462 $25,402 $25,424
3 $25,617 $25,570 $25,584
4 $25,684 $25,663 $25,669
5 $25,959 $25,904 $25,938
6 $26,072 $25,992 $26,032
7 $26,204 $26,182 $26,185
8 $26,314 $26,321 $26,313
9 $26,366 $26,394 $26,377
10 $26,479 $26,502 $26,503
11 $26,616 $26,628 $26,662
12 $26,709 $26,728 $26,777
96:1 $26,844 $26,881 $26,937
2 $26,878 $26,946 $26,970
3 $26,869 $26,964 $26,919
4 $26,901 $27,028 $26,948
5 $26,968 $27,096 $27,007
6 $27,053 $27,228 $27,105
7 $27,168 $27,343 $27,229
8 $27,206 $27,396 $27,289
9 $27,336 $27,520 $27,423
10 $27,441 $27,661 $27,574
11 $27,608 $27,828 $27,745
12 $27,657 $27,888 $27,789
97:1 $27,786 $28,049 $27,886
2 $27,854 $28,139 $28,006
3 $27,827 $28,125 $27,934
4 $27,913 $28,238 $28,029
5 $28,058 $28,380 $28,199
6 $28,167 $28,493 $28,343
7 $28,298 $28,668 $28,573
8 $28,335 $28,704 $28,573
9 $28,477 $28,852 $28,767
10 $28,564 $28,963 $28,871
11 $28,624 $29,052 $28,957
12 $28,752 $29,182 $29,114
98:1 $28,882 $29,335 $29,262
2 $28,971 $29,437 $29,332
3 $29,036 $29,521 $29,394
4 $29,078 $29,557 $29,394
5 $29,204 $29,711 $29,576
6 $29,271 $29,820 $29,677
7 $29,379 $29,922 $29,772
8 $29,512 $30,103 $29,986
9 $29,622 $30,246 $30,142
10 $29,727 $30,389 $30,245
11 $29,813 $30,480 $30,302
12 $29,885 $30,566 $30,402
99:1 $30,035 $30,737 $30,566
2 $30,143 $30,847 $30,569
3 $30,184 $30,873 $30,612
4 $30,244 $30,944 $30,689
5 $30,293 $31,005 $30,701
6 $30,288 $30,977 $30,593
7 $30,363 $31,088 $30,691
8 $30,398 $31,164 $30,694
9 $30,483 $31,269 $30,768
10 $30,513 $31,337 $30,777
11 $30,631 $31,434 $30,882
12 $30,652 $31,460 $30,885
00:1 $30,745 $31,580 $30,904
2 $30,818 $31,675 $31,018
3 $30,942 $31,812 $31,167
4 $30,988 $31,888 $31,198
5 $31,025 $31,941 $31,232
6 $31,273 $32,203 $31,488
7 $31,426 $32,383 $31,680
8 $31,579 $32,549 $31,848
9 $31,633 $32,621 $31,922
10 $31,760 $32,775 $32,056
11 $31,859 $32,899 $32,165
12 $32,089 $33,144 $32,425
01:1 $32,375 $33,537 $32,698
2 $32,481 $33,648 $32,815
3 $32,630 $33,822 $32,983
4 $32,685 $33,886 $33,006
5 $32,889 $34,127 $33,217
6 $32,988 $34,260 $33,350
7 $33,169 $34,411 $33,533
8 $33,373 $34,617 $33,761
9 $33,525 $34,787 $33,856
10 $33,674 $34,938 $33,998
11 $33,662 $34,970 $33,937
12 $33,729 $35,057 $33,964
02:1 $33,975 $35,341 $34,158
2 $34,142 $35,468 $34,321
3 $33,876 $35,221 $34,095
4 $34,148 $35,488 $34,364
5 $34,315 $35,645 $34,488
6 $34,526 $35,819 $34,671
7 $34,656 $35,951 $34,823
8 $34,734 $36,071 $34,959
9 $34,802 $36,152 $35,102
10 $34,710 $36,098 $34,953
11 $34,814 $36,177 $35,019
12 $34,975 $36,407 $35,285
03:1 $35,053 $36,491 $35,344
2 $35,156 $36,583 $35,517
3 $35,165 $36,583 $35,476
4 $35,205 $36,626 $35,556
5 $35,382 $36,743 $35,783
6 $35,362 $36,791 $35,780
7 $35,199 $36,776 $35,558
8 $35,259 $36,824 $35,650
9 $35,488 $36,997 $35,942
10 $35,493 $36,956 $35,894
11 $35,548 $36,992 $35,958
12 $35,625 $37,032 $36,004
04:01 $35,709 $37,110 $36,087
2 $35,790 $37,242 $36,258
3 $35,784 $37,247 $36,185
4 $35,672 $37,158 $35,941
5 $35,606 $37,099 $35,881
6 $35,658 $37,135 $35,913
7 $35,795 $37,281 $36,059
8 $35,925 $37,439 $36,264
9 $35,918 $37,475 $36,281
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Short Duration Lehman Brothers
California Municipal One-Year Municipal Index Lipper Short-Term
Yr:Month (after all costs) (before all costs) Municipal Composite
-------- --------------------- ------------------------ -------------------
94:10 $25,000 $25,000 $25,000
11 $24,978 $25,038 $24,918
12 $25,055 $25,102 $25,007
95:1 $25,202 $25,231 $25,187
2 $25,451 $25,402 $25,424
3 $25,566 $25,570 $25,584
4 $25,668 $25,663 $25,669
5 $25,915 $25,904 $25,938
6 $26,000 $25,992 $26,032
7 $26,185 $26,182 $26,185
8 $26,267 $26,321 $26,313
9 $26,332 $26,394 $26,377
10 $26,442 $26,502 $26,503
11 $26,554 $26,628 $26,662
12 $26,631 $26,728 $26,777
96:1 $26,786 $26,881 $26,937
2 $26,813 $26,946 $26,970
3 $26,793 $26,964 $26,919
4 $26,841 $27,028 $26,948
5 $26,885 $27,096 $27,007
6 $26,990 $27,228 $27,105
7 $27,105 $27,343 $27,229
8 $27,146 $27,396 $27,289
9 $27,256 $27,520 $27,423
10 $27,384 $27,661 $27,574
11 $27,530 $27,828 $27,745
12 $27,578 $27,888 $27,789
97:1 $27,683 $28,049 $27,886
2 $27,747 $28,139 $28,006
3 $27,740 $28,125 $27,934
4 $27,824 $28,238 $28,029
5 $27,923 $28,380 $28,199
6 $28,030 $28,493 $28,343
7 $28,178 $28,668 $28,573
8 $28,209 $28,704 $28,573
9 $28,317 $28,852 $28,767
10 $28,393 $28,963 $28,871
11 $28,446 $29,052 $28,957
12 $28,571 $29,182 $29,114
98:1 $28,693 $29,335 $29,262
2 $28,778 $29,437 $29,332
3 $28,837 $29,521 $29,394
4 $28,849 $29,557 $29,394
5 $28,967 $29,711 $29,576
6 $29,055 $29,820 $29,677
7 $29,190 $29,922 $29,772
8 $29,317 $30,103 $29,986
9 $29,443 $30,246 $30,142
10 $29,569 $30,389 $30,245
11 $29,655 $30,480 $30,302
12 $29,686 $30,566 $30,402
99:1 $29,832 $30,737 $30,566
2 $29,915 $30,847 $30,569
3 $29,929 $30,873 $30,612
4 $30,007 $30,944 $30,689
5 $30,024 $31,005 $30,701
6 $30,014 $30,977 $30,593
7 $30,115 $31,088 $30,691
8 $30,168 $31,164 $30,694
9 $30,296 $31,269 $30,768
10 $30,326 $31,337 $30,777
11 $30,393 $31,434 $30,882
12 $30,388 $31,460 $30,885
00:1 $30,497 $31,580 $30,904
2 $30,614 $31,675 $31,018
3 $30,727 $31,812 $31,167
4 $30,740 $31,888 $31,198
5 $30,816 $31,941 $31,232
6 $31,059 $32,203 $31,488
7 $31,208 $32,383 $31,680
8 $31,386 $32,549 $31,848
9 $31,467 $32,621 $31,922
10 $31,593 $32,775 $32,056
11 $31,694 $32,899 $32,165
12 $31,870 $33,144 $32,425
01:1 $32,171 $33,537 $32,698
2 $32,271 $33,648 $32,815
3 $32,396 $33,822 $32,983
4 $32,398 $33,886 $33,006
5 $32,599 $34,127 $33,217
6 $32,695 $34,260 $33,350
7 $32,847 $34,411 $33,533
8 $32,989 $34,617 $33,761
9 $33,081 $34,787 $33,856
10 $33,191 $34,938 $33,998
11 $33,237 $34,970 $33,937
12 $33,276 $35,057 $33,964
02:1 $33,493 $35,341 $34,158
2 $33,548 $35,468 $34,321
3 $33,359 $35,221 $34,095
4 $33,541 $35,488 $34,364
5 $33,649 $35,645 $34,488
6 $33,744 $35,819 $34,671
7 $33,832 $35,951 $34,823
8 $33,947 $36,071 $34,959
9 $34,031 $36,152 $35,102
10 $33,898 $36,098 $34,953
11 $33,933 $36,177 $35,019
12 $34,148 $36,407 $35,285
03:1 $34,203 $36,491 $35,344
2 $34,311 $36,583 $35,517
3 $34,331 $36,583 $35,476
4 $34,356 $36,626 $35,556
5 $34,517 $36,743 $35,783
6 $34,480 $36,791 $35,780
7 $34,302 $36,776 $35,558
8 $34,371 $36,824 $35,650
9 $34,585 $36,997 $35,942
10 $34,549 $36,956 $35,894
11 $34,619 $36,992 $35,958
12 $34,664 $37,032 $36,004
04:01 $34,737 $37,110 $36,087
2 $34,836 $37,242 $36,258
3 $34,825 $37,247 $36,185
4 $34,687 $37,158 $35,941
5 $34,649 $37,099 $35,881
6 $34,698 $37,135 $35,913
7 $34,804 $37,281 $36,059
8 $34,875 $37,439 $36,264
9 $34,866 $37,475 $36,281
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Short Duration Lehman Brothers
New York Municipal One-Year Municipal Index Lipper Short-Term
Yr:Month (after all costs) (before all costs) Municipal Composite
-------- --------------------- ------------------------ -------------------
94:10 $25,000 $25,000 $25,000
11 $24,970 $25,038 $24,918
12 $25,062 $25,102 $25,007
95:1 $25,212 $25,231 $25,187
2 $25,450 $25,402 $25,424
3 $25,582 $25,570 $25,584
4 $25,659 $25,663 $25,669
5 $25,882 $25,904 $25,938
6 $25,984 $25,992 $26,032
7 $26,124 $26,182 $26,185
8 $26,221 $26,321 $26,313
9 $26,284 $26,394 $26,377
10 $26,374 $26,502 $26,503
11 $26,496 $26,628 $26,662
12 $26,583 $26,728 $26,777
96:1 $26,736 $26,881 $26,937
2 $26,803 $26,946 $26,970
3 $26,783 $26,964 $26,919
4 $26,806 $27,028 $26,948
5 $26,871 $27,096 $27,007
6 $26,956 $27,228 $27,105
7 $27,075 $27,343 $27,229
8 $27,073 $27,396 $27,289
9 $27,213 $27,520 $27,423
10 $27,350 $27,661 $27,574
11 $27,486 $27,828 $27,745
12 $27,520 $27,888 $27,789
97:1 $27,636 $28,049 $27,886
2 $27,707 $28,139 $28,006
3 $27,685 $28,125 $27,934
4 $27,779 $28,238 $28,029
5 $27,890 $28,380 $28,199
6 $28,005 $28,493 $28,343
7 $28,140 $28,668 $28,573
8 $28,158 $28,704 $28,573
9 $28,300 $28,852 $28,767
10 $28,388 $28,963 $28,871
11 $28,448 $29,052 $28,957
12 $28,553 $29,182 $29,114
98:1 $28,687 $29,335 $29,262
2 $28,755 $29,437 $29,332
3 $28,823 $29,521 $29,394
4 $28,844 $29,557 $29,394
5 $28,970 $29,711 $29,576
6 $29,061 $29,820 $29,677
7 $29,150 $29,922 $29,772
8 $29,282 $30,103 $29,986
9 $29,391 $30,246 $30,142
10 $29,497 $30,389 $30,245
11 $29,565 $30,480 $30,302
12 $29,628 $30,566 $30,402
99:1 $29,781 $30,737 $30,566
2 $29,847 $30,847 $30,569
3 $29,914 $30,873 $30,612
4 $29,957 $30,944 $30,689
5 $29,988 $31,005 $30,701
6 $29,966 $30,977 $30,593
7 $30,052 $31,088 $30,691
8 $30,096 $31,164 $30,694
9 $30,167 $31,269 $30,768
10 $30,205 $31,337 $30,777
11 $30,309 $31,434 $30,882
12 $30,310 $31,460 $30,885
00:1 $30,388 $31,580 $30,904
2 $30,484 $31,675 $31,018
3 $30,582 $31,812 $31,167
4 $30,632 $31,888 $31,198
5 $30,692 $31,941 $31,232
6 $30,918 $32,203 $31,488
7 $31,067 $32,383 $31,680
8 $31,192 $32,549 $31,848
9 $31,266 $32,621 $31,922
10 $31,385 $32,775 $32,056
11 $31,507 $32,899 $32,165
12 $31,759 $33,144 $32,425
01:1 $32,012 $33,537 $32,698
2 $32,116 $33,648 $32,815
3 $32,288 $33,822 $32,983
4 $32,286 $33,886 $33,006
5 $32,508 $34,127 $33,217
6 $32,600 $34,260 $33,350
7 $32,751 $34,411 $33,533
8 $32,941 $34,617 $33,761
9 $33,002 $34,787 $33,856
10 $33,170 $34,938 $33,998
11 $33,153 $34,970 $33,937
12 $33,188 $35,057 $33,964
02:1 $33,432 $35,341 $34,158
2 $33,545 $35,468 $34,321
3 $33,357 $35,221 $34,095
4 $33,540 $35,488 $34,364
5 $33,653 $35,645 $34,488
6 $33,775 $35,819 $34,671
7 $33,873 $35,951 $34,823
8 $33,974 $36,071 $34,959
9 $34,040 $36,152 $35,102
10 $33,943 $36,098 $34,953
11 $33,984 $36,177 $35,019
12 $34,210 $36,407 $35,285
03:1 $34,250 $36,491 $35,344
2 $34,369 $36,583 $35,517
3 $34,344 $36,583 $35,476
4 $34,406 $36,626 $35,556
5 $34,605 $36,743 $35,783
6 $34,579 $36,791 $35,780
7 $34,405 $36,776 $35,558
8 $34,480 $36,824 $35,650
9 $34,694 $36,997 $35,942
10 $34,689 $36,956 $35,894
11 $34,765 $36,992 $35,958
12 $34,824 $37,032 $36,004
04:01 $34,881 $37,110 $36,087
2 $34,990 $37,242 $36,258
3 $34,959 $37,247 $36,185
4 $34,819 $37,158 $35,941
5 $34,782 $37,099 $35,881
6 $34,831 $37,135 $35,913
7 $34,940 $37,281 $36,059
8 $35,072 $37,439 $36,264
9 $35,096 $37,475 $36,281
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Lehman Brothers
Diversified Municipal Lipper Intermediate Five-year G/O Index
Yr:Month (after all costs) Municipal Composite (before all costs)
- -------- --------------------- ------------------- -------------------
89:1 $25,000 $25,000 $25,000
2 $24,863 $24,893 $24,735
3 $24,736 $24,820 $24,577
4 $25,164 $25,212 $24,999
5 $25,550 $25,550 $25,454
6 $25,878 $25,829 $25,734
7 $26,189 $26,128 $26,110
8 $26,027 $26,011 $26,008
9 $25,973 $25,972 $26,021
10 $26,266 $26,203 $26,250
11 $26,602 $26,510 $26,584
12 $26,769 $26,743 $26,799
90:1 $26,669 $26,679 $26,812
2 $26,843 $26,884 $27,013
3 $26,823 $26,868 $26,930
4 $26,741 $26,723 $26,841
5 $27,152 $27,177 $27,332
6 $27,351 $27,405 $27,532
7 $27,637 $27,748 $27,859
8 $27,510 $27,501 $27,764
9 $27,622 $27,592 $27,823
10 $28,022 $27,934 $28,232
11 $28,403 $28,375 $28,638
12 $28,590 $28,517 $28,744
91:1 $28,933 $28,845 $29,167
2 $29,187 $29,096 $29,432
3 $29,102 $29,111 $29,365
4 $29,448 $29,416 $29,732
5 $29,565 $29,622 $29,883
6 $29,545 $29,593 $29,877
7 $29,774 $29,856 $30,176
8 $30,144 $30,166 $30,565
9 $30,443 $30,504 $30,941
10 $30,652 $30,758 $31,176
11 $30,818 $30,841 $31,276
12 $31,500 $31,433 $31,980
92:1 $31,450 $31,521 $32,041
2 $31,425 $31,555 $32,060
3 $31,229 $31,489 $31,954
4 $31,393 $31,732 $32,235
5 $31,803 $32,068 $32,525
6 $32,239 $32,520 $32,994
7 $33,167 $33,486 $33,858
8 $32,915 $33,148 $33,604
9 $33,154 $33,343 $33,816
10 $32,796 $33,067 $33,708
11 $33,281 $33,622 $34,116
12 $33,560 $33,908 $34,354
93:1 $33,893 $34,291 $34,725
2 $34,711 $35,313 $35,632
3 $34,381 $34,932 $35,229
4 $34,587 $35,218 $35,455
5 $34,642 $35,355 $35,579
6 $35,137 $35,868 $36,059
7 $35,040 $35,872 $36,084
8 $35,639 $36,535 $36,575
9 $36,007 $36,959 $36,838
10 $36,062 $37,037 $36,894
11 $35,883 $36,800 $36,787
12 $36,391 $37,429 $37,291
94:1 $36,706 $37,826 $37,641
2 $36,065 $37,001 $36,937
3 $35,366 $35,950 $36,114
4 $35,368 $36,133 $36,478
5 $35,587 $36,401 $36,683
6 $35,483 $36,295 $36,598
7 $35,871 $36,753 $36,997
8 $36,012 $36,896 $37,175
9 $35,719 $36,520 $36,896
10 $35,420 $36,092 $36,689
11 $35,020 $35,555 $36,454
12 $35,475 $36,084 $36,775
95:1 $36,132 $36,792 $37,128
2 $36,876 $37,564 $37,667
3 $37,259 $37,902 $38,266
4 $37,321 $37,967 $38,369
5 $38,266 $38,870 $39,209
6 $38,107 $38,727 $39,241
7 $38,458 $39,087 $39,790
8 $38,841 $39,470 $40,192
9 $38,993 $39,643 $40,312
10 $39,376 $40,024 $40,482
11 $39,818 $40,456 $40,826
12 $40,075 $40,727 $41,050
96:1 $40,373 $41,069 $41,539
2 $40,264 $40,938 $41,398
3 $39,891 $40,475 $41,178
4 $39,808 $40,398 $41,116
5 $39,813 $40,378 $41,067
6 $40,080 $40,621 $41,359
7 $40,366 $40,978 $41,632
8 $40,331 $40,986 $41,719
9 $40,701 $41,335 $42,032
10 $41,035 $41,731 $42,423
11 $41,640 $42,353 $43,012
12 $41,532 $42,226 $42,948
97:1 $41,687 $42,315 $43,064
2 $41,938 $42,624 $43,370
3 $41,599 $42,180 $42,880
4 $41,851 $42,387 $43,094
5 $42,281 $42,892 $43,564
6 $42,594 $43,278 $43,947
7 $43,376 $44,221 $44,743
8 $43,145 $43,858 $44,505
9 $43,532 $44,310 $44,906
10 $43,687 $44,514 $45,180
11 $43,832 $44,679 $45,324
12 $44,307 $45,237 $45,732
98:1 $44,617 $45,617 $46,135
2 $44,677 $45,635 $46,190
3 $44,709 $45,635 $46,269
4 $44,638 $45,393 $46,047
5 $45,043 $46,034 $46,595
6 $45,175 $46,162 $46,739
7 $45,297 $46,241 $46,907
8 $45,750 $46,916 $47,541
9 $46,137 $47,423 $48,025
10 $46,223 $47,408 $48,126
11 $46,252 $47,494 $48,194
12 $46,356 $47,655 $48,406
99:1 $46,841 $48,199 $48,895
2 $46,767 $47,924 $48,836
3 $46,802 $47,881 $48,904
4 $46,924 $48,010 $49,046
5 $46,795 $47,722 $48,879
6 $46,390 $47,040 $48,337
7 $46,545 $47,256 $48,593
8 $46,470 $47,020 $48,593
9 $46,491 $47,038 $48,763
10 $46,295 $46,695 $48,656
11 $46,673 $47,087 $48,914
12 $46,566 $46,866 $48,752
00:1 $46,487 $46,646 $48,730
2 $46,726 $47,000 $48,880
3 $47,350 $47,663 $49,318
4 $47,262 $47,472 $49,221
5 $47,130 $47,254 $49,201
6 $47,949 $48,241 $50,111
7 $48,407 $48,782 $50,657
8 $48,906 $49,377 $51,189
9 $48,835 $49,229 $51,103
10 $49,220 $49,598 $51,466
11 $49,438 $49,831 $51,666
12 $50,202 $50,878 $52,496
01:1 $50,751 $51,437 $53,404
2 $50,902 $51,586 $53,533
3 $51,338 $51,989 $53,960
4 $51,049 $51,469 $53,674
5 $51,567 $51,978 $54,206
6 $51,819 $52,311 $54,444
7 $52,344 $52,939 $55,054
8 $52,978 $53,738 $55,792
9 $53,051 $53,652 $55,931
10 $53,461 $54,151 $56,345
11 $53,192 $53,561 $55,928
12 $52,957 $53,159 $55,637
02:1 $53,596 $53,925 $56,527
2 $54,046 $54,545 $57,155
3 $53,304 $53,541 $56,006
4 $54,096 $54,580 $57,261
5 $54,363 $54,880 $57,639
6 $54,840 $55,445 $58,267
7 $55,329 $56,094 $58,901
8 $55,749 $56,627 $59,453
9 $56,455 $57,653 $60,221
10 $55,801 $56,730 $59,625
11 $55,669 $56,475 $59,548
12 $56,551 $57,660 $60,644
03:1 $56,501 $57,398 $60,789
2 $57,115 $58,211 $61,441
3 $57,076 $58,183 $61,390
4 $57,330 $58,538 $61,642
5 $58,389 $59,725 $62,663
6 $58,106 $59,446 $62,512
7 $56,734 $57,612 $61,133
8 $57,062 $58,042 $61,572
9 $58,395 $59,514 $63,182
10 $58,160 $59,183 $62,722
11 $58,514 $59,670 $62,951
12 $58,836 $60,022 $63,180
04:01 $59,079 $60,226 $63,462
2 $59,771 $61,080 $64,299
3 $59,514 $60,670 $64,048
4 $58,482 $59,375 $62,749
5 $58,297 $59,267 $62,524
6 $58,452 $59,412 $62,759
7 $58,986 $60,005 $63,294
8 $59,841 $60,965 $64,394
9 $59,989 $61,136 $64,636
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Lehman Brothers Lipper Intermediate
California Municipal Five-year G/O Index California
Yr:Month (after all costs) (before all costs) Municipal Composite
-------- --------------------- ------------------- -------------------
90:8 $25,000 $25,000 $25,000
9 $25,155 $25,053 $24,988
10 $25,459 $25,421 $25,452
11 $25,844 $25,787 $26,015
12 $26,072 $25,882 $26,127
91:1 $26,340 $26,263 $26,424
2 $26,649 $26,502 $26,557
3 $26,566 $26,441 $26,578
4 $26,814 $26,771 $26,942
5 $26,937 $26,908 $27,184
6 $26,889 $26,902 $27,108
7 $27,112 $27,171 $27,472
8 $27,378 $27,522 $27,796
9 $27,686 $27,860 $28,168
10 $27,891 $28,072 $28,430
11 $27,989 $28,162 $28,510
12 $28,558 $28,796 $29,051
92:1 $28,610 $28,850 $29,133
2 $28,600 $28,868 $29,153
3 $28,370 $28,772 $29,074
4 $28,578 $29,026 $29,278
5 $28,916 $29,287 $29,571
6 $29,279 $29,709 $29,952
7 $30,091 $30,487 $30,776
8 $29,901 $30,258 $30,440
9 $30,111 $30,449 $30,626
10 $29,803 $30,352 $30,292
11 $30,239 $30,719 $30,792
12 $30,500 $30,934 $31,054
93:1 $30,820 $31,268 $31,389
2 $31,647 $32,084 $32,347
3 $31,314 $31,721 $32,001
4 $31,469 $31,924 $32,253
5 $31,577 $32,036 $32,369
6 $31,950 $32,469 $32,826
7 $31,855 $32,491 $32,796
8 $32,374 $32,933 $33,423
9 $32,702 $33,170 $33,820
10 $32,727 $33,220 $33,875
11 $32,544 $33,124 $33,637
12 $33,015 $33,578 $34,240
94:1 $33,326 $33,893 $34,609
2 $32,694 $33,259 $33,838
3 $32,066 $32,518 $32,890
4 $32,043 $32,846 $33,025
5 $32,213 $33,030 $33,246
6 $32,168 $32,954 $33,140
7 $32,562 $33,313 $33,617
8 $32,664 $33,473 $33,745
9 $32,381 $33,222 $33,428
10 $32,096 $33,036 $32,970
11 $31,737 $32,825 $32,459
12 $31,975 $33,114 $32,825
95:1 $32,592 $33,431 $33,495
2 $33,414 $33,916 $34,239
3 $33,727 $34,455 $34,578
4 $33,804 $34,549 $34,626
5 $34,674 $35,305 $35,481
6 $34,446 $35,333 $35,258
7 $34,807 $35,828 $35,635
8 $35,120 $36,190 $36,027
9 $35,330 $36,298 $36,229
10 $35,701 $36,451 $36,624
11 $36,150 $36,761 $37,048
12 $36,362 $36,963 $37,252
96:1 $36,708 $37,403 $37,584
2 $36,580 $37,276 $37,460
3 $36,160 $37,078 $37,029
4 $36,109 $37,022 $36,999
5 $36,084 $36,978 $36,988
6 $36,350 $37,241 $37,240
7 $36,604 $37,486 $37,571
8 $36,626 $37,565 $37,571
9 $36,955 $37,847 $37,879
10 $37,284 $38,199 $38,266
11 $37,797 $38,730 $38,874
12 $37,716 $38,672 $38,730
97:1 $37,822 $38,776 $38,804
2 $38,042 $39,051 $39,052
3 $37,705 $38,610 $38,681
4 $37,898 $38,803 $38,863
5 $38,309 $39,226 $39,372
6 $38,619 $39,571 $39,730
7 $39,374 $40,288 $40,648
8 $39,162 $40,074 $40,307
9 $39,476 $40,435 $40,710
10 $39,611 $40,681 $40,820
11 $39,739 $40,812 $40,987
12 $40,108 $41,179 $41,479
98:1 $40,439 $41,541 $41,869
2 $40,519 $41,591 $41,927
3 $40,487 $41,662 $41,856
4 $40,393 $41,462 $41,617
5 $40,840 $41,955 $42,192
6 $40,959 $42,085 $42,302
7 $41,068 $42,237 $42,428
8 $41,530 $42,807 $43,065
9 $41,989 $43,244 $43,702
10 $42,030 $43,334 $43,641
11 $42,140 $43,395 $43,759
12 $42,163 $43,586 $43,776
99:1 $42,589 $44,026 $44,289
2 $42,484 $43,973 $44,080
3 $42,539 $44,035 $44,147
4 $42,586 $44,163 $44,182
5 $42,376 $44,012 $43,912
6 $42,044 $43,524 $43,289
7 $42,208 $43,755 $43,527
8 $42,105 $43,755 $43,335
9 $42,243 $43,908 $43,491
10 $42,035 $43,811 $43,122
11 $42,342 $44,043 $43,505
12 $42,137 $43,898 $43,192
00:1 $42,158 $43,878 $43,218
2 $42,497 $44,013 $43,581
3 $43,082 $44,407 $44,261
4 $42,842 $44,320 $44,000
5 $42,874 $44,302 $43,987
6 $43,594 $45,121 $44,937
7 $43,999 $45,613 $45,458
8 $44,600 $46,092 $46,163
9 $44,540 $46,015 $45,983
10 $44,798 $46,342 $46,277
11 $45,055 $46,522 $46,504
12 $45,731 $47,269 $47,336
01:1 $46,213 $48,087 $47,937
2 $46,311 $48,202 $47,995
3 $46,529 $48,587 $48,220
4 $46,134 $48,330 $47,507
5 $46,587 $48,808 $48,134
6 $46,770 $49,023 $48,427
7 $47,229 $49,572 $49,004
8 $47,917 $50,237 $49,925
9 $47,803 $50,362 $49,795
10 $48,223 $50,735 $50,313
11 $48,037 $50,359 $49,885
12 $47,820 $50,097 $49,461
02:1 $48,346 $50,899 $50,228
2 $48,705 $51,464 $50,755
3 $47,963 $50,430 $49,695
4 $48,585 $51,559 $50,624
5 $48,911 $51,899 $51,024
6 $49,215 $52,465 $51,345
7 $49,594 $53,036 $51,879
8 $50,053 $53,533 $52,491
9 $50,801 $54,225 $53,580
10 $49,828 $53,688 $52,358
11 $49,835 $53,619 $52,310
12 $50,600 $54,606 $53,234
03:1 $50,464 $54,737 $52,874
2 $51,061 $55,323 $53,486
3 $51,083 $55,278 $53,484
4 $51,367 $55,505 $53,794
5 $52,257 $56,423 $54,846
6 $51,929 $56,288 $54,438
7 $50,741 $55,046 $52,856
8 $51,024 $55,441 $53,200
9 $52,018 $56,891 $54,474
10 $51,877 $56,477 $54,293
11 $52,185 $56,683 $54,720
12 $52,461 $56,889 $55,041
04:01 $52,630 $57,143 $55,196
2 $53,268 $57,897 $55,954
3 $53,035 $57,671 $55,534
4 $52,044 $56,501 $54,365
5 $51,838 $56,298 $54,222
6 $52,077 $56,510 $54,451
7 $52,543 $56,992 $55,002
8 $53,259 $57,982 $55,865
9 $53,347 $58,200 $56,027
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Lipper Intermediate Lehman Brothers
New York Municipal New York Five-year G/O Index
Yr:Month (after all costs) Municipal Composite (before all costs)
- -------- --------------------- ------------------- -------------------
89:1 $25,000 $25,000 $25,000
2 $24,881 $24,750 $24,735
3 $24,809 $24,750 $24,577
4 $25,201 $25,389 $24,999
5 $25,589 $25,868 $25,454
6 $26,022 $26,197 $25,734
7 $26,313 $26,469 $26,110
8 $26,154 $26,221 $26,008
9 $26,119 $26,105 $26,021
10 $26,415 $26,319 $26,250
11 $26,731 $26,725 $26,584
12 $26,872 $26,928 $26,799
90:1 $26,733 $26,658 $26,812
2 $26,912 $26,888 $27,013
3 $26,920 $26,842 $26,930
4 $26,800 $26,514 $26,841
5 $27,193 $27,167 $27,332
6 $27,412 $27,463 $27,532
7 $27,703 $27,960 $27,859
8 $27,579 $27,420 $27,764
9 $27,718 $27,341 $27,823
10 $28,096 $27,620 $28,232
11 $28,494 $28,222 $28,638
12 $28,658 $28,323 $28,744
91:1 $28,979 $28,706 $29,167
2 $29,257 $28,878 $29,432
3 $29,267 $28,985 $29,365
4 $29,548 $29,437 $29,732
5 $29,712 $29,664 $29,883
6 $29,717 $29,634 $29,877
7 $29,973 $30,117 $30,176
8 $30,301 $30,554 $30,565
9 $30,585 $31,015 $30,941
10 $30,796 $31,313 $31,176
11 $30,916 $31,354 $31,276
12 $31,642 $31,999 $31,980
92:1 $31,552 $31,823 $32,041
2 $31,632 $31,941 $32,060
3 $31,492 $32,043 $31,954
4 $31,761 $32,383 $32,235
5 $32,079 $32,856 $32,525
6 $32,544 $33,536 $32,994
7 $33,479 $34,763 $33,858
8 $33,211 $34,235 $33,604
9 $33,432 $34,338 $33,816
10 $33,106 $34,018 $33,708
11 $33,551 $34,586 $34,116
12 $33,820 $34,901 $34,354
93:1 $34,138 $35,271 $34,725
2 $35,046 $36,294 $35,632
3 $34,698 $35,960 $35,229
4 $34,941 $36,233 $35,455
5 $35,058 $36,415 $35,579
6 $35,516 $36,884 $36,059
7 $35,424 $36,873 $36,084
8 $35,981 $37,507 $36,575
9 $36,334 $37,822 $36,838
10 $36,393 $37,909 $36,894
11 $36,170 $37,652 $36,787
12 $36,714 $38,296 $37,291
94:1 $37,013 $38,701 $37,641
2 $36,374 $37,916 $36,937
3 $35,650 $36,903 $36,114
4 $35,660 $37,092 $36,478
5 $35,938 $37,388 $36,683
6 $35,864 $37,317 $36,598
7 $36,314 $37,761 $36,997
8 $36,384 $37,882 $37,175
9 $36,038 $37,503 $36,896
10 $35,665 $37,068 $36,689
11 $35,237 $36,527 $36,454
12 $35,779 $37,053 $36,775
95:1 $36,416 $37,661 $37,128
2 $37,197 $38,418 $37,667
3 $37,522 $38,718 $38,266
4 $37,644 $38,795 $38,369
5 $38,626 $39,714 $39,209
6 $38,465 $39,583 $39,241
7 $38,791 $39,971 $39,790
8 $39,206 $40,395 $40,192
9 $39,330 $40,548 $40,312
10 $39,721 $40,950 $40,482
11 $40,171 $41,392 $40,826
12 $40,419 $41,641 $41,050
96:1 $40,725 $41,990 $41,539
2 $40,529 $41,801 $41,398
3 $40,181 $41,379 $41,178
4 $40,131 $41,263 $41,116
5 $40,108 $41,201 $41,067
6 $40,379 $41,482 $41,359
7 $40,673 $41,884 $41,632
8 $40,646 $41,859 $41,719
9 $41,026 $42,269 $42,032
10 $41,401 $42,654 $42,423
11 $41,928 $43,336 $43,012
12 $41,845 $43,176 $42,948
97:1 $41,973 $43,228 $43,064
2 $42,260 $43,560 $43,370
3 $41,887 $43,094 $42,880
4 $42,143 $43,318 $43,094
5 $42,548 $43,886 $43,564
6 $42,870 $44,312 $43,947
7 $43,663 $45,344 $44,743
8 $43,396 $44,950 $44,505
9 $43,790 $45,417 $44,906
10 $43,981 $45,576 $45,180
11 $44,099 $45,758 $45,324
12 $44,582 $46,349 $45,732
98:1 $44,931 $46,743 $46,135
2 $44,962 $46,757 $46,190
3 $44,995 $46,710 $46,269
4 $44,826 $46,402 $46,047
5 $45,370 $47,125 $46,595
6 $45,542 $47,281 $46,739
7 $45,602 $47,333 $46,907
8 $46,164 $48,052 $47,541
9 $46,556 $48,624 $48,025
10 $46,675 $48,610 $48,126
11 $46,771 $48,673 $48,194
12 $46,904 $48,863 $48,406
99:1 $47,428 $49,444 $48,895
2 $47,282 $49,157 $48,836
3 $47,314 $49,103 $48,904
4 $47,407 $49,226 $49,046
5 $47,208 $48,931 $48,879
6 $46,726 $48,216 $48,337
7 $46,917 $48,443 $48,593
8 $46,840 $48,244 $48,593
9 $46,899 $48,288 $48,763
10 $46,668 $47,877 $48,656
11 $47,056 $48,318 $48,914
12 $46,889 $48,076 $48,752
00:1 $46,846 $47,874 $48,730
2 $47,163 $48,257 $48,880
3 $47,763 $49,044 $49,318
4 $47,601 $48,789 $49,221
5 $47,533 $48,594 $49,201
6 $48,395 $49,702 $50,111
7 $48,825 $50,298 $50,657
8 $49,329 $50,982 $51,189
9 $49,211 $50,798 $51,103
10 $49,604 $51,276 $51,466
11 $49,853 $51,543 $51,666
12 $50,731 $52,707 $52,496
01:1 $51,284 $53,340 $53,404
2 $51,357 $53,420 $53,533
3 $51,756 $53,895 $53,960
4 $51,494 $53,416 $53,674
5 $51,972 $53,977 $54,206
6 $52,182 $54,284 $54,444
7 $52,669 $54,909 $55,054
8 $53,305 $55,782 $55,792
9 $53,144 $55,369 $55,931
10 $53,632 $55,884 $56,345
11 $53,277 $55,353 $55,928
12 $53,036 $54,921 $55,637
02:1 $53,758 $55,816 $56,527
2 $54,287 $56,525 $57,155
3 $53,522 $55,400 $56,006
4 $54,321 $56,525 $57,261
5 $54,543 $56,774 $57,639
6 $55,024 $57,330 $58,267
7 $55,516 $57,966 $58,901
8 $56,016 $58,563 $59,453
9 $56,774 $59,620 $60,221
10 $56,109 $58,714 $59,625
11 $55,889 $58,361 $59,548
12 $56,900 $59,581 $60,644
03:1 $56,841 $59,246 $60,789
2 $57,500 $60,103 $61,441
3 $57,376 $60,001 $61,390
4 $57,668 $60,415 $61,642
5 $58,695 $61,718 $62,663
6 $58,445 $61,317 $62,512
7 $57,048 $59,343 $61,133
8 $57,379 $59,832 $61,572
9 $58,734 $61,410 $63,182
10 $58,456 $61,015 $62,722
11 $58,858 $61,551 $62,951
12 $59,148 $61,926 $63,180
04:01 $59,401 $62,052 $63,462
2 $60,105 $62,955 $64,299
3 $59,803 $62,398 $64,048
4 $58,758 $61,084 $62,749
5 $58,532 $60,990 $62,524
6 $58,695 $61,128 $62,759
7 $59,286 $61,753 $63,294
8 $60,165 $62,738 $64,394
9 $60,279 $62,904 $64,636
Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Taxable Bond Portfolio
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Growth of $25,000(1)
[The following table was represented as a line graph in the printed material.]
Intermediate Duration Lehman Brothers
Institutional Lipper Intermediate Aggregate Bond Index
Yr:Month (after all costs) Bond Composite (before all costs)
- -------- --------------------- ------------------- --------------------
02:5 $25,000 $25,000 $25,000
6 $24,908 $25,060 $25,216
7 $25,077 $25,215 $25,520
8 $25,578 $25,639 $25,951
9 $25,878 $25,975 $26,372
10 $25,788 $25,837 $26,252
11 $25,923 $25,897 $26,245
12 $26,432 $26,414 $26,787
03:1 $26,474 $26,450 $26,809
2 $26,840 $26,813 $27,180
3 $26,816 $26,809 $27,160
4 $27,155 $27,077 $27,384
5 $27,624 $27,572 $27,894
6 $27,541 $27,538 $27,839
7 $26,623 $26,647 $26,903
8 $26,875 $26,811 $27,082
9 $27,545 $27,493 $27,798
10 $27,378 $27,276 $27,539
11 $27,498 $27,347 $27,605
12 $27,842 $27,607 $27,886
04:01 $28,034 $27,811 $28,110
2 $28,282 $28,063 $28,415
3 $28,480 $28,261 $28,627
4 $27,811 $27,593 $27,883
5 $27,664 $27,459 $27,771
6 $27,813 $27,583 $27,928
7 $28,054 $27,825 $28,205
8 $28,489 $28,300 $28,743
9 $28,581 $28,375 $28,821
- --------------------------------------------------------------------------------
4 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Fund Expenses -- September 30, 2004
Fund Expenses -- As a shareholder of the Fund, you incur two types of costs: (1)
in the case of the Emerging Markets Value portfolio only, transaction fees (2%
of amounts invested or redeemed at the time of such purchase or redemption) and
(2) ongoing costs, including management fees and other Fund expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds. The example is based on an investment of $1,000
invested at the beginning of the period and held for the entire period as
indicated below.
Actual Expenses -- The first line of the table below provides information about
actual account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line under the heading entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes -- The second line of the table
below provides information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio and an assumed annual rate of
return of 5% before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the Fund and other
funds by comparing this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds. Please note that
the expenses shown in the table are meant to highlight your ongoing costs only
and do not reflect any transactional costs, such as sales charges (loads), or
contingent deferred sales charges on redemptions. Therefore, the second line of
the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING EXPENSE
APRIL 1, 2004 SEPTEMBER 30, 2004 PERIOD* RATIO*
- ------------------------------------------------------------------------------------------------------------------------
Tax-Managed International Class Shares
Actual $1,000 $1,013.40 $6.29 1.25%
Hypothetical (5% return before expenses) $1,000 $1,018.75 $6.31 1.25%
- ------------------------------------------------------------------------------------------------------------------------
International Class Shares
Actual $1,000 $1,016.64 $6.50 1.29%
Hypothetical (5% return before expenses) $1,000 $1,018.55 $6.51 1.29%
- ------------------------------------------------------------------------------------------------------------------------
Emerging Markets Value Class Shares
Actual $1,000 $1,064.44 $9.03 1.75%
Hypothetical (5% return before expenses) $1,000 $1,016.25 $8.82 1.75%
- ------------------------------------------------------------------------------------------------------------------------
Intermediate Duration Class Shares
Actual $1,000 $1,003.30 $3.06 0.61%
Hypothetical (5% return before expenses) $1,000 $1,021.95 $3.08 0.61%
- ------------------------------------------------------------------------------------------------------------------------
U.S. Government Short Duration Class Shares
Actual $1,000 $ 996.54 $3.94 0.79%
Hypothetical (5% return before expenses) $1,000 $1,021.05 $3.99 0.79%
- ------------------------------------------------------------------------------------------------------------------------
Intermediate Duration Institutional Class Shares
Actual $1,000 $1,003.51 $2.25 0.45%
Hypothetical (5% return before expenses) $1,000 $1,022.75 $2.28 0.45%
- ------------------------------------------------------------------------------------------------------------------------
Short Duration Diversified Municipal Class Shares
Actual $1,000 $1,003.71 $3.46 0.69%
Hypothetical (5% return before expenses) $1,000 $1,021.55 $3.49 0.69%
- ------------------------------------------------------------------------------------------------------------------------
Short Duration California Municipal Class Shares
Actual $1,000 $1,001.17 $3.85 0.77%
Hypothetical (5% return before expenses) $1,000 $1,021.15 $3.89 0.77%
- ------------------------------------------------------------------------------------------------------------------------
Short Duration New York Municipal Class Shares
Actual $1,000 $1,003.92 $3.66 0.73%
Hypothetical (5% return before expenses) $1,000 $1,021.35 $3.69 0.73%
- ------------------------------------------------------------------------------------------------------------------------
Diversified Municipal Class Shares
Actual $1,000 $1,007.97 $3.06 0.61%
Hypothetical (5% return before expenses) $1,000 $1,021.95 $3.08 0.61%
- ------------------------------------------------------------------------------------------------------------------------
California Municipal Class Shares
Actual $1,000 $1,005.86 $3.26 0.65%
Hypothetical (5% return before expenses) $1,000 $1,021.75 $3.29 0.65%N
- ------------------------------------------------------------------------------------------------------------------------
New York Municipal Class Shares
Actual $1,000 $1,007.96 $3.16 0.63%
Hypothetical (5% return before expenses) $1,000 $1,021.85 $3.18 0.63%
- ------------------------------------------------------------------------------------------------------------------------
Short Duration Plus Class Shares
Actual $1,000 $ 998.45 $3.55 0.71%
Hypothetical (5% return before expenses) $1,000 $1,021.45 $3.59 0.71%
* Expenses are equal to each Class's annualized expense ratio, shown in the
table above, multiplied by the average account value over the period,
multiplied by the number of days in the most recent fiscal half-year/366
(to reflect the one-half-year period).
- --------------------------------------------------------------------------------
2004 Annual Report 5
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Portfolio Summary -- September 30, 2004
Foreign Stock Portfolios
- --------------------------------------------------------------------------------
Tax-Managed International
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Country Breakdown(1)
France 15.4%
Italy 3.1%
Spain 3.5%
Japan 21.3%
Singapore 1.4%
Sweden 3%
Belgium 1%
Netherlands 2.4%
Germany 7.3%
Hong Kong 0.9%
Switzerland 6.7%
Ireland 1.6%
Canada 4.1%
Australia 0.8%
United Kingdom 27.5%
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Industry Breakdown(2)
Automobiles 9.16%
Autos and Auto Parts 0.43
Banking 17.23
Chemicals 0.91
Computer/Instrumentation 0.39
Construction and Housing 5.68
Data Processing 5.96
Electrical and Electronics 2.07
Electronic Components and Instruments 2.33
Energy Sources 7.40
Financial Services 1.79
Food and Household Products 5.00
Health and Personal Care 10.82
Insurance 6.67
Leisure and Tourism 3.48
Machinery and Engineering 1.70
Merchandising 2.33
Metal -- Nonferrous 2.99
Metal -- Steel 4.02
Paper and Forest Products 1.48
Recreation 0.00
Telecommunications 4.29
Textiles and Apparel 1.42
Wholesale and International Trade 1.08
Repurchase Agreement 1.01
Cash and Other Assets, Less Liabilities 0.36
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Country Breakdown(1)
France 14.6%
Italy 2.6%
Spain 2.6%
Japan 21.7%
Singapore 1.5%
Sweden 3.1%
Belgium 1.2%
Netherlands 2.5%
Germany 6.4%
Hong Kong 1%
Switzerland 7%
Ireland 1.9%
Canada 4.6%
Australia 1.6%
United Kingdom 27.7%
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Industry Breakdown(2)
Automobiles 8.16%
Autos and Auto Parts 0.44
Banking 16.82
Chemicals 0.40
Computer/Instrumentation 0.48
Construction and Housing 5.16
Data Processing 5.85
Electrical and Electronics 2.08
Electronic Components and Instruments 2.31
Energy Sources 7.88
Financial Services 2.55
Food and Household Products 4.37
Health and Personal Care 11.07
Insurance 7.76
Leisure and Tourism 3.61
Machinery and Engineering 1.52
Merchandising 2.46
Metal -- Nonferrous 2.96
Metal -- Steel 3.34
Miscellaneous Materials 0.52
Paper and Forest Products 1.52
Telecommunications 3.50
Textiles and Apparel 1.05
Wholesale and International Trade 1.14
Repurchase Agreement 1.50
Cash and Other Assets, Less Liabilities 1.55
- --------------------------------------------------------------------------------
Emerging Markets Value
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Country Breakdown(1)
Argentina 1.9%
Malaysia 2%
Israel 3.3%
Hungary 3.5%
Indonesia 3.9%
Thailand 4.2%
Turkey 4.8%
China 5.3%
India 5.9%
Mexico 6.3%
South Africa 11.9%
Taiwan 13.4%
Brazil 14.5%
South Korea 17.8%
Philippines 1.3%
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Industry Breakdown(2)
Automobiles 7.79%
Banking 24.99
Broadcasting and Publishing 1.56
Building Materials 1.51
Chemicals 4.11
Construction and Housing 3.13
Electrical and Electronics 9.33
Electronic Components and Instruments 1.35
Energy Sources 11.73
Financial Services 2.75
Food and Household Products 2.95
Health and Personal Care 0.61
Insurance 3.28
Machinery and Engineering 0.46
Merchandising 0.15
Metal -- Nonferrous 0.25
Metal -- Steel 10.09
Multi-Industry 1.06
Paper and Forest Products 2.49
Real Estate 0.52
Telecommunications 3.64
Utilities -- Electric, Gas, and Water 4.90
Repurchase Agreement 1.00
Cash and Other Assets, Less Liabilities 0.35
- --------------------------------------------------------------------------------
6 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Portfolio Summary -- September 30, 2004
Taxable Bond Portfolios
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 2.6%
Short-Term 29.9%
Federal National Mortgage Association 30.4%
U.S. Treasury Securities 7%
Soverign Debt 4.4%
Commercial Mortgage - Backed Securities 3.3%
Federal Home Loan Bank 0.7%
Corporate Bonds 17.1%
Federal Home Loan Mortgage Corporation 1.8%
Collateral Mortgage Obligations 0.8%
Government National Mortgage Securities 2%
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Short-Term 14%
Asset-Backed Securities 3.2%
Collateralized Mortgage Obligations 6%
Federal Home Loan Bank 8.5%
Federal Farm Credit Bank 8.6%
Federal Home Loan Mortgage Corporation 9.4%
Federal National Mortgage Association 22.4%
U.S. Treasury Securities 27.9%
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
U.S. Treasury Securities 18%
Asset-Backed Securities 12.3%
Corporate Bonds 11.7%
Federal Home Loan Mortgage Corporation 9.4%
Commercial Mortgage-Backed Securities 4.1%
Short-Term 13%
Federal Home Loan Bank 2.5%
Collateralized Mortgage Obligations 9.9%
Government National Mortgage Securities 0.3%
Federal National Mortgage Association 18.8%
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Federal Home Loan Bank 1%
Government National Mortgage Securities 1.9%
Short-Term 31.1%
Collateralized Mortgage Obligations 0.9%
Asset-Backed Securities 2.6%
Corporate Bonds 16.6%
Sovereign Debt 4.3%
U.S. Treasury Securities 6.7%
Commercial Mortgage-Backed Securities 3.1%
Federal Home Loan Mortgage Corporation 29.7%
Federal Home Loan Mortgage Corporation 2.1%
- --------------------------------------------------------------------------------
2004 Annual Report 7
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Portfolio Summary -- September 30, 2004
Municipal Bond Portfolios (Short Duration)
- --------------------------------------------------------------------------------
Short Duration Diversified Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 5.5%
Pre-refunded/Escrowed 10%
Tax-Exempt Variable Rate
Demand Notes 11.9%
Revenue 18%
Insured 22.8%
Tax Supported 31.8%
Quality Rating Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BB 0.3%
BBB 4.4%
A 8.9%
AA 38.7%
AAA 42.4%
Unrated 5.1%
B 0.2%
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 3%
Pre-refunded/Escrowed 10%
Tax-Exempt Variable Rate
Demand Notes 21.4%
Revenue 11.4%
Insured 39.5%
Tax Supported 14.7%
Quality Rating Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BBB 3.3%
A 15.7%
AA 25.1%
AAA 52.5%
Unrated 3.4%
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 0.2%
Pre-refunded/Escrowed 11.7%
Tax-Exempt Variable Rate
Demand Notes 15.6%
Revenue 20.5%
Insured 25%
Tax Supported 27%
Quality Rating Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BBB 3.3%
A 19.5%
AA 31.8%
AAA 41.8%
Unrated 3.6%
- --------------------------------------------------------------------------------
8 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund, Inc.
- --------------------------------------------------------------------------------
Portfolio Summary -- September 30, 2004
Municipal Bond Portfolios (Intermediate Duration)
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 0.9%
Inflation Adjusted 0.9%
Tax Supported 27.2%
Insured 43.1%
Revenue 16.6%
Tax-Exempt Variable Rate
Demand Notes 4.5%
Prfe-refunded/Escrowed 6.8%
Quality Rating Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
B 0.1%
Unrated 5%
AAA 56.3%
AA 22.1%
A 11.2%
BBB 4.8%
BB 0.5%
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 3.1%
Tax Supported 21.6%
Insured 46.3%
Revenue 18.6%
Tax-Exempt Variable Rate
Demand Notes 9%
Pre-refunded/Escrowed 1.4%
Quality Rating Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Unrated 4.3%
AAA 58.3%
AA 19.1%
A 14.6%
BBB 3.4%
BB 0.3%
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 1.1%
Tax Supported 31.1%
Insured 37.8%
Revenue 15.9%
Tax-Exempt Variable Rate 12.5%
Demand Notes 1.6%
Pre-refunded/Escrowed 12.5%
Quality Rating Breakdown(3)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Unrated 3.8%
AAA 50.4%
AA 29.5%
A 13%
BBB 2.7%
BB 0.6%
1. The country breakdown is expressed as a percentage of the Portfolio's total
long-term investments and may vary over time.
2. The industry breakdown is expressed as a percentage of the Portfolio's
total net assets and may vary over time.
3. The security type and quality rating breakdowns are expressed as a
percentage of the Portfolio's total investments and may vary over time. The
quality ratings are determined by using the Standard & Poor's Ratings
Services and Moody's Investors Services, Inc.
- --------------------------------------------------------------------------------
2004 Annual Report 9
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities -- September 30, 2004
TAX-MANAGED EMERGING
INTERNATIONAL INTERNATIONAL MARKETS VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
=================================================================================================================================
ASSETS
Investments in securities at value (including
investments of cash collateral for securities
loaned of: International, $584,052,000) $ 4,595,440,742 $ 2,749,444,228(a) $ 1,356,608,072
Foreign currency at value (b) 19,858,336(c) 38,195,072(c) 10,949,336
Cash in bank 47 927 641
Receivables:
Interest 1,293 916 377
Dividends 9,796,819 4,899,141 787,763
Investment securities sold 45,613 3,177,656 3,113,760
Capital shares sold 8,319,297 1,170,164 1,550,550
Foreign withholding tax reclaims 2,060,512 389,689 15,702
Margin due from broker on futures contracts 34,000 288,446 0
--------------- --------------- ---------------
Total assets 4,635,556,659 2,797,566,239 1,373,026,201
--------------- --------------- ---------------
LIABILITIES
Payable for collateral on securities lending at value (Note 1L) 0 584,052,000 0
Payables:
Investment securities purchased 14,134,404 10,068,086 342,941
Capital shares redeemed 4,846,496 1,727,667 2,748,592
Management fee (Note 2A) 3,395,726 1,672,074 1,326,227
Shareholder servicing and administration fee (Note 2B) 923,765 440,002 271,948
Transfer Agent fee (Note 2B) 43,015 31,784 36,832
Distribution fee payable 205 5,097 0
Accrued expenses 309,214 178,726 241,272
Foreign capital gains taxes 0 0 6,690,829
--------------- --------------- ---------------
Total liabilities 23,652,825 598,175,436 11,658,641
--------------- --------------- ---------------
NET ASSETS (d) $ 4,611,903,834 $ 2,199,390,803 $ 1,361,367,560
=============== =============== ===============
Cost of investments (including cash collateral on
securities loaned) $ 3,747,107,608 $ 2,410,408,611 $ 946,738,840
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 47,092,824
===============
NET ASSET VALUE, OFFERING, AND
REDEMPTION PRICE PER SHARE $ 28.91
===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 225,875 $ 116,135 $ 47,093
Additional paid-in capital 3,662,422,148 2,107,089,906 922,607,761
Undistributed net investment income 37,233,894 18,510,171 (474,305)
Accumulated net realized gain (loss) on investment
and foreign currency transactions 63,573,225 (265,113,734) 35,975,772
Unrealized appreciation of:
Investments and futures 847,921,000 338,433,169 403,178,403*
Foreign currency denominated assets and liabilities 527,692 355,156 32,836
--------------- --------------- ---------------
$ 4,611,903,834 $ 2,199,390,803 $ 1,361,367,560
=============== =============== ===============
(a) Includes securities on loan with a value of $557,145,558.
(b) Cost: $19,499,978, $37,848,292, and $10,918,204, respectively (Note 1).
(c) The amounts of U.S. $1,154,440 and $744,794, respectively, have been
segregated as collateral for the financial futures contracts outstanding at
September 30, 2004.
(d) See page 11 for share class information on net asset value, offering price,
and redemption price per share of the Tax-Managed International Portfolio
and International Portfolio.
* Net of accrued foreign capital gains taxes of $6,690,829.
See Notes to Financial Statements. The Schedules of Investments, an integral
part of the financial statements for each Portfolio, are included as inserts to
this report.
- --------------------------------------------------------------------------------
10 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
TAX-MANAGED
INTERNATIONAL INTERNATIONAL
PORTFOLIO PORTFOLIO
===================================================================================================
CALCULATION OF MAXIMUM OFFERING PRICE
Tax-Managed International Class Shares
Net Assets $4,611,549,718
Shares of capital stock outstanding 225,857,515
--------------
Net asset value, offering and redemption price per share $ 20.42
==============
International Class Shares
Net Assets $2,190,687,368
Shares of capital stock outstanding 115,673,695
--------------
Net asset value, offering and redemption price per share $ 18.94
==============
Class A Shares
Net Assets $ 132,620 $ 3,123,454
Shares of capital stock outstanding 6,507 165,203
-------------- --------------
Net asset value and redemption price per share $ 20.38 $ 18.91
Sales charge -- 4.25% of public offering price .90 .84
-------------- --------------
Maximum offering price $ 21.28 $ 19.75
============== ==============
Class B Shares
Net Assets $ 55,534 $ 909,408
Shares of capital stock outstanding 2,737 48,337
-------------- --------------
Net asset value and offering price per share $ 20.29 $ 18.81
============== ==============
Class C Shares
Net Assets $ 165,962 $ 4,660,495
Shares of capital stock outstanding 8,183 247,676
-------------- --------------
Net asset value and offering price per share $ 20.28 $ 18.82
============== ==============
Class R Shares
Net Assets $ 10,078
Shares of capital stock outstanding 533.77
--------------
Net asset value, offering and redemption price per share $ 18.88
==============
- --------------------------------------------------------------------------------
2004 Annual Report 11
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities -- September 30, 2004
(continued)
INTERMEDIATE
INTERMEDIATE U.S. GOVERNMENT DURATION
DURATION SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
=======================================================================================================================
ASSETS
Investments in securities at value $ 3,945,312,847 $ 103,841,096 $ 849,489,223
Cash in bank 756,652 59,015 488,449
Receivables:
Interest 18,931,904 493,372 4,017,741
Investment securities sold 654,286,338 0 133,192,535
Capital shares sold 7,766,115 60,450 69,000
Appreciation of swap agreement (Note 1M) 0 0 0
--------------- --------------- ---------------
Total assets 4,627,053,856 104,453,933 987,256,948
--------------- --------------- ---------------
LIABILITIES
Due to custodian 0 0 0
Payables:
Dividends to shareholders 3,051,198 65,150 668,216
Investment securities purchased 1,764,331,828 10,444,049 375,972,689
Capital shares redeemed 2,598,008 259,549 476,073
Deferred income on dollar rolls 1,227,439 9,016 261,119
Management fee (Note 2A) 1,087,587 38,418 213,302
Shareholder servicing and administration fee (Note 2B) 232,578 7,683 0
Transfer Agent fee (Note 2B) 25,013 4,434 8,216
Accrued expenses 164,329 30,864 87,117
Depreciation of swap agreement (Note 1M) 0 0 0
Depreciation of foreign currency contracts (Note 5) 1,532,471 0 321,747
--------------- --------------- ---------------
Total liabilities 1,774,250,451 10,859,163 378,008,479
--------------- --------------- ---------------
NET ASSETS $ 2,852,803,405 $ 93,594,770 $ 609,248,469
=============== =============== ===============
Cost of investments $ 3,919,263,269 $ 103,818,424 $ 844,236,186
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 212,713,840 7,379,452 39,348,364
=============== =============== ===============
NET ASSET VALUE, OFFERING, AND
REDEMPTION PRICE PER SHARE $ 13.41 $ 12.68 $ 15.48
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 212,714 $ 7,379 $ 39,348
Additional paid-in capital 2,823,831,125 94,249,084 601,660,778
Undistributed net investment income/(excess distributions) (3,026,265) 55,955 (33,797)
Accumulated net realized gain (loss) on investment, futures,
and foreign currency transactions 7,233,134 (740,320) 2,643,415
Unrealized appreciation (depreciation) of:
Investments, futures, and swaps 26,049,578 22,672 5,253,037
Foreign currency denominated assets and liabilities (1,496,881) 0 (314,312)
--------------- --------------- ---------------
$ 2,852,803,405 $ 93,594,770 $ 609,248,469
=============== =============== ===============
See Notes to Financial Statements. The Schedules of Investments, an integral
part of the financial statements for each Portfolio, are included as inserts to
this Report.
- --------------------------------------------------------------------------------
12 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
SHORT DURATION SHORT DURATION SHORT DURATION
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
=========================================================================================================================
ASSETS
Investments in securities at value $ 248,065,209 $ 71,000,589 $ 124,272,921
Cash in bank 32,054 0 0
Receivables:
Interest 2,949,146 723,299 1,371,006
Investment securities sold 2,085,000 45,000 1,130,000
Capital shares sold 3,384,276 38,000 910,756
Appreciation of swap agreement (Note 1M) 60,616 15,623 33,734
--------------- --------------- ---------------
Total assets 256,576,301 71,822,511 127,718,417
--------------- --------------- ---------------
LIABILITIES
Due to custodian 0 44,276 17,468
Payables:
Dividends to shareholders 129,247 32,899 59,260
Investment securities purchased 2,000,000 0 4,158,875
Capital shares redeemed 403,992 34,114 135,472
Deferred income on dollar rolls 0 0 0
Management fee (Note 2A) 102,195 29,868 49,437
Shareholder servicing and administration fee (Note 2B) 20,540 5,944 9,882
Transfer Agent fee (Note 2B) 4,822 5,597 6,155
Accrued expenses 27,310 18,435 20,645
Depreciation of swap agreement (Note 1M) 159,749 14,600 85,470
Depreciation of foreign currency contracts (Note 5) 0 0 0
--------------- --------------- ---------------
Total liabilities 2,847,855 185,733 4,542,664
--------------- --------------- ---------------
NET ASSETS $ 253,728,446 $ 71,636,778 $ 123,175,753
=============== =============== ===============
Cost of investments $ 247,518,891 $ 70,924,201 $ 123,837,550
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 20,131,890 5,698,067 9,879,716
=============== =============== ===============
NET ASSET VALUE, OFFERING, AND
REDEMPTION PRICE PER SHARE $ 12.60 $ 12.57 $ 12.47
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 20,132 $ 5,698 $ 9,880
Additional paid-in capital 253,484,580 71,624,369 123,311,099
Undistributed net investment income/(excess distributions) (1,914) (17,095) 8,526
Accumulated net realized gain (loss) on investment, futures,
and foreign currency transactions (221,537) (53,605) (537,387)
Unrealized appreciation (depreciation) of:
Investments, futures, and swaps 447,185 77,411 383,635
Foreign currency denominated assets and liabilities 0 0 0
--------------- --------------- ---------------
$ 253,728,446 $ 71,636,778 $ 123,175,753
=============== =============== ===============
- --------------------------------------------------------------------------------
2004 Annual Report 13
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities -- September 30, 2004
(continued)
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL PORTFOLIO MUNICIPAL PORTFOLIO MUNICIPAL PORTFOLIO
====================================================================================================================================
ASSETS
Investments in securities at value $2,789,691,474 $945,888,796 $1,281,824,832
Cash in bank 2,345,500 0 0
Receivables:
Interest 35,732,619 11,699,165 18,348,315
Investment securities sold 36,554,648 880,000 8,300,000
Capital shares sold 9,305,790 3,966,244 2,448,851
Appreciation of swap agreement (Note 1M) 470,980 315,820 302,175
-------------- ------------ --------------
Total assets 2,874,101,011 962,750,025 1,311,224,173
-------------- ------------ --------------
LIABILITIES
Due to custodian 0 55,256 611,949
Payables:
Dividends to shareholders 2,204,789 709,636 1,073,148
Investment securities purchased 68,234,307 7,611,075 19,563,879
Capital shares redeemed 4,356,779 1,216,248 1,859,527
Management fee (Note 2A) 1,068,811 386,403 510,432
Shareholder servicing and administration fee (Note 2B) 204,547 68,603 91,255
Transfer Agent fee (Note 2B) 23,010 243 14,841
Distribution fee payable 179,597 67,247 104,786
Accrued expenses 208,214 74,896 96,731
Depreciation of swap agreement (Note 1M) 469,591 349,576 637,397
-------------- ------------ --------------
Total liabilities 76,949,645 10,539,183 24,563,945
-------------- ------------ --------------
NET ASSETS (e) $2,797,151,366 $952,210,842 $1,286,660,228
============== ============ ==============
Cost of investments $2,701,744,464 $918,966,022 $1,236,446,034
============== ============ ==============
NET ASSETS CONSIST OF:
Capital stock, at par $ 196,050 $ 66,196 $ 91,184
Additional paid-in capital 2,715,365,601 927,308,680 1,244,354,636
Undistributed net investment income/(excess distributions) 57,103 (32,569) 72,495
Accumulated net realized gain (loss) on investment
and futures transactions (6,415,787) (2,020,483) (2,901,663)
Unrealized appreciation/(depreciation) of investments
and swaps 87,948,399 26,889,018 45,043,576
-------------- ------------ --------------
$2,797,151,366 $952,210,842 $1,286,660,228
============== ============ ==============
(e) See page 14 for share class information on net asset value, offering price,
and redemption price per share of the Diversified Municipal, California
Municipal, and New York Municipal Portfolios.
See Notes to Financial Statements. The Schedules of Investments, an integral
part of the financial statements for each Portfolio, are included as inserts to
this Report.
- --------------------------------------------------------------------------------
14 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
============================================================================================================
CALCULATION OF MAXIMUM OFFERING PRICE
Municipal Class Shares
Net Assets $2,509,748,891 $ 843,206,206 $1,121,213,482
Shares of capital stock outstanding 175,912,881 58,618,356 79,453,646
-------------- -------------- --------------
Net asset value and offering price per share $ 14.27 $ 14.38 $ 14.11
============== ============== ==============
Class A Shares
Net Assets $ 101,899,194 $ 38,422,204 $ 54,246,296
Shares of capital stock outstanding 7,139,972 2,671,212 3,845,804
-------------- -------------- --------------
Net asset value and redemption price per share $ 14.27 $ 14.38 $ 14.11
Sales charge -- 4.25% of public offering price .63 .64 .63
-------------- -------------- --------------
Maximum offering price $ 14.90 $ 15.02 $ 14.74
============== ============== ==============
Class B Shares
Net Assets $ 96,064,147 $ 35,723,044 $ 58,167,032
Shares of capital stock outstanding 6,730,272 2,483,175 4,125,242
-------------- -------------- --------------
Net asset value and offering price per share $ 14.27 $ 14.39 $ 14.10
============== ============== ==============
Class C Shares
Net Assets $ 89,439,134 $ 34,859,388 $ 53,033,418
Shares of capital stock outstanding 6,266,770 2,423,470 3,759,301
-------------- -------------- --------------
Net asset value and offering price per share $ 14.27 $ 14.38 $ 14.11
============== ============== ==============
- --------------------------------------------------------------------------------
2004 Annual Report 15
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities -- September 30, 2004
(continued)
SHORT
DURATION PLUS
PORTFOLIO
================================================================================
ASSETS
Investments in securities at value $ 637,725,249
Cash in bank 222,162
Receivables:
Interest 3,699,595
Capital shares sold 604,293
--------------
Total assets 642,251,299
--------------
LIABILITIES
Payables:
Dividends to shareholders 382,034
Investment securities purchased 72,950,886
Capital shares redeemed 3,898,491
Deferred income on dollar rolls 58,248
Management fee (Note 2A) 232,252
Shareholder servicing and administration fee (Note 2B) 34,540
Transfer Agent fee (Note 2B) 17,597
Distribution fee payable 83,515
Accrued expenses 47,805
--------------
Total liabilities 77,705,368
NET ASSETS $ 564,545,931
==============
Cost of investments $ 637,352,082
==============
NET ASSETS CONSIST OF:
Capital stock, at par $ 44,570
Additional paid-in capital 567,459,173
Undistributed net investment income/
(excess distributions) (312,004)
Accumulated net realized gain (loss) on
investment transactions (3,018,975)
Unrealized appreciation/(depreciation) of
investments 373,167
--------------
$ 564,545,931
==============
SHORT
DURATION PLUS
PORTFOLIO
================================================================================
CALCULATION OF MAXIMUM OFFERING PRICE
Short Duration Plus Class Shares
Net assets $ 421,880,829
Shares of capital stock outstanding 33,306,388
-------------
Net asset value and offering price per share $ 12.67
=============
Short Duration Class A Shares
Net assets $ 58,793,115
Shares of capital stock outstanding 4,640,977
-------------
Net asset value and redemption price per share $ 12.67
Sales charge -- 4.25% of public offering price .56
-------------
Maximum offering price $ 13.23
=============
Short Duration Class B Shares
Net assets $ 44,281,086
Shares of capital stock outstanding 3,496,107
-------------
Net asset value and offering price per share $ 12.67
=============
Short Duration Class C Shares
Net assets $ 39,581,025
Shares of capital stock outstanding 3,126,173
-------------
Net asset value and offering price per share $ 12.66
=============
Short Duration Class R Shares
Net assets $ 9,876
Shares of capital stock outstanding 779.423
-------------
Net asset value and offering price per share $ 12.67
=============
See Notes to Financial Statements. The Schedules of Investments, an integral
part of the financial statements for each Portfolio, are included as inserts to
this Report.
- --------------------------------------------------------------------------------
16 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
This page intentionally left blank.
- --------------------------------------------------------------------------------
2004 Annual Report 17
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Operations for the Year Ended September 30, 2004
EMERGING
TAX-MANAGED MARKETS INTERMEDIATE
INTERNATIONAL INTERNATIONAL VALUE DURATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
================================================================================================================================
INVESTMENT INCOME
Income:
Interest $ 1,416,153 $ 1,630,246 $ 78,465 $ 86,224,199
Dividends (net of foreign withholding taxes of
$11,134,360, $5,511,039, and $4,890,079, respectively) 84,150,679 40,112,020 35,971,013 4,615
Income from dollar rolls 0 0 0 27,004,675
------------- ------------- ------------- -------------
Total income 85,566,832 41,742,266 36,049,478 113,233,489
------------- ------------- ------------- -------------
Expenses (Notes 1 and 2):
Management fee 38,811,971 19,439,130 14,197,651 12,258,200
Shareholder servicing and administration fee 10,517,391 5,113,991 2,877,256 2,612,933
Custodian and Transfer Agent fees 2,078,071 1,211,899 2,465,089 572,586
Distribution fees -- Class A 130 3,393 0 0
Distribution fees -- Class B 193 3,488 0 0
Distribution fees -- Class C 634 17,099 0 0
Distribution fees -- Class R 0 30 0 0
Auditing and tax fees 178,992 87,386 50,020 110,884
Directors' fees and expenses 98,474 46,046 27,477 64,138
Legal fees 223,616 144,043 31,088 79,249
Registration fees 271,956 102,350 51,305 142,339
Printing fees 73,059 50,603 23,155 81,206
Miscellaneous 134,763 72,759 74,415 85,548
------------- ------------- ------------- -------------
Total expenses before interest expense 52,389,250 26,292,217 19,797,456 16,007,083
Interest expense 0 0 0 0
------------- ------------- ------------- -------------
Total expenses 52,389,250 26,292,217 19,797,456 16,007,083
Less: expenses waived and reimbursed by the Adviser
or Transfer Agent (Note 2B) (11,862) (9,016) 0 0
------------- ------------- ------------- -------------
Net expenses 52,377,388 26,283,201 19,797,456 16,007,083
------------- ------------- ------------- -------------
Net investment income 33,189,444 15,459,065 16,252,022 97,226,406
------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 233,767,380 155,481,798 134,829,812* 28,793,329
Futures transactions 342,378 (377,526) 1,505,909 0
Foreign currency transactions 5,570,272 3,786,116 (1,758,439) (251,133)
Swap transactions 0 0 0 0
------------- ------------- ------------- -------------
Net realized gain (loss) on investment
and foreign currency transactions 239,680,030 158,890,388 134,577,282 28,542,196
------------- ------------- ------------- -------------
Net increase (decrease) in unrealized
appreciation/(depreciation) of:
Investments, futures, and swaps 396,888,473 170,542,587 216,198,922+ (27,511,301)
Foreign currency denominated assets and liabilities (493,402) (80,628) (170,642) (1,496,881)
------------- ------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments and foreign currency
denominated assets and liabilities 396,395,071 170,461,959 216,028,280 (29,008,182)
------------- ------------- ------------- -------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 636,075,101 329,352,347 350,605,562 (465,986)
------------- ------------- ------------- -------------
Net increase in net assets resulting from operations $ 669,264,545 $ 344,811,412 $ 366,857,584 $ 96,760,420
============= ============= ============= =============
* Net of foreign capital gains taxes of $11,060,335.
+ Net of accrued foreign capital gains taxes of $6,690,829. See Notes to
Financial Statements.
- --------------------------------------------------------------------------------
18 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
INTERMEDIATE SHORT DURATION SHORT DURATION SHORT DURATION
U.S. GOVERNMENT DURATION DIVERSIFIED CALIFORNIA NEW YORK
SHORT DURATION INSTITUTIONAL MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
===================================================================================================================================
INVESTMENT INCOME
Income:
Interest $ 2,661,551 $ 17,528,889 $ 6,004,305 $ 1,831,356 $ 3,130,196
Dividends (net of foreign withholding taxes
of $11,134,360, $5,511,039, and $4,890,079,
respectively) 0 967 0 0 0
Income from dollar rolls 254,606 5,539,059 0 0 0
------------- ------------- ------------- ------------- -------------
Total income 2,916,157 23,068,915 6,004,305 1,831,356 3,130,196
------------- ------------- ------------- ------------- -------------
Expenses (Notes 1 and 2):
Management fee 508,885 2,678,123 1,200,630 385,887 617,287
Shareholder servicing and administration fee 101,774 0 240,126 77,177 123,457
Custodian and Transfer Agent fees 131,211 241,028 159,597 120,015 135,743
Distribution fees -- Class A 0 0 0 0 0
Distribution fees -- Class B 0 0 0 0 0
Distribution fees -- Class C 0 0 0 0 0
Distribution fees -- Class R 0 0 0 0 0
Auditing and tax fees 5,816 48,062 5,492 2,889 4,516
Directors' fees and expenses 2,564 25,781 6,000 1,700 3,014
Legal fees 23,257 32,536 7,143 4,666 9,495
Registration fees 16,011 52,941 35,324 5,130 5,463
Printing fees 2,218 9,790 3,371 1,137 3,293
Miscellaneous 3,047 21,146 2,421 3,835 5,372
------------- ------------- ------------- ------------- -------------
Total expenses before interest expense 794,783 3,109,407 1,660,104 602,436 907,640
Interest expense 22,209 0 0 0 0
------------- ------------- ------------- ------------- -------------
Total expenses 816,992 3,109,407 1,660,104 602,436 907,640
Less: expenses waived and reimbursed by the
Adviser or Transfer Agent (Note 2B) 0 (699,097) 0 0 0
------------- ------------- ------------- ------------- -------------
Net expenses 816,992 2,410,310 1,660,104 602,436 907,640
------------- ------------- ------------- ------------- -------------
Net investment income 2,099,165 20,658,605 4,344,201 1,228,920 2,222,556
------------- ------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (455,257) 4,596,956 (116,326) (2,909) 249,182
Futures transactions (44,314) 0 (86,795) (47,394) (65,570)
Foreign currency transactions 0 (49,516) 0 0 0
Swap transactions 0 0 (60,171) (143) (8,571)
------------- ------------- ------------- ------------- -------------
Net realized gain (loss) on investment
and foreign currency transactions (499,571) 4,547,440 (263,292) (50,446) 175,041
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in unrealized
appreciation/(depreciation) of:
Investments, futures, and swaps (663,686) (4,615,610) (1,181,343) (532,415) (1,049,893)
Foreign currency denominated assets
and liabilities 0 (314,312) 0 0 0
------------- ------------- ------------- ------------- -------------
Net increase (decrease) in unrealized
appreciation/(depreciation) on investments
and foreign currency denominated assets
and liabilities (663,686) (4,929,922) (1,181,343) (532,415) (1,049,893)
------------- ------------- ------------- ------------- -------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (1,163,257) (382,482) (1,444,635) (582,861) (874,852)
------------- ------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations $ 935,908 $ 20,276,123 $ 2,899,566 $ 646,059 $ 1,347,704
============= ============= ============= ============= =============
- --------------------------------------------------------------------------------
2004 Annual Report 19
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Operations for the Year Ended September 30, 2004 (continued)
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
==================================================================================================================
INVESTMENT INCOME
Income:
Interest $ 98,524,480 $ 32,053,448 $ 49,132,942
------------ ------------ ------------
Total income 98,524,480 32,053,448 49,132,942
------------ ------------ ------------
Expenses (Notes 1 and 2):
Management fee 12,168,644 4,387,121 6,099,082
Shareholder servicing fee 2,261,248 752,374 1,055,386
Custodian and transfer agent fees 624,668 273,295 383,738
Distribution fees -- Class A 366,585 135,685 203,305
Distribution fees -- Class B 1,064,909 379,885 613,571
Distribution fees -- Class C 1,030,978 418,349 597,292
Auditing and tax fees 108,300 42,683 52,384
Printing fees 121,481 33,961 51,047
Registration fees 239,384 24,860 51,498
Legal fees 72,375 18,947 33,136
Directors' fees and expenses 50,651 16,014 25,083
Miscellaneous 71,075 25,210 41,471
------------ ------------ ------------
Total expenses 18,180,298 6,508,384 9,206,993
Less: expense offset arrangement (Note 2B) (12) (4) (9)
------------ ------------ ------------
Net expense 18,180,286 6,508,380 9,206,984
------------ ------------ ------------
Net investment income 80,344,194 25,545,068 39,925,958
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 2,616 (990,075) 1,066,244
Futures transactions (2,429,009) (654,973) (925,382)
Swap transactions (250,240) (41,396) (84,480)
------------ ------------ ------------
Net realized gain (loss) on investment transactions (2,676,633) (1,686,444) 56,382
------------ ------------ ------------
Net decrease in unrealized appreciation/(depreciation) of:
Investments, futures, and swaps (10,548,395) (2,041,584) (9,511,265)
------------ ------------ ------------
Net realized and unrealized loss on
investment transactions (13,225,028) (3,728,028) (9,454,883)
------------ ------------ ------------
Net increase in net assets resulting from operations $ 67,119,166 $ 21,817,040 $ 30,471,075
============ ============ ============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
20 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
SHORT
DURATION PLUS
PORTFOLIO
================================================================================
INVESTMENT INCOME
Income:
Interest $ 15,568,103
Income from dollar rolls 1,930,316
------------
Total income 17,498,419
------------
Expenses (Notes 1 and 2):
Management fee 2,834,458
Shareholder servicing fee 411,043
Custodian and transfer agent fees 358,271
Distribution fees -- Short Duration Class A 238,197
Distribution fees -- Short Duration Class B 394,453
Distribution fees -- Short Duration Class C 369,981
Distribution fees -- Short Duration Class R 31
Auditing and tax fees 33,826
Directors' fees and expenses 9,092
Legal fees 93,088
Registration fees 81,300
Printing fees 78,136
------------
Miscellaneous 22,192
Total expenses before interest expense 4,924,068
------------
Interest expense 100,003
Total expenses 5,024,071
------------
Less: expense offset arrangement (Note 2B) (12)
------------
Net expenses 5,024,059
------------
Net investment income 12,474,360
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (3,043,143)
------------
Futures transactions 118,753
------------
Net realized loss on investment transactions (2,924,390)
Net decrease in unrealized appreciation/(depreciation) of:
------------
Investments and futures (3,115,801)
------------
Net realized and unrealized loss on investment transactions (6,040,191)
------------
Net increase in net assets resulting from operations $ 6,434,169
============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 21
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Changes in Net Assets
---------------------------------- ----------------------------------
TAX-MANAGED
INTERNATIONAL INTERNATIONAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
===============================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 33,189,444 $ 46,037,173 $ 15,459,065 $ 25,674,143
Net realized gain (loss) on investment
and foreign currency transactions 239,680,030 (13,171,005) 158,890,388 17,168,712
Increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign
currency denominated assets and liabilities 396,395,071 848,706,565 170,461,959 442,494,697
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 669,264,545 881,572,733 344,811,412 485,337,552
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (61,238,586) (35,319,934) (18,338,621) (16,987,461)
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (61,238,586) (35,319,934) (18,338,621) (16,987,461)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 1,020,243,092 1,145,967,491 383,372,088 406,675,464
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 54,534,862 31,640,286 17,787,574 16,226,135
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 1,074,777,954 1,177,607,777 401,159,662 422,901,599
Cost of shares redeemed (632,148,009) (828,033,279) (354,908,912) (364,033,307)
--------------- --------------- --------------- ---------------
Increase in net assets from
capital-share transactions 442,629,945 349,574,498 46,250,750 58,868,292
--------------- --------------- --------------- ---------------
Net increase in net assets 1,050,655,904 1,195,827,297 372,723,541 527,218,383
NET ASSETS:
Beginning of period 3,561,247,930 2,365,420,633 1,826,667,262 1,299,448,879
--------------- --------------- --------------- ---------------
End of period (b) $ 4,611,903,834 $ 3,561,247,930 $ 2,199,390,803 $ 1,826,667,262
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 37,233,894 $ 59,712,764 $ 18,510,171 $ 17,603,611
=============== =============== =============== ===============
(a) See page 28 for share class information on dividend distributions of the
Tax-Managed International and International Portfolios.
* Includes effect of portfolio transaction fee in the amounts of $9,217,750
and $4,286,013 for the years ended September 30, 2004, and September 30,
2003, respectively.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
22 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------------- -----------------------------------
EMERGING INTERMEDIATE
MARKETS VALUE DURATION
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
====================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 16,252,022 $ 10,272,720 $ 97,226,406 $ 79,858,499
Net realized gain (loss) on investment
and foreign currency transactions 134,577,282 (38,483,073) 28,542,196 44,555,369
Increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign
currency denominated assets and liabilities 216,028,280 316,305,833 (29,008,182) 14,850,852
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 366,857,584 288,095,480 96,760,420 139,264,720
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (9,586,370) (3,072,179) (99,678,637) (79,859,987)
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (9,586,370) (3,072,179) (99,678,637) (79,859,987)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 285,871,489 156,599,814 815,660,806 605,918,965
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 9,082,473 2,912,914 19,340,469 16,540,463
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 294,953,962 159,512,728 835,001,275 622,459,428
Cost of shares redeemed (189,259,509) (65,117,673) (381,541,966) (431,589,647)
--------------- --------------- --------------- ---------------
Increase in net assets from
capital-share transactions 105,694,453* 94,395,055* 453,459,309 190,869,781
--------------- --------------- --------------- ---------------
Net increase in net assets 462,965,667 379,418,356 450,541,092 250,274,604
NET ASSETS:
Beginning of period 898,401,893 518,983,537 2,402,262,313 2,151,987,709
--------------- --------------- --------------- ---------------
End of period (b) $ 1,361,367,560 $ 898,401,893 $ 2,852,803,405 $ 2,402,262,313
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (474,305) $ 5,606,646 $ (3,026,265) $ (2,787,418)
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2004 Annual Report 23
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Changes in Net Assets (continued)
---------------------------------- ----------------------------------
U.S. GOVERNMENT INTERMEDIATE DURATION
SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
=================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 2,099,165 $ 2,879,058 $ 20,658,605 $ 13,954,061
Net realized gain (loss) on investment
and foreign currency transactions (499,571) 1,255,173 4,547,440 5,513,774
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures, and swaps (663,686) (1,687,537) (4,929,922) 3,510,046
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 935,908 2,446,694 20,276,123 22,977,881
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,366,550) (2,879,058) (21,141,826) (13,953,938)
Distributions from net realized gain on
investment transactions (a) (1,171,234) (1,628,592) (6,664,869) (2,185,363)
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (3,537,784) (4,507,650) (27,806,695) (16,139,301)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 26,280,515 46,328,990 246,095,145 198,075,650
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 2,415,624 3,161,357 15,841,958 9,340,069
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 28,696,139 49,490,347 261,937,103 207,415,719
Cost of shares redeemed (45,060,481) (50,268,393) (109,675,335) (78,130,046)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions (16,364,342) (778,046) 152,261,768 129,285,673
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (18,966,218) (2,839,002) 144,731,196 136,124,253
NET ASSETS:
Beginning of period 112,560,988 115,399,990 464,517,273 328,393,020
--------------- --------------- --------------- ---------------
End of period (b) $ 93,594,770 $ 112,560,988 $ 609,248,469 $ 464,517,273
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 55,955 $ 53,283 $ (33,797) $ 10,556
=============== =============== =============== ===============
(a) See page 26 for share class information on dividend distributions of the
Diversified Municipal Portfolio.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
24 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
---------------------------------- ----------------------------------
SHORT DURATION SHORT DURATION
DIVERSIFIED MUNICIPAL CALIFORNIA MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
===================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 4,344,201 $ 5,088,003 $ 1,228,920 $ 1,430,807
Net realized gain (loss) on investment
and foreign currency transactions (263,292) 438,788 (50,446) 46,589
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures, and swaps (1,181,343) (1,221,683) (532,415) (138,506)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 2,899,566 4,305,108 646,059 1,338,890
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (4,265,828) (5,088,003) (1,227,532) (1,430,807)
Distributions from net realized gain on
investment transactions (a) (315,786) (833,144) 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (4,581,614) (5,921,147) (1,227,532) (1,430,807)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 151,818,429 175,926,413 59,632,686 60,385,211
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 2,062,452 3,210,381 762,968 762,470
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 153,880,881 179,136,794 60,395,654 61,147,681
Cost of shares redeemed (132,119,645) (144,567,720) (67,995,139) (55,885,740)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 21,761,236 34,569,074 (7,599,485) 5,261,941
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 20,079,188 32,953,035 (8,180,958) 5,170,024
NET ASSETS:
Beginning of period 233,649,258 200,696,223 79,817,736 74,647,712
--------------- --------------- --------------- ---------------
End of period (b) $ 253,728,446 $ 233,649,258 $ 71,636,778 $ 79,817,736
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (1,914) $ (11,190) $ (17,095) $ (18,340)
=============== =============== =============== ===============
---------------------------------- ----------------------------------
SHORT DURATION
NEW YORK MUNICIPAL DIVERSIFIED MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
===================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 2,222,556 $ 2,456,952 $ 80,344,194 $ 74,358,002
Net realized gain (loss) on investment
and foreign currency transactions 175,041 82,070 (2,676,633) 4,149,618
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures, and swaps (1,049,893) (231,283) (10,548,395) (5,026,157)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 1,347,704 2,307,739 67,119,166 73,481,463
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,204,693) (2,456,952) (80,061,703) (74,358,002)
Distributions from net realized gain on
investment transactions (a) 0 0 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (2,204,693) (2,456,952) (80,061,703) (74,358,002)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 95,152,474 77,251,107 876,220,074 968,964,060
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 1,018,598 1,093,765 18,981,822 19,095,903
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 96,171,072 78,344,872 895,201,896 988,059,963
Cost of shares redeemed (93,079,427) (73,561,685) (499,857,512) (490,730,845)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 3,091,645 4,783,187 395,344,384 497,329,118
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 2,234,656 4,633,974 382,401,847 496,452,579
NET ASSETS:
Beginning of period 120,941,097 116,307,123 2,414,749,519 1,918,296,940
--------------- --------------- --------------- ---------------
End of period (b) $ 123,175,753 $ 120,941,097 $ 2,797,151,366 $ 2,414,749,519
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 8,526 $ (766) $ 57,103 $ 24,852
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2004 Annual Report 25
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Changes in Net Assets (continued)
---------------------------------- ----------------------------------
CALIFORNIA MUNICIPAL NEW YORK MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
==================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 25,545,068 $ 23,267,345 $ 39,925,958 $ 37,741,695
Net realized gain (loss) on investment transactions (1,686,444) 267,640 56,382 2,058,488
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures, and swaps (2,041,584) (6,018,093) (9,511,265) (2,705,202)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 21,817,040 17,516,892 30,471,075 37,094,981
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (25,501,477) (23,267,345) (39,773,105) (37,741,695)
Distributions from net realized gain on investment
transactions (a) (584,016) 0 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions to shareholders (26,085,493) (23,267,345) (39,773,105) (37,741,695)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 314,353,362 335,658,922 351,775,089 413,735,995
Net proceeds from sales of shares issued to
shareholders on reinvestment of dividends
and distributions 7,597,543 6,474,935 12,764,315 12,753,085
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 321,950,905 342,133,857 364,539,404 426,489,080
Cost of shares redeemed (194,387,540) (182,032,506) (277,559,965) (237,402,632)
--------------- --------------- --------------- ---------------
Increase in net assets from
capital-share transactions 127,563,365 160,101,351 86,979,439 189,086,448
--------------- --------------- --------------- ---------------
Net increase in net assets 123,294,912 154,350,898 77,677,409 188,439,734
NET ASSETS:
Beginning of period 828,915,930 674,565,032 1,208,982,819 1,020,543,085
--------------- --------------- --------------- ---------------
End of period (b) $ 952,210,842 $ 828,915,930 $ 1,286,660,228 $ 1,208,982,819
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (32,569) $ (34,764) $ 72,495 $ 4,122
=============== =============== =============== ===============
(a) See pages 28 & 29 for share class information on dividend distributions of
the California Municipal and New York Municipal Portfolios.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
26 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
---------------------------------
SHORT
DURATION PLUS
PORTFOLIO
---------------------------------
YEAR YEAR
ENDED ENDED
9/30/04 9/30/03
==============================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 12,474,360 $ 12,308,372
Net realized gain (loss) on investment transactions (2,924,390) 5,195,758
Decrease in unrealized appreciation/
(depreciation) of investments and futures (3,115,801) (3,343,946)
------------- -------------
Net increase in net assets resulting
from operations 6,434,169 14,160,184
------------- -------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (13,515,809) (12,308,812)
Distributions from net realized gain on
investment transactions (a) (664,559) 0
------------- -------------
Total dividends and distributions to shareholders (14,180,368) (12,308,812)
------------- -------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 278,798,276 355,281,867
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 6,885,041 5,350,098
------------- -------------
Total proceeds from shares sold 285,683,317 360,631,965
Cost of shares redeemed (285,806,515) (187,786,603)
------------- -------------
Increase (decrease) in net assets from
capital-share transactions (123,198) 172,845,362
------------- -------------
Net increase (decrease) in net assets (7,869,397) 174,696,734
NET ASSETS:
Beginning of period 572,415,328 397,718,594
------------- -------------
End of period (b) $ 564,545,931 $ 572,415,328
============= =============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (312,004) $ (240,913)
============= =============
(a) See page 29 for share class information on dividend distributions of the
Short Duration Plus Portfolio.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 27
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Changes in Net Assets (continued)
-------------------------------- --------------------------------
TAX-MANAGED
INTERNATIONAL INTERNATIONAL
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 (a) 9/30/03 9/30/04 (a)(b) 9/30/03
- -------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Tax-Managed International and International
Class Shares, respectively $(61,238,586) $(35,319,934) $(18,338,621) $(16,987,461)
Class A 0 0 0 0
Class B 0 0 0 0
Class C 0 0 0 0
Class R 0 0 0 0
------------ ------------ ------------ ------------
$(61,238,586) $(35,319,934) $(18,338,621) $(16,987,461)
============ ============ ============ ============
-------------------------------- --------------------------------
DIVERSIFIED CALIFORNIA
MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/04 9/30/03 9/30/04 9/30/03
- -------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Municipal Class $(71,778,247) $(66,005,881) $(22,579,474) $(20,368,700)
Class A (3,592,307) (3,841,638) (1,260,900) (1,329,149)
Class B (2,382,683) (2,300,733) (789,230) (701,542)
Class C (2,308,466) (2,209,750) (871,873) (867,954)
------------ ------------ ------------ ------------
$(80,061,703) $(74,358,002) $(25,501,477) $(23,267,345)
============ ============ ============ ============
Distributions from net realized gain on
investment transactions
Municipal Class $ 0 $ 0 $ (488,770) $ 0
Class A 0 0 (35,696) 0
Class B 0 0 (27,760) 0
Class C 0 0 (31,790) 0
------------ ------------ ------------ ------------
$ 0 $ 0 $ (584,016) $ 0
============ ============ ============ ============
(a) Tax-Managed International and International Class A, B, and C Shares
commenced distribution on January 30, 2004.
(b) International and Short Duration Class R Shares commenced distribution on
February 17, 2004.
(c) Short Duration Class A, B, and C Shares commenced distribution on May 22,
2003.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
--------------------------------
NEW YORK
MUNICIPAL
PORTFOLIO
--------------------------------
YEAR YEAR
ENDED ENDED
9/30/04 9/30/03
- -----------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Municipal Class $(34,837,419) $(33,702,805)
Class A (2,076,117) (1,915,689)
Class B (1,448,511) (1,138,804)
Class C (1,411,058) (984,397)
------------ ------------
$(39,773,105) $(37,741,695)
============ ============
--------------------------------
SHORT
DURATION PLUS
PORTFOLIO
--------------------------------
YEAR YEAR
ENDED ENDED
9/30/04 (b) 9/30/03 (c)
- -----------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Short Duration Plus Class $(10,557,602) $(11,801,625)
Class A (1,788,909) (366,071)
Class B (602,808) (68,607)
Class C (566,368) (72,509)
Class R (122) 0
------------ ------------
$(13,515,809) $(12,308,812)
============ ============
Distributions from net realized gain on
investment transactions
Short Duration Plus Class $ (476,390) $ 0
Class A (103,659) 0
Class B (42,750) 0
Class C (41,760) 0
Class R 0 0
------------ ------------
$ (664,559) $ 0
============ ============
- --------------------------------------------------------------------------------
2004 Annual Report 29
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
----------------------------------------------------------------------------
TAX-MANAGED INTERNATIONAL PORTFOLIO
TAX-MANAGED INTERNATIONAL CLASS
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 17.53 $ 13.10 $ 15.22 $ 20.44 $ 20.02
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net 0.15 0.24 0.17 0.21 0.21
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 3.04 4.39 (2.00) (3.48) 0.51
----------- ----------- ----------- ----------- -----------
Total from investment operations 3.19 4.63 (1.83) (3.27) 0.72
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.30) (0.20) (0.29) (0.16) 0
Distributions from net realized gain on
investment transactions 0 0 0 (1.79) (0.30)
----------- ----------- ----------- ----------- -----------
Total distributions (0.30) (0.20) (0.29) (1.95) (0.30)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 20.42 $ 17.53 $ 13.10 $ 15.22 $ 20.44
=========== =========== =========== =========== ===========
Total return (b) 18.34% 35.65% (12.39)% (17.49)% 3.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 4,611,550 $ 3,561,248 $ 2,365,421 $ 2,420,323 $ 3,029,742
Average net assets (000 omitted) $ 4,206,956 $ 2,890,486 $ 2,708,477 $ 2,828,736 $ 3,467,670
Ratio of expenses to average net assets 1.24% 1.25% 1.25% 1.25% 1.24%
Ratio of net investment income to average
net assets 0.79% 1.59% 1.04% 1.14% 1.02%
Portfolio turnover rate .71% .28% .64% .46% .41%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
30 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
INTERNATIONAL CLASS
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 16.06 $ 11.95 $ 14.16 $ 20.44 $ 20.11
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net 0.14 0.23 0.14 0.18 0.23
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 2.91 4.04 (1.90) (3.11) 0.31
----------- ----------- ----------- ----------- -----------
Total from investment operations 3.05 4.27 (1.76) (2.93) 0.54
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.17) (0.16) (0.45) (0.79) (0.19)
Distributions from net realized gain on
investment transactions 0 0 0 (2.56) (0.02)
----------- ----------- ----------- ----------- -----------
Total distributions (0.17) (0.16) (0.45) (3.35) (0.21)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 18.94 $ 16.06 $ 11.95 $ 14.16 $ 20.44
=========== =========== =========== =========== ===========
Total return (b) 19.05% 36.00% (13.01)% (16.95)% 2.72%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,190,687 $ 1,826,667 $ 1,299,449 $ 1,426,683 $ 1,907,921
Average net assets (000 omitted) $ 2,045,596 $ 1,572,731 $ 1,539,788 $ 1,718,245 $ 2,238,111
Ratio of expenses to average net assets 1.28% 1.29% 1.29% 1.28% 1.25%
Ratio of net investment income to average
net assets 0.76% 1.63% 0.97% 1.06% 1.09%
Portfolio turnover rate .92% .28% .67% .45% .24%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 31
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
----------------------------------------------------------------------------
EMERGING MARKETS
VALUE PORTFOLIO
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 20.81 $ 13.65 $ 12.48 $ 16.91 $ 17.67
----------- ---------- ---------- ---------- ---------
Income from investment operations:
Investment income, net 0.36 0.26 0.13 0.17 0.14
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 7.76 6.87 1.04 (4.34) (1.01)
----------- ---------- ---------- ---------- ---------
Total from investment operations 8.12 7.13 1.17 (4.17) (0.87)
----------- ---------- ---------- ---------- ---------
Less distributions:
Dividends from taxable net investment income (0.22) (0.08) (0.13) (0.09) (0.10)
Distributions from net realized gain on
investment transactions 0 0 0 (0.28) 0
----------- ---------- ---------- ---------- ---------
Total distributions (0.22) (0.08) (0.13) (0.37) (0.10)
----------- ---------- ---------- ---------- ---------
Portfolio transaction fee 0.20 0.11 0.13 0.11 0.21
----------- ---------- ---------- ---------- ---------
Net asset value, end of period $ 28.91 $ 20.81 $ 13.65 $ 12.48 $ 16.91
=========== ========== ========== ========== =========
Total return (b) 34.66%(c) 47.21%(c) 5.98%(c) (27.36)%(c) (7.63)%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,361,368 $ 898,402 $ 518,984 $ 499,414 $ 593,883
Average net assets (000 omitted) $ 1,150,902 $ 653,705 $ 588,195 $ 578,168 $ 718,397
Ratio of expenses to average net assets 1.72% 1.72% 1.73% 1.75% 1.71%
Ratio of net investment income to average
net assets 1.41% 1.57% 0.89% 1.10% 0.75%
Portfolio turnover rate .44% .38% .34% .34% .28%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
32 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------------------------------------------------------
INTERMEDIATE
DURATION PORTFOLIO
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.43 $ 13.08 $ 12.98 $ 12.51 $ 12.67
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net 0.50 0.47 0.59 0.72 0.81
Net realized and unrealized gain (loss) on
investments (0.01) 0.35 0.10 0.47 (0.16)
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.49 0.82 0.69 1.19 0.65
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.51) (0.47) (0.59) (0.68) (0.81)
Distributions in excess of net investment
income due to timing differences 0 0 0 (0.04) 0
----------- ----------- ----------- ----------- -----------
Total distributions (0.51) (0.47) (0.59) (0.72) (0.81)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 13.41 $ 13.43 $ 13.08 $ 12.98 $ 12.51
=========== =========== =========== =========== ===========
Total return (b) 3.74% 6.39% 5.48% 9.80% 5.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,852,803 $ 2,402,262 $ 2,151,988 $ 2,130,691 $ 2,041,914
Average net assets (000 omitted) $ 2,612,933 $ 2,249,030 $ 2,135,339 $ 2,060,159 $ 2,298,018
Ratio of expenses to average net assets 0.61% 0.61% 0.61% 0.61% 0.60%
Ratio of net investment income to average
net assets 3.72% 3.55% 4.57% 5.66% 6.48%
Portfolio turnover rate 660% 796% 727% 532% 378%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 33
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective portfolio for each of the periods presented:
----------------------------------------------------------------------------
U.S. GOVERNMENT
SHORT DURATION PORTFOLIO
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.00 $ 13.23 $ 13.07 $ 12.49 $ 12.46
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.26 0.31 0.40 0.59 0.61
Net realized and unrealized gain (loss) on
investment transactions (0.14) (0.04) 0.16 0.58 0.03
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.12 0.27 0.56 1.17 0.64
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.30) (0.31) (0.40) (0.59) (0.61)
Dividends from net realized gain on
investment transactions (0.14) (0.19) 0 0 0
----------- ----------- ------------ ------------ -----------
Total distributions (0.44) (0.50) (0.40) (0.59) (0.61)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 12.68 $ 13.00 $ 13.23 $ 13.07 $ 12.49
=========== =========== ============ ============ ===========
Total return (b) 0.93% 2.10% 5.42% 9.62% 5.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 93,595 $ 112,561 $ 115,400 $ 101,664 $ 95,617
Average net assets (000 omitted) $ 101,777 $ 120,631 $ 106,080 $ 101,326 $ 112,827
Ratio of expenses to average net assets 0.80% 0.76% 0.74% 0.72% 0.72%
Ratio of expenses to average net assets
excluding interest expense 0.78% 0.76% 0.74% 0.72% 0.72%
Ratio of net investment income to average
net assets 2.06% 2.39% 3.04% 4.65% 4.91%
Portfolio turnover rate 358% 323% 230% 344% 160%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
34 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund II, Inc.
Financial Highlights
Selected per-share data and ratios for a share of capital stock outstanding for
the Portfolio for each of the periods presented:
-----------------------------------------------
INTERMEDIATE DURATION
INSTITUTIONAL PORTFOLIO
-----------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 (d)
- --------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 15.74 $ 15.44 $ 15.00 (e)
----------- ----------- ----------
Income from investment operations:
Investment income, net 0.60 0.56 0.25
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (0.03) 0.41 0.44
----------- ----------- ----------
Total from investment operations 0.57 0.97 0.69
----------- ----------- ----------
Less distributions:
Dividends from taxable net investment income (0.61) (0.57) (0.25)
Dividends from net realized gain on investment
transactions (0.22) (0.10) 0
----------- ----------- ----------
Total distributions (0.83) (0.67) (0.25)
----------- ----------- ----------
Net asset value, end of period $ 15.48 $ 15.74 $ 15.44
=========== =========== ===========
Total return (b) 3.76% 6.44% 4.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 609,248 $ 464,517 $ 328,393
Average net assets (000 omitted) $ 535,624 $ 383,604 $ 237,462
Ratio of expenses to average net assets 0.45% 0.45% 0.45%*
Ratio of expenses to average net assets
before reimbursement 0.58% 0.64% 0.75%*
Ratio of net investment income to average
net assets 3.86% 3.64% 4.37%*
Portfolio turnover rate 682% 791% 324%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 35
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
----------------------------------------------------------------------------
SHORT DURATION DIVERSIFIED
MUNICIPAL PORTFOLIO
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 (f) 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.69 $ 12.79 $ 12.70 $ 12.44 $ 12.49
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.22 0.29 0.37 0.47 0.47
Net realized and unrealized gain (loss) on
investment transactions (0.07) (0.05) 0.10 0.26 (0.01)
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.15 0.24 0.47 0.73 0.46
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.01) 0 0 (0.01) (0.01)
Dividends from tax-exempt net investment income (0.21) (0.29) (0.37) (0.46) (0.46)
Distributions from net realized gain on
investment transactions (0.02) (0.05) (0.01) 0 0
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 0 0 0 (0.04)
----------- ----------- ------------ ------------ -----------
Total distributions (0.24) (0.34) (0.38) (0.47) (0.51)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 12.60 $ 12.69 $ 12.79 $ 12.70 $ 12.44
=========== =========== ============ ============ ===========
Total return (b) 1.21% 1.97% 3.81% 5.98% 3.77%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 253,728 $ 233,649 $ 200,696 $ 156,920 $ 158,315
Average net assets (000 omitted) $ 240,126 $ 220,768 $ 182,317 $ 144,315 $ 168,807
Ratio of expenses to average net assets 0.69% 0.71% 0.71% 0.71% 0.71%
Ratio of net investment income to average
net assets 1.81% 2.30% 2.92% 3.73% 3.75%
Portfolio turnover rate .84% .57% .56% .77% .99%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
36 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------------------------------------------------------
SHORT DURATION CALIFORNIA
MUNICIPAL PORTFOLIO
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 (f) 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.67 $ 12.69 $ 12.68 $ 12.51 $ 12.53
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.20 0.22 0.35 0.46 0.45
Net realized and unrealized gain (loss) on
investment transactions (0.10) (0.02) 0.01 0.17 0.02
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.10 0.20 0.36 0.63 0.47
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.01) (0.01) 0 (0.03) (0.03)
Dividends from tax-exempt net investment income (0.19) (0.21) (0.35) (0.43) (0.42)
Distributions from net realized gain on
investment transactions 0 0 0 0 (0.04)
----------- ----------- ------------ ------------ -----------
Total distributions (0.20) (0.22) (0.35) (0.46) (0.49)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 12.57 $ 12.67 $ 12.69 $ 12.68 $ 12.51
=========== =========== ============ ============ ===========
Total return (b) 0.81% 1.63% 2.87% 5.13% 3.87%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 71,637 $ 79,818 $ 74,648 $ 54,073 $ 58,089
Average net assets (000 omitted) $ 77,177 $ 80,862 $ 61,944 $ 55,681 $ 83,374
Ratio of expenses to average net assets 0.78% 0.80% 0.79% 0.79% 0.73%
Ratio of net investment income to average
net assets 1.59% 1.77% 2.70% 3.66% 3.58%
Portfolio turnover rate .90% .72% .28% .60% .94%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 37
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
----------------------------------------------------------------------------
SHORT DURATION NEW YORK
MUNICIPAL PORTFOLIO
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 (f) 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.55 $ 12.57 $ 12.54 $ 12.31 $ 12.35
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net 0.22 0.26 0.36 0.44 0.48
Net realized and unrealized gain (loss) on
investment transactions (0.08) (0.02) 0.03 0.23 (0.04)
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.14 0.24 0.39 0.67 0.44
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.01) 0 0 (0.03) (0.01)
Dividends from tax-exempt net
investment income (0.21) (0.26) (0.36) (0.41) (0.47)
----------- ----------- ----------- ----------- -----------
Total distributions (0.22) (0.26) (0.36) (0.44) (0.48)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 12.47 $ 12.55 $ 12.57 $ 12.54 $ 12.31
=========== =========== =========== =========== ===========
Total return (b) 1.16% 1.92% 3.14% 5.55% 3.64%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 123,176 $ 120,941 $ 116,307 $ 87,919 $ 93,774
Average net assets (000 omitted) $ 123,457 $ 119,346 $ 102,743 $ 94,322 $ 106,683
Ratio of expenses to average net assets 0.74% 0.76% 0.77% 0.73% 0.72%
Ratio of net investment income to average
net assets 1.80% 2.06% 2.83% 3.56% 3.91%
Portfolio turnover rate .68% .47% .38% .93% .65%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
38 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------------------------------------------------------
DIVERSIFIED MUNICIPAL PORTFOLIO
MUNICIPAL CLASS
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 (f) 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.34 $ 14.37 $ 14.05 $ 13.50 $ 13.47
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.45 0.51 0.56 0.59 0.58
Net realized and unrealized gain (loss) on
investment transactions (0.07) (0.03) 0.32 0.55 0.08
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.38 0.48 0.88 1.14 0.66
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.02) (0.01) 0 (0.01) (0.01)
Dividends from tax-exempt net
investment income (0.43) (0.50) (0.56) (0.58) (0.57)
Distributions from net realized gain on
investment transactions 0 0 0 0 (0.05)
----------- ----------- ------------ ------------ -----------
Total distributions (0.45) (0.51) (0.56) (0.59) (0.63)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 14.27 $ 14.34 $ 14.37 $ 14.05 $ 13.50
=========== =========== ============ ============ ===========
Total return (b) 2.73% 3.44% 6.42% 8.63% 5.04%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,509,749 $ 2,045,981 $ 1,731,818 $ 1,388,653 $ 1,205,781
Average net assets (000 omitted) $ 2,261,248 $ 1,844,104 $ 1,532,681 $ 1,277,970 $ 1,329,585
Ratio of expenses to average net assets 0.61% 0.63% 0.64% 0.63% 0.63%
Ratio of net investment income to average
net assets 3.19% 3.58% 3.96% 4.30% 4.30%
Portfolio turnover rate .41% .38% .22% .26% .35%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 39
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
----------------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
MUNICIPAL CLASS
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 (f) 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.46 $ 14.59 $ 14.23 $ 13.81 $ 13.69
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.43 0.47 0.51 0.57 0.57
Net realized and unrealized gain (loss) on
investment transactions (0.07) (0.13) 0.36 0.42 0.16
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.36 0.34 0.87 0.99 0.73
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.02) (0.03) 0 (0.04) (0.02)
Dividends from tax-exempt net investment income (0.41) (0.44) (0.51) (0.53) (0.55)
Distributions from net realized gain on
investment transactions (0.01) 0 0 0 (0.04)
----------- ----------- ------------ ------------ -----------
Total distributions (0.44) (0.47) (0.51) (0.57) (0.61)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 14.38 $ 14.46 $ 14.59 $ 14.23 $ 13.81
=========== =========== ============ ============ ===========
Total return (b) 2.55% 2.40% 6.27% 7.33% 5.44%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 843,206 $ 685,360 $ 597,222 $ 491,194 $ 450,744
Average net assets (000 omitted) $ 752,372 $ 625,249 $ 541,454 $ 460,729 $ 524,573
Ratio of expenses to average net assets 0.64% 0.66% 0.66% 0.65% 0.64%
Ratio of net investment income to average
net assets 3.01% 3.26% 3.57% 4.07% 4.15%
Portfolio turnover rate .52% .44% .31% .46% .48%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
40 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
MUNICIPAL CLASS
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 (f) 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.21 $ 14.23 $ 13.85 $ 13.37 $ 13.36
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.47 0.50 0.54 0.57 0.57
Net realized and unrealized gain (loss) on
investment transactions (0.10) (0.02) 0.38 0.48 0.07
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.37 0.48 0.92 1.05 0.64
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.01) (0.01) (0.01) (0.02) 0
Dividends from tax-exempt net investment income (0.46) (0.49) (0.53) (0.55) (0.57)
Distributions from net realized gain on
investment transactions 0 0 0 0 (0.05)
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 0 0 0 (0.01)
----------- ----------- ------------ ------------ -----------
Total distributions (0.47) (0.50) (0.54) (0.57) (0.63)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 14.11 $ 14.21 $ 14.23 $ 13.85 $ 13.37
=========== =========== ============ ============ ===========
Total return (b) 2.63% 3.45% 6.83% 7.99% 4.93%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,121,213 $ 1,006,023 $ 940,302 $ 763,728 $ 673,723
Average net assets (000 omitted) $ 1,055,386 $ 954,250 $ 835,184 $ 713,704 $ 743,412
Ratio of expenses to average net assets 0.63% 0.65% 0.66% 0.64% 0.64%
Ratio of net investment income to average
net assets 3.31% 3.53% 3.89% 4.17% 4.33%
Portfolio turnover rate .39% .29% .37% .29% .33%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 41
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
----------------------------------------------------------------------------
SHORT DURATION PLUS PORTFOLIO
SHORT DURATION PLUS CLASS
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/02 9/30/01 (a) 9/30/00
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.84 $ 12.78 $ 12.69 $ 12.25 $ 12.33
----------- ----------- ------------ ------------ -----------
Income from investment operations:
Investment income, net 0.30 0.37 0.50 0.68 0.72
Net realized and unrealized gain (loss) on
investment and futures transactions (0.12) 0.06 0.09 0.44 (0.08)
----------- ----------- ------------ ------------ -----------
Total from investment operations 0.18 0.43 0.59 1.12 0.64
----------- ----------- ------------ ------------ -----------
Less distributions:
Dividends from taxable net investment income (0.33) (0.37) (0.50) (0.66) (0.72)
Distributions from net realized gain
on investment transactions (0.02) 0 0 0 0
Distributions in excess of net investment
income due to timing differences 0 0 0 (0.01) 0
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 0 0 (0.01) 0
----------- ----------- ------------ ------------ -----------
Total distributions (0.35) (0.37) (0.50) (0.68) (0.72)
----------- ----------- ------------ ------------ -----------
Net asset value, end of period $ 12.67 $ 12.84 $ 12.78 $ 12.69 $ 12.25
=========== =========== ============ ============ ===========
Total return (b) 1.37% 3.42% 4.78% 9.40% 5.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 421,881 $ 413,100 $ 397,719 $ 367,738 $ 407,516
Average net assets (000 omitted) $ 411,043 $ 408,848 $ 377,656 $ 377,112 $ 490,232
Ratio of expenses to average net assets 0.70% 0.67% 0.67% 0.67% 0.66%
Ratio of expenses to average net assets
excluding interest expense 0.68% 0.66% 0.67% 0.67% 0.66%
Ratio of net investment income to average
net assets 2.39% 2.89% 3.95% 5.48% 5.88%
Portfolio turnover rate 359% 286% 226% 377% 194%
See Footnote Summary on page 43.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
42 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
(a) Prior to October 2, 2000, Sanford C. Bernstein & Co., Inc., served as
investment manager to the Fund. On October 2, 2000, Alliance Capital Management
L.P. acquired the business and substantially all of the assets of Sanford C.
Bernstein & Co., Inc., and became investment adviser for the Fund.
(b) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and redemption
on the last day of the period. Total return does not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Total investment return calculated for a period of less than one
year is not annualized.
(c) This reflects the return to a shareholder who purchased shares of the
Portfolio at the beginning of the period and redeemed them at the end of the
period, paying, in each case, the 2.00% portfolio transaction fee. Total return
to a shareholder for the years ending September 30, 2004, September 30, 2003,
September 30, 2002, September 30, 2001, and September 30, 2000, without taking
into account these transaction fees, would have been 40.22%, 53.28%, 10.35%,
(24.37)% and (3.82)%, respectively.
(d) Commenced operations May 17, 2002.
(e) Prior to the commencement of operations, May 17, 2002, Alliance Capital
redeemed 1,333 shares representing $16,666 of Intermediate Duration
Institutional Portfolio and made a capital contribution of $16,666 into the
Portfolio, adjusting the opening net asset value per share from $12.50 to
$15.00.
(f) As of October 1, 2003, the Portfolios have adopted the method of accounting
for interim payments on swap contracts in accordance with Financial Accounting
Standards Board Statement No. 133. These interim payments are reflected within
net realized and unrealized gain (loss) on swap contracts, however prior to
October 1, 2003, these interim payments were reflected within interest income in
the Statements of Operations. For the year ended September 30, 2004, the effect
of this change was to increase net investment income and decrease net realized
and unrealized gain (loss) on investment transaction per share by less than
$0.01 for Short Duration Diversified, Short Duration California, Short Duration
New York, Diversified Municipal, California Municipal and New York Municipal
Class. The effect on the ratio of net investments income per share was as
follows:
Short Duration Diversified .03%
Short Duration California .00%
Short Duration New York .01%
Diversified Municipal Class .01%
California Municipal Class .00%
New York Municipal Class .01%
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2004 Annual Report 43
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements
NOTE 1. Organization and Significant Accounting Policies
This report includes the financial statements of the Sanford C.
Bernstein Fund, Inc. and the Sanford C. Bernstein Fund II, Inc. (the
"Funds"). Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein
Fund II, Inc. are managed open-end registered investment companies,
incorporated in Maryland on May 4, 1988 and February 7, 2002,
respectively. Sanford C. Bernstein Fund, Inc., currently comprises
12 portfolios ("SCB Portfolios"), each with its own investment
objectives. There are three international equity portfolios,
Tax-Managed International, International and Emerging Markets Value;
nine Fixed-income portfolios, Intermediate Duration, Short Duration
Plus, U.S. Government Short Duration, Short Duration Diversified
Municipal, Short Duration California Municipal, Short Duration New
York Municipal, Diversified Municipal, California Municipal and New
York Municipal.
Effective February 1, 2002, each of the Diversified Municipal,
California Municipal and New York Municipal Portfolios
(collectively, Bernstein "Intermediate Municipal Portfolios")
commenced offering of AllianceBernstein Intermediate Municipal Class
A, Class B and Class C Shares (collectively, "Intermediate Municipal
Retail Classes") in addition to the existing share class of the
Intermediate Municipal Portfolios (each, a "Municipal Class").
Effective May 21, 2003, the Short Duration Plus Portfolio commenced
offering of AllianceBernstein Short Duration Class A, Class B and
Class C Shares (collectively, "Short Duration Retail Classes") in
addition to the existing Short Duration Plus Class shares. Effective
January 30, 2004, the Tax-Managed International and International
Portfolios commenced distribution of AllianceBernstein Tax-Managed
International and AllianceBernstein International Class A, Class B
and Class C Shares (collectively, "International Retail Classes") in
addition to the existing Tax-Managed International and International
Class Shares, respectively. Effective February 17, 2004, the
International and Short Duration Plus Portfolios commenced offering
of Class R Shares. Collectively, the Intermediate Retail Classes,
Short Duration Retail Classes and International Retail Classes are
the "Retail Classes." The financial highlights of the Retail Classes
are presented in separate financial reports. All five classes of
shares have identical voting, dividend, liquidation and other
rights, except that each class bears different distribution expenses
and has exclusive voting rights with respect to its distribution
plan, as applicable. Sanford C. Bernstein Fund II, Inc., currently
comprises one portfolio, the Intermediate Duration Institutional
Portfolio (together with the SCB Portfolios, the "Portfolios").
Intermediate Duration Institutional Portfolio commenced offering on
May 17, 2002, through an investment of securities received in an
in-kind redemption in the amount of $149,411,702 from the
Intermediate Duration Portfolio of the Sanford C. Bernstein Fund,
Inc. The preparation of financial statements in accordance with U.S.
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts and
disclosures in the financial statements. Actual results could differ
from those estimates. Additional information about some of the items
discussed in these Notes to Financial Statements is contained in the
Fund's Statement of Additional Information, which is available upon
request. The following is a summary of significant accounting
policies followed by the Funds.
A. Portfolio Valuation
Portfolio securities are valued at their current market value
determined on the basis of market quotations or, if market
quotations are not readily available or are deemed unreliable, at
"fair value" as determined in accordance with procedures established
by and under the general supervision of the Funds' Boards of
Directors.
In general, the market value of securities which are readily
available and deemed reliable are determined as follows: Securities
listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the
exchange or foreign securities exchange. If there has been no sale
on such day, the securities are valued at the mean of the closing
bid and asked prices on such day. Securities listed on more than one
exchange are valued by reference to the principal exchange on which
the securities are traded; securities not listed on an exchange but
traded on The NASDAQ Stock Market, Inc. ("NASDAQ") are valued in
accordance with the NASDAQ Official Closing Price; listed put or
call options are valued at the last sale price. If there has been no
sale on that day, such securities will be valued at the closing bid
prices on that day; open futures contracts and options thereon are
valued using the closing settlement price or, in the absence of such
a price, the most recent quoted bid price. If there are no
quotations available for the day of valuation, the last available
closing settlement price is used; securities traded in the
over-the-counter market, ("OTC") (but excluding
- --------------------------------------------------------------------------------
44 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
securities traded on NASDAQ) are valued at the mean of the current
bid and asked prices as reported by the National Quotation Bureau or
other comparable sources; U.S. Government securities and other debt
instruments having 60 days or less remaining until maturity are
valued at amortized cost if their original maturity was 60 days or
less; or by amortizing their fair value as of the 61st day prior to
maturity if their original term to maturity exceeded 60 days;
fixed-income securities, including mortgage backed and asset backed
securities, may be valued on the basis of prices provided by a
pricing service or at a price obtained from one or more of the major
broker/dealers. In cases where broker/dealer quotes are obtained,
Alliance Capital Management, L.P. (the "Adviser") may establish
procedures whereby changes in market yields or spreads are used to
adjust, on a daily basis, a recently obtained quoted price on a
security; and OTC and other derivatives are valued on the basis of a
quoted bid price or spread from a major broker/dealer in such
security.
Securities for which market quotations are not readily available
(including restricted securities) or are deemed unreliable are
valued at fair value. Factors considered in making this
determination may include, but are not limited to, information
obtained by contacting the issuer, analysts, analysis of the
issuer's financial statements or other available documents. In
addition, the Funds may use fair value pricing for securities
primarily traded in non-U.S. markets because most foreign markets
close well before the Funds value their securities at 4:00 p.m.,
Eastern Time. The earlier close of these foreign markets gives rise
to the possibility that significant events, including broad market
moves, may have occurred in the interim and may materially affect
the value of those securities. To account for this, the Funds may
frequently value many of their foreign equity securities using fair
value prices based on third party vendor modeling tools to the
extent available.
B. Foreign Currency Translation
The accounting records of the Funds are maintained in U.S. dollars.
Prices of securities and other assets and liabilities denominated in
non-U.S. currencies are translated into U.S. dollars using the
exchange rate at 12:00 p.m., Eastern time. Amounts related to the
purchases and sales of securities, investment income and expenses
are translated at the rates of exchange prevailing on the respective
dates of such transactions.
Net realized gain or loss on foreign currency transactions
represents net foreign exchange gains or losses from the closure of
forward currency contracts, disposition of foreign currencies,
currency gains or losses realized between the trade and settlement
dates on security transactions and the difference between the amount
of dividends, interest and foreign withholding taxes recorded on the
Funds' books and the U.S. dollar equivalent amount actually received
or paid. Net unrealized currency gains and losses arising from
valuing foreign currency denominated assets and liabilities, other
than security investments, at the current exchange rate are
reflected as part of unrealized appreciation/depreciation on foreign
currencies.
The Funds do not isolate that portion of the results of operations
arising as a result of changes in the foreign exchange rates from
the changes in the market prices of securities held at period end.
The Funds do not isolate the effect of changes in foreign exchange
rates from changes in market prices of equity securities sold during
the year. The Funds do isolate the effect of changes in foreign
exchange rates from changes in market prices of debt securities sold
during the year, as required by the Internal Revenue Code.
The Tax-Managed International Portfolio, International Portfolio,
Emerging Markets Value Portfolio, Intermediate Duration Portfolio
and Intermediate Duration Institutional Portfolio may invest in
foreign securities and foreign currency transactions that may
involve risks not associated with domestic investments as a result
of the level of governmental supervision and regulation of foreign
securities markets and the possibility of political or economic
instability, among others.
C. Security Transactions and Related Investment Income
Security transactions are accounted for on the trade date (the date
the buy or sell order is executed). Securities gains and losses are
calculated on the identified cost basis. Interest income is recorded
on the accrual basis and dividend income is recorded on the
ex-dividend date or as soon as the Fund is informed of the dividend.
- --------------------------------------------------------------------------------
2004 Annual Report 45
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
D. Futures Contracts
Upon entering into a futures contract, a Portfolio is required to
deposit cash or to pledge securities in an amount (initial margin)
equal to a certain percentage of the purchase price indicated in the
futures contract. Subsequent payments, which are dependent on the
daily fluctuations in the market value of the underlying index or
security, are made or received by the Portfolio each day (daily
variation margin) or at other intervals as is required. The
aggregate of these payments or receipts through the expiration of
the futures contract is recorded for book purposes as unrealized
gains or losses by the Portfolio. If the Portfolio enters into a
closing transaction, it will realize, for book purposes, a gain or
loss equal to the difference between the value of the futures
contract at the time it was opened or purchased and its value at the
time it was closed.
E. Written Options
When a Portfolio writes an option, an amount equal to the premium
received by the Portfolio is recorded as an asset and a
corresponding liability. The amount of the liability is adjusted
daily to reflect the current market value of the option. When a call
option is exercised, a Portfolio realizes a gain or loss on the
underlying security, with the proceeds from the security sale
increased by the amount of the option premium received. When a put
option is exercised, the cost basis of the security purchased by a
Portfolio is reduced by the option premium received.
F. Taxes
Each of the Portfolios is treated as separate entities for federal
income tax purposes. Each Portfolio intends to continue to comply
with the requirements of Subchapter M of the Internal Revenue Code
of 1986 as they apply to regulated investment companies. By so
complying, each Portfolio will not be subject to federal income
taxes to the extent that all of its income is distributed. The
Portfolios may be subject to taxes imposed by countries in which
they invest. Such taxes are generally based on income and/or capital
gains earned or repatriated. Taxes are accrued and applied to net
investment income, net realized gains and net unrealized
appreciation/depreciation as such income and/or gains are earned.
G. Repurchase Agreements
Each Portfolio may enter into repurchase agreements with banks or
securities broker-dealers. It is the Funds' policy that their
custodian receive delivery of the securities collateralizing
repurchase agreements, the amount of which at the time of purchase
and each subsequent business day is required to be maintained at
such a level that the market value of the collateral is equal to at
least 100% of the repurchase price. Repurchase agreements could
involve certain risks in the event of default or insolvency of the
other party, including possible delays or restrictions on the
Portfolio's ability to dispose of the underlying securities.
H. Securities Transactions on a When-Issued or Delayed-Delivery Basis
Each Portfolio may purchase securities on a when-issued basis or
purchase or sell securities on a delayed-delivery basis. At the time
a Portfolio commits to purchase a security on a when-issued or
delayed-delivery basis, the Portfolio will record the transaction
and use the security's value in determining the Portfolio's net
asset value. At the time a Portfolio commits to sell a security on a
delayed-delivery basis, the Portfolio will record the transaction
and exclude the security's value in determining the Portfolio's net
asset value. Each Portfolio segregates cash and marketable
securities at least equal in value to its purchase commitment for
when-issued or delayed-delivery securities, and segregates portfolio
securities on a delayed-delivery basis.
I. Distribution of Income and Gains
Net investment income of each Portfolio except the Tax-Managed
International Portfolio, International Portfolio and Emerging
Markets Value Portfolio is declared and recorded as a dividend to
shareholders daily and is payable to shareholders monthly. Dividends
from net investment income, if any, of the Tax-Managed International
Portfolio, International Portfolio and Emerging Markets Value
Portfolio will be paid to shareholders at least once a year.
- --------------------------------------------------------------------------------
46 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
Distributions of net realized gains, less any available loss
carryforwards, if any, for all Portfolios will be paid to
shareholders at least once a year, and recorded on the ex-dividend
date.
Elements of realized gains and net investment income may be recorded
in different accounting periods for financial reporting (book) and
federal income tax (tax) purposes (temporary differences). To the
extent that such distributions required for tax purposes exceed
income and gains recorded for book purposes as a result of such
temporary differences, "excess distributions" are reflected in the
accompanying financial statements. Certain other differences --
permanent differences -- arise because treatment of elements of
income and gains is different between book and tax accounting.
Permanent differences are reclassified in the year they arise.
Permanent differences have no effect on net assets. The effect of
such permanent differences on each Portfolio, due to
reclassification of distributions, foreign currency gain (loss),
paydown gain (loss), swap income (loss) and capital gain withholding
tax is reflected as an adjustment to the components of capital as of
September 30, 2004, as shown below:
INCREASE (DECREASE)
TO ACCUMULATED
INCREASE (DECREASE) INCREASE (DECREASE) NET REALIZED GAIN (LOSS)
TO ADDITIONAL TO UNDISTRIBUTED NET ON INVESTMENTS, FUTURES
PAID-IN CAPITAL INVESTMENT INCOME (LOSS) AND FOREIGN CURRENCIES
===============================================================================================================
Tax-Managed International Value $ 0 $ 5,570,272 $ (5,570,272)
International 0 3,786,116 (3,786,116)
Emerging Markets Value 0 (12,746,603) 12,746,603
Intermediate Duration 0 2,213,384 (2,213,384)
U.S. Government Short Duration 0 270,057 (270,057)
Intermediate Duration Institutional 0 438,868 (438,868)
Short Duration Diversified Municipal 0 (69,097) 69,097
Short Duration California Municipal 0 (143) 143
Short Duration New York Municipal 0 (8,571) 8,571
Diversified Municipal 0 (250,240) 250,240
California Municipal 0 (41,396) 41,396
New York Municipal 0 (84,480) 84,480
Short Duration Plus 0 970,358 (970,358)
J. Income and Expenses
All income earned and expenses incurred by the Portfolios are borne
on a pro-rata basis by each outstanding class of shares, based on
the proportionate interest in the Funds represented by the shares of
such class. Class-specific expenses are borne by the respective
class.
K. Portfolio Transaction Fee
The Emerging Markets Value Portfolio imposes a 2.00% fee on
purchases and redemptions. This fee is retained by the Portfolio and
is included in the financial statements as a component of additional
paid-in capital.
L. Securities Lending
Each of the Portfolios may enter into securities lending
transactions. By lending its portfolio securities, a Portfolio
attempts to increase its income through the interest earned on the
loan. It is the policy of each Portfolio to receive collateral
consisting of cash or U.S. Government securities in an amount at
least equal to the value of the securities loaned. The securities
lending agent has agreed to indemnify the Funds in the case of
default of any securities borrower. Collateral received and
securities loaned are marked to market daily to ensure that
collateral levels are maintained. Cash collateral received is
invested by the securities lending agent in liquid short-term
investments such as repurchase agreements and overnight time
deposits pursuant to investment guidelines set forth by the Funds.
Cash collateral received is recorded as an
- --------------------------------------------------------------------------------
2004 Annual Report 47
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
asset as well as a corresponding liability in the Statements of
Assets and Liabilities. At September 30, 2004, the International
Portfolio had securities on loan with a value of $557,145,558 and
had received collateral of $585,247,194, of which $584,052,000 was
cash collateral and $1,195,194 was collateral in the form of U.S.
Government securities. The Tax-Managed International Portfolio and
the International Portfolio earned $466,186 and $1,189,263,
respectively, from securities lending transactions for the year
ended September 30, 2004. The amount is reflected in the Statements
of Operations as a component of interest income.
M. Interest Rate Swap Agreements
The Fund may enter into swaps to hedge its exposure to interest
rates and credit risk or for investment purposes. A swap is an
agreement that obligates two parties to exchange a series of cash
flows at specified intervals based upon or calculated by reference
to changes in specified prices or rates for a specified amount of an
underlying asset. The payment flows are usually netted against each
other, with the difference being paid by one party to the other.
This amount is reflected in the statement of operations as a
component of interest income.
Risks may arise as a result of the failure of the counterparty to
the swap contract to comply with the terms of the swap contract. The
loss incurred by the failure of a counterparty is generally limited
to the net interim payment to be received by the Fund, and/or the
termination value at the end of the contract. Therefore, the Fund
considers the creditworthiness of each counterparty to a swap
contract in evaluating potential credit risk. Additionally, risks
may arise from unanticipated movements in interest rates or in the
value of the underlying securities.
As of October 1, 2003, the Portfolios have adopted the method of
accounting for interim payments on swap contracts in accordance with
Financial Accounting Standards Board Statement No. 133. The Fund
accrues for the interim payments on swap contracts on a daily basis,
with the net amount recorded within unrealized
appreciation/depreciation of swap contracts on the statement of
assets and liabilities. Once the interim payments are settled in
cash, the net amount is recorded as realized gain/loss on swaps, in
addition to realized gain/loss recorded upon the termination of swap
contracts on the statement of operations. Prior to October 1, 2003,
these interim payments were reflected within interest income/expense
in the Statements of Operations. Fluctuations in the value of swap
contracts are recorded as a component of net change in unrealized
appreciation/ depreciation of investments.
N. Reverse Repurchase Agreements
Under a reverse repurchase agreement, a Portfolio sells securities
and agrees to repurchase them at a mutually agreed upon date and
price. At the time a Portfolio enters into a reverse repurchase
agreement, it will establish a segregated account with the custodian
containing liquid assets having a value at least equal to the
repurchase price.
For the year ended September 30, 2004, the average amount of reverse
repurchase agreements outstanding for the Short Duration Plus and
U.S. Government Short Duration Portfolios was $25,058,665 and
$4,921,867, respectively, and the daily weighted average interest
rate was .89% and .89%, respectively.
O. Mortgage-Backed Dollar Rolls
The Intermediate Duration Portfolio, the Intermediate Duration
Institutional Portfolio, U.S. Government Short Duration Portfolio,
and the Short Duration Plus Portfolio may enter into dollar rolls
using "to be announced" ("TBA") mortgage-backed securities. TBA
transactions are recorded for book purposes based on the type of the
mortgage-backed securities. For TBA transactions that are entered
into as financing transactions (selling a mortgage-backed security
for delivery in the future and simultaneously contracting to
purchase a substantially similar security at a specified future
date), income is recorded for the difference between the current
sale price and the lower forward price for the future purchase.
NOTE 2. Investment Management and Transactions with Affiliated Persons
A. Management Fee
Under the Investment Management Agreement between the Funds and the
Adviser, the Adviser manages the investment of each Portfolio's
assets, places purchase and sale orders, and bears various expenses,
including the salaries and expenses of
- --------------------------------------------------------------------------------
48 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
all personnel except those of outside directors. In addition, the
Adviser agrees to permit its directors, officers and employees who
may be elected directors or officers of the Funds to serve in the
capacities to which they are elected. The Adviser renders these
services subject to the general oversight of the Board of Directors.
The Adviser receives an investment management fee, based on the
annual rate, for these services as follows:
AVERAGE DAILY NET ASSETS
FIRST $1 BILLION THEREAFTER
======================================================================================================
Intermediate Duration, Short Duration Plus,
U.S. Government Short Duration, Intermediate Duration
Institutional, Diversified Municipal, California Municipal,
and New York Municipal Portfolios .500% .450%
-------------------------------------------------------------------------------------------------------------------
AVERAGE DAILY NET ASSETS
FIRST NEXT NEXT
$1 BILLION $3 BILLION $2 BILLION THEREAFTER
===================================================================================================================
Tax-Managed International and
International Portfolios 1% .900% .875% .850%
-------------------------------------------------------------------------------------------------------------------
Short Duration Diversified Municipal, Short Duration
California Municipal, and Short Duration New York
Municipal Portfolios .500% of the average daily net assets
------------------------------------------------------------------------------------------------------
AVERAGE DAILY NET ASSETS
FIRST
$1 BILLION THEREAFTER
======================================================================================================
Emerging Markets Value Portfolio 1.25% 1.125%
The Intermediate Duration Institutional Portfolio and the Adviser
have entered into an Expense Limitation Agreement (the "Agreement"),
dated March 22, 2002, under which the Adviser has agreed to waive
its fees and, if necessary, reimburse expenses in respect of the
Portfolio for the current fiscal year, so that total operational
expenses do not exceed the annual rate of 0.45% of average daily net
assets of the Portfolio. Under the Agreement, which remains in
effect until March 31, 2005, any waivers or reimbursements made by
the Adviser are subject to repayment by the Portfolio by March 31,
2005, provided that repayment does not result in the Portfolio's
aggregate expenses exceeding the foregoing expense limitations.
Further, the aggregate repayment to the Adviser will not exceed the
sum of the Portfolio's organization costs and initial offering
expenses. For the year ended September 30, 2004, the aggregate
amount of such fee waiver was $699,097.
B. Shareholder Servicing Fee; Transfer Agency Fee
Under the Shareholder Servicing Agreement between the Sanford C.
Bernstein Fund, Inc. and the Adviser, the Adviser pays expenses it
incurs in providing shareholder servicing to the Fund, the
Portfolios, and individual shareholders. The Shareholder Servicing
Agreement does not apply to the Retail Classes and the Intermediate
Duration Institutional Portfolio. Under the agreement, the fee paid
by each Portfolio except the Tax-Managed International Portfolio,
International Portfolio, and Emerging Markets Value Portfolio to the
Adviser for services is .10 of 1% of the average daily net assets of
each Portfolio during the month, and the fee paid by the Tax-Managed
International Portfolio, International Portfolio, and Emerging
Markets Value Portfolio for services is .25 of 1% of the average
daily net assets of each Portfolio during the month.
Under a Transfer Agency Agreement between the Sanford C. Bernstein
Fund, Inc., on behalf of the Retail Classes, and Alliance Global
Investor Services, Inc. ("AGIS"), the Retail Classes compensate AGIS
a wholly owned subsidiary of the Adviser, for providing personnel
and facilities to perform transfer agency services. For the year
ended September 30, 2004, such compensation amounted to: Tax-Managed
International, $138; International, $2,984; Diversified Municipal
Portfolio, $67,837; California Municipal Portfolio, $18,886; New
York Municipal Portfolio, $37,046; and Short Duration Plus
- --------------------------------------------------------------------------------
2004 Annual Report 49
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
Portfolio, $57,077, for the year ended September 30, 2004. During
the period, AGIS agreed to waive a portion of its fees for such
services for the Tax-Managed International Portfolio and the
International Portfolio. Such waivers amounted to $11,862 and
$9,016, respectively.
For the year ended September 30, 2004, the expenses for the Retail
Classes of the Diversified Municipal Portfolio, California Municipal
Portfolio, New York Municipal Portfolio and Short Duration Plus
Portfolio were reduced under an expense offset arrangement with AGIS
by $12, $4, $9 and $12, respectively.
C. Distribution Arrangements -- the Funds Except the Retail Classes
Under the Distribution Agreement between the Funds, on behalf of
each Portfolio other than the Retail Classes, and Sanford C.
Bernstein & Co., LLC (the "Distributor"), the Distributor agrees to
act as agent to sell shares of the 13 Portfolios. The Distributor
receives no fee for this service, and furthermore agrees to pay all
expenses arising from the performance of its obligations under this
agreement. The Distributor is a wholly owned subsidiary of the
Adviser.
D. Distribution Arrangements -- the Retail Classes Only
The Retail Classes of the Tax-Managed International Portfolio and
International Portfolio, the Intermediate Municipal Portfolios, and
the Short Duration Plus Portfolio have adopted a Distribution
Services Agreement (the "Agreement"), including a distribution plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940.
Under the Agreement, each of the Retail Classes pays distribution
services fees to AllianceBernstein Investment Research and
Management, Inc. (the "Distributor"), a wholly-owned subsidiary of
the Adviser, at an annual rate of up to .30 of 1% of the Class A
Shares, 1% of the Class B and Class C Shares, and .50 of 1% of the
Class R Shares of the respective average daily net assets
attributable to the Retail Classes. The fees are accrued daily and
paid monthly. The Agreement provides that the Distributor will use
such payments in their entirety for distribution assistance and
promotional activities. The Distributor has advised the Sanford C.
Bernstein Fund, Inc., that it has incurred expenses in excess of the
distribution costs reimbursed by each of the Retail Classes as
follows:
TAX-MANAGED DIVERSIFIED CALIFORNIA NEW YORK SHORT
INTERNATIONAL INTERNATIONAL MUNICIPAL MUNICIPAL MUNICIPAL DURATION PLUS
==============================================================================================================
Class B $ 50,785 $ 46,213 $1,768,059 $888,801 $1,505,460 $626,199
Class C 141,595 195,402 793,336 569,137 590,095 417,452
Such costs may be recovered from each Portfolio in future periods so
long as the Agreement is in effect. In accordance with the
Agreement, there is no provision for recovery of unreimbursed
distribution costs incurred by the Distributor beyond the current
fiscal year for Class A and R Shares. The Agreement also provides
that the Adviser may use its own resources to finance the
distribution of each Portfolio's Shares.
E. Other Transactions with Affiliates
Class A Shares of the Retail Classes are sold with a front-end sales
charge of up to 4.25% for purchases not exceeding $1,000,000. With
respect to purchases of $1,000,000 or more, Class A Shares redeemed
within one year of purchase may be subject to a contingent deferred
sales charge of 1%. Class B Shares of the Intermediate Municipal
Portfolios and the Short Duration Plus Portfolio are currently sold
with a contingent deferred sales charge that declines from 3% to
zero depending on the period of time the shares are held. Class B
Shares of the Tax-Managed International Portfolio and the
International Portfolio are currently sold with a contingent
deferred sales charge that declines from 4% to zero depending on the
period of time the shares are held. Class B Shares will
automatically convert to Class A Shares six years after the end of
the calendar month of purchase for the Intermediate Municipal
Portfolios and the Short Duration Plus Portfolio and eight years
after the end of the calendar month of purchase for the Tax-Managed
International Portfolio and the International Portfolio. Class C
Shares are subject to a contingent deferred sales charge of 1% on
redemptions made within the first year after purchase. Class R
Shares are sold without an initial or contingent deferred sales
charge and are offered to certain group retirement plans.
- --------------------------------------------------------------------------------
50 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
AllianceBernstein Investment Research and Management, Inc., has
advised Sanford C. Bernstein Fund, Inc., that it has retained
front-end sales charges from sales of Class A Shares and received
contingent deferred sales charges imposed upon redemptions by
shareholders of Class A, Class B, and Class C Shares for the year
ended September 30, 2004, as follows:
FRONT-END CONTINGENT DEFERRED SALES CHARGES
SALES CHARGES ----------------------------------
PORTFOLIO CLASS A CLASS A CLASS B CLASS C
==================================================================================
Tax-Managed International $ 2,693 $ 0 $ 11 $ 8,319
International 1,530 0 95 187
Diversified Municipal 18,508 13,953 292,072 53,272
California Municipal 5,418 10,779 77,140 37,658
New York Municipal 9,701 15,039 139,674 30,412
Short Duration Plus 17,025 45,820 106,587 44,121
For the year ended September 30, 2004, the Emerging Markets Value
Portfolio paid brokerage commissions to Sanford C. Bernstein & Co.,
LLC, in the amount of $185,141, and the Tax-Managed International
and International Portfolios paid commissions to Sanford C.
Bernstein & Co., Ltd., in the amount of $469,669 and $258,859,
respectively.
NOTE 3. Investment Security Transactions
A. Purchases and Sales
For the period from October 1, 2003, through September 30, 2004, the
Portfolios had purchases and sales transactions, excluding
repurchase transactions and transactions in short-term instruments,
as follows:
PURCHASES SALES
EXCLUDING U.S. PURCHASES OF EXCLUDING U.S. SALES OF
GOVERNMENT U.S. GOVERNMENT GOVERNMENT U.S. GOVERNMENT
SECURITIES SECURITIES SECURITIES SECURITIES
============================================================================================================
Tax-Managed International $3,382,873,484 $ 0 $2,907,116,077 $ 0
International 1,837,951,161 0 1,841,180,822 0
Emerging Markets Value 597,600,849 0 499,862,385 0
Intermediate Duration 1,458,381,005 15,626,477,799 1,429,434,919 15,013,436,789
U.S. Government Short Duration 10,285,690 360,869,877 11,620,719 371,043,465
Intermediate Duration Institutional 305,843,258 3,315,544,662 285,597,858 3,165,634,595
Short Duration Diversified Municipal 207,558,043 0 196,340,280 0
Short Duration California Municipal 65,011,333 0 65,763,668 0
Short Duration New York Municipal 89,260,475 0 77,494,268 0
Diversified Municipal 1,339,904,192 0 1,043,774,673 0
California Municipal 588,687,683 0 432,782,458 0
New York Municipal 578,637,826 0 477,140,405 0
Short Duration Plus 284,998,230 1,854,889,884 221,299,231 1,897,751,642
B. Distributions to Shareholders
The tax character of distributions paid during the fiscal years
ended September 30, 2004 and September 30, 2003, were as follows:
TAX-MANAGED INTERNATIONAL 2004 2003
=================================================================================
Distributions paid from:
Ordinary income $61,238,586 $35,319,934
----------- -----------
Total distributions paid $61,238,586 $35,319,934
----------- -----------
- --------------------------------------------------------------------------------
2004 Annual Report 51
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
INTERNATIONAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $18,338,621 $16,987,461
----------- -----------
Total distributions paid $18,338,621 $16,987,461
----------- -----------
EMERGING MARKETS VALUE 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 9,586,370 $ 3,072,179
----------- -----------
Total distributions paid $ 9,586,370 $ 3,072,179
----------- -----------
INTERMEDIATE DURATION 2004 2003
====================================================================
Distributions paid from:
Ordinary income $99,678,637 $79,859,897
----------- -----------
Total taxable distributions paid 99,678,637 79,859,897
Return of capital 0 0
----------- -----------
Total distributions paid $99,678,637 $79,859,897
----------- -----------
U.S. GOVERNMENT SHORT DURATION 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 3,537,784 $ 4,005,212
Net long-term capital gains 0 502,438
----------- -----------
Total distributions paid $ 3,537,784 $ 4,507,650
----------- -----------
INTERMEDIATE DURATION INSTITUTIONAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $26,771,666 $16,139,301
Net long-term capital gains 1,035,029 0
----------- -----------
Total distributions paid $27,806,695 $16,139,301
----------- -----------
SHORT DURATION DIVERSIFIED MUNICIPAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 469,395 $ 101,321
Net long-term capital gains 0 754,546
----------- -----------
Total taxable distributions paid 469,395 855,867
Tax exempt distributions 4,112,219 5,065,280
----------- -----------
Total distributions paid $ 4,581,614 $ 5,921,147
----------- -----------
- --------------------------------------------------------------------------------
52 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
SHORT DURATION CALIFORNIA MUNICIPAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 44,614 $ 43,186
----------- -----------
Total taxable distributions paid 44,614 43,186
Tax exempt distributions 1,182,918 1,387,621
----------- -----------
Total distributions paid $ 1,227,532 $ 1,430,807
----------- -----------
SHORT DURATION NEW YORK MUNICIPAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 68,586 $ 2,337
----------- -----------
Total taxable distributions paid 68,586 2,337
Tax exempt distributions 2,136,107 2,454,615
----------- -----------
Total distributions paid $ 2,204,693 $ 2,456,952
----------- -----------
DIVERSIFIED MUNICIPAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 2,700,837 $ 1,659,562
----------- -----------
Total taxable distributions paid 2,700,837 1,659,562
Tax exempt distributions 77,360,866 72,698,440
----------- -----------
Total distributions paid $80,061,703 $74,358,002
----------- -----------
CALIFORNIA MUNICIPAL 2004 2003
====================================================================
Distributions paid from:
Ordinary income $ 1,078,849 $ 1,308,514
Net long-term capital gains 584,016 0
----------- -----------
Total taxable distributions paid 1,662,865 1,308,514
Tax exempt distributions 24,422,628 21,958,831
----------- -----------
Total distributions paid $26,085,493 $23,267,345
----------- -----------
====================================================================
NEW YORK MUNICIPAL 2004 2003
Distributions paid from:
Ordinary income $ 1,067,657 $ 1,072,760
----------- -----------
Total taxable distributions paid 1,067,657 1,072,760
Tax exempt distributions 38,705,448 36,668,935
----------- -----------
Total distributions paid $39,773,105 $37,741,695
----------- -----------
SHORT DURATION PLUS 2004 2003
====================================================================
Distributions paid from:
Ordinary income $14,180,368 $12,308,812
----------- -----------
Total taxable distributions paid 14,180,368 12,308,812
----------- -----------
Total distributions paid $14,180,368 $12,308,812
----------- -----------
- --------------------------------------------------------------------------------
2004 Annual Report 53
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
As of September 30, 2004, the components of accumulated
earnings/(deficit) on a tax basis were as follows:
TOTAL
ACCUMULATED UNREALIZED ACCUMULATED
ORDINARY CAPITAL AND OTHER APPRECIATION/ EARNINGS/
INCOME GAINS (LOSSES) (b) DEPRECIATION (c) (DEFICIT) (d)
===================================================================================================================
Tax-Managed International $38,227,531 $ 63,656,558 $ 848,269,654 $ 950,153,743
International 19,074,986 (264,814,446) 338,252,600 92,513,140
Emerging Markets Value 2,438,796 36,575,086 401,550,142 440,564,024
Intermediate Duration 276,066 7,361,273 25,957,029 33,594,368
U.S. Government Short Duration 122,332 0 (10,902) 111,430
Intermediate Duration Institutional 1,236,931 2,316,118 5,057,826 8,610,875
Short Duration Diversified Municipal 109,131 0 465,387 574,518
Short Duration California Municipal 14,558(a) 0 78,656 93,214
Short Duration New York Municipal 58,494(a) (537,387) 392,927 (85,966)
Diversified Municipal 2,228,740(a) (1,541,518) 87,412,075 88,099,297
California Municipal 980,126(a) 257,140 26,876,960 28,114,226
New York Municipal 1,078,171(a) (2,213,952) 45,111,048 43,975,267
Short Duration Plus 70,030(a) 401,157 250,777 721,964
(a) Includes tax exempt income as shown below:
===================================================================
Short Duration Diversified Municipal $ 109,131
Short Duration California Municipal 13,396
Short Duration New York Municipal 56,750
Diversified Municipal 2,134,429
California Municipal 645,457
New York Municipal 1,048,224
(b) At September 30, 2004, the following Portfolios had capital
loss carryforwards as shown below:
CAPITAL LOSS
CARRYFORWARD AMOUNT EXPIRATION
====================================================================
International $264,814,446 9/30/2011
Short Duration New York Municipal 468,094 9/30/2009
Short Duration New York Municipal 69,293 9/30/2011
Diversified Municipal 1,541,518 9/30/2009
New York Municipal 2,213,952 9/30/2009
(c) The difference between book-basis and tax-basis unrealized
appreciation (depreciation) is attributable primarily to the
tax deferral of losses on wash sales and straddles, swap
income (loss) accrual, and mark to market on forward contracts
and passive foreign investment companies.
(d) The difference between book-basis and tax-basis components of
accumulated earnings (deficit) is attributable primarily to
dividends payable and post-October loss deferrals.
- --------------------------------------------------------------------------------
54 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
At September 30, 2004, the following Portfolios had post-October
capital loss deferrals as shown below. For tax purposes, these
losses are deemed to arise on October 1, 2004:
POST-OCTOBER CAPITAL POST-OCTOBER FOREIGN
LOSS DEFERRAL CURRENCY LOSS DEFERRAL
===================================================================================
Emerging Markets Value $ 0 $1,796,230
Intermediate Duration 0 1,783,604
U.S. Government Short Duration 707,973 0
Intermediate Duration Institutional 0 371,263
Short Duration Diversified Municipal 221,538 0
Short Duration California Municipal 53,606 0
Short Duration Plus 3,297,740 0
Diversified Municipal 4,304,793 0
California Municipal 2,568,624 0
New York Municipal 687,711 0
-----------------------------------------------------------------------------------
During the year ended September 30, 2004, capital loss carryforwards
were utilized by the Portfolios as shown below:
CAPITAL LOSS
CARRYFORWARD UTILIZED
==========================================================
Tax-Managed International $143,459,959
International 154,572,481
Emerging Markets Value 95,888,132
Intermediate Duration 18,695,220
Short Duration New York 216,753
Diversified Municipal 2,335,757
New York Municipal 1,119,341
----------------------------------------------------------
NOTE 4. Risks Involved in Investing in the Portfolios
Emerging Markets Value and International Portfolios -- Investments
in foreign securities entail significant risks in addition to those
customarily associated with investing in U.S. equities. These risks
are heightened with respect to investments in emerging-market
countries where there is an even greater amount of economic,
political and social instability. Economic, political and social
instability could disrupt financial markets in which the Portfolio
invests and adversely affect the value of the Portfolio's assets. In
addition, national policies may restrict investment opportunities.
In foreign markets there may be a lower degree of market volume and
liquidity than in U.S. markets, and this may result in greater price
volatility. The securities markets in many emerging-market countries
are substantially smaller, less developed, less liquid and more
volatile than the securities markets of developed countries.
Furthermore, since the composition of each Portfolio will differ
from that of market indexes, its performance generally will not
mirror the returns provided by a specific market index.
Fixed Income Portfolios -- Interest rate risk is the risk that
changes in interest rates will affect the value of a Portfolio's
investments in fixed-income debt securities such as bonds or notes.
Increases in interest rates may cause the value of a Portfolio's
investments to decline. Credit risk is the risk that the issuer or
guarantor of a debt security, or the counterparty to a derivative
contract, will be unable or unwilling to make timely principal
and/or interest payments, or to otherwise honor its obligations. The
degree of risk for a particular security may be reflected in its
credit risk rating. Credit risk is greater for medium quality and
lower-rated securities. Lower-rated debt securities and similar
unrated securities (commonly known as "junk bonds") have speculative
elements or are predominantly speculative risks.
- --------------------------------------------------------------------------------
2004 Annual Report 55
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
Concentration of Credit Risk -- The two California Municipal
Portfolios and two New York Municipal Portfolios invest primarily in
securities issued by the State of California and New York,
respectively, and their various political subdivisions, and the
performance of each of these Portfolios is closely tied to economic
conditions within the applicable state and the financial condition
of that state and its agencies and municipalities.
Indemnification Risk -- In the ordinary course of business, the
Portfolios enter into contracts that contain a variety of
indemnifications. The Portfolios maximum exposure under these
arrangements is unknown. However, the Portfolios have not had prior
claims or losses pursuant to these indemnification provisions and
expect the risk of loss thereunder to be remote.
NOTE 5. Risks Involved in Futures and Foreign Currency Contracts
Portfolios may purchase or sell financial futures contracts for the
purpose of hedging their portfolios against adverse effects of
anticipated movements in the market. Financial futures contracts
obligate the buyer to take and the seller to make delivery at a
future date of a specified quantity of a financial instrument or an
amount of cash based on the value of a securities index or the
market value in U.S. dollars of a foreign currency. The contract
amounts reflect the extent of each Portfolio's involvement in these
financial instruments. To the extent that the Funds enter into short
futures, losses may be unlimited. A Portfolio's participation in the
futures markets involves certain risks, including imperfect
correlation between movements in the price of the futures contracts
and movements in the price of the securities hedged or used for
cover. The Funds' activities in futures contracts are conducted
through regulated exchanges that do not result in counterparty
credit risks.
The Short Duration Plus Portfolio, Intermediate Duration Portfolio,
Intermediate Duration Institutional Portfolio, Tax-Managed
International Portfolio, International Portfolio, and Emerging
Markets Value Portfolio may enter into forward exchange currency
contracts in order to hedge exposure to changes in foreign currency
exchange rates on foreign portfolio holdings. Foreign currency
contracts involve elements of market risk in excess of the amount
reflected in the Statements of Assets and Liabilities. A Portfolio
bears the risk of an unfavorable change in the foreign exchange rate
underlying the foreign currency contract. In addition, a Portfolio
could be exposed to risks if the counterparties to the contracts are
unable to meet the terms of their contracts.
NOTE 6. Capital-Share Transactions
As of September 30, 2004, the Sanford C. Bernstein Fund, Inc., has
authorized 8.2 billion shares of common stock, par value $0.001 per
share, of which 7.9 billion are divided into 12 Portfolios. It has
allocated 1 billion to the Tax-Managed International Portfolio of
which 400 million is allocated to the Tax-Managed International
Class Shares and 200 million to each of the three retail classes of
shares; 600 million to the Intermediate Duration Portfolio; 1.4
billion to the International Portfolio of which 600 million is
allocated to the International Class Shares and 200 million to each
of the four retail classes of shares; 1.6 billion to the Diversified
Municipal Portfolio, divided evenly into four classes; 200 million
each to the Emerging Markets Value Portfolio and the U.S. Government
Short Duration Portfolio; 800 million each to the California
Municipal Portfolio and New York Municipal Portfolio, divided evenly
into four classes; 1 billion to the Short Duration Plus Portfolio,
divided evenly into five classes; and 100 million each to the Short
Duration Diversified Municipal Portfolio, Short Duration California
Municipal Portfolio, and Short Duration New York Municipal
Portfolio. The Sanford C. Bernstein Fund II, Inc., has authorized
200 million shares of common stock with par value $0.001 per share.
Share transactions for each Portfolio for the years ended September
30, 2004 and September 30, 2003, were as follows:
- --------------------------------------------------------------------------------
56 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
---------------------------------------------------------------------
TAX-MANAGED INTERNATIONAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
==========================================================================================================================
Tax-Managed International Class Shares
Shares sold 52,134,283 75,126,039 $ 1,019,883,754 $ 1,145,967,491
Shares issued to shareholders on
reinvestment of dividends 2,890,030 2,225,055 54,534,862 31,640,286
Shares redeemed (32,330,589) (54,817,533) (632,135,649) (828,033,279)
----------- ----------- --------------- ---------------
Net increase 22,693,724 22,533,561 442,282,967 349,574,498
Beginning of period 203,163,791 180,630,230 3,220,018,078 2,870,443,580
----------- ----------- --------------- ---------------
End of period 225,857,515 203,163,791 $ 3,662,301,045 $ 3,220,018,078
=========== =========== =============== ===============
==========================================================================================================================
Tax-Managed International Class A Shares (a)
Shares sold 6,981 $ 138,270
Shares redeemed (474) (9,360)
----------- ---------------
Net increase 6,507 128,910
Beginning of period 0 0
----------- ---------------
End of period 6,507 $ 128,910
=========== ===============
==========================================================================================================================
Tax-Managed International Class B Shares (a)
Shares sold 2,794 $ 55,653
Shares redeemed (57) (1,123)
----------- ---------------
Net increase 2,737 54,530
Beginning of period 0 0
----------- ---------------
End of period 2,737 $ 54,530
=========== ===============
==========================================================================================================================
Tax-Managed International Class C Shares (a)
Shares sold 8,280 $ 165,415
Shares redeemed (97) (1,877)
----------- ---------------
Net increase 8,183 163,538
Beginning of period 0 0
----------- ---------------
End of period 8,183 $ 163,538
=========== ===============
(a) Class A, B, and C Shares commenced distribution on January 30, 2004.
- --------------------------------------------------------------------------------
2004 Annual Report 57
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
---------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
==========================================================================================================================
International Class Shares
Shares sold 20,830,061 29,322,820 $ 374,436,163 $ 406,675,464
Shares issued to shareholders on
reinvestment of dividends 1,022,862 1,249,126 17,787,574 16,226,135
Shares redeemed (19,917,739) (25,603,020) (354,463,245) (364,033,307)
----------- ----------- ---------------- ---------------
Net increase 1,935,184 4,968,926 37,760,492 58,868,292
Beginning of period 113,738,511 108,769,585 2,060,955,291 2,002,086,999
----------- ----------- ---------------- ---------------
End of period 115,673,695 113,738,511 $ 2,098,715,783 $ 2,060,955,291
=========== =========== =============== ===============
==========================================================================================================================
International Class A Shares (a)
Shares sold 181,016 $ 3,336,881
Shares redeemed (15,813) (290,505)
----------- ---------------
Net increase 165,203 3,046,376
Beginning of period 0 0
----------- ---------------
End of period 165,203 $ 3,046,376
=========== ===============
==========================================================================================================================
International Class B Shares (a)
Shares sold 53,641 $ 984,733
Shares redeemed (5,304) (96,448)
----------- ---------------
Net increase 48,337 888,285
Beginning of period 0 0
----------- ---------------
End of period 48,337 $ 888,285
=========== ===============
==========================================================================================================================
International Class C Shares (a)
Shares sold 250,874 $ 4,604,211
Shares redeemed (3,198) (58,714)
----------- ---------------
Net increase 247,676 4,545,497
Beginning of period 0 0
----------- ---------------
End of period 247,676 $ 4,545,497
=========== ===============
==========================================================================================================================
International Class R Shares (b)
Shares sold 534 $ 10,100
Beginning of period 0 0
----------- ---------------
End of period 534 $ 10,100
=========== ===============
(a) Class A, B, and C Shares commenced distribution on January 30, 2004.
(b) Class R Shares commenced distribution on February 17, 2004.
- --------------------------------------------------------------------------------
58 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------- -----------------------------
EMERGING INTERMEDIATE
MARKETS VALUE DURATION
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
===================================================================================================================
Shares sold 10,871,494 8,956,677 61,026,683 45,689,675
Shares issued to shareholders
on reinvestment of dividends
and distributions 384,525 196,819 1,446,809 1,247,037
Shares redeemed (7,328,884) (4,018,608) (28,567,549) (32,638,966)
---------- ---------- ----------- -----------
Net increase
in shares outstanding 3,927,135 5,134,888 33,905,943 14,297,746
Shares outstanding at
beginning of period 43,165,689 38,030,801 178,807,897 164,510,151
---------- ---------- ----------- -----------
Shares outstanding at
end of period 47,092,824 43,165,689 212,713,840 178,807,897
========== ========== =========== ===========
----------------------------- -----------------------------
U.S. GOVERNMENT INTERMEDIATE DURATION
SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
===================================================================================================================
Shares sold 2,054,195 3,545,116 15,914,321 12,671,451
Shares issued to shareholders
on reinvestment of dividends
and distributions 188,809 242,544 1,023,015 602,234
Shares redeemed (3,521,347) (3,851,787) (7,094,674) (5,033,955)
---------- ---------- ----------- -----------
Net increase (decrease)
in shares outstanding (1,278,343) (64,127) 9,842,662 8,239,730
Shares outstanding at
beginning of period 8,657,795 8,721,922 29,505,702 21,265,972
---------- ---------- ----------- -----------
Shares outstanding at
end of period 7,379,452 8,657,795 39,348,364 29,505,702
========== ========== =========== ===========
- --------------------------------------------------------------------------------
2004 Annual Report 59
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
--------------------------- ---------------------------- --------------------------
SHORT DURATION SHORT DURATION SHORT DURATION
DIVERSIFIED MUNICIPAL CALIFORNIA MUNICIPAL NEW YORK MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------- ---------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03 9/30/04 9/30/03
===================================================================================================================================
Shares sold 12,018,742 13,842,222 4,724,131 4,771,245 7,611,430 6,161,187
Shares issued to shareholders
on reinvestment of dividends
and distributions 163,224 252,689 60,450 60,222 81,453 87,236
Shares redeemed (10,456,901) (11,378,472) (5,386,518) (4,415,190) (7,446,664) (5,864,823)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease)
in shares outstanding 1,725,065 2,716,439 (601,937) 416,277 246,219 383,600
Shares outstanding at
beginning of period 18,406,825 15,690,386 6,300,004 5,883,727 9,633,497 9,249,897
----------- ----------- ---------- ---------- ---------- ----------
Shares outstanding at
end of period 20,131,890 18,406,825 5,698,067 6,300,004 9,879,716 9,633,497
=========== =========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------
60 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
---------------------------------------------------------------------
DIVERSIFIED MUNICIPAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
==========================================================================================================================
Municipal Class
Shares sold 56,402,771 45,827,077 $ 803,722,850 $ 652,336,992
Shares issued to shareholders on
reinvestment of dividends 996,289 1,007,006 14,194,124 14,337,817
Shares redeemed (24,148,120) (24,691,187) (343,673,316) (351,569,651)
----------- ----------- --------------- ---------------
Net increase 33,250,940 22,142,896 474,243,658 315,105,158
Beginning of period 142,661,941 120,519,045 1,955,483,332 1,640,378,174
----------- ----------- --------------- ---------------
End of period 175,912,881 142,661,941 $ 2,429,726,990 $ 1,955,483,332
=========== =========== =============== ===============
==========================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 2,791,398 10,166,055 $ 39,770,226 $ 145,026,646
Shares issued to shareholders on
reinvestment of dividends 156,489 167,702 2,232,359 2,390,535
Shares converted from Class B 40,949 21,475 585,547 305,385
Shares redeemed (5,661,852) (6,243,391) (80,491,325) (88,536,960)
----------- ----------- --------------- ---------------
Net increase (decrease) (2,673,016) 4,111,841 (37,903,193) 59,185,606
Beginning of period 9,812,988 5,701,147 139,356,112 80,170,506
----------- ----------- --------------- ---------------
End of period 7,139,972 9,812,988 $ 101,452,919 $ 139,356,112
=========== =========== =============== ===============
==========================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 869,273 5,805,688 $ 12,394,497 $ 82,692,928
Shares issued to shareholders on
reinvestment of dividends 97,407 91,215 1,388,562 1,300,441
Shares converted to Class A (40,951) (21,475) (585,547) (305,385)
Shares redeemed (2,258,595) (1,506,890) (32,100,577) (21,435,134)
----------- ----------- --------------- ---------------
Net increase (decrease) (1,332,866) 4,368,538 (18,903,065) 62,252,850
Beginning of period 8,063,138 3,694,600 114,221,384 51,968,534
----------- ----------- --------------- ---------------
End of period 6,730,272 8,063,138 $ 95,318,319 $ 114,221,384
=========== =========== =============== ===============
==========================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 1,383,803 6,210,766 $ 19,746,954 $ 88,602,109
Shares issued to shareholders on
reinvestment of dividends 81,839 74,861 1,166,777 1,067,110
Shares redeemed (3,026,407) (2,035,098) (43,006,747) (28,883,715)
----------- ----------- --------------- ---------------
Net increase (decrease) (1,560,765) 4,250,529 (22,093,016) 60,785,504
Beginning of period 7,827,535 3,577,006 111,156,439 50,370,935
----------- ----------- --------------- ---------------
End of period 6,266,770 7,827,535 $ 89,063,423 $ 111,156,439
=========== =========== =============== ===============
- --------------------------------------------------------------------------------
2004 Annual Report 61
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
------------------------------------------------------------------
----------------------------- ---------------------------------
SHARES AMOUNT
----------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
=======================================================================================================================
Municipal Class
Shares sold 19,362,604 15,993,308 $ 278,229,856 $ 230,456,346
Shares issued to shareholders on
reinvestment of dividends and distributions 380,194 311,153 5,464,063 4,480,766
Shares redeemed (8,521,055) (9,847,269) (122,550,941) (141,767,035)
---------- ---------- ------------- -------------
Net increase 11,221,743 6,457,192 161,142,978 93,170,077
Beginning of period 47,396,613 40,939,421 657,270,405 564,100,328
---------- ---------- ------------- -------------
End of period 58,618,356 47,396,613 $ 818,413,383 $ 657,270,405
========== ========== ============= =============
=======================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 1,601,314 2,785,231 $ 22,992,722 $ 40,254,137
Shares issued to shareholders on
reinvestment of dividends and distributions 62,048 61,879 892,517 891,976
Shares converted from Class B 42,663 2,405 616,038 34,786
Shares redeemed (2,739,651) (1,537,746) (39,262,227) (22,122,903)
---------- ---------- ------------- -------------
Net increase (decrease) (1,033,626) 1,311,769 (14,760,950) 19,057,996
Beginning of period 3,704,838 2,393,069 53,199,229 34,141,233
---------- ---------- ------------- -------------
End of period 2,671,212 3,704,838 $ 38,438,279 $ 53,199,229
========== ========== ============= =============
=======================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 413,439 1,920,658 $ 5,912,975 $ 27,675,631
Shares issued to shareholders on
reinvestment of dividends and distributions 42,707 34,676 613,905 499,871
Shares converted to Class A (42,664) (2,406) (616,038) (34,786)
Shares redeemed (690,338) (473,721) (9,878,652) (6,793,430)
---------- ---------- ------------- -------------
Net increase (decrease) (276,856) 1,479,207 (3,967,810) 21,347,286
Beginning of period 2,760,031 1,280,824 39,617,938 18,270,652
---------- ---------- ------------- -------------
End of period 2,483,175 2,760,031 $ 35,650,128 $ 39,617,938
========== ========== ============= =============
=======================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 458,392 2,580,810 $ 6,601,771 $ 37,238,022
Shares issued to shareholders on
reinvestment of dividends and distributions 43,617 41,795 627,058 602,322
Shares redeemed (1,541,591) (787,462) (22,079,682) (11,314,352)
---------- ---------- ------------- -------------
Net increase (decrease) (1,039,582) 1,835,143 (14,850,853) 26,525,992
Beginning of period 3,463,052 1,627,909 49,723,939 23,197,947
---------- ---------- ------------- -------------
End of period 2,423,470 3,463,052 $ 34,873,086 $ 49,723,939
========== ========== ============= =============
- --------------------------------------------------------------------------------
62 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
------------------------------------------------------------------
----------------------------- ---------------------------------
SHARES AMOUNT
----------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
=======================================================================================================================
Municipal Class
Shares sold 21,638,209 17,541,261 $ 305,291,848 $ 247,638,231
Shares issued to shareholders on
reinvestment of dividends 689,237 722,407 9,719,528 10,190,157
Shares redeemed (13,656,099) (13,559,281) (192,281,514) (191,147,522)
----------- ----------- --------------- -------------
Net increase 8,671,347 4,704,387 122,729,862 66,680,866
Beginning of period 70,782,299 66,077,912 956,689,419 890,008,553
----------- ----------- --------------- -------------
End of period 79,453,646 70,782,299 $ 1,079,419,281 $ 956,689,419
=========== =========== =============== =============
=======================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 1,615,750 4,772,614 $ 22,800,191 $ 67,433,941
Shares issued to shareholders on
reinvestment of dividends 94,136 90,478 1,327,825 1,276,666
Shares converted from Class B 37,929 13,121 535,934 185,945
Shares redeemed (3,428,933) (1,933,812) (48,289,760) (27,187,705)
----------- ----------- --------------- -------------
Net increase (decrease) (1,681,118) 2,942,401 (23,625,810) 41,708,847
Beginning of period 5,526,922 2,584,521 77,587,151 35,878,304
----------- ----------- --------------- -------------
End of period 3,845,804 5,526,922 $ 53,961,341 $ 77,587,151
=========== =========== =============== =============
=======================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 671,588 3,262,222 $ 9,478,863 $ 46,059,262
Shares issued to shareholders on
reinvestment of dividends 74,192 57,631 1,045,533 812,702
Shares converted to Class A (37,911) (13,130) (535,934) (185,945)
Shares redeemed (1,012,852) (679,364) (14,209,122) (9,549,437)
----------- ----------- --------------- -------------
Net increase (decrease) (304,983) 2,627,359 (4,220,660) 37,136,582
Beginning of period 4,430,225 1,802,866 62,187,763 25,051,181
----------- ----------- --------------- -------------
End of period 4,125,242 4,430,225 $ 57,967,103 $ 62,187,763
=========== =========== =============== =============
=======================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 966,957 3,705,738 $ 13,668,253 $ 52,418,616
Shares issued to shareholders on
reinvestment of dividends 47,599 33,551 671,429 473,560
Shares redeemed (1,585,393) (663,668) (22,243,635) (9,332,023)
----------- ----------- --------------- -------------
Net increase (decrease) (570,837) 3,075,621 (7,903,953) 43,560,153
Beginning of period 4,330,138 1,254,517 61,002,048 17,441,895
----------- ----------- --------------- -------------
End of period 3,759,301 4,330,138 $ 53,098,095 $ 61,002,048
=========== =========== =============== =============
- --------------------------------------------------------------------------------
2004 Annual Report 63
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
------------------------------------------------------------------
SHORT DURATION PLUS PORTFOLIO
------------------------------------------------------------------
----------------------------- ---------------------------------
SHARES AMOUNT
----------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/04 9/30/03 9/30/04 9/30/03
=======================================================================================================================
Short Duration Plus Class
Shares sold 13,779,853 13,975,661 $ 175,398,530 $ 178,895,875
Shares issued to shareholders on
reinvestment of dividends and distributions 354,625 390,519 4,518,277 4,996,888
Shares redeemed (12,999,054) (13,306,518) (165,694,224) (170,299,304)
----------- ----------- ------------- -------------
Net increase 1,135,424 1,059,662 14,222,583 13,593,459
Beginning of period 32,170,964 31,111,302 408,375,038 394,781,579
----------- ----------- ------------- -------------
End of period 33,306,388 32,170,964 $ 422,597,621 $ 408,375,038
=========== =========== ============= =============
=======================================================================================================================
Short Duration Class A Shares (a)
Shares sold 4,016,683 8,246,525 $ 51,202,933 $ 105,874,668
Shares issued to shareholders on
reinvestment of dividends and distributions 117,905 20,660 1,502,975 264,422
Shares converted from Class B 30,110 6,479 381,919 78,387
Shares redeemed (6,692,833) (1,104,552) (85,093,395) (14,132,073)
----------- ----------- ------------- -------------
Net increase (decrease) (2,528,135) 7,169,112 (32,005,568) 92,085,404
Beginning of period 7,169,112 0 92,085,404 0
----------- ----------- ------------- -------------
End of period 4,640,977 7,169,112 $ 60,079,836 $ 92,085,404
=========== =========== ============= =============
=======================================================================================================================
Short Duration Class B Shares (a)
Shares sold 2,184,212 2,825,884 $ 27,779,246 $ 36,226,574
Shares issued to shareholders on
reinvestment of dividends and distributions 36,545 3,459 465,440 44,252
Shares converted to Class A (30,122) (6,608) (381,919) (78,387)
Shares redeemed (1,366,618) (150,645) (17,378,283) (1,932,900)
----------- ----------- ------------- -------------
Net increase 824,017 2,672,090 10,484,484 34,259,539
Beginning of period 2,672,090 0 34,259,539 0
----------- ----------- ------------- -------------
End of period 3,496,107 2,672,090 $ 44,744,023 $ 34,259,539
=========== =========== ============= =============
=======================================================================================================================
Short Duration Class C Shares (a)
Shares Sold 1,887,697 2,667,163 $ 24,025,648 $ 34,206,363
Shares issued to shareholders on
reinvestment of dividends and distributions 31,272 3,481 398,349 44,536
Shares redeemed (1,358,186) (105,254) (17,258,694) (1,343,939)
----------- ----------- ------------- -------------
Net increase 560,783 2,565,390 7,165,303 32,906,960
Beginning of period 2,565,390 0 32,906,960 0
----------- ----------- ------------- -------------
End of period 3,126,173 2,565,390 $ 40,072,263 $ 32,906,960
=========== =========== ============= =============
=======================================================================================================================
Short Duration Class R Shares (b)
Shares sold 779 $ 10,000
Beginning of period 0 0
----------- -------------
End of period 779 $ 10,000
=========== =============
(a) Short Duration Class A, B, and C Shares commenced distribution on May 21,
2003.
(b) Class R Shares commenced distribution on February 17, 2004.
- --------------------------------------------------------------------------------
64 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
NOTE 7. Line of Credit
The Emerging Markets Value Portfolio maintains a $35,000,000 line of
credit intended to provide short-term financing, if necessary,
subject to certain restrictions in connection with abnormal
redemption activity. Commitment fees related to the line of credit
are paid by the Portfolio and are included in the miscellaneous
expenses in the Statement of Operations. The Portfolio did not
utilize the line of credit during the year ended September 30, 2004.
A number of open-end mutual funds managed by the Adviser, including
the Sanford C. Bernstein Fund II, Inc., participate in a $500
million revolving credit facility (the "Facility") intended to
provide short-term financing, if necessary, subject to certain
restrictions in connection with abnormal redemption activity.
Commitment fees related to the Facility are paid by the
participating funds and are included in miscellaneous expenses in
the Statements of Operations. The Portfolio did not utilize the
Facility during the year ended September 30, 2004.
NOTE 8. Legal Proceedings
As has been previously reported, the staff of the U.S. Securities
and Exchange Commission ("SEC") and the New York Attorney General
("NYAG") have been investigating practices in the mutual fund
industry identified as "market timing" and "late trading" of mutual
fund shares. Certain other regulatory authorities have also been
conducting investigations into these practices within the industry
and have requested that the Adviser provide information to them. The
Adviser has been cooperating and will continue to cooperate with all
of these authorities.
On December 18, 2003, the Adviser confirmed that it had reached
terms with the SEC and the NYAG for the resolution of regulatory
claims relating to the practice of "market timing" mutual fund
shares in some of the AllianceBernstein Mutual Funds. The agreement
with the SEC is reflected in an Order of the Commission ("SEC
Order"). The agreement with the NYAG is memorialized in an Assurance
of Discontinuance dated September 1, 2004 ("NYAG Order"). Among the
key provisions of these agreements are the following:
(i) The Adviser agreed to establish a $250 million fund (the
"Reimbursement Fund") to compensate mutual fund shareholders
for the adverse effects of market timing attributable to
market timing relationship described in the SEC Order.
According to the SEC Order, the Reimbursement Fund is to be
paid, in order of priority, to fund investors based on (i)
their aliquot share of losses suffered by the fund due to
market timing, and (ii) a proportionate share of advisory fees
paid by such fund during the period of such market timing;
(ii) The Adviser agreed to reduce the advisory fees it receives
from some of the AllianceBernstein long-term, open-end retail
funds until December 31, 2008; however, the Portfolios did not
have their fees reduced; and
(iii) The Adviser agreed to implement changes to its governance and
compliance procedures. Additionally, the SEC Order and the
NYAG Order contemplate that the Adviser's registered
investment company clients, including the Funds, will
introduce governance and compliance changes.
A special committee of the Alliance Capital's Board of Directors,
comprised of the members of the Alliance Capital's Audit Committee
and the other independent member of the Alliance Capital's Board, is
continuing to direct and oversee an internal investigation and a
comprehensive review of the facts and circumstances relevant to the
SEC's and the NYAG's investigations.
In addition, the Independent Directors of Sanford C. Bernstein Fund,
Inc., and Sanford C. Bernstein Fund, Inc. II ("the Independent
Directors") have initiated an investigation of the above-mentioned
matters with the advice of an independent economic consultant and
independent counsel.
On October 2, 2003, a putative class action complaint entitled Hindo
et al. v. AllianceBernstein Growth & Income Fund et al. (the "Hindo
Complaint") was filed against the Adviser; Alliance Capital
Management Holding L.P.; Alliance Capital Management Corporation;
AXA Financial, Inc.; certain of the AllianceBernstein Mutual Funds;
Gerald Malone; Charles Schaffran (collectively, the "Alliance
Capital defendants"); and certain other defendants not affiliated
with the Adviser. The Hindo Complaint was filed in the United States
District Court for the Southern District of New York by alleged
shareholders of two of the AllianceBernstein Mutual Funds. The Hindo
Complaint alleges that certain of the Alliance
- --------------------------------------------------------------------------------
2004 Annual Report 65
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
Capital defendants failed to disclose that they improperly allowed
certain hedge funds and other unidentified parties to engage in late
trading and market timing of AllianceBernstein Fund securities,
violating Sections 11 and 15 of the Securities Act, Sections 10(b)
and 20(a) of the Exchange Act, and Sections 206 and 215 of the
Advisers Act. Plaintiffs seek an unspecified amount of compensatory
damages and rescission of their contracts with the Adviser,
including recovery of all fees paid to the Adviser pursuant to such
contracts.
Since October 2, 2003, numerous additional lawsuits making factual
allegations similar to those in the Hindo Complaint were filed
against the Adviser and certain other defendants, some of which name
the Funds as defendants. All of these lawsuits seek an unspecified
amount of damages. The lawsuits are now pending in the United States
District Court for the District of Maryland pursuant to a ruling by
the Judical Panel on Multidistrict Litigation transferring and
centralizing all of the mutual fund cases involving market timing
and late trading in the District of Maryland.
As a result of the matters discussed above, investors in the
AllianceBernstein Mutual Funds may choose to redeem their
investments. This may require the AllianceBernstein Mutual Funds to
sell investments held by those funds to provide for sufficient
liquidity and could also have an adverse effect on the investment
performance of the AllianceBernstein Mutual Funds.
The Adviser and approximately twelve other investment management
firms were publicly mentioned in connection with the settlement by
the SEC of charges that an unaffiliated broker/dealer violated
federal securities laws relating to its receipt of compensation for
selling specific mutual funds and the disclosure of such
compensation. The SEC has indicated publicly that, among other
things, it is considering enforcement action in connection with
mutual funds' disclosure of such arrangements and in connection with
the practice of considering mutual fund sales in the direction of
brokerage commissions from fund portfolio transactions. The SEC has
issued subpoenas to the Adviser in connection with this matter and
the Adviser has provided documents and other information to the SEC
and is cooperating fully with its investigation.
On June 22, 2004, a purported class action complaint entitled
Aucoin, et al. v. Alliance Capital Management L.P., et al. ("Aucoin
Complaint") was filed against the Adviser, Alliance Capital
Management Holding L.P., Alliance Capital Management Corporation,
AXA Financial, Inc., AllianceBernstein Investment Research &
Management, Inc., certain current and former directors of the
AllianceBernstein Mutual Funds, and unnamed Doe defendants. The
Aucoin Complaint names certain of the AllianceBernstein mutual funds
as nominal defendants. The Aucoin Complaint was filed in the United
States District Court for the Southern District of New York by an
alleged shareholder of an AllianceBernstein mutual fund. The Aucoin
Complaint alleges, among other things, (i) that certain of the
defendants improperly authorized the payment of excessive
commissions and other fees from fund assets to broker-dealers in
exchange for preferential marketing services, (ii) that certain of
the defendants misrepresented and omitted from registration
statements and other reports material facts concerning such
payments, and (iii) that certain defendants caused such conduct as
control persons of other defendants. The Aucoin Complaint asserts
claims for violation of Sections 34(b), 36(b) and 48(a) of the
Investment Company Act, Sections 206 and 215 of the Advisers Act,
breach of common law fiduciary duties, and aiding and abetting
breaches of common law fiduciary duties. Plaintiffs seek an
unspecified amount of compensatory damages and punitive damages,
rescission of their contracts with the Adviser, including recovery
of all fees paid to the Adviser pursuant to such contracts, an
accounting of all fund-related fees, commissions and soft dollar
payments, and restitution of all unlawfully or discriminatorily
obtained fees and expenses.
Since June 22, 2004, numerous additional lawsuits making factual
allegations substantially similar to those in the Aucoin Complaint
were filed against the Adviser and certain other defendants, and
others may be filed.
It is possible that these matters and/or other developments
resulting from these matters could result in increased redemptions
of the AllianceBernstein Mutual Funds' shares or other adverse
consequences to the AllianceBernstein Mutual Funds. However, the
Adviser believes that these matters are not likely to have a
material adverse effect on its ability to perform advisory services
relating to the AllianceBernstein Mutual Funds.
- --------------------------------------------------------------------------------
66 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
NOTE 9. Subsequent Events
On October 27, 2004, the Board of Directors of Sanford C. Bernstein
Fund, Inc. approved an amendment to the Investment Management
Agreement between the Fund and the Adviser revising the fees payable
by the Fund, on behalf of each Portfolio, to the Adviser, as set
forth below:
ANNUAL PERCENTAGE OF AVERAGE DAILY NET ASSETS OF EACH PORTFOLIO
PORTFOLIO FIRST NEXT
$250 MILLION $500 MILLION THEREAFTER
==============================================================================================================
Short Duration California Municipal;
Short Duration Diversified Municipal;
Short Duration New York Municipal;
U.S. Government Short Duration;
Short Duration Plus Portfolio 0.50% 0.45% 0.40%
FIRST NEXT
$1 BILLION $2 BILLION THEREAFTER
==============================================================================================================
New York Municipal;
California Municipal Portfolio;
Diversified Municipal Portfolio;
Intermediate Duration Portfolio; 0.50% 0.45% 0.40%
FIRST NEXT NEXT
$1 BILLION $3 BILLION $2 BILLION THEREAFTER
==============================================================================================================
Tax-Managed International;
International 1.00% 0.90% 0.85% 0.75%
FIRST NEXT
$1 BILLION $1 BILLION THEREAFTER
==============================================================================================================
Emerging Markets Value 1.25% 1.125% 1.00%
- --------------------------------------------------------------------------------
2004 Annual Report 66
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
Tax Information
(Unaudited)
In order to meet certain requirements of the Internal Revenue Code
we are advising you that the following capital gain distribution,
during the fiscal year ended September 30, 2004, is subject to the
maximum tax rate of 15%.
LONG-TERM CAPITAL
GAIN DISTRIBUTION
====================================================================
Intermediate Duration Institutional $1,035,029
California Municipal $ 584,016
For the fiscal year ended September 30, 2004, the Tax-Managed
International, International and Emerging Markets Value Portfolios,
designate a maximum amount of $83,617,496, $16,643,171 and
$21,876,390, respectively, as qualified dividend income, which is
taxed at a maximum rate of 15%.
In addition, the Funds intend to make an election under Internal
Revenue Code Section 853 to pass through foreign taxes paid by the
Funds to their shareholders. The total amounts of foreign taxes that
may be passed through to the shareholders for the fiscal year ended
September 30, 2004 were $10,059,041, $1,765,757 and $16,061,625 for
Tax-Managed International, International and Emerging Markets Value,
respectively. The foreign sources of income for information
reporting purposes, were $88,926,868, $19,882,712 and $100,208,397
for Tax-Managed International, International and Emerging Markets
Value, respectively.
In accordance with Federal tax law, the following table represents
each portfolio's designation of "exempt-interest dividends" as a
percentage of total dividends paid during the fiscal year ended
September 30, 2004.
EXEMPT-INTEREST DIVIDENDS
AS A PERCENTAGE
OF TOTAL DIVIDENDS
====================================================================
Short Duration Diversified 96.40%
Short Duration California 96.37
Short Duration New York 96.89
Diversified Municipal 96.63
California Municipal 95.77
New York Municipal 97.32
As required by Federal tax law rules, shareholders will receive
notification of their portion of each portfolio's taxable ordinary
dividends (if any) and capital gain distributions (if any) paid for
the 2004 calendar year on Form 1099-DIV, which will be mailed by
January 31, 2005.
- --------------------------------------------------------------------------------
68 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund, Inc.
================================================================================
DIRECTORS AND OFFICERS
- --------------------------------------------------------------------------------
Roger Hertog
Director and President
Vice Chairman and Director,
Alliance Capital Management Corporation ("ACMC")*
Rosalie J. Wolf**
Director and Chairman
Managing Partner,
Botanica Capital Partners LLC
Irwin Engelman**
Director
Consultant
William Kristol**
Director
Editor, The Weekly Standard
Thomas B. Stiles II**
Director
President, Cedar Lawn Corporation
Philip L. Kirstein
Senior Vice President and
Independent Compliance Officer
Mark D. Gersten
Treasurer and Chief Financial Officer
Senior Vice President,
Alliance Global Investor Services, Inc. ("AGIS")
and Vice President of AllianceBernstein Investment
Research and Management, Inc. ("ABIRM")
Mark R. Manley
Secretary
Senior Vice President, Deputy General Counsel and
Chief Compliance Officer of ACMC
================================================================================
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, New York 10017
================================================================================
LEGAL COUNSEL
- --------------------------------------------------------------------------------
Shearman & Sterling
599 Lexington Avenue
New York, New York 10022
================================================================================
CUSTODIAN AND TRANSFER AGENT
- --------------------------------------------------------------------------------
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
================================================================================
INVESTMENT ADVISER
- --------------------------------------------------------------------------------
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, New York 10105
*ACMC, ABIRM and AGIS are affiliates of Alliance Capital Management L.P.
**Member of the Audit Committee.
- --------------------------------------------------------------------------------
2004 Annual Report 69
================================================================================
Sanford C. Bernstein Fund, Inc.
================================================================================
DIRECTORS' INFORMATION
- --------------------------------------------------------------------------------
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTORS*
Roger Hertog,+, Vice Chairman and Director -- Alliance Capital 12 None
1345 Avenue Management Corporation ("ACMC"), the
of the Americas, General Partner of Alliance Capital Management
New York, NY L.P. ("Alliance") since 2000; prior thereto,
10105 11/4/41 (1988) President, Chief Operating Officer and Director --
Sanford C. Bernstein & Co., Inc. ("Bernstein")
since prior to 1999.
DISINTERESTED DIRECTORS*
Irwin Engelman, ++ Business Consultant; Director of WellGen Inc., 12 WellGen Inc.; Baruch
936 Fifth Avenue, Baruch College Fund; Long Wharf Theater; College Fund; Long
New York, NY National Corporate Theater Fund; Temple Sharay Wharf Theater;
10021 5/19/34 (2000) Tefila and New Plan Excel Realty Trust. Formerly National
he was Executive Vice President and Chief Corporate Theater
Financial Officer -- YouthStream Media Fund; Temple
Networks; Vice Chairman and Chief Administrative Sharay Tefila;
Officer of Revlon, Inc. and Executive Vice New Plan Excel
President and Chief Financial Officer of Realty Trust
MacAndrews & Forbes Holdings, Inc. since
prior to 1999.
William Kristol,++ Editor, The Weekly 12 None
1150 17th Street NW, Standard since prior to 1999.
5th Floor, Washington,
DC 20036 12/23/52 (1994)
Thomas B. Stiles II,++ President -- Cedar Lawn Corporation (cemetery). 12 Laguna Beach
87 Monarch Bay Drive, Formerly Managing Director, Senior Portfolio Art Museum;
Monarch Beach, CA Manager and Director of Investment Strategy Cedar Lawn
92629 10/4/40 (2003) of Smith Barney Asset Management from Corporation
1997 until his retirement in 1999. Prior
thereto, Chairman and Chief Executive Officer of
Greenwich Street Advisors from 1988 -- 1997 and
Executive Vice President and Director of E.F.
Hutton Group from 1982 -- 1987. He is also a
Director of the Laguna Beach Art Museum and
Cedar Lawn Corporation.
- --------------------------------------------------------------------------------
70 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund, Inc.
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS* (continued)
Rosalie J. Wolf,++ Managing Partner, Botanica Capital Partner LLC. 12 TIAA-CREF;
110 E. 59th Street, From January 2001 through 2003, she was a North European Oil
Suite 2100 Managing Director at Offit Hall Capital Royalty Trust
New York, NY Management LLC. She is a Trustee of TIAA-CREFF
10022 5/8/41 (2000) and of North European Oil Royalty Trust. From
Chairman of the Board 1994 -- 2000 she was Treasurer and Chief
Investment Officer -- The Rockefeller
Foundation. Earlier she held financial executive
positions with International Paper Company,
Bankers Trust, and Mobil Oil Corporation.
*There is no stated term of office for the Directors.
+Mr. Hertog is an "interested person" as defined in the 1940 Act, because of his
affiliation with Alliance.
++Member of the Audit Committee and the Governance and Nominating Committee.
================================================================================
OFFICERS' INFORMATION
- --------------------------------------------------------------------------------
Principal Position(s) Principal Occupation
Name, Address* and Date of Birth Held with Fund During Past 5 Years
- ----------------------------------------------------------------------------------------------------------------
Roger Hertog, 11/4/41 President See biography under Directors'
Information.
Philip L. Kirstein, 5/29/45 Senior Vice President Senior Vice President, Independent
and Independent Compliance Compliance Officer-Mutual Funds of
Officer ACMC with which he has been
associated since October 2004. Prior
thereto, he was Counsel of Kirkpatrick
and Lockhart, LLP from 2003 to
October 2004, and General Counsel
and First Vice President of Merrill
Lynch Investment Managers since
prior to 1999.
Mark R. Manley, 10/23/62 Secretary Senior Vice President, Deputy
General Counsel and Chief
Compliance Officer of ACMC,+ with
which he has been associated since
prior to 1999.
Mark D. Gersten, 10/4/50 Treasurer and Chief Senior Vice President of AGIS
Financial Officer and a Vice President of ABIRM,
with which he has been associated
since prior to 1999.
*The address for each of the Fund's officers is 1345 Avenue of the Americas, New
York, NY 10105.
+ACMC, ABIRM and AGIS are affiliates of the Fund.
- --------------------------------------------------------------------------------
2004 Annual Report 71
================================================================================
Sanford C. Bernstein Fund II, Inc.
================================================================================
DIRECTORS
- --------------------------------------------------------------------------------
William H. Foulk, Jr.*
Chairman
Marc O. Mayer
President
Ruth Block*
David H. Dievler*
John H. Dobkin*
Donald J. Robinson*
================================================================================
OFFICERS
- --------------------------------------------------------------------------------
Philip L. Kirstein
Senior Vice President,
Independent Compliance Officer
Matthew D. W. Bloom
Vice President
Jeffrey S. Phlegar
Vice President
Mark D. Gersten
Treasurer and Chief Financial Officer
Vincent S. Noto
Controller
Mark R. Manley
Secretary
================================================================================
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
PricewaterhouseCoopers LLP
300 Madison Avenue
New York, New York 10017
================================================================================
LEGAL COUNSEL
- --------------------------------------------------------------------------------
Shearman & Sterling
599 Lexington Avenue
New York, New York 10022
================================================================================
CUSTODIAN AND TRANSFER AGENT
- --------------------------------------------------------------------------------
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
================================================================================
INVESTMENT ADVISER
- --------------------------------------------------------------------------------
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, New York 10105
*Member of the Audit Committee
- --------------------------------------------------------------------------------
72 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund II, Inc. (continued)
================================================================================
DIRECTORS' INFORMATION
- --------------------------------------------------------------------------------
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election*) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
Marc O. Mayer,++ Executive Vice President of ACMC since 2001; 66 None
1345 Avenue prior thereto, Chief Executive Officer of
of the Americas, Sanford C. Bernstein & Co., LLC and its
New York, NY 10105 predecessor since prior to 1999.
10/2/57 (2003)
DISINTERESTED DIRECTORS
William H. Foulk, Jr.,+ Investment Adviser and Independent Consultant. 113 None
2 Soundview Drive, Formerly Senior Manager of Barrett Associates,
Suite 100, Inc., a registered investment adviser, with which
Greenwich, CT 06830 he had been associated since prior to 1999.
9/7/32 (2002) Formerly Deputy Comptroller and Chief
Chairman of the Board Investment Officer of the State of New York
and, prior thereto, Chief Investment Officer of
the New York Bank for Savings.
Ruth Block,+,** Formerly an Executive Vice President and 94 None
500 SE Mizner Blvd., Chief Insurance Officer of the Equitable
Boca Raton, FL 33432 Life Assurance Society of the United States;
11/7/30 (2002) Chairman and Chief Executive Officer of Evlico;
Director of Avon, BP (oil and gas), Ecolab
Incorporated (specialty chemicals), Tandem
Financial Group and Donaldson, Lufkin & Jenrette
Securities Corporation; former Governor at
Large, National Association of Securities
Dealers, Inc.
David H. Dievler,+ Independent Consultant. Until December 100 None
P.O. Box 167, 1994, Senior Vice President of Alliance
Spring Lake, NJ 07762 Capital Management Corporation ("ACMC")
10/23/29 (2002) responsible for mutual fund administration.
Prior to joining ACMC in 1984, Chief Financial
Officer of Eberstadt Asset Management since
1968. Prior to that Senior Manager at Price
Waterhouse & Co.; member of the American
Institute of Certified Public Accountants since
1953.
- --------------------------------------------------------------------------------
2004 Annual Report 73
================================================================================
Sanford C. Bernstein Fund II, Inc.
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election*) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS (continued)
John H. Dobkin,+ Consultant. Formerly President of Save Venice, 96 None
P.O. Box 12, Inc. (preservation organization) from 2001 -- 2002;
Annandale, NY 12504 Senior Adviser from June 1999 to June 2000 and
2/19/42 (2002) President of Historic Hudson Valley (historic
preservation) from December 1989 --
May 1999. Previously, Director of
the National Academy of Design and
during 1988 -- 1992, Director and
Chairman of the Audit Committee of
ACMC.
Donald J. Robinson,+ Senior Counsel to the law firm of Orrick, 95 None
98 Hell's Peak Road, Herrington & Sutcliffe LLP since prior to 1999.
Weston, VT 05161 Formerly a senior partner and a member of the
8/24/34 (2002) Executive Committee of that firm. He was also
a member and Chairman of the
Municipal Securities Rulemaking
Board and a Trustee of the Museum of
the City of New York.
* There is no stated term of office for the Fund's Directors.
** Ms. Block was as "interested person", as defined in the 1940 Act, until
October 21, 2004 by reason of her ownership of 116 American Depositary
Shares of AXA having a value of approximately $2,396. AXA is a controlling
person of ACMC. Ms. Block received shares of The Equitable Companies
Incorporated as part of the demutualization of The Equitable Lift
Assurance Society of the United States, which were subsequently converted
through a corporate action into 116 American Depositary Shares of AXA.
+ Member of the Audit Committee and Governance and Nominating Committee.
++ Mr. Mayer is an "interested person," as defined in the 1940 Act, due to
his position as Executive Vice President of ACMC.
- --------------------------------------------------------------------------------
74 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
================================================================================
Sanford C. Bernstein Fund II, Inc.
OFFICERS' INFORMATION
Principal Position(s) Principal Occupation
Name, Address* and Date of Birth Held with Fund During Past 5 Years
- ----------------------------------------------------------------------------------------------------------------
Marc O. Mayer, 10/2/57 President and Chief See biography above.
Executive Officer
Philip L. Kirstein, 5/29/45 Senior Vice President Senior Vice President and Independent
and Independent Compliance Compliance Officer-Mutual Funds of ACMC
Officer with which he has been associated since
October 2004. Prior thereto, he was
Counsel of Kirkpatrick & Lockhart, LLP
from 2003 to October 2004, and General
Counsel and First Vice President of
Merrill Lynch Investment Manager since
prior to 1999.
Matthew D.W. Bloom, 7/15/56 Vice President Senior Vice President of ACMC,+ with
which he has been associated since
prior to 1999.
Jeffrey S. Phlegar, 6/28/66 Vice President Executive Vice President of ACMC,+ with
which he has been associated since prior
to 1999.
Mark R. Manley, 10/23/62 Secretary Executive Vice President, Deputy General
Counsel and Chief Compliance Officer of
ACMC, with which he has been associated
since prior to 1999.
Mark D. Gersten, 10/4/50 Treasurer and Chief Senior Vice President of Alliance
Financial Officer Global Investor Services, Inc. ("AGIS")+
and Vice President of AllianceBernstein
Investment Research and Management, Inc.
("ABIRM"),+ with which he has been
associated since prior to1999.
Vincent S. Noto, 12/14/64 Controller Vice President of AGIS,+ with which he
has been associated since prior to 1999.
+ACMC, ABIRM and AGIS are affiliates of the Fund
- --------------------------------------------------------------------------------
2004 Annual Report 75
This page intentionally left blank.
This page intentionally left blank.
SANFORD C. BERNSTEIN & CO., LLC
A subsidiary of Alliance Capital Management L.P.
Distributor
SANFORD C. BERNSTEIN FUND, INC.
SANFORD C. BERNSTEIN FUND II, INC.
1345 Avenue iof the Americas, New York, NY 10105
(212) 756-4097
SAMFANN0904
Sanford C. Bernstein Fund, Inc.
Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
SEPTEMBER 30, 2004
- --------------------------------------------------------------------------------
Schedule of Investments
To the Annual Report
For the Taxable Bond
Portfolios
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Boards of Directors and Shareholders of Sanford C. Bernstein Fund, Inc.
and Sanford C. Bernstein Fund II, Inc.
In our opinion, the statements of assets and liabilities included in the
accompanying Annual Report, including the schedules of investments contained
herein, and the related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material respects, the
financial position of Intermediate Duration Portfolio, Short Duration Plus
Portfolio, and U.S. Government Short Duration Portfolio (three of the twelve
portfolios constituting Sanford C. Bernstein Fund, Inc.) and the Intermediate
Duration Institutional Portfolio (constituting Sanford C. Bernstein Fund II,
Inc.) (hereafter, collectively referred to as the "Funds") at September 30,
2004, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods presented, except
for the financial highlights of the Short Duration Retail Classes of the Short
Duration Plus Portfolio, which are presented in a separate financial report, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at September
30, 2004, by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
November 19, 2004
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Intermediate Duration Portfolio
September 30, 2004
- --------------------------------------------------------------------------------
Principal Amount Description Market Value*
================================================================================
SHORT-TERM INVESTMENTS: 41.41%
- --------------------------------------------------------------------------------
U.S. Treasury Bill: 41.03%
$ 1,175,000,000 1.52%, 12/23/2004 $ 1,170,415,979
(Note A, p. 11)
---------------
Total U.S. Treasury Bill (Cost $1,170,415,979) 1,170,415,979
---------------
Repurchase Agreement: 0.38%
11,000,000 State Street Bank & Trust Co., 11,000,000
Repurchase Agreement, Dated
09/30/04, 1.67%, maturing
10/01/04 for $11,000,510,
collateralized by $11,205,000
FNMA, 1.875%, due 02/15/05,
value $11,220,754
---------------
Total Repurchase Agreement
(Cost $11,000,000) 11,000,000
---------------
Total Short-Term Investments
(Cost $1,181,415,979) 1,181,415,979
---------------
================================================================================
U.S. TREASURY NOTES: 9.08%
- --------------------------------------------------------------------------------
120,340,000 2.50%, 09/30/2006 120,081,269
(Note A, p. 11)
138,230,000 3.50%, 08/15/2009 139,066,983
(Note A, p. 11)
---------------
Total U.S. Treasury Notes (Cost $259,062,150) 259,148,252
---------------
================================================================================
U.S. TREASURY BONDS: 0.61%
- --------------------------------------------------------------------------------
10,000,000 8.75%, 05/15/2017 14,108,980
(Note A, p. 11)
3,135,000 5.375%, 02/15/2031 3,358,369
(Note A, p. 11)
---------------
Total U.S. Treasury Bonds (Cost $16,570,737) 17,467,349
---------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATIONS: 7.23%
- --------------------------------------------------------------------------------
65,960,000 Federal National Mortgage 66,185,583
Association,
3.25%, 06/28/2006,
Callable 06/28/2005 @ 100.00
(Note A, p. 11)
35,220,000 Federal Home Loan Mortgage Corp., 35,413,710
3.75%, 08/03/2007,
Callable 08/03/2004 @100.00
(Note A, p. 11)
55,365,000 Federal National Mortgage 55,168,454
Association,
3.41%, 08/30/2007,
Callable 09/01/2005 @ 100.00
(Note A, p. 11)
26,250,000 Federal Home Loan Banks 26,251,680
3.75%, 08/18/2009
(Note A, p. 11)
23,170,000 Federal National Mortgage 23,084,642
Association,
4.625%, 10/15/2014
(Note A, p. 11)
---------------
Total U.S. Government Sponsored Agency
Obligations (Cost $205,987,938) 206,104,069
---------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 1.14%
- --------------------------------------------------------------------------------
19,740,092 Federal National Mortgage 20,079,424
Association, Series 2003-92
Class BR, 5.00%, 04/25/2014
(Note A, p. 11)
4,681,983 Deutsche Mortgage Securities 4,681,983
Inc., Series 2004-4 Class 1A,
2.05%, 04/25/2034,
(Notes A & B, p. 11)
7,783,661 Washington Mutual, Series 7,783,661
2004-AR10 Class A2C,
2.01%, 07/25/2044
(Notes A & B, p. 11)
---------------
Total Collateralized Mortgage Obligations
(Cost $32,931,898) 32,545,068
---------------
================================================================================
MORTGAGE PASS-THROUGHS: 41.08%
- --------------------------------------------------------------------------------
2,521,349 Federal National Mortgage 2,645,611
Association Pool #545296,
6.00%, 11/01/2016
(Note A, p. 11)
8,929,786 Federal National Mortgage 9,353,951
Association Pool #631365,
6.00%, 02/01/2017
(Note A, p. 11)
99,710,000 Federal National Mortgage 99,336,087
Association Pool TBA,
4.50%, 10/25/2019
(Note C, p. 11)
91,270,000 Federal National Mortgage 94,293,319
Association Pool TBA,
5.50%, 10/25/2019
(Note C, p. 11)
9 Federal Home Loan Mortgage 10
Corp. Pool #C80297,
8.50%, 05/01/2025
(Note A, p. 11)
* See Note 1, page 42 in Notes to Financial Statements.
Schedule of Investments -- Taxable Bond Portfolios 1
================================================================================
Principal Amount Description Market Value
================================================================================
$ 221,944 Federal National Mortgage $ 233,806
Association Pool #333044,
6.50%, 01/01/2026
(Note A, p. 11)
35,426 Federal National Mortgage 37,320
Association Pool #313097,
6.50%, 05/01/2026
(Note A, p. 11)
3,848 Government National Mortgage 4,235
Association Pool #442121,
8.50%, 11/15/2026
(Note A, p. 11)
6,212 Government National Mortgage 6,641
Association Pool #780651,
7.00%, 10/15/2027
(Note A, p. 11)
1,689,827 Federal National Mortgage 1,778,084
Association Pool #313954,
6.50%, 01/01/2028
(Note A, p. 11)
366,949 Federal National Mortgage 385,825
Association Pool #412590,
6.50%, 02/01/2028
(Note A, p. 11)
3,545 Federal National Mortgage 3,727
Association Pool #407377,
6.50%, 05/01/2028
(Note A, p. 11)
6,452 Federal National Mortgage 6,785
Association Pool #429079,
6.50%, 07/01/2028
(Note A, p. 11)
4,812 Federal National Mortgage 5,059
Association Pool #433290,
6.50%, 07/01/2028
(Note A, p. 11)
2,201 Federal National Mortgage 2,314
Association Pool #436842,
6.50%, 07/01/2028
(Note A, p. 11)
2,786 Federal National Mortgage 2,930
Association Pool #426591,
6.50%, 08/01/2028
(Note A, p. 11)
3,035 Federal National Mortgage 3,191
Association Pool #434908,
6.50%, 09/01/2028
(Note A, p. 11)
3,061 Federal National Mortgage 3,219
Association Pool #323380,
6.50%, 10/01/2028
(Note A, p. 11)
2,499 Federal National Mortgage 2,627
Association Pool #442516,
6.50%, 10/01/2028
(Note A, p. 11)
4,555 Federal National Mortgage 4,792
Association Pool #450697,
6.50%, 10/01/2028
(Note A, p. 11)
2,478 Federal National Mortgage 2,605
Association Pool #323427,
6.50%, 11/01/2028
(Note A, p. 11)
3,127 Federal National Mortgage 3,288
Association Pool #451813,
6.50%, 11/01/2028
(Note A, p. 11)
105,903 Federal National Mortgage 111,351
Association Pool #442847,
6.50%, 12/01/2028
(Note A, p. 11)
524,093 Federal National Mortgage 551,052
Association Pool #252212,
6.50%, 01/01/2029
(Note A, p. 11)
2,119,631 Federal National Mortgage 2,228,662
Association Pool #323621,
6.50%, 01/01/2029
(Note A, p. 11)
85,482 Federal National Mortgage 89,879
Association Pool #453108,
6.50%, 01/01/2029
(Note A, p. 11)
35,101 Federal National Mortgage 36,888
Association Pool #455686,
6.50%, 01/01/2029
(Note A, p. 11)
422,445 Federal National Mortgage 444,175
Association Pool #481624,
6.50%, 01/01/2029
(Note A, p. 11)
2,710 Federal National Mortgage 2,848
Association Pool #459634,
6.50%, 02/01/2029
(Note A, p. 11)
43,862 Federal National Mortgage 46,095
Association Pool #485793,
6.50%, 02/01/2029
(Note A, p. 11)
4,369 Federal National Mortgage 4,591
Association Pool #484720,
6.50%, 03/01/2029
(Note A, p. 11)
29,882 Federal National Mortgage 31,403
Association Pool #484733,
6.50%, 03/01/2029
(Note A, p. 11)
3,049 Federal National Mortgage 3,206
Association Pool #489287,
6.50%, 03/01/2029
(Note A, p. 11)
2 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 26,173 Federal National Mortgage $ 27,505
Association Pool #490466,
6.50%, 03/01/2029
(Note A, p. 11)
21,794 Federal National Mortgage 22,903
Association Pool #491193,
6.50%, 03/01/2029
(Note A, p. 11)
4,560 Federal National Mortgage 4,792
Association Pool #491672,
6.50%, 03/01/2029
(Note A, p. 11)
403,654 Federal National Mortgage 424,418
Association Pool #323979,
6.50%, 04/01/2029
(Note A, p. 11)
3,068 Federal National Mortgage 3,224
Association Pool #493940,
6.50%, 04/01/2029
(Note A, p. 11)
4,506 Federal National Mortgage 4,735
Association Pool #494356,
6.50%, 04/01/2029
(Note A, p. 11)
41,323 Federal National Mortgage 43,427
Association Pool #489500,
6.50%, 06/01/2029
(Note A, p. 11)
3,661 Federal National Mortgage 3,848
Association Pool #495046,
6.50%, 06/01/2029
(Note A, p. 11)
816,333 Federal National Mortgage 857,882
Association Pool #500265,
6.50%, 06/01/2029
(Note A, p. 11)
5,281 Federal National Mortgage 5,549
Association Pool #500441,
6.50%, 06/01/2029
(Note A, p. 11)
37,946 Federal National Mortgage 39,877
Association Pool #500745,
6.50%, 06/01/2029
(Note A, p. 11)
69,640 Federal National Mortgage 73,184
Association Pool #501305,
6.50%, 06/01/2029
(Note A, p. 11)
4,315 Federal National Mortgage 4,534
Association Pool #501448,
6.50%, 06/01/2029
(Note A, p. 11)
3,775 Federal National Mortgage 3,967
Association Pool #504076,
6.50%, 06/01/2029
(Note A, p. 11)
3,393 Federal National Mortgage 3,565
Association Pool #489847,
6.50%, 07/01/2029
(Note A, p. 11)
136,289 Federal National Mortgage 143,226
Association Pool #504732,
6.50%, 07/01/2029
(Note A, p. 11)
121,490 Federal National Mortgage 127,673
Association Pool #505508,
6.50%, 07/01/2029
(Note A, p. 11)
94,687 Federal National Mortgage 99,506
Association Pool #508584,
6.50%, 08/01/2029
(Note A, p. 11)
5,043 Federal National Mortgage 5,300
Association Pool #252715,
6.50%, 09/01/2029
(Note A, p. 11)
311,701 Federal National Mortgage 327,566
Association Pool #510359,
6.50%, 09/01/2029
(Note A, p. 11)
2,581 Federal National Mortgage 2,712
Association Pool #520067,
6.50%, 11/01/2029
(Note A, p. 11)
131,945 Federal National Mortgage 138,661
Association Pool #527245,
6.50%, 11/01/2029
(Note A, p. 11)
130,536 Federal National Mortgage 137,019
Association Pool #642082,
6.50%, 05/01/2032
(Note A, p. 11)
388,497 Federal National Mortgage 407,792
Association Pool #650996,
6.50%, 07/01/2032
(Note A, p. 11)
129,955 Federal National Mortgage 136,409
Association Pool #651749,
6.50%, 08/01/2032
(Note A, p. 11)
425,511 Federal National Mortgage 446,645
Association Pool #653591,
6.50%, 08/01/2032
(Note A, p. 11)
237,924 Federal National Mortgage 249,741
Association Pool #655121,
6.50%, 09/01/2032
(Note A, p. 11)
30,510 Federal National Mortgage 32,025
Association Pool #658979,
6.50%, 09/01/2032
(Note A, p. 11)
Schedule of Investments -- Taxable Bond Portfolios 3
================================================================================
Principal Amount Description Market Value
================================================================================
$ 870,067 Federal National Mortgage $ 913,281
Association Pool #659534,
6.50%, 09/01/2032
(Note A, p. 11)
908,351 Federal National Mortgage 953,466
Association Pool #659080,
6.50%, 10/01/2032
(Note A, p. 11)
655,903 Federal National Mortgage 688,480
Association Pool #667021,
6.50%, 11/01/2032
(Note A, p. 11)
406,136 Federal National Mortgage 426,308
Association Pool #673978,
6.50%, 12/01/2032
(Note A, p. 11)
560,699 Federal National Mortgage 588,547
Association Pool #677849,
6.50%, 12/01/2032
(Note A, p. 11)
210,101 Federal National Mortgage 220,571
Association Pool #695022,
6.50%, 02/01/2033
(Note A, p. 11)
474,710 Federal National Mortgage 498,367
Association Pool #695153,
6.50%, 03/01/2033
(Note A, p. 11)
743,345 Federal National Mortgage 780,389
Association Pool #746307,
6.50%, 10/01/2033
(Note A, p. 11)
54,568,789 Federal National Mortgage 54,134,165
Association Pool #725231,
5.00%, 02/01/2034
(Note A, p. 11)
55,175,000 Government National Mortgage 54,864,640
Association Pool TBA,
5.00%, 10/15/2034
(Note C, p. 11)
34,960,000 Federal Home Loan Mortgage 36,096,200
Corp. Pool TBA,
6.00%, 10/15/2034
(Note C, p. 11)
24,305,000 Government National Mortgage 25,186,056
Association Pool TBA,
6.00%, 10/15/2034
(Note C, p. 11)
109,045,000 Federal National Mortgage 107,886,397
Association Pool TBA,
5.00%, 10/25/2034
(Note C, p. 11)
215,945,000 Federal National Mortgage 226,472,319
Association Pool TBA,
6.50%, 10/25/2034
(Note C, p. 11)
158,615,000 Federal National Mortgage 160,696,822
Association Pool TBA,
5.50%, 10/25/2034
(Note C, p. 11)
277,575,000 Federal National Mortgage 285,988,854
Association Pool TBA,
6.00%, 11/25/2034
(Note C, p. 11)
---------------
Total Mortgage Pass-Throughs
(Cost $1,172,112,923) 1,171,838,123
---------------
================================================================================
AEROSPACE/DEFENSE: 0.07%
- --------------------------------------------------------------------------------
1,865,000 Boeing Capital Corp., Senior 1,944,511
Note, 4.75%, 08/25/2008
(Note A, p. 11)
---------------
Total Aerospace/Defense (Cost $1,862,510) 1,944,511
---------------
================================================================================
AUTOMOTIVE: 0.91%
- --------------------------------------------------------------------------------
4,884,000 General Motors Acceptance Corp., 4,978,828
5.625%, 05/15/2009
(Note A, p. 11)
244,000 TRW Automotive, Senior 290,360
Subordinated Note,
11.00%, 02/15/2013,
Callable 02/15/2008 @ 105.50
(Note A, p. 11)
2,805,000 Ford Motor Co., 2,465,362
6.375%, 02/01/2029
(Note A, p. 11)
7,525,000 Ford Motor Co., 7,378,488
7.45%, 07/16/2031
(Note A, p. 11)
10,275,000 General Motors Corp., 10,909,707
8.375%, 07/15/2033
(Note A, p. 11)
---------------
Total Automotive (Cost $25,985,128) 26,022,745
---------------
================================================================================
BANKING: 2.15%
- --------------------------------------------------------------------------------
17,520,000 Mizuho Financial Group Ltd. 18,954,555
(Cayman),
8.375%, 04/27/2009
(Note A, p. 11)
4,770,000 Suntrust Bank, 4,769,046
1.91%, 06/02/2009
(Notes A & B, p. 11)
8,595,000 JP Morgan Chase & Co., 9,669,856
6.75%, 02/01/2011
(Note A, p. 11)
6,000,000 Barclays Bank plc, Rule 144A, 6,981,924
7.375%, 12/15/2011
(Notes A, B & D, p. 11)
1,145,000 Bank of America Corp., Senior 1,265,700
Note, 6.25%, 04/15/2012
(Note A, p. 11)
4 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,500,000 Capital One Bank, Subordinated $ 1,640,289
Note, 6.50%, 06/13/2013
(Note A, p. 11)
8,005,000 RBS Capital Trust I, 7,742,636
4.709%, 12/29/2049,
Callable 07/01/2013 @ 100.00
(Notes A & B, p. 11)
2,551,000 Mizuho Financial Group Ltd., 2,631,941
Rule 144A, 5.79%, 04/15/2014
(Notes A & D, p. 11)
7,490,000 RBS Capital Trust III, 7,595,010
5.512%, 09/29/2049,
Callable 09/30/2014 @ 100.00
(Notes A & B, p. 11)
---------------
Total Banking (Cost $58,531,209) 61,250,957
---------------
================================================================================
BROADCASTING/MEDIA: 1.09%
- --------------------------------------------------------------------------------
3,485,000 WPP Finance Corp., Rule 144A, 3,571,382
5.875%, 06/15/2014
(Notes A & D, p. 11)
11,760,000 Time Warner Entertainment Co., 14,064,772
Senior Debenture,
8.375%, 03/15/2023
(Note A, p. 11)
6,280,000 AOL Time Warner Inc., 7,302,365
7.70%, 05/01/2032
(Note A, p. 11)
5,895,000 News America Holdings, 6,242,593
6.55%, 03/15/2033
(Note A, p. 11)
---------------
Total Broadcasting/Media (Cost $30,810,963) 31,181,112
---------------
================================================================================
BUILDING/REAL ESTATE: 0.04%
- --------------------------------------------------------------------------------
1,065,000 LNR Property Corp., Senior 1,160,850
Subordinated Note,
7.25%, 10/15/2013,
Callable 10/15/2008 @ 103.62
(Note A, p. 11)
---------------
Total Building/Real Estate (Cost $1,065,000) 1,160,850
---------------
================================================================================
CABLE: 0.66%
- --------------------------------------------------------------------------------
1,815,000 British Sky Broadcasting Group plc, 2,005,896
6.875%, 02/23/2009
(Note A, p. 11)
710,000 Insight Midwest LP, Senior 741,950
Note, 9.75%, 10/01/2009,
Callable 10/01/2004 @ 104.88
(Note A, p. 11)
2,730,000 Charter Communications 2,723,175
Operating LLC, Senior Note,
Rule 144A, 8.00%, 04/30/2012
(Notes A & D, p. 11)
4,620,000 Cox Communications Inc., 4,260,245
4.625%, 06/01/2013
(Note A, p. 11)
8,405,000 Comcast Corp., Class A, 9,220,672
7.05%, 03/15/2033
(Note A, p. 11)
---------------
Total Cable (Cost $18,629,855) 18,951,938
---------------
================================================================================
CHEMICALS: 0.03%
- --------------------------------------------------------------------------------
855,000 Resolution Performance 882,788
Products, Senior Note,
9.50%, 04/15/2010,
Callable 04/15/2006 @ 104.75
(Note A, p. 11)
---------------
Total Chemicals (Cost $880,138) 882,788
---------------
================================================================================
COMMUNICATIONS: 2.31%
- --------------------------------------------------------------------------------
5,595,000 Telus Corp., 6,135,236
7.50%, 06/01/2007
(Note A, p. 11)
11,555,000 Telecom Italia Capital Corp., 11,467,610
Rule 144A, 4.00%, 01/15/2010
(Notes A & D, p. 11)
3,250,000 Koninklijke (Royal) KPN NV, 3,864,812
Senior Unsubordinated Note,
8.00%, 10/01/2010
(Note A, p. 11)
1,230,000 SBC Communications Inc., 1,314,907
5.875%, 08/15/2012
(Note A, p. 11)
13,095,000 Verizon Global Funding Corp., 15,291,752
7.375%, 09/01/2012
(Note A, p. 11)
1,110,000 SBC Communications Inc., 1,134,345
5.625%, 06/15/2016
(Note A, p. 11)
7,500,000 Sprint Capital Corp. 7,866,697
6.875%, 11/15/2028
(Note A, p. 11)
2,610,000 Deutsche Telekom International 3,373,629
Finance BV,
8.75%, 06/15/2030
(Note A, p. 11)
12,175,000 Sprint Capital Corp. 15,452,400
8.75%, 03/15/2032
(Note A, p. 11)
---------------
Total Communications (Cost $63,229,109) 65,901,388
---------------
================================================================================
COMMUNICATIONS -- FIXED: 0.17%
- --------------------------------------------------------------------------------
3,710,000 British Telecommunications plc, 4,873,842
8.875%, 12/15/2030
(Note A, p. 11)
---------------
Total Communications -- Fixed
(Cost $4,791,618) 4,873,842
---------------
Schedule of Investments -- Taxable Bond Portfolios 5
================================================================================
Principal Amount Description Market Value
================================================================================
COMMUNICATIONS -- MOBILE: 0.67%
- --------------------------------------------------------------------------------
$ 940,000 American Cellular Corp., $ 761,400
Senior Note,
10.00%, 08/01/2011,
Callable 08/01/2007 @ 105
(Note A, p. 11)
2,805,000 Rural Cellular Corp., Rule 2,854,088
144A, 8.25%, 03/15/2012,
Callable 3/15/08 @ 104.12
(Notes A & D, p. 11)
1,380,000 PanAmSat Corp., Rule 144A, 1,435,200
9.00%, 08/15/2014,
Callable 08/15/2009 @ 104.50
(Notes A & D, p. 11)
2,315,000 Nextel Communications Inc., 2,488,625
Senior Note,
7.375%, 08/01/2015,
Callable 08/01/2008 @ 103.69
(Note A, p. 11)
8,790,000 AT&T Wireless Services Inc., 11,541,542
Senior Note,
8.75%, 03/01/2031,
(Note A, p. 11)
---------------
Total Communications -- Mobile
(Cost $17,903,259) 19,080,855
---------------
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.28%
- --------------------------------------------------------------------------------
7,700,000 Hutchison Whampoa 7,979,387
International Ltd., Rule 144A,
7.45%, 11/24/2033
(Notes A & D, p. 11)
---------------
Total Conglomerate/Miscellaneous
(Cost $7,669,245) 7,979,387
---------------
================================================================================
CONSUMER MANUFACTURING: 0.25%
- --------------------------------------------------------------------------------
2,800,000 Fortune Brands Inc. 2,789,758
2.875%, 12/01/2006
(Note A, p. 11)
2,860,000 Broder Brothers, Senior Note, 2,860,000
11.25%, 10/15/2010,
Callable 10/15/2007 @ 105.62
(Note A, p. 11)
1,405,000 Jostens IH Corp., Rule 144A, 1,412,025
7.625%, 10/01/2012,
Callable 10/01/2008 @ 103.81
(Notes A & D, p. 11)
---------------
Total Consumer Manufacturing
(Cost $7,065,300) 7,061,783
---------------
================================================================================
ENERGY: 0.47%
- --------------------------------------------------------------------------------
1,040,000 Hilcorp Energy I LP, Senior 1,151,800
Note, Rule 144A,
10.50%, 09/01/2010,
Callable 09/01/2007 @ 105.25
(Notes A & D, p. 11)
3,805,000 Conoco Inc., Senior Note, 4,390,240
6.95%, 04/15/2029
(Note A, p. 11)
6,620,000 Valero Energy Corp., 7,739,561
7.50%, 04/15/2032
(Note A, p. 11)
---------------
Total Energy (Cost $12,117,406) 13,281,601
---------------
================================================================================
ENTERTAINMENT/LEISURE: 0.04%
- --------------------------------------------------------------------------------
1,095,000 NCL Corp., Senior Note, Rule 1,147,013
144A, 10.625%, 07/15/2014,
Callable 07/15/2009 @ 105.31
(Notes A & D, p. 11)
---------------
Total Entertainment/Leisure
(Cost $1,095,000) 1,147,013
---------------
================================================================================
FINANCIAL: 7.65%
- --------------------------------------------------------------------------------
2,945,000 CIT Group Inc., Medium-Term 2,945,309
Note, 1.94%, 05/18/2007
(Notes A & B, p. 11)
22,130,000 General Electric Capital 22,137,082
Corp., Medium-Term Note,
1.979%, 06/22/2007
(Notes A & B, p. 11)
8,840,000 Household Finance Corp., 9,727,156
6.50%, 11/15/2008
(Note A, p. 11)
7,560,000 American General Finance 7,762,540
Corp., Medium-Term Note,
4.625%, 05/15/2009
(Note A, p. 11)
3,435,000 Citigroup Inc., 3,436,594
2.00%, 06/09/2009
(Notes A & B, p. 11)
19,970,000 Dow Jones Cdx High Yield 20,219,625
Series 3-1, Rule 144A,
7.75%, 12/29/2009
(Notes A & D, p. 11)
58,080,000 Dow Jones Cdx High Yield 58,188,900
Series 3-3, Rule 144A,
8.00%, 12/29/2009
(Notes A & D, p. 11)
5,700,000 Berkshire Hathaway Finance Corp., 5,721,546
4.20%, 12/15/2010
(Note A, p. 11)
5,150,000 Ford Motor Credit Co., 5,600,687
7.375%, 02/01/2011
(Note A, p. 11)
6,600,000 Countrywide Home Loans, Inc., 6,409,656
Medium-Term Note, Series L,
4.00%, 03/22/2011
(Note A, p. 11)
2,855,000 Household Finance Corp., 3,267,373
7.00%, 05/15/2012
(Note A, p. 11)
6 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 4,790,000 Goldman Sachs Group Inc., $ 4,699,637
4.75%, 07/15/2013
(Note A, p. 11)
2,775,000 Ford Motor Credit Co., 2,933,974
7.00%, 10/01/2013
(Note A, p. 11)
1,805,000 Txu Australia Holdings Pty 1,963,710
Ltd., Rule 144A,
6.15%, 11/15/2013
(Notes A & D, p. 11)
1,995,000 Capital One Financial Corp., 2,142,167
6.25%, 11/15/2013
(Note A, p. 11)
3,125,000 Duke Capital LLC, Senior Note, 3,168,166
5.50%, 03/01/2014
(Note A, p. 11)
7,485,000 Morgan Stanley, Subordinated 7,246,049
Note, 4.75%, 04/01/2014
(Note A, p. 11)
1,700,000 Duke Capital LLC, 1,733,901
5.668%, 08/15/2014
(Note A, p. 11)
18,963,000 Citigroup Inc., Subordinate 18,986,590
Note, Rule 144A,
5.00%, 09/15/2014
(Notes A & D, p. 11)
6,235,000 CBA Capital Trust I, Rule 144A, 6,453,537
5.805%, 06/15/2015
(Notes A & D, p. 11)
3,640,000 Royal & Sun Alliance Insurance 4,528,418
Group plc,
8.95%, 10/15/2029
(Note A, p. 11)
11,880,000 General Electric Capital 13,672,775
Corp., Medium-Term Note, Series A,
6.75%, 03/15/2032
(Note A, p. 11)
5,325,000 Goldman Sachs Group Inc., 5,341,784
6.345%, 02/15/2034,
(Note A, p. 11)
---------------
Total Financial (Cost $212,102,596) 218,287,176
---------------
================================================================================
FOOD/BEVERAGE: 0.27%
- --------------------------------------------------------------------------------
6,725,000 Delhaize America Inc., 7,680,111
8.125%, 04/15/2011
(Note A, p. 11)
---------------
Total Food/Beverage (Cost $7,333,437) 7,680,111
---------------
================================================================================
GAMING: 0.04%
- --------------------------------------------------------------------------------
1,110,000 Riviera Holdings Corp., 1,221,000
11.00%, 06/15/2010,
Callable 06/15/2006 @ 105.50
(Note A, p. 11)
---------------
Total Gaming (Cost $1,166,683) 1,221,000
---------------
================================================================================
HEALTHCARE: 0.33%
- --------------------------------------------------------------------------------
1,095,000 Hanger Orthopedic Group, Inc., 1,007,400
10.375%, 02/15/2009,
Callable 02/15/2006 @ 105.19
(Note A, p. 11)
3,185,000 Alliance Imaging Inc., Senior 3,459,706
Subordinated Note,
10.375%, 04/15/2011,
Callable 04/15/2006 @ 105.19
(Note A, p. 11)
830,000 Universal Hospital Services 842,450
Inc., Senior Note,
10.125%, 11/01/2011,
Callable 11/01/2007 @ 105.06
(Note A, p. 11)
440,000 Concentra Operating Corp., 481,800
Rule 144A, 9.125%, 06/01/2012,
Callable 06/01/2008 @ 104.56
(Notes A & D, p. 11)
3,550,000 Humana Inc., Senior Note, 3,675,759
6.30%, 08/01/2018
(Note A, p. 11)
---------------
Total Healthcare (Cost $9,316,274) 9,467,115
---------------
================================================================================
INDUSTRIAL: 0.30%
- --------------------------------------------------------------------------------
985,000 FastenTech Inc., Senior Note, 1,108,125
Rule 144A, 11.50%, 05/01/2011,
Callable 05/01/2007 @ 105.75
(Notes A & D, p. 11)
1,278,000 H&E Equipment Services LLC, 1,316,340
11.125%, 06/15/2012,
Callable 06/15/2007 @ 105.56
(Note A, p. 11)
5,870,000 General Electric Co., 6,036,949
5.00%, 02/01/2013
(Note A, p. 11)
---------------
Total Industrial (Cost $8,347,702) 8,461,414
---------------
================================================================================
INSURANCE: 1.19%
- --------------------------------------------------------------------------------
14,200 Genworth Financial Inc., Pfd. 414,640
6.00%, 05/16/2007
(Note A, p. 11)
4,125,000 MetLife Inc., 4,149,255
5.00%, 11/24/2013
(Note A, p. 11)
3,825,000 Assurant Inc., 3,924,974
5.625%, 02/15/2014
(Note A, p. 11)
4,025,000 Liberty Mutual Group, Rule 3,998,821
144A, 5.75%, 03/15/2014
(Notes A & D, p. 11)
1,330,000 UnumProvident Corp., 1,286,775
7.375%, 06/15/2032
(Note A, p. 11)
Schedule of Investments -- Taxable Bond Portfolios 7
================================================================================
Principal Amount Description Market Value
================================================================================
$ 10,015,000 Mangrove Bay Pass-Through $ 10,192,165
Trust, Rule 144A,
6.102%, 07/15/2033,
Callable 07/15/2013 @ 100
(Notes A, B & D, p. 11)
8,625,000 Zurich Capital Trust, Rule 9,843,066
144A, 8.376%, 06/01/2037,
Callable 06/01/2007 @ 104.19
(Notes A & D, p. 11)
---------------
Total Insurance (Cost $33,312,469) 33,809,696
---------------
================================================================================
METALS/MINING: 0.04%
- --------------------------------------------------------------------------------
1,260,000 AK Steel Corp., 1,250,550
7.875%, 02/15/2009,
Callable 02/15/2004 @ 103.94
(Note A, p. 11)
---------------
Total Metals/Mining (Cost $1,123,700) 1,250,550
---------------
================================================================================
NON-AIR TRANSPORTATION: 0.04%
- --------------------------------------------------------------------------------
1,125,000 Horizon Lines LLC, Rule 144A, 1,186,875
9.00%, 11/01/2012,
Callable 11/01/2008 @ 104.50
(Notes A & D, p. 11)
---------------
Total Non-Air Transportation
(Cost $1,127,757) 1,186,875
---------------
================================================================================
PAPER/PACKAGING: 1.02%
- --------------------------------------------------------------------------------
4,865,000 Abitibi-Consolidated Inc., 5,023,112
8.30%, 08/01/2005
(Note A, p. 11)
2,575,000 Sealed Air Corp., Rule 144A, 2,647,461
5.625%, 07/15/2013
(Notes A & D, p. 11)
2,470,000 Packaging Corp. Of America 2,549,067
5.75%, 08/01/2013
(Note A, p. 11)
5,165,000 International Paper Co., 5,136,246
5.30%, 04/01/2015
(Note A, p. 11)
11,860,000 Weyerhaeuser Co., 13,609,220
7.375%, 03/15/2032
(Note A, p. 11)
---------------
Total Paper/Packaging (Cost $28,380,032) 28,965,106
---------------
================================================================================
PETROLEUM PRODUCTS: 0.37%
- --------------------------------------------------------------------------------
4,590,000 Amerada Hess Corp., 5,307,867
7.875%, 10/01/2029
(Note A, p. 11)
4,885,000 Amerada Hess Corp., 5,244,990
7.125%, 03/15/2033
(Note A, p. 11)
---------------
Total Petroleum Products (Cost $9,869,676) 10,552,857
---------------
================================================================================
PUBLIC UTILITIES -- ELECTRIC & GAS: 1.69%
- --------------------------------------------------------------------------------
124,297 AES Corp, Rule 144A, 126,162
10.00%, 07/15/2005,
Callable 12/15/2004 @ 100
(Notes A & D, p. 11)
2,805,000 Consumers Energy Co., Series C, 2,852,769
4.25%, 04/15/2008
(Note A, p. 11)
350,000 Southern Natural Gas Co., 393,750
8.875%, 03/15/2010,
Callable 03/15/2007 @ 104.44
(Note A, p. 11)
1,465,000 Calpine Corp., Rule 144A, 1,120,725
8.50%, 07/15/2010,
Callable 07/15/2007 @ 104.25
(Notes A & D, p. 11)
3,005,000 Nisource Finance Corp., 3,551,123
7.875%, 11/15/2010
(Note A, p. 11)
5,770,000 Carolina Power & Light Co., 6,424,081
6.50%, 07/15/2012
(Note A, p. 11)
2,400,000 MidAmerican Energy Holdings 2,533,831
Co., Senior Note,
5.875%, 10/01/2012
(Note A, p. 11)
2,540,000 Public Service Co. of Colorado, 3,094,866
7.875%, 10/01/2012
(Note A, p. 11)
1,075,000 CenterPoint Energy Inc., 1,161,987
Senior Note, Series B,
6.85%, 06/01/2015
1,960,000 Union Electric Co., 1,947,691
5.10%, 10/01/2019
(Note A, p. 11)
445,000 Southern Natural Gas Co., 439,437
7.35%, 02/15/2031
(Note A, p. 11)
16,055,000 FirstEnergy Corp., Series C, 18,031,242
7.375%, 11/15/2031
(Note A, p. 11)
6,465,000 Pacific Gas & Electric Co. 6,580,090
6.05%, 03/01/2034
(Note A, p. 11)
---------------
Total Public Utilities -- Electric & Gas
(Cost $46,110,817) 48,257,754
---------------
8 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
PUBLIC UTILITIES -- TELEPHONE: 0.52%
- --------------------------------------------------------------------------------
$ 3,440,000 BellSouth Corp., $ 3,459,777
4.20%, 09/15/2009
(Note A, p. 11)
11,010,000 Telecom Italia Capital Corp., 11,371,722
Rule 144A, 6.375%, 11/15/2033
(Notes A & D, p. 11)
---------------
Total Public Utilities -- Telephone
(Cost $14,399,569) 14,831,499
---------------
================================================================================
PUBLISHING: 0.02%
- --------------------------------------------------------------------------------
555,000 American Media Operations Inc., 575,813
8.875%, 01/15/2011,
Callable 01/15/2007 @ 104.44
(Note A, p. 11)
---------------
Total Publishing (Cost $544,273) 575,813
---------------
================================================================================
RETAIL: 0.12%
- --------------------------------------------------------------------------------
3,097,000 Petro Stopping Centers LP, 3,282,820
9.00%, 02/15/2012,
Callable 02/15/2008 @ 104.50
(Note A, p. 11)
---------------
Total Retail (Cost $3,211,362) 3,282,820
---------------
================================================================================
SERVICE: 0.33%
- --------------------------------------------------------------------------------
9,390,000 Pershing Road Development 9,390,000
Company LLC, Rule 144A,
2.19%, 09/01/2026,
Callable 12/01/2004 @ 103.00
(Notes A, B & D, p. 11)
---------------
Total Service (Cost $9,390,000) 9,390,000
---------------
================================================================================
SUPERMARKET/DRUG: 0.39%
- --------------------------------------------------------------------------------
4,630,000 Safeway, Inc., 4,700,853
4.95%, 08/16/2010
(Note A, p. 11)
2,755,000 Pathmark Stores Inc., 2,575,925
8.75%, 02/01/2012,
Callable 02/01/2007 @ 104.38
(Note A, p. 11)
3,465,000 Albertson's Inc., Debenture, 3,937,591
7.45%, 08/01/2029
(Note A, p. 11)
---------------
Total Supermarket/Drug (Cost $11,210,931) 11,214,369
---------------
================================================================================
TECHNOLOGY: 0.16%
- --------------------------------------------------------------------------------
1,720,000 International Business 1,756,347
Machines Corp., Medium-Term
Note, 4.375%, 06/01/2009
(Note A, p. 11)
484,000 ON Semiconductor Corp., 556,600
12.00%, 03/15/2010,
Callable 03/15/2007 @ 106.00
(Note A, p. 11)
2,775,000 Amkor Technology Inc., Senior 2,275,500
Note, 7.75%, 05/15/2013,
Callable 01/15/2008 @ 103.88
(Note A, p. 11)
---------------
Total Technology (Cost $4,903,166) 4,588,447
---------------
================================================================================
ASSET-BACKED SECURITIES: 3.55%
- --------------------------------------------------------------------------------
9,060,000 Ford Credit Floorplan Master 9,058,913
Owner Trust, Series 2004-1
Class A, 1.80%, 07/15/2009
(Notes A & B, p. 11)
4,144,742 RAAC, Series 2004-SP1 Class 4,144,742
AI1, 2.02%, 06/25/2013
(Notes A & B, p. 11)
10,542,971 Residential Asset Securities 10,536,434
Corp., Series 2004-KS8 Class
AII1, 1.96%, 08/25/2013
(Notes A & B, p. 11)
5,530,417 Residential Funding Mortgage 5,529,532
Securities Inc., Series
2004-HS2 Class AI1,
1.99%, 12/25/2018
(Notes A & B, p. 11)
4,872,644 Residential Asset Securities 4,871,864
Corp., Series 2004-KS7 Class AI1,
1.99%, 10/25/2021
(Notes A & B, p. 11)
4,133,777 Residential Asset Mortgage 4,129,272
Products Inc., Series 2004-RS6
Class AI1, 1.99%, 08/25/2022
(Notes A & B, p. 11)
175,535 Residential Asset Mortgage 175,535
Products Inc., Series 2004-RS7
Class AI1, 2.01%, 08/25/2022
(Notes A & B, p. 11)
4,033,465 Residential Asset Mortgage 4,029,069
Products Inc., Series 2004-RS2
Class AI1, 1.97%, 01/25/2024
(Notes A & B, p. 11)
6,984,471 Residential Asset Securities 6,998,649
Corp., Series 2002-KS7 Class A2,
2.21%, 11/25/2032
(Notes A & B, p. 11)
7,875,109 Residential Asset Securities 7,884,953
Corp., Series 2003-KS3 Class A2,
2.14%, 05/25/2033
(Note A & B, p. 11)
5,576,835 Centex Home Equity, 5,581,185
Series 2003-C Class AV,
2.14%, 09/25/2033
(Notes A & B, p. 11)
Schedule of Investments -- Taxable Bond Portfolios 9
================================================================================
Principal Amount Description Market Value
================================================================================
$ 4,286,637 Countrywide Home Loans, Series $ 4,280,979
2003-49 Class A1,
1.642%, 12/19/2033
(Notes A & B, p. 11)
7,593,814 Ameriquest Mortgage Securities 7,589,333
Inc., Series 2004-R4 Class A2,
1.95%, 06/25/2034
(Notes A & B, p. 11)
6,165,348 Equity One ABS Inc., Series 6,163,437
2004-3 Class AF1,
2.00%, 07/25/2034
(Notes A & B, p. 11)
16,570,000 Long Beach Mortgage Loan 16,567,349
Trust, Series 2004-4 Class 2A2,
1.88%, 10/25/2034
(Notes A & B, p. 11)
3,661,170 Merrill Lynch Mortgage 3,660,584
Investors, Inc., Series
2004-SL1 Class A,
2.10%, 04/25/2035
(Notes A & B, p. 11)
---------------
Total Asset-Backed Securities
(Cost $101,226,030) 101,201,830
---------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 4.51%
- --------------------------------------------------------------------------------
84 Commercial Mortgage Asset 93
Trust, Series 1999-C1 Class
A3, 6.64%, 01/17/2032
(Note A, p. 11)
9,240,000 Greenwich Capital Commercial 8,912,534
Funding Corp., Series 2003-C1
Class A4, 4.111%, 07/05/2035
(Note A, p. 11)
300,000 Greenwich Capital Commercial 303,834
Funding Corp., Series 2003-C2
Class A3, 4.533%, 01/05/2036
(Note A, p.11)
7,790,000 CS First Boston Mortgage 7,816,408
Securities Corp., Series
2003-CK2 Class A2,
3.861%, 03/15/2036
(Note A, p. 11)
9,775,000 J.P. Morgan Chase Commercial 9,751,051
Mortgage Securities, Series
2004-C1 Class A2,
4.302%, 01/15/2038
(Note A, p. 11)
13,745,000 GS Mortgage Securities Corp. 14,408,609
II, Series 2004-GG2 Class A6,
5.396%, 08/10/2038
(Note A, p. 11)
13,670,000 Banc of America Commercial 14,383,301
Mortgage, Inc., Series 2004-3
Class A5, 5.306%, 06/10/2039
(Note A, p. 11)
9,640,000 GE Capital Commercial Mortgage 9,947,323
Corp., Series 2004-C3 Class A4,
5.189%, 07/10/2039
(Note A, p. 11)
7,390,000 Merrill Lynch Mortgage Trust 7,409,510
Series 2004-KEY Class A2,
4.166%, 08/12/2039
(Note A, p. 11)
8,705,000 Banc of America Commercial 8,668,700
Mortgage, Inc., Series 2004-1
Class A2, 4.037%, 11/10/2039
(Note A, p. 11)
12,600,000 Banc of America Commercial 12,637,800
Mortgage Inc., Series 2004-1
Class A4, 4.76%, 11/10/2039
(Note A, p. 11)
9,325,000 Morgan Stanley Capital I, 9,556,633
Series 2004-IQ8 Class A5,
5.11%, 06/15/2040
(Note A, p. 11)
6,640,000 Morgan Stanley Capital I, 6,763,836
Series 2003-IQ6 Class A4,
4.97%, 12/15/2041
(Note A, p. 11)
8,850,000 Banc of America Commercial 8,894,470
Mortgage, Inc., Series 2004-4
Class A3, 4.128%, 07/10/2042
(Note A, p. 11)
9,275,000 Morgan Stanley Capital I, 9,204,603
Series 2004-T13 Class A2,
3.94%, 09/13/2045
(Note A, p. 11)
---------------
Total Commercial Mortgage-Backed Securities
(Cost $126,161,712) 128,658,705
---------------
================================================================================
SOVEREIGN DEBT: 6.07%
- --------------------------------------------------------------------------------
51,915,000 Spain (Government of), 65,498,774
3.60%, 01/31/2009
(Note A, p. 11)
45,025,000 Germany (Federal Republic of), 55,982,091
Rule 144A,
3.25%, 04/17/2009
(Note A & D, p. 11)
13,880,000 Ukraine (Republic Of), Rule 144A, 13,880,000
7.65%, 06/11/2013
(Notes A & D, p. 11)
12,905,000 Brazil (Republic of), 14,376,170
10.50%, 07/14/2014
(Note A, p. 11)
22,315,000 United Mexican States, 23,453,065
7.50%, 04/08/2033
(Note A, p. 11)
---------------
Total Sovereign Debt (Cost $170,307,718) 173,190,100
---------------
10 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost
$3,919,263,269) 138.30% $ 3,945,312,847
(Note E, below)
Cash and Other Assets, Less
Liabilities (38.30) (1,092,509,442)
------ ---------------
Net Assets (Equivalent to
$13.41 per share based on
212,713,840 shares of
capital stock outstanding) 100.00% $ 2,852,803,405
====== ===============
================================================================================
FORWARD EXCHANGE CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
U.S. $
Contract Value on U.S. $
Amount Origination Current Unrealized
(000) Date Value (Depreciation)
- --------------------------------------------------------------------------------
Sales Contracts
Euro
Settling
10/25/04 97,972 $120,102,255 $121,634,726 $(1,532,471)
- --------------------------------------------------------------------------------
(A) Positions, or portion thereof, with an aggreagate market value of
$2,842,330,166 have been segregated to collateralize open forward exchange
currency contracts.
(B) Variable-rate coupon, rate shown as of September 30, 2004.
(C) When-issued security.
(D) 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 qualifies institutional
buyers. At September 30, 2004, the aggregate market value of these
securities amounted to $270,496,919 or 9.48% of net assets.
(E) At September 30, 2004, the cost basis of investment securities for tax
purposes was $3,919,391,408. Gross unrealized appreciation of investments
was $30,991,917 and gross unrealized depreciation of investments was
$5,070,478, resulting in net unrealized appreciation of $25,921,439.
Explanation of abbreviations:
FNMA -- Federal National Mortgage Association
PFD -- Preferred Stocks
TBA -- To Be Announced
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Short Duration Plus Portfolio
September 30, 2004
- --------------------------------------------------------------------------------
Principal Amount Description Market Value*
================================================================================
SHORT-TERM INVESTMENT: 14.70%
- --------------------------------------------------------------------------------
Repurchase Agreement: 14.70%
$83,000,000 State Street Bank & Trust Co., $ 83,000,000
Repurchase Agreement, dated
9/30/04, 1.67%, maturing
10/01/04 for $83,000,000,
collateralized by $84,550,000
FNMAs 1.88% due 02/15/05,
value $84,668,877
---------------
Total Repurchase Agreement
(Cost $83,000,000) 83,000,000
---------------
Total Short-Term Investment
(Cost $83,000,000) 83,000,000
---------------
================================================================================
U.S. TREASURY NOTES: 20.37%
- --------------------------------------------------------------------------------
11,585,000 2.375%, 08/15/2006 11,547,893
69,545,000 2.625%, 11/15/2006 69,520,520
33,750,000 3.50%, 08/15/2009 33,954,357
---------------
Total U.S. Treasury Notes (Cost $114,876,112) 115,022,770
---------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATIONS: 18.47%
- --------------------------------------------------------------------------------
16,190,000 Federal Home Loan Bank, 16,090,059
2.25%, 05/15/2006
28,515,000 Federal National Mortgage 28,612,521
Association,
3.25%, 06/28/2006
30,290,000 Federal Home Loan Mortgage Corp., 30,456,595
3.75%, 08/03/2007
29,010,000 Federal Home Loan Mortgage Corp., 29,127,781
4.25%, 05/04/2009
---------------
Total U.S. Government Sponsored Agency
Obligations (Cost $104,055,115) 104,286,956
---------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 11.15%
- --------------------------------------------------------------------------------
4,759,340 Federal Home Loan Mortgage 4,753,248
Corp., Series 2571 Class FB,
2.11%, 02/15/2018
(Note A, p. 15)
9,654,804 MLCC Mortgage Investors Inc., 9,647,273
Series 2003-F Class A1,
2.16%, 10/25/2028
(Note A, p. 15)
* See Note 1, page 42 in Notes to Financial Statements.
Schedule of Investments -- Taxable Bond Portfolios 11
================================================================================
Principal Amount Description Market Value
================================================================================
$ 8,206,341 MLCC Mortgage Investors Inc., $ 8,175,567
Series 2004-A Class A1,
2.07%, 04/25/2029
(Note A, p. 15)
267,263 Countrywide Alternative Loan 267,263
Trust, Series 2002-4 Class 2A1,
7.00%, 05/25/2032
5,355,897 Structured Asset Securities 5,407,849
Corp., Series 2002-11A Class 1A1,
2.859%, 06/25/2032
(Note A, p. 15)
6,600,000 Federal National Mortgage 6,625,938
Association, Series 2003-W7
Class A4, 4.06%, 03/25/2033
4,212,440 Credit Suisse First Boston 3,993,941
Mortgage Securities Corp.,
Series 2004-2R Class A1, Rule
144A, 5.309%, 12/28/2033
(Note B, p. 15)
5,813,626 Chase Mortgage Finance Corp., 5,982,221
Series 2003-S15 Class 1A1,
6.00%, 01/25/2034
3,189,546 Master Asset Securitization 3,225,429
Trust, Series 2004-9 Class 3A1,
5.25%, 07/25/2034
3,215,000 Morgan Stanley Mortgage Loan 3,290,360
Trust, Series 2004-8AR Class 4A1,
5.47%, 10/25/2034
3,215,000 Bank of America Funding Corp., 3,268,449
Series 2004-B Class 5A1,
5.234%, 11/20/2034
3,215,000 Bear Stearns Alt-A Trust, 3,272,774
Series 2004-11 Class 2A3,
5.052%, 11/25/2034
1,726,190 Federal National Mortgage 1,726,190
Association, Series 2003-W6
Class 1A23, 2.90%, 10/25/2042
3,305,593 Washington Mutual, Series 3,305,593
2004-AR10 Class A2C,
2.10%, 07/25/2044
---------------
Total Collateralized Mortgage Obligations
(Cost $63,238,244) 62,942,095
---------------
================================================================================
MORTGAGE PASS-THROUGHS: 16.56%
- --------------------------------------------------------------------------------
397,405 Federal Home Loan Mortgage 409,017
Corp. Pool #G90018,
9.00%, 03/17/2008
844,679 Federal National Mortgage 895,923
Association Pool #190708,
7.00%, 03/01/2009
266,361 Federal National Mortgage 282,695
Association Pool #743378,
7.00%, 05/01/2013
2,453,566 Federal National Mortgage 2,578,712
Association Pool #555161,
6.00%, 12/01/2013
735,254 Federal National Mortgage 782,781
Association Pool #535201,
7.50%, 03/01/2015
1,301,656 Federal National Mortgage 1,382,684
Association Pool #545802,
8.00%, 08/01/2016
3,629,468 Federal National Mortgage 3,808,343
Association Pool #619207,
6.00%, 12/01/2016
734,295 Federal National Mortgage 779,366
Association Pool #545505,
7.00%, 01/01/2017
136,386 Federal National Mortgage 144,771
Association Pool #622154,
7.00%, 01/01/2017
3,077,353 Federal National Mortgage 3,229,017
Association Pool #632292,
6.00%, 02/01/2017
329,482 Federal National Mortgage 349,705
Association Pool #545524,
7.00%, 02/01/2017
101,615 Federal National Mortgage 107,860
Association Pool #598436,
7.00%, 04/01/2017
482,099 Federal National Mortgage 511,728
Association Pool #636385,
7.00%, 04/01/2017
616,624 Federal National Mortgage 654,520
Association Pool #642051,
7.00%, 05/01/2017
157,888 Federal National Mortgage 165,663
Association Pool #648334,
6.00%, 06/01/2017
219,151 Federal National Mortgage 232,609
Association Pool #545725,
7.00%, 06/01/2017
136,528 Federal National Mortgage 144,908
Association Pool #545928,
7.00%, 06/01/2017
121,453 Federal National Mortgage 128,918
Association Pool #254414,
7.00%, 07/01/2017
107,593 Federal National Mortgage 114,205
Association Pool #655750,
7.00%, 08/01/2017
119,147 Federal National Mortgage 126,472
Association Pool #655836,
7.00%, 08/01/2017
54,646 Federal National Mortgage 58,004
Association Pool #655965,
7.00%, 08/01/2017
8,146,884 Federal National Mortgage 8,646,943
Association Pool #555299,
7.00%, 11/01/2017
12 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 11,690,000 Federal National Mortgage $ 12,245,275
Association Pool TBA,
6.00%, 10/25/2019
(Note C, p. 15)
1,591,597 Government National Mortgage 1,715,011
Association Pool #781478,
7.50%, 03/15/2032
22,095,000 Federal National Mortgage 23,172,131
Association Pool TBA,
6.50%, 10/25/2034
(Note C, p. 15)
29,085,000 Federal National Mortgage 30,830,100
Association Pool TBA,
7.00%, 10/25/2034
(Note C, p. 15)
---------------
Total Mortgage Pass-Throughs
(Cost $93,300,007) 93,497,361
---------------
================================================================================
BROADCASTING/MEDIA: 0.78%
- --------------------------------------------------------------------------------
4,160,000 AOL Time Warner Inc., 4,421,518
6.15%, 05/01/2007
---------------
Total Broadcasting/Media (Cost $4,428,569) 4,421,518
---------------
================================================================================
CABLE: 0.63%
- --------------------------------------------------------------------------------
3,205,000 Comcast Cable Communications Inc., 3,580,229
8.375%, 05/01/2007
---------------
Total Cable (Cost $3,475,286) 3,580,229
---------------
================================================================================
COMMUNICATIONS: 0.50%
- --------------------------------------------------------------------------------
2,650,000 Sprint Capital Corp., 2,805,067
6.00%, 01/15/2007
---------------
Total Communications (Cost $2,785,394) 2,805,067
---------------
================================================================================
ENERGY: 0.45%
- --------------------------------------------------------------------------------
2,615,000 Valero Energy Corp., 2,546,029
3.50%, 04/01/2009
---------------
Total Energy (Cost $2,604,000) 2,546,029
---------------
================================================================================
FINANCIAL: 6.76%
- --------------------------------------------------------------------------------
3,500,000 Ford Motor Credit Co., 3,502,520
3.535%, 10/25/2004
(Note A, p. 15)
2,450,000 Ford Motor Credit Co., 2,504,015
7.50%, 03/15/2005
5,445,000 General Motors Acceptance 5,679,631
Corp., Medium-Term Note,
6.75%, 01/15/2006
5,180,000 CIT Group Inc., 5,680,808
7.375%, 04/02/2007
5,640,000 Goldman Sachs Group Inc., 5,748,688
4.125%, 01/15/2008
5,735,000 Ford Motor Credit Co., 5,930,070
5.625%, 10/01/2008
9,100,000 Meridian Funding Co., Rule 9,095,450
144A, Medium-Term Note,
2.19%, 07/26/2010
(Notes A & B, p. 15)
---------------
Total Financial (Cost $37,830,111) 38,141,182
---------------
================================================================================
FOOD/BEVERAGE: 0.51%
- --------------------------------------------------------------------------------
2,865,000 Kraft Foods Inc., 2,882,846
4.00%, 10/01/2008
---------------
Total Food/Beverage (Cost $2,855,025) 2,882,846
---------------
================================================================================
HEALTHCARE: 0.61%
- --------------------------------------------------------------------------------
3,450,000 Anthem Inc., 3,450,542
3.50%, 09/01/2007
---------------
Total Healthcare (Cost $3,445,351) 3,450,542
---------------
================================================================================
PAPER/PACKAGING: 0.51%
- --------------------------------------------------------------------------------
2,675,000 Weyerhaeuser Co., 2,847,530
6.125%, 03/15/2007
---------------
Total Paper/Packaging (Cost $2,866,959) 2,847,530
---------------
================================================================================
PUBLIC UTILITIES -- ELECTRIC & GAS: 1.15%
- --------------------------------------------------------------------------------
4,500,000 CenterPoint Energy Resources 4,683,924
Corp., Series B, 8.125%, 07/15/2005
1,800,000 Pacific Gas & Electric Co., 1,779,005
3.60%, 03/01/2009
---------------
Total Public Utilities -- Electric & Gas
(Cost $6,457,073) 6,462,929
---------------
================================================================================
PUBLIC UTILITIES -- TELEPHONE: 0.75%
- --------------------------------------------------------------------------------
4,200,000 Telecom Italia Capital, Rule 4,223,604
144A, 4.00%, 11/15/2008
(Note B, p. 15)
---------------
Total Public Utilities -- Telephone
(Cost $4,198,359) 4,223,604
---------------
================================================================================
SUPERMARKET/DRUG: 0.61%
- --------------------------------------------------------------------------------
3,470,000 Safeway, Inc., 3,467,637
4.125%, 11/01/2008
---------------
Total Supermarket/Drug (Cost $3,468,819) 3,467,637
---------------
================================================================================
ASSET-BACKED SECURITIES: 13.84%
- --------------------------------------------------------------------------------
3,500,000 Winston Funding Ltd., Series 3,500,000
2003-1 Class A2, Rule 144A,
2.02%, 04/23/2009
(Notes A & B, p. 15)
Schedule of Investments -- Taxable Bond Portfolios 13
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,059,056 Spiegel Credit Card Master $ 1,056,737
Note Trust, Series 2001-A
Class A, 2.04%, 03/15/2010
(Note A, p. 15)
2,417,063 Residential Asset Securities 2,416,676
Corp., Series 2004-KS7 Class AI1,
1.99%, 10/25/2021
(Note A, p. 15)
2,005,583 Residential Asset Mortgage 2,003,396
Products Inc., Series 2004-RS6
Class AI1, 1.99%, 08/25/2022
(Note A, p. 15)
1,776,361 Residential Asset Mortgage 1,774,425
Products Inc., Series 2004-RS2
Class AI1, 1.97%, 01/25/2024
(Note A, p. 15)
2,384,889 Conseco Finance, Series 1999-H 2,387,846
Class AF6, 7.21%, 11/15/2029
818,750 First Franklin Mortgage Loan 818,881
Asset-Backed Certificates,
Series 2000-FF1 Class A,
2.30%, 09/25/2030
(Note A, p. 15)
1,329,204 Countrywide Asset-Backed 1,331,702
Certificates, Series 2003-BC1
Class A, 2.24%, 03/25/2033
(Note A, p. 15)
6,372,695 Renaissance Home Equity Loan 6,384,676
Trust, Series 2003-2 Class A,
2.28%, 08/25/2033
(Note A, p. 15)
3,798,480 Residential Asset Securities 3,803,228
Corp., Series 2003-KS3 Class
A2, 2.14%, 05/25/2033
(Note A, p. 15)
2,535,381 Centex Home Equity, Series 2,537,358
2003-C Class AV,
2.14%, 09/25/2033
(Note A, p. 15)
1,208,274 Structured Asset Securities 1,208,334
Corp., Series 2003-S2 Class A1,
2.09%, 12/25/2033
(Note A, p. 15)
6,735,767 Ace Securities Corp., Series 6,733,679
2003-0P1 Class A2,
2.20%, 12/25/2033
(Note A, p. 15)
9,400,000 Ameriquest Mortgage Securities 9,400,940
Inc., Series 2003-13 Class AF2,
3.177%, 01/25/2034
6,703,508 Home Equity Asset Trust, 6,718,188
Series 2003-7 Class A2,
2.22%, 03/25/2034
(Note A, p. 15)
3,252,478 Ameriquest Mortgage Securities 3,250,559
Inc., Series 2004-R4 Class A2,
1.95%, 06/25/2034
(Note A, p. 15)
3,011,536 Equity One ABS Inc., Series 3,010,602
2004-3 Class AF1,
2.00%, 07/25/2034
(Note A, p. 15)
6,700,000 Long Beach Mortgage Loan 6,683,116
Trust, Series 2004-3 Class M2,
2.44%, 07/25/2034
(Note A, p. 15)
6,025,000 Long Beach Mortgage Loan 6,024,036
Trust, Series 2004-4 Class
2A2, 1.876%, 10/25/2034
(Note A, p. 15)
3,846,625 Merrill Lynch Mortgage 3,851,434
Investors Inc., Series
2004-WMC1 Class A2,
2.14%, 10/25/2034
(Note A, p. 15)
3,215,000 Wells Fargo Mortgage- Backed 3,242,392
Securities, Series 2004-W
Class A1, 4.64%, 11/25/2034
---------------
Total Asset-Backed Securities
(Cost $78,228,510) 78,138,205
---------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 4.61%
- --------------------------------------------------------------------------------
5,201,000 Greenwich Capital Commercial 5,204,277
Funding Corp., Series 2003-FL1
Class B, Rule 144A,
2.316%, 07/15/2018
(Notes A & B, p. 15)
7,053,775 Asset Securitization Corp., 7,507,614
Series 1996-MD6 Class A1C,
7.04%, 11/13/2029
2,497,500 Asset Securitization Corp., 2,667,979
Series 1997-MD7 Class A1B,
7.41%, 01/13/2030
2,500,000 Commercial Mortgage Acceptance 2,525,000
Corp., Series 1997-ML1 Class A2,
6.53%, 12/15/2030
7,675,000 Nomura Asset Securities Corp., 8,103,879
Series 1996-MD5 Class A1B,
7.12%, 04/13/2039
---------------
Total Commercial Mortgage-Backed Securities
(Cost $26,239,148) 26,008,749
---------------
14 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost
$637,352,082) 112.96% $ 637,725,249
(Note D, below)
Cash and Other Assets,
Less Liabilities (12.96) (73,179,318)
------ ---------------
Net Assets 100.00% $ 564,545,931
====== ===============
- --------------------------------------------------------------------------------
(A) Variable-rate coupon, rate shown as of September 30, 2004.
(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 September 30, 2004, the aggregate market value of these
securities amounted to $26,017,272 or 4.61% of net assets.
(C) When-issued security.
(D) At September 30, 2004, the cost basis of investment securities for tax
purposes was $637,474,472. Gross unrealized appreciation of investments was
$1,162,569 and gross unrealized depreciation of investments was $911,792,
resulting in net unrealized appreciation of $250,777.
Explanation of abbreviations:
FNMA -- Federal National Mortgage Association
TBA -- To Be Announced
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
U.S. Government Short Duration Portfolio
September 30, 2004
- --------------------------------------------------------------------------------
Principal Amount Description Market Value*
================================================================================
SHORT-TERM INVESTMENTS: 15.52%
- --------------------------------------------------------------------------------
U.S. Treasury Bill: 14.18%
$13,280,000 United States Treasury Bills $ 13,272,687
1.52%, 10/14/2004
---------------
Total U.S. Treasury Bill (Cost $13,272,687) 13,272,687
---------------
Repurchase Agreement: 1.34%
1,250,000 State Street Bank & Trust Co., 1,250,000
Repurchase Agreement, dated
09/30/04, 1.67%, maturing
10/01/04 for $1,250,058,
collateralized by $1,265,000
FFCB, 1.97%, due 10/20/04,
value $1,276,126
---------------
Total Repurchase Agreement (Cost $1,250,000) 1,250,000
---------------
Total Short-Term Investments
(Cost $14,522,687) 14,522,687
---------------
================================================================================
U.S. TREASURY NOTES: 30.93%
- --------------------------------------------------------------------------------
21,405,000 1.125%, 06/30/2005 21,254,501
2,180,000 2.375%, 08/15/2006 2,173,018
2,190,000 2.625%, 11/15/2006 2,189,229
3,310,000 3.50%, 08/15/2009 3,330,042
---------------
Total U.S. Treasury Notes (Cost $28,953,073) 28,946,790
---------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATIONS: 34.70%
- --------------------------------------------------------------------------------
4,000,000 Federal Home Loan Bank, 3,949,560
2.04%, 06/12/2006
4,000,000 Federal Farm Credit Bank, 3,951,200
2.05%, 06/12/2006
4,670,000 Federal National Mortgage 4,685,971
Association,
3.25%, 06/28/2006,
Callable 06/28/2005 @ 100.00
5,000,000 Federal Farm Credit Bank, 5,016,725
3.25%, 06/15/2007
4,940,000 Federal Home Loan Mortgage Corp., 4,967,170
3.75%, 08/03/2007,
Callable 08/03/2005 @ 100.00
250,000 Federal National Mortgage 249,375
Association,
3.50%, 01/28/2008
5,000,000 Federal Home Loan Bank, 4,870,115
3.00%, 04/15/2009
* See Note 1, page 42 in Notes to Financial Statements.
Schedule of Investments -- Taxable Bond Portfolios 15
================================================================================
Principal Amount Description Market Value
================================================================================
$ 4,770,000 Federal Home Loan Mortgage Corp., $ 4,789,366
4.25%, 05/04/2009,
Callable 05/04/2005 @ 100.00
---------------
Total U.S. Government Sponsored Agency
Obligations (Cost $32,448,833) 32,479,482
---------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 6.67%
- --------------------------------------------------------------------------------
1,206,593 Federal Home Loan Mortgage 1,205,049
Corp., Series 2571 Class FB,
2.11%, 02/15/2018
(Note A, p. 17)
1,359,247 MLCC Mortgage Investors, Inc., 1,354,150
Series 2004-A Class A1,
2.07%, 04/25/2029
1,300,000 Federal National Mortgage 1,305,109
Association, Series 2003-W7
Class A4, 4.06%, 03/25/2033
1,834,247 Structured Asset Securities 1,843,785
Corp., Series 2003-23H Class
1A1, 5.50%, 07/25/2033
534,824 Federal National Mortgage 534,824
Association, Series 2003-W6
Class 1A23, 2.90%, 10/25/2042
---------------
Total Collateralized Mortgage Obligations
(Cost $6,305,598) 6,242,917
---------------
================================================================================
MORTGAGE PASS-THROUGHS: 19.63%
- --------------------------------------------------------------------------------
401,155 Federal National Mortgage 425,492
Association Pool #190708,
7.00%, 03/01/2009
253,043 Federal National Mortgage 268,561
Association Pool #743378,
7.00%, 05/01/2013
718,117 Federal National Mortgage 754,745
Association Pool #555161,
6.00%, 12/01/2013
262,591 Federal National Mortgage 279,565
Association Pool #535201,
7.50%, 03/01/2015
492,935 Federal National Mortgage 523,620
Association Pool #545802,
8.00%, 08/01/2016
1,308,455 Federal National Mortgage 1,372,940
Association Pool # 254047,
6.00%, 11/01/2016
642,986 Federal National Mortgage 682,453
Association Pool #545505,
7.00%, 01/01/2017
520,500 Federal National Mortgage 552,488
Association Pool #661617,
7.00%, 09/01/2017
2,598,534 Federal National Mortgage 2,758,033
Association Pool #555299,
7.00%, 11/01/2017
1,425,000 Federal National Mortgage 1,492,688
Association Pool TBA,
6.00%, 10/25/2019
(Note B, p. 17)
319,351 Federal Home Loan Mortgage 339,035
Corp. Pool #G01391,
7.00%, 04/01/2032
3,635,000 Federal National Mortgage 3,812,206
Association Pool TBA,
6.50%, 10/25/2034
(Note B, p. 17)
4,820,000 Federal National Mortgage 5,109,200
Association Pool TBA,
7.00%, 10/25/2034
(Note B, p. 17)
---------------
Total Mortgage Pass-Throughs
(Cost $18,307,795) 18,371,026
---------------
================================================================================
ASSET-BACKED SECURITIES: 3.50%
- --------------------------------------------------------------------------------
324,046 Residential Asset Mortgage 323,693
Products Inc., Series 2004-RS6
Class AI1, 1.99%, 08/25/2022
(Note A, p. 17)
293,219 Residential Asset Mortgage 292,899
Products Inc., Series 2004-RS2
Class AI1, 1.97%, 01/25/2024
(Note A, p. 17)
614,247 Residential Asset Securities 615,015
Corp., Series 2003-KS3 Class
A2, 2.14%, 05/25/2033
(Note A, p. 17)
418,388 Centex Home Equity, Series 418,714
2003-C Class AV,
2.14%, 09/25/2033
(Note A, p. 17)
1,096,431 Ace Securities Corp., Series 1,096,091
2003-OP1 Class A2,
2.20%, 12/25/2033
(Note A, p. 17)
532,096 Ameriquest Mortgage Securities 531,782
Inc., Series 2004-R4 Class A2,
1.95%, 06/25/2034
(Note A, p. 17)
---------------
Total Asset-Backed Securities
(Cost $3,280,438) 3,278,194
---------------
16 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
INVESTMENT SUMMARY
Total Investments (Cost
$103,818,424) 110.95% $ 103,841,096
(Note C, below)
Cash and Other Assets,
Less Liabilities (10.95) (10,246,326)
------ ---------------
Net Assets (Equivalent to
$12.68 per share based on
7,379,452 shares of capital
stock outstanding) 100.00% $ 93,594,770
====== ===============
- --------------------------------------------------------------------------------
(A) Variable-rate coupon, rate shown as of September 30, 2004.
(B) When-issued security.
(C) At September 30, 2004, the cost basis of investment securities on a tax
basis was $103,851,998. Gross unrealized appreciation of investments was
$192,629 and gross unrealized depreciation of investments was $203,531,
resulting in net unrealized depreciation of $10,902.
Explanation of abbreviations:
FFCB -- Federal Farm Credit Bank
TBA -- To Be Announced
See Notes to Financial Statements.
Schedule of Investments -- Taxable Bond Portfolios 17
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund II, Inc.
Schedule of Investments
Intermediate Duration Institutional Portfolio
September 30, 2004
- --------------------------------------------------------------------------------
Principal Amount Description Market Value*
================================================================================
SHORT-TERM INVESTMENTS: 43.34%
- --------------------------------------------------------------------------------
U.S. Treasury Bill: 40.88%
$ 250,000,000 1.52%, 12/23/2004 $ 249,023,021
(Note A, p. 26)
---------------
Total U.S. Treasury Bill (Cost $249,023,021) 249,023,021
---------------
Repurchase Agreement: 2.46%
15,000,000 State Street Bank & Trust Co., 15,000,000
Repurchase Agreement, dated
09/30/04, 1.67%, maturing
10/01/04 for $15,000,696,
collateralized by $15,280,000
FNMA, 1.875%, due 02/15/05,
value $15,301,484
---------------
Total Repurchase Agreement
(Cost $15,000,000) 15,000,000
---------------
Total Short-Term Investments
(Cost $264,023,021) 264,023,021
---------------
================================================================================
U.S. TREASURY NOTES: 8.18%
- --------------------------------------------------------------------------------
19,905,000 2.50%, 09/30/2006 19,862,204
(Note A, p. 26)
29,765,000 3.50%, 08/15/2009 29,945,227
(Note A, p. 26)
---------------
Total U.S. Treasury Notes (Cost $49,793,925) 49,807,431
---------------
================================================================================
U.S. TREASURY BONDS: 1.17%
- --------------------------------------------------------------------------------
3,160,000 8.75%, 05/15/2017 4,458,438
(Note A, p. 26)
2,505,000 5.375%, 02/15/2031 2,683,481
(Note A, p. 26)
---------------
Total U.S. Treasury Bonds (Cost $6,842,085) 7,141,919
---------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATIONS: 6.61%
- --------------------------------------------------------------------------------
12,780,000 Federal National Mortgage 12,823,707
Association,
3.25%, 06/28/2006,
Callable 06/28/2005 @ 100.00
(Note A, p. 26)
7,520,000 Federal Home Loan Mortgage Corp., 7,561,360
3.75%, 08/03/2007,
Callable 08/03/2004 @100.00
(Note A, p. 26)
11,800,000 Federal National Mortgage 11,758,110
Association,
3.41%, 08/30/2007,
Callable 09/01/2005 @ 100.00
(Note A, p. 26)
8,150,000 Federal Home Loan Banks 8,150,522
3.75%, 08/18/2009
(Note A, p. 26)
---------------
Total U.S. Government Sponsored Agency
Obligations (Cost $40,261,384) 40,293,699
---------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 1.21%
- --------------------------------------------------------------------------------
4,566,128 Federal National Mortgage 4,644,619
Association, Series 2003-92
Class BR, 5.00%, 04/25/2014
(Note A, p. 26)
1,090,706 Deutsche Mortgage Securities 1,090,706
Inc., Series 2004-4 Class 1A1,
2.05%, 04/25/2034
(Notes A & B, p. 26)
1,645,407 Washington Mutual, Series 1,645,407
2004-AR10 Class A2C,
2.01%, 07/25/2044
(Notes A & B, p. 26)
---------------
Total Collateralized Mortgage Obligations
(Cost $7,468,842) 7,380,732
---------------
================================================================================
MORTGAGE PASS-THROUGHS: 41.74%
- --------------------------------------------------------------------------------
2,458,921 Federal National Mortgage 2,580,106
Association Pool #625179,
6.00%, 02/01/2017
(Note A, p. 26)
22,230,000 Federal National Mortgage 22,146,637
Association Pool TBA,
4.50%, 10/25/2019
(Note C, p. 26)
21,000,000 Federal National Mortgage 21,695,625
Association Pool TBA,
5.50%, 10/25/2019
(Note C, p. 26)
145,264 Federal National Mortgage 152,974
Association Pool #313649,
6.50%, 08/01/2027
(Note A, p. 26)
366,949 Federal National Mortgage 385,825
Association Pool #412590,
6.50%, 02/01/2028
(Note A, p. 26)
5,901 Federal National Mortgage 6,205
Association Pool #252212,
6.50%, 01/01/2029
(Note A, p. 26)
* See Note 1, page 42 in Notes to Financial Statements.
18 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 39,936 Federal National Mortgage $ 41,990
Association Pool #414761,
6.50%, 02/01/2029
(Note A, p. 26)
4,673 Federal National Mortgage 4,914
Association Pool #449291,
6.50%, 02/01/2029
(Note A, p. 26)
7,247 Federal National Mortgage 7,619
Association Pool #459498,
6.50%, 02/01/2029
(Note A, p. 26)
28,689 Federal National Mortgage 30,150
Association Pool #484965,
6.50%, 06/01/2029
(Note A, p. 26)
9,558 Federal National Mortgage 10,044
Association Pool #509037,
6.50%, 08/01/2029
(Note A, p. 26)
5,275 Federal National Mortgage 5,544
Association Pool #515259,
6.50%, 10/01/2029
(Note A, p. 26)
372,368 Federal National Mortgage 390,855
Association Pool #585228,
6.50%, 05/01/2031
(Note A, p. 26)
239,105 Federal National Mortgage 250,980
Association Pool #640047,
6.50%, 06/01/2032
(Note A, p. 26)
953,108 Federal National Mortgage 1,000,445
Association Pool #672910,
6.50%, 11/01/2032
(Note A, p. 26)
407,386 Federal National Mortgage 427,688
Association Pool #698986,
6.50%, 04/01/2033
(Note A, p. 26)
11,541,071 Federal National Mortgage 11,449,150
Association Pool #725231,
5.00%, 02/01/2034
(Note A, p. 26)
136,611 Federal National Mortgage 143,418
Association Pool #255162,
6.50%, 03/01/2034
(Note A, p. 26)
11,675,000 Government National Mortgage 11,609,328
Association Pool TBA,
5.00%, 10/15/2034
(Note C, p. 26)
9,560,000 Federal Home Loan Mortgage 9,870,700
Corp. Pool TBA,
6.00%, 10/15/2034
(Note C, p. 26)
4,695,000 Government National Mortgage 4,865,194
Association Pool TBA,
6.00%, 10/15/2034
(Note C, p. 26)
23,720,000 Federal National Mortgage 23,467,975
Association Pool TBA,
5.00%, 10/25/2034
(Note C, p. 26)
34,605,000 Federal National Mortgage 35,059,191
Association Pool TBA,
5.50%, 10/25/2034
(Note C, p. 26)
47,050,000 Federal National Mortgage 49,343,687
Association Pool TBA,
6.50%, 10/25/2034
(Note C, p. 26)
57,580,000 Federal National Mortgage 59,325,365
Association Pool TBA,
6.00%, 11/25/2034
(Note C, p. 26)
---------------
Total Mortgage Pass-Throughs
(Cost $254,343,338) 254,271,609
---------------
================================================================================
AEROSPACE/DEFENSE: 0.06%
- --------------------------------------------------------------------------------
365,000 Boeing Capital Corp., Senior 380,561
Note, 4.75%, 08/25/2008
(Note A, p. 26)
---------------
Total Aerospace/Defense (Cost $364,513) 380,561
---------------
================================================================================
AUTOMOTIVE: 0.85%
- --------------------------------------------------------------------------------
1,038,000 General Motors Acceptance Corp., 1,058,154
5.625%, 05/15/2009
(Note A, p. 26)
42,000 TRW Automotive, Senior 49,980
Subordinated Note,
11.00%, 02/15/2013,
Callable 02/15/2008 @ 105.50
(Note A, p. 26)
2,000 Keystone Automotive Operations 2,150
Inc., Senior Subordinated
Note, 9.75%, 11/01/2013,
Callable 11/01/2008 @ 104.88
(Note A, p. 26)
565,000 Ford Motor Co., 496,588
6.375%, 02/01/2029
(Note A, p. 26)
1,450,000 Ford Motor Co., 1,421,769
7.45%, 07/16/2031
(Note A, p. 26)
2,025,000 General Motors Corp., 2,150,088
8.375%, 07/15/2033
(Note A, p. 26)
---------------
Total Automotive (Cost $5,177,159) 5,178,729
---------------
Schedule of Investments -- Taxable Bond Portfolios 19
================================================================================
Principal Amount Description Market Value
================================================================================
BANKING: 2.40%
- --------------------------------------------------------------------------------
$ 3,660,000 Mizuho Financial Group Ltd. $ 3,959,684
(Cayman),
8.375%, 04/27/2009
(Note A, p. 26)
1,015,000 Suntrust Bank 1,014,797
1.91%, 06/02/2009
(Notes A & B, p. 26)
1,820,000 JP Morgan Chase & Co., 2,047,602
6.75%, 02/01/2011
(Note A, p. 26)
1,000,000 Bank of America Corp., Senior 1,105,415
Note, 6.25%, 04/15/2012
(Note A, p. 26)
295,000 Capital One Bank, Subordinated 322,590
Note, 6.50%, 06/13/2013
(Note A, p. 26)
2,095,000 RBS Capital Trust I, 2,026,336
4.709%, 12/29/2049,
Callable 07/01/2013 @ 100.00
(Notes A & B, p. 26)
500,000 Mizuho Financial Group Ltd., 515,865
Rule 144A, 5.79%, 04/15/2014
(Notes A & D, p. 26)
1,950,000 RBS Capital Trust III, 1,977,339
5.512%, 09/29/2049,
Callable 09/30/2014 @ 100.00
(Notes A & B, p. 26)
120,000 Royal Bank of Scotland Group 121,505
plc, Subordinated Note,
5.00%, 10/01/2014
(Note A, p. 26)
905,000 Barclays Bank plc, Rule 144A, 1,053,107
7.375%, 06/29/2049
(Notes A, B & D, p. 26)
400,000 Barclays Bank plc, Rule 144A, 489,942
8.55%, 09/29/2049
(Notes A, B & D, p. 26)
---------------
Total Banking (Cost $14,104,732) 14,634,182
---------------
================================================================================
BROADCASTING/MEDIA: 1.28%
- --------------------------------------------------------------------------------
890,000 News America Holdings, 1,143,388
9.25%, 02/01/2013
(Note A, p. 26)
735,000 WPP Finance Corp., Rule 144A, 753,219
5.875%, 06/15/2014
(Notes A & D, p. 26)
2,555,000 Time Warner Entertainment Co., 3,055,739
Senior Debenture,
8.375%, 03/15/2023
(Note A, p. 26)
1,225,000 AOL Time Warner Inc., 1,424,426
7.70%, 05/01/2032
(Note A, p. 26)
1,355,000 News America Holdings, 1,434,896
6.55%, 03/15/2033
(Note A, p. 26)
---------------
Total Broadcasting/Media (Cost $7,435,893) 7,811,668
---------------
================================================================================
BUILDING/REAL ESTATE: 0.04%
- --------------------------------------------------------------------------------
210,000 LNR Property Corp., Senior 228,900
Subordinated Note,
7.25%, 10/15/2013,
Callable 10/15/2008 @ 103.62
(Note A, p. 26)
---------------
Total Building/Real Estate (Cost $210,000) 228,900
---------------
================================================================================
CABLE: 0.61%
- --------------------------------------------------------------------------------
385,000 British Sky Broadcasting Group plc, 425,493
6.875%, 02/23/2009
(Note A, p. 26)
105,000 Insight Midwest LP, Senior 109,725
Note, 9.75%, 10/01/2009,
Callable 10/01/2004 @ 104.88
(Note A, p. 26)
570,000 Charter Communications 568,575
Operating LLC, Senior Note,
Rule 144A, 8.00%, 04/30/2012
(Notes A & D, p. 26)
980,000 Cox Communications Inc., 903,689
4.625%, 06/01/2013
(Note A, p. 26)
1,550,000 Comcast Corp., Class A, 1,700,421
7.05%, 03/15/2033
(Note A, p. 26)
---------------
Total Cable (Cost $3,658,264) 3,707,903
---------------
================================================================================
CHEMICALS: 0.02%
- --------------------------------------------------------------------------------
140,000 Resolution Performance 144,550
Products, Senior Note,
9.50%, 04/15/2010,
Callable 04/15/2006 @ 104.75
(Note A, p. 26)
---------------
Total Chemicals (Cost $144,239) 144,550
---------------
================================================================================
COMMUNICATIONS: 2.26%
- --------------------------------------------------------------------------------
1,105,000 Telus Corp., 1,211,695
7.50%, 06/01/2007
(Note A, p. 26)
2,465,000 Telecom Italia Capital Corp., 2,446,357
Rule 144A, 4.00%, 01/15/2010
(Notes A & D, p. 26)
695,000 Koninklijke (Royal) KPN NV, 826,475
Senior Unsubordinated Note,
8.00%, 10/01/2010
(Note A, p. 26)
20 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 350,000 SBC Communications Inc., $ 374,161
5.875%, 08/15/2012
(Note A, p. 26)
2,805,000 Verizon Global Funding Corp., 3,275,553
7.375%, 09/01/2012
(Note A, p. 26)
230,000 SBC Communications Inc., 235,044
5.625%, 06/15/2016
(Note A, p. 26)
1,450,000 Sprint Capital Corp., 1,520,895
6.875%, 11/15/2028
(Note A, p. 26)
550,000 Deutsche Telekom International 710,918
Finance BV,
8.75%, 06/15/2030
(Note A, p. 26)
2,485,000 Sprint Capital Corp., 3,153,940
8.75%, 03/15/2032
(Note A, p. 26)
---------------
Total Communications (Cost $13,242,969) 13,755,038
---------------
================================================================================
COMMUNICATIONS -- FIXED: 0.16%
- --------------------------------------------------------------------------------
760,000 British Telecommunications plc, 998,415
8.875%, 12/15/2030
(Note A, p. 26)
---------------
Total Communications -- Fixed (Cost $981,496) 998,415
---------------
================================================================================
COMMUNICATIONS -- MOBILE: 0.58%
- --------------------------------------------------------------------------------
15,000 AT&T Wireless Services Inc., 17,772
Senior Note,
7.875%, 03/01/2011
(Note A, p. 26)
185,000 American Cellular Corp., 149,850
Senior Note,
10.00%, 08/01/2011,
Callable 08/01/2007 @ 105
(Note A, p. 26)
560,000 Rural Cellular Corp., Rule 569,800
144A, 8.25%, 03/15/2012,
Callable 3/15/08 @ 104.12
(Notes A & D, p. 26)
295,000 PanAmSat Corp., Rule 144A, 306,800
9.00%, 08/15/2014,
Callable 08/15/2009 @ 104.50
(Notes A & D, p. 26)
1,875,000 AT&T Wireless Services Inc., 2,461,933
Senior Note,
8.75%, 03/01/2031
(Note A, p. 26)
---------------
Total Communications -- Mobile
(Cost $3,327,454) 3,506,155
---------------
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.26%
- --------------------------------------------------------------------------------
1,505,000 Hutchison Whampoa $ 1,559,607
International Ltd., Rule 144A,
7.45%, 11/24/2033
(Notes A & D, p. 26)
---------------
Total Conglomerate/Miscellaneous
(Cost $1,499,077) 1,559,607
---------------
================================================================================
CONSUMER MANUFACTURING: 0.23%
- --------------------------------------------------------------------------------
540,000 Fortune Brands Inc. 538,025
2.875%, 12/01/2006
(Note A, p. 26)
560,000 Broder Brothers, Senior Note, 560,000
11.25%, 10/15/2010,
Callable 10/15/2007 @ 105.62
(Note A, p. 26)
300,000 Jostens IH Corp., Rule 144A, 301,500
7.625%, 10/01/2012,
Callable 10/01/2008 @ 103.81
(Notes A & D, p. 26)
---------------
Total Consumer Manufacturing
(Cost $1,400,078) 1,399,525
---------------
================================================================================
ENERGY: 0.50%
- --------------------------------------------------------------------------------
200,000 Hilcorp Energy I LP, Senior 221,500
Note, Rule 144A,
10.50%, 09/01/2010,
Callable 09/01/2007 @ 105.25
(Notes A & D, p. 26)
1,150,000 Conoco Inc., Senior Note, 1,326,879
6.95%, 04/15/2029
(Note A, p. 26)
1,295,000 Valero Energy Corp., 1,514,008
7.50%, 04/15/2032
(Note A, p. 26)
---------------
Total Energy (Cost $2,869,654) 3,062,387
---------------
================================================================================
ENTERTAINMENT/LEISURE: 0.04%
- --------------------------------------------------------------------------------
235,000 NCL Corp., Senior Note, Rule 246,163
144A, 10.625%, 07/15/2014,
Callable 07/15/2009 @ 105.31
(Notes A & D, p. 26)
---------------
Total Entertainment/Leisure (Cost $235,000) 246,163
---------------
================================================================================
FINANCIAL: 7.27%
- --------------------------------------------------------------------------------
530,000 CIT Group Inc., Medium-Term 530,056
Note, 1.94%, 05/18/2007
(Notes A & B, p. 26)
4,705,000 General Electric Capital 4,706,506
Corp., Medium-Term Note,
1.979%, 06/22/2007
(Notes A & B, p. 26)
Schedule of Investments -- Taxable Bond Portfolios 21
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,880,000 Household Finance Corp., $ 2,068,671
6.50%, 11/15/2008
(Note A, p. 26)
1,510,000 American General Finance 1,550,454
Corp., Medium-Term Note,
4.625%, 05/15/2009
(Note A, p. 26)
720,000 Citigroup Inc., 720,334
2.00%, 06/09/2009
(Notes A & B, p. 26)
4,240,000 Dow Jones Cdx High Yield 4,293,000
Series 3-1, Rule 144A,
7.75%, 12/29/2009
(Notes A & D, p. 26)
12,325,000 Dow Jones Cdx High Yield 12,348,109
Series 3-3, Rule 144A,
8.00%, 12/29/2009
(Notes A & D, p. 26)
1,225,000 Berkshire Hathaway Finance Corp., 1,229,631
4.20%, 12/15/2010,
(Note A, p. 26)
940,000 Ford Motor Credit Co., 1,022,261
7.375%, 02/01/2011
(Note A, p. 26)
1,375,000 Countrywide Home Loans, Inc. 1,335,345
Medium-Term Note, Series L,
4.00%, 03/22/2011
(Note A, p. 26)
565,000 Household Finance Corp., 646,608
7.00%, 05/15/2012
(Note A, p. 26)
650,000 Goldman Sachs Group Inc., 637,738
4.75%, 07/15/2013
(Note A, p. 26)
330,000 Ford Motor Credit Co., 348,905
7.00%, 10/01/2013
(Note A, p. 26)
380,000 Txu Australia Holdings Pty 413,412
Ltd., Rule 144A,
6.15%, 11/15/2013
(Notes A & D, p. 26)
385,000 Capital One Financial Corp. 413,401
6.25%, 11/15/2013
(Note A, p. 26)
660,000 Duke Capital LLC, Senior Note, 669,117
5.50%, 03/01/2014
(Note A, p. 26)
1,560,000 Morgan Stanley, Subordinated 1,510,199
Note, 4.75%, 04/01/2014
(Note A, p. 26)
360,000 Duke Capital LLC, 367,179
5.668%, 08/15/2014
(Note A, p. 26)
3,671,000 Citigroup Inc., Subordinate 3,675,567
Note, Rule 144A,
5.00%, 09/15/2014
(Notes A & D, p. 26)
1,225,000 CBA Capital Trust I, Rule 1,267,936
144A, 5.805%, 06/30/2015
(Notes A & D, p. 26)
720,000 Royal & Sun Alliance Insurance 895,731
Group, plc
8.95%, 10/15/2029
(Note A, p. 26)
2,260,000 General Electric Capital 2,601,050
Corp., Medium-Term Note Series A,
6.75%, 03/15/2032
(Note A, p. 26)
1,035,000 Goldman Sachs Group Inc. 1,038,262
6.345%, 02/15/2034
(Note A, p. 26)
---------------
Total Financial (Cost $43,337,745) 44,289,472
---------------
================================================================================
FOOD/BEVERAGE: 0.44%
- --------------------------------------------------------------------------------
1,315,000 Delhaize America Inc., 1,501,761
8.125%, 04/15/2011
(Note A, p. 26)
1,125,000 Anheuser-Busch Cos., Inc., 1,187,063
Debenture, 5.95%, 01/15/2033
(Note A, p. 26)
---------------
Total Food/Beverage (Cost $2,548,538) 2,688,824
---------------
================================================================================
GAMING: 0.04%
- --------------------------------------------------------------------------------
220,000 Riviera Holdings Corp., 242,000
11.00%, 06/15/2010,
Callable 06/15/2006 @ 105.50
(Note A, p. 26)
---------------
Total Gaming (Cost $231,235) 242,000
---------------
================================================================================
HEALTHCARE: 0.30%
- --------------------------------------------------------------------------------
230,000 Hanger Orthopedic Group, Inc., 211,600
10.375%, 02/15/2009,
Callable 02/15/2006 @ 105.19
(Note A, p. 26)
615,000 Alliance Imaging Inc., Senior 668,044
Subordinated Note,
10.375%, 04/15/2011,
Callable 04/15/2006 @ 105.19
(Note A, p. 26)
175,000 Universal Hospital Services 177,625
Inc., Senior Note,
10.125%, 11/01/2011,
Callable 11/01/2007 @ 105.06
(Note A, p. 26)
22 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount/Shares Description Market Value
================================================================================
$ 80,000 Concentra Operating Corp., $ 87,600
Rule 144A, 9.125%, 06/01/2012,
Callable 06/01/2008 @ 104.56
(Notes A & D, p. 26)
685,000 Humana Inc., Senior Note, 709,266
6.30%, 08/01/2018
(Note A, p. 26)
---------------
Total Healthcare (Cost $1,828,140) 1,854,135
---------------
================================================================================
INDUSTRIAL: 0.32%
- --------------------------------------------------------------------------------
185,000 FastenTech Inc., Senior Note, 208,125
Rule 144A, 11.50%, 05/01/2011,
Callable 05/01/2007 @ 105.75
(Notes A & D, p. 26)
250,000 H&E Equipment Services LLC, 257,500
11.125%, 06/15/2012,
Callable 06/15/2007 @ 105.56
(Note A, p. 26)
1,435,000 General Electric Co., 1,475,813
5.00%, 02/01/2013
(Note A, p. 26)
---------------
Total Industrial (Cost $1,889,747) 1,941,438
---------------
================================================================================
INSURANCE: 1.09%
- --------------------------------------------------------------------------------
1,910,000 Mangrove Bay Pass-Through 1,943,788
Trust, Rule 144A,
6.102%, 07/15/2003,
Callable 07/15/2013 @ 100
(Notes A, B & D, p. 26)
2,975 Genworth Financial Inc., Pfd. 86,870
6.00%, 05/16/2007
(Note A, p. 26)
780,000 MetLife Inc. 784,586
5.00%, 11/24/2013
(Note A, p. 26)
735,000 Assurant Inc., 754,211
5.625%, 02/15/2014
(Note A, p. 26)
855,000 Liberty Mutual Group, Rule 849,439
144A, 5.75%, 03/15/2014,
(Notes A & D, p. 26)
275,000 UnumProvident Corp., 266,063
7.375%, 06/15/2032
(Note A, p. 26)
1,740,000 Zurich Capital Trust, Rule 1,985,731
144A, 8.376%, 06/01/2037,
Callable 06/01/2007 @ 104.19
(Notes A & D, p. 26)
---------------
Total Insurance (Cost $6,571,522) 6,670,688
---------------
================================================================================
METALS/MINING:0.04%
225,000 AK Steel Corp., 223,313
7.875%, 02/15/2009,
Callable 02/15/2004 @ 103.94
(Note A, p. 26)
---------------
Total Metals/Mining (Cost $200,802) 223,313
---------------
================================================================================
NON-AIR TRANSPORTATION: 0.04%
- --------------------------------------------------------------------------------
230,000 Horizon Lines LLC, Rule 144A, 242,650
9.00%, 11/01/2012,
Callable 11/01/2008 @ 104.50
(Notes A & D, p. 26)
---------------
Total Non-Air Transportation (Cost $230,551) 242,650
---------------
================================================================================
PAPER/PACKAGING: 0.94%
- --------------------------------------------------------------------------------
910,000 Abitibi-Consolidated Inc., 939,575
8.30%, 08/01/2005
(Note A, p. 26)
5,000 International Paper Co., 5,572
6.75%, 09/01/2011
(Note A, p. 26)
465,000 Sealed Air Corp., Rule 144A, 478,085
5.625%, 07/15/2013
(Notes A & D, p. 26)
460,000 Packaging Corp. of America 474,725
5.75%, 08/01/2013
(Note A, p. 26)
1,015,000 International Paper Co., 1,009,349
5.30%, 04/01/2015
(Note A, p. 26)
2,460,000 Weyerhaeuser Co., 2,822,823
7.375%, 03/15/2032
(Note A, p. 26)
---------------
Total Paper/Packaging (Cost $5,608,190) 5,730,129
---------------
================================================================================
PETROLEUM PRODUCTS: 0.35%
- --------------------------------------------------------------------------------
20,000 Amerada Hess Corp., 22,082
6.65%, 08/15/2011
(Note A, p. 26)
900,000 Amerada Hess Corp., 1,040,758
7.875%, 10/01/2029
(Note A, p. 26)
1,020,000 Amerada Hess Corp. 1,095,167
7.125%, 03/15/2033
(Note A, p. 26)
---------------
Total Petroleum Products (Cost $2,085,321) 2,158,007
---------------
================================================================================
PUBLIC UTILITIES -- ELECTRIC & GAS: 1.58%
- --------------------------------------------------------------------------------
20,716 AES Corp., Rule 144A, 21,027
10.00%, 07/15/2005,
Callable 12/15/2004 @ 100
(Notes A & D, p. 26)
Schedule of Investments -- Taxable Bond Portfolios 23
================================================================================
Principal Amount Description Market Value
================================================================================
$ 600,000 Consumers Energy Co., Series C, $ 610,218
4.25%, 04/15/2008
(Note A, p. 26)
55,000 Southern Natural Gas Co., 61,875
8.875%, 03/15/2010,
Callable 03/15/2007 @ 104.44
(Note A, p. 26)
295,000 Calpine Corp., Rule 144A, 225,675
8.50%, 07/15/2010,
Callable 07/15/2007 @ 104.25
(Notes A & D, p. 26)
590,000 Nisource Finance Corp., 697,225
7.875%, 11/15/2010
(Note A, p. 26)
1,135,000 Carolina Power & Light Co., 1,263,662
6.50%, 07/15/2012
(Note A, p. 26)
410,000 MidAmerican Energy Holdings 432,863
Co., Senior Note,
5.875%, 10/01/2012
(Note A, p. 26)
410,000 Public Service Co. of Colorado, 499,565
7.875%, 10/01/2012
(Note A, p. 26)
230,000 CenterPoint Energy Inc., 248,611
Senior Note, Series B,
6.85%, 06/01/2015
(Note A, p. 26)
410,000 Union Electric Co., 407,425
5.10%, 10/01/2019
(Note A, p. 26)
75,000 Southern Natural Gas Co., 74,063
7.35%, 02/15/2031
(Note A, p. 26)
3,325,000 FirstEnergy Corp., Series C, 3,734,281
7.375%, 11/15/2031
(Note A, p. 26)
1,340,000 Pacific Gas & Electric Co. 1,363,855
6.05%, 03/01/2034,
(Note A, p. 26)
---------------
Total Public Utilities -- Electric & Gas
(Cost $9,277,350) 9,640,345
---------------
================================================================================
PUBLIC UTILITIES -- TELEPHONE: 0.51%
- --------------------------------------------------------------------------------
725,000 BellSouth Corp., 729,168
4.20%, 09/15/2009
(Note A, p. 26)
2,295,000 Telecom Italia Capital Corp., 2,370,400
Rule 144A, 6.375%, 11/15/2033,
(Notes A & D, p. 26)
---------------
Total Public Utilities -- Telephone
(Cost $3,011,262) 3,099,568
---------------
================================================================================
PUBLISHING: 0.02%
- --------------------------------------------------------------------------------
115,000 American Media Operations Inc., $ 119,313
8.875%, 01/15/2011,
Callable 01/15/2007 @ 104.44
(Note A, p. 26)
---------------
Total Publishing (Cost $112,777) 119,313
---------------
================================================================================
RETAIL: 0.11%
- --------------------------------------------------------------------------------
630,000 Petro Stopping Centers LP, 667,800
9.00%, 02/15/2012,
Callable 02/15/2008 @ 104.50
(Note A, p. 26)
---------------
Total Retail (Cost $653,485) 667,800
---------------
================================================================================
SERVICE: 0.33%
- --------------------------------------------------------------------------------
2,015,000 Pershing Road Development 2,015,000
Company LLC, Rule 144A,
2.19%, 09/01/2026,
Callable 12/01/2004 @ 103.00
(Notes A, B & D, p. 26)
---------------
Total Service (Cost $2,015,000) 2,015,000
---------------
================================================================================
SUPERMARKET/DRUG: 0.38%
- --------------------------------------------------------------------------------
990,000 Safeway, Inc., 1,005,150
4.95%, 08/16/2010
(Note A, p. 26)
540,000 Pathmark Stores Inc., 504,900
8.75%, 02/01/2012,
Callable 02/01/2007 @ 104.38
(Note A, p. 26)
715,000 Albertson's Inc., Debenture, 812,519
7.45%, 08/01/2029
(Note A, p. 26)
---------------
Total Supermarket/Drug (Cost $2,318,762) 2,322,569
---------------
================================================================================
TECHNOLOGY: 0.15%
- --------------------------------------------------------------------------------
355,000 International Business 362,502
Machines Corp., Medium-Term
Note, 4.375%, 06/01/2009
(Note A, p. 26)
75,000 ON Semiconductor Corp., 86,250
12.00%, 03/15/2010,
Callable 03/15/2007 @ 106.00
(Note A, p. 26)
575,000 Amkor Technology Inc., Senior 471,500
Note, 7.75%, 05/15/2013,
Callable 01/15/2008 @ 103.88
(Note A, p. 26)
---------------
Total Technology (Cost $990,344) 920,252
---------------
24 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
ASSET-BACKED SECURITIES: 3.65%
- --------------------------------------------------------------------------------
$ 1,910,000 Ford Credit Floorplan Master $ 1,909,771
Owner Trust Series 2004-1
Class A, 1.80%, 07/15/2009
(Notes A & B, p. 26)
886,187 RAAC Series 2004-SP1 Class 886,187
AI1, 2.02%, 06/25/2013
(Notes A & B, p. 26)
2,255,705 Residential Asset Securities 2,254,307
Corp., Series 2004-KS8 Class
AII1, 1.96%, 08/25/2013
(Notes A & B, p. 26)
1,337,651 Residential Funding Mortgage 1,337,436
Securities Inc., Series
2004-HS2 Class AI1,
1.99%, 12/25/2018
(Notes A & B, p. 26)
1,040,011 Residential Asset Securities 1,039,845
Corp., Series 2004-KS7 Class
AI1, 1.99%, 10/25/2021
(Notes A & B, p. 26)
994,033 Residential Asset Mortgage 992,950
Products Inc., Series 2004-RS6
Class AI1, 1.99%, 08/25/2022
(Notes A & B, p. 26)
42,468 Residential Asset Mortgage 42,468
Products Inc., Series 2004-RS7
Class AI1, 2.01%, 08/25/2022
(Notes A & B, p. 26)
985,352 Residential Asset Mortgage 984,278
Products Inc., Series 2004-RS2
Class AI1, 1.97%, 01/25/2024
(Notes A & B, p. 26)
1,683,674 Residential Asset Securities 1,687,092
Corp., Series 2002-KS7 Class A2,
2.21%, 11/25/2032
(Notes A & B, p. 26)
1,865,920 Residential Asset Securities 1,868,252
Corp., Series 2003-KS3 Class A2,
2.14%, 05/25/2033
(Notes A & B, p. 26)
1,157,456 Centex Home Equity, Series 1,158,359
2003-C Class AV,
2.14%, 09/25/2033
(Notes A & B, p. 26)
782,611 Countrywide Home Loans, Series 781,578
2003-49 Class A1,
1.642%, 12/19/2033
(Notes A & B, p. 26)
1,599,810 Ameriquest Mortgage Securities 1,598,867
Inc., Series 2004-R4 Class A2,
1.95%, 06/25/2034
(Notes A & B, p. 26)
1,280,495 Equity One ABS Inc., Series 1,280,098
2004-3 Class AF1,
2.00%, 07/25/2034
(Notes A & B, p. 26)
3,525,000 Long Beach Mortgage Loan 3,524,436
Trust, Series 2004-4 Class
2A2, 1.88%, 10/25/2034
(Notes A & B, p. 26)
873,737 Merrill Lynch Mortgage 873,597
Investors, Inc., Series
2004-SL1 Class A,
2.10%, 04/25/2035
(Notes A & B, p. 26)
---------------
Total Asset-Backed Securities
(Cost $22,224,529) 22,219,521
---------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 4.38%
- --------------------------------------------------------------------------------
2,035,000 Greenwich Capital Commercial 1,962,880
Funding Corp., Series 2003-C1
Class A4, 4.111%, 07/05/2035
(Note A, p. 26)
895,000 Greenwich Capital Commercial 906,438
Funding Corp., Series 2003-C2
Class A3, 4.533%, 01/05/2036
(Note A, p. 26)
1,695,000 CS First Boston Mortgage 1,700,746
Securities Corp., Series
2003-CK2 Class A2,
3.861%, 03/15/2036
(Note A, p. 26)
245,000 J.P. Morgan Chase Commercial 244,400
Mortgage Securities, Series
2004-C1 Class A2,
4.302%, 01/15/2038
(Note A, p. 26)
2,910,000 GS Mortgage Securities Corp. 3,050,495
II, Series 2004-GG2 Class A6,
5.396%, 08/10/2038
(Note A, p. 26)
2,845,000 Banc of America Commercial 2,993,452
Mortgage, Inc., Series 2004-3
Class A5, 5.306%, 06/10/2039
(Note A, p. 26)
2,030,000 GE Capital Commercial Mortgage 2,094,716
Corp., Series 2004-C3 Class
A4, 5.189%, 07/10/2039
(Note A, p. 26)
1,605,000 Merrill Lynch Mortgage Trust 1,609,237
Series 2004-KEY Class A2,
4.166%, 08/12/2039
(Note A, p. 26)
2,025,000 Banc of America Commercial 2,016,556
Mortgage, Inc., Series 2004-1
Class A2, 4.037%, 11/10/2039
(Note A, p. 26)
2,980,000 Banc of America Commercial 2,988,940
Mortgage, Inc., Series 2004-1
Class A4, 4.76%, 11/10/2039
(Note A, p. 26)
Schedule of Investments -- Taxable Bond Portfolios 25
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,170,000 Morgan Stanley Capital I, $ 2,223,903
Series 2004-IQ8 Class A5,
5.11%, 06/15/2040
(Note A, below)
1,395,000 Morgan Stanley Capital I, 1,421,017
Series 2003-IQ6 Class A4,
4.97%, 12/15/2041
(Note A, below)
1,900,000 Banc of America Commercial 1,909,547
Mortgage, Inc., Series 2004-4
Class A3, 4.128%, 07/10/2042
(Note A, below)
1,555,000 Morgan Stanley Capital I, 1,543,197
Series 2004-T13 Class A2,
3.94%, 09/13/2045
(Note A, below)
---------------
Total Commercial Mortgage-Backed Securities
(Cost $26,067,392) 26,665,524
---------------
================================================================================
SOVEREIGN DEBT: 5.95%
- --------------------------------------------------------------------------------
11,000,000 Spain (Government of), 13,878,195
3.60%, 01/31/2009
(Note A, below)
9,350,000 Germany (Federal Republic of), 11,625,376
Rule 144A, 3.25%, 04/17/2009
(Note A & D, below)
2,995,000 Ukraine (Republic of), Rule 2,995,000
144A, 7.65%, 06/11/2013
(Notes A & D, below)
2,785,000 Brazil (Republic of), 3,102,490
10.50%, 07/14/2014
(Note A, below)
4,420,000 United Mexican States, 4,645,420
7.50%, 04/08/2033
(Note A, below)
---------------
Total Sovereign Debt (Cost $35,650,371) 36,246,481
---------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments ($844,236,186) 139.43% $ 849,489,223
(Note E, below)
Cash and Other Assets, Less Liabilities (39.43) (240,240,754)
------ ---------------
Net Assets (Equivalent to $15.48
per share based on 39,348,364
shares of capital stock outstanding) 100.00% $ 609,248,469
====== ===============
================================================================================
FORWARD EXCHANGE CURRENCY CONTRACTS
- --------------------------------------------------------------------------------
U.S. $
Contract Value on U.S. $
Amount Origination Current Unrealized
(000) Date Value Depreciation
- --------------------------------------------------------------------------------
Sales Contracts
Euro
Settling
10/25/04 20,570 $25,215,848 $25,537,595 $(321,747)
- --------------------------------------------------------------------------------
(A) Positions, or portion thereof, with an aggreagate market value of
$597,105,521 have been segregated to collateralize open forward exchange
currency contracts.
(B) Variable-rate coupon, rate shown as of September 30, 2004.
(C) When-issued security.
(D) 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 qualifies institutional
buyers. At September 30, 2004, the aggregate market value of these
securities amounted to $56,078,355 or 9.2% of net assets.
(E) At September 30, 2004, the cost basis of investment securities for tax
purposes was $844,438,832. Gross unrealized appreciation of investments was
$6,001,142 and gross unrealized depreciation of investments was $950,751,
resulting in net unrealized appreciation of $5,050,391.
Explanation of abbreviations:
FNMA -- Federal National Mortgage Association
PFD -- Preferred Stocks
TBA -- To Be Announced
See Notes to Financial Statements.
26 Sanford C. Bernstein Fund, Inc. -- 2004 Annual Report
This page intentionally left blank.
This page intentionally left blank.
This page intentionally left blank.
SCBMFANNTAX0904
ITEM 2. CODE OF ETHICS.
(a) The registrant has adopted a code of ethics that applies to its principal
executive officer, principal financial officer and principal accounting officer.
A copy of the registrant's code of ethics is filed herewith as Exhibit 11(a)(1).
(b) During the period covered by this report, no material amendments were made
to the provisions of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, no implicit or explicit waivers to
the provisions of the code of ethics adopted in 2(a) above were granted.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors has determined that independent directors
David H. Dievler and William H. Foulk, Jr. qualify as audit committee financial
experts.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) - (c) The following table sets forth the aggregate fees billed by the
independent auditor, PriceWaterhouse Coopers LLP, for the Fund's last two fiscal
years for professional services rendered for: (i) the audit of the Fund's annual
financial statements included in the Fund's annual report to stockholders; (ii)
assurance and related services that are reasonably related to the performance of
the audit of the Fund's financial statements and are not reported under (i),
which include advice and education on accounting and auditing issues, and
consent letters; and (iii) tax compliance, tax advice and tax return
preparation.
Audit-Related
Audit Fees Fees Tax Fees
---------- ------ --------
Bernstein Intermediate Duration 2003 $30,750 $6,758 $ 7,198
Institutional Portfolio 2004 35,000 1,400 15,376
(d) Not applicable.
(e) (1) Beginning with audit and non-audit service contracts entered into on or
after May 6, 2003, the Fund's Audit Committee policies and procedures require
the pre-approval of all audit and non-audit services provided to the Fund by the
Fund's independent auditors. The Fund's Audit Committee policies and procedures
also require pre-approval of all audit and non-audit services provided to the
Adviser and Service Affiliates to the extent that these services are directly
related to the operations or financial reporting of the Fund.
(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in
the table under Item 4 (a) - (c) are for services pre-approved by the Fund's
Audit Committee.
(f) Not applicable.
(g) The following table sets forth the aggregate non-audit services provided to
the Fund, the Fund's Adviser and entities that control, are controlled by or
under common control with the Adviser that provide ongoing services to the Fund
("Service Affiliates"):
Total Amount of
Foregoing Column Pre-
All Fees for approved by the Audit
Non-Audit Services Committee (Portion Comprised
Provided to the of Audit Related Fees)
Portfolio, the Adviser (Portion Comprised of
and Service Affiliates Tax Fees)
---------------------- ---------
Bernstein Intermediate Duration 2003 $763,515 $ 13,956
Institutional Portfolio (6,758)
(7,198)
2004 746,844 16,776
(1,400)
(15,376)
(h) The Audit Committee of the Fund has considered whether the provision of any
non-audit services not pre-approved by the Audit Committee provided by the
Fund's independent auditor to the Adviser and Service Affiliates is compatible
with maintaining the auditor's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
Please see Schedule of Investments contained in the Report to Shareholders
included under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Fund's Board of Directors since the Fund last provided
disclosure in response to this item.
ITEM 10. 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-2(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 controls 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 11. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
----------- ----------------------
11(a)(1) Code of ethics that is subject to the disclosure of
Item 2 hereof
11(b)(1) Certification of Principal Executive Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
11(b)(2) Certification of Principal Financial Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
11(c) Certification of Principal Executive Officer and
Principal Financial Officer Pursuant to Section 906
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): Sanford C. Bernstein Fund II, Inc.
By: /s/ Marc O. Mayer
-----------------
Marc O. Mayer
President
Date: November 22, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Marc O. Mayer
-----------------
Marc O. Mayer
President
Date: November 22, 2004
By: /s/ Mark D. Gersten
-------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: November 22, 2004