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, 2005
Date of reporting period: March 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
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SANFORD C. BERNSTEIN FUND, INC.
AND
SANFORD C. BERNSTEIN FUND II, INC.
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SEMIANNUAL REPORT
MARCH 31, 2005
Fixed-Income &
International-Equity
Investments
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Table of Contents
Portfolio Manager Commentaries ......................................... 1-7
Historical Performance ................................................. 8-10
Mountain Charts ........................................................ 11-12
Fund Expenses .......................................................... 13
Portfolio Summaries .................................................... 14-17
Statements of Assets and Liabilities ................................... 18-24
Statements of Operations ............................................... 26-29
Statements of Changes in Net Assets .................................... 30-37
Financial Highlights ................................................... 38-51
Notes to Financial Statements .......................................... 52-74
Directors and Officers ................................................. 75-76
Information Regarding the Review and Approval of Each Fund's
Management Agreement ................................................. 77-85
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Each Fund expects to hold a meeting of shareholders on or about November 15,
2005, at which the election of directors will be considered. For information
with respect to submitting a candidate for director for consideration by the
appropriate committee of each Fund's Board of Directors, please see the
nominating procedures in the Fund's Statement of Additional Information.
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 or by calling your financial adviser or by calling
Bernstein's mutual fund shareholder help line at (212) 756-4097. Please read the
prospectus carefully before investing.
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.
This shareholder report must be preceded or accompanied by the Sanford C.
Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc. prospectuses for
individuals who are not shareholders of the Funds.
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
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Portfolio Manager Commentaries
To Our Shareholders--May 20, 2005
This report provides management's discussion of fund performance for the 12
portfolios of the Sanford C. Bernstein Fund, Inc. and one portfolio of the
Sanford C. Bernstein Fund II, Inc., for the semi-annual reporting period ended
March 31, 2005.
Bernstein Tax-Managed International Portfolio
Investment Objective and Strategy
Bernstein Tax-Managed International Portfolio (the "Portfolio") seeks to provide
long-term capital growth through investments in equity securities of established
foreign companies constituting the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index, plus Canada. Normally, approximately
50% of the value of the Portfolio will consist of international growth stocks
and 50% of the value of the Portfolio will consist of international value
stocks. The Portfolio will be rebalanced to maintain this targeted allocation,
however, the actual weightings of securities will vary within a narrow range,
usually from 45%-55%. The Portfolio seeks to minimize the impact of taxes on
shareholders' return.
Bernstein International Portfolio
Investment Objective and Strategy
Bernstein International Portfolio (the "Portfolio") seeks to provide long-term
capital growth through investments in equity securities of established foreign
companies constituting the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index, plus Canada. Normally, approximately
50% of the value of the Portfolio will consist of international growth stocks
and 50% of the value of the Portfolio will consist of international value
stocks. The Portfolio will be rebalanced to maintain this targeted allocation,
however, the actual weightings of securities will vary within a narrow range,
usually from 45%-55%. The Portfolio is managed without regard to tax
considerations.
Investment Results
The chart on page 10 shows performance for the Bernstein Tax-Managed
International and International Portfolios compared with their benchmark, the
MSCI EAFE Index (cap-weighted, unhedged), for the six- and 12-month periods
ended March 31, 2005. During both the six- and 12-month periods ended March 31,
2005, both Portfolios underperformed their benchmark.
During the six-month reporting period, positive stock selection in the consumer
discretionary and health care sectors helped both Portfolios' relative returns,
while an overweighted position in the technology sector, in addition to stock
selection in the financials and materials sectors, more than offset the gains.
Within the consumer sector, an auto-parts company had the largest positive
impact. The shares rose strongly after the company reported record results for
2004 and set expectations for similar gains in 2005. Portfolio negatives in the
period were concentrated within commodities on concerns that higher interest
rates would slow demand growth in select companies. In particular, a paper
company declined due to poor statistics on pulp inventory and pricing, as well
as concerns about excess industry capacity.
Overall, value as a style significantly outperformed growth during the 12-month
period, which was reflected in both Portfolios' underperformance during this
time frame. The value segment of the Portfolios contributed positively to
relative performance, while the Portfolios' growth holdings detracted from
relative performance.
Market Review and Investment Strategy
Non-U.S. stocks, as measured by the MSCI EAFE Index, ended the six- and 12-month
periods ended March 31, 2005 sharply higher, up 15.13% and 15.06%, respectively.
However, almost all of the return was in the fourth quarter when stocks surged.
Investors were encouraged by a positive combination of falling energy prices and
renewed optimism about the U.S. economy, perceived as the main engine of the
world's economic growth. Returns for other parts of the period were essentially
flat, with markets seesawing heavily on a raft of mixed economic and
geopolitical news. Not surprisingly, energy stocks outperformed by a wide
margin--rising nearly 34% over the prior 12-month period--reflecting the 62%
increase in the price of oil during the same period. And almost every sector was
up over 10%, with technology the only sector declining in the 12-month period,
down nearly 11%.
(Portfolio Manager Commentaries continued on next page)
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2005 Semiannual Report 1
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Portfolio Manager Commentaries (continued from previous page)
As noted above, value stocks outperformed growth stocks during the period under
review. The Portfolios continue to hold roughly equal exposures to growth and
value stocks, concentrating on building highly diversified, style-blended
non-U.S. stock portfolios that capture the best ideas from our growth and value
research specialists.
Bernstein Emerging Markets Value Portfolio
Investment Objective and Strategy
Bernstein Emerging Markets Value Portfolio (the "Portfolio") seeks to provide
long-term capital growth through investments in equity securities of companies
in emerging-market countries. At least 80% of the Portfolio's net assets will be
invested in such companies. The Portfolio will invest primarily in common stocks
but may also invest in preferred stocks, warrants and convertible securities of
foreign issuers, including sponsored or unsponsored ADRs and GDRs. The Portfolio
may not necessarily be diversified on a geographical basis, but may also make
investments in established foreign companies constituting the Morgan Stanley
Capital International Emerging Markets (MSCI EM) Index.
Investment Results
The chart on page 10 shows performance for the Bernstein Emerging Markets Value
Portfolio for the six- and 12-month periods ended March 31, 2005. The Portfolio
outperformed its benchmark, the Morgan Stanley Capital International Emerging
Markets (MSCI EM) Index, during both time frames. This Portfolio is managed
using a research-driven, bottom-up stock-selection process, so its performance
is a function of individual stock selection, rather than sector and country
over- and underweights. Many of the Portfolio's holdings in the finance,
industrial commodities and energy sectors outperformed the market and their
sector peers, and contributed to its positive relative return.
Market Review and Investment Strategy
Emerging-market equities, with stronger earnings and economic growth, and
trading at significant valuation discounts, continued to outperform their
developed-market peers during the reporting period.
Bernstein Intermediate Duration Portfolio and Bernstein Intermediate Duration
Institutional Portfolio
Investment Objective and Strategy
Bernstein Intermediate Duration and Intermediate Duration Institutional
Portfolios (the "Portfolios") seek to provide safety of principal and a
moderate-to-high rate of income that is subject to taxes. Under normal
circumstances, the Portfolios will invest at least 65% of their total assets in
securities rated AA or better by nationally recognized statistical rating
organizations ("NRSROs") and comparably rated commercial paper and notes. In
addition, the Portfolios will invest at least 80% of their total assets in
securities rated A or better by NRSROs. The Portfolios may also invest up to 20%
of their assets in fixed-income foreign securities in developed or
emerging-market countries. The Portfolios seek to maintain an effective duration
of three to six years under normal market conditions.
Investment Results
The chart on page 10 shows performance for the Bernstein Intermediate Duration
and Intermediate Duration Institutional Portfolios compared with their
benchmark, the Lehman Brothers (LB) Aggregate Bond Index, for the six- and
12-month periods ended March 31, 2005. Both Portfolios outperformed their
benchmark for both the six- and 12-month periods ended March 31, 2005.
For the six-month period under review, yield curve structure was the largest
positive contributor to the Portfolios' outperformance, driven largely by the
Portfolios' barbelled duration structure during a period of dramatic yield curve
flattening. Additionally, the Portfolios' shorter-than-benchmark duration and
underweight in the two- to five-year area of the yield curve, which
underperformed, also helped relative performance.
During the semi-annual reporting period, the yield curve flattened by 131 basis
points as yields on shorter-maturity Treasuries rose and longer maturities
remained stable, or actually declined. Specifically, two-year and five-year
yields rose by 117 basis points and 79 basis points, respectively. Ten-year
yields rose more modestly by 36 basis points, while longer 30-year maturity
Treasuries actually declined by 14 basis points. The
(Portfolio Manager Commentaries continued on next page)
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2 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
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Portfolio Manager Commentaries (continued from previous page)
significant flattening of the yield curve was spurred by prospects that the
Federal Reserve would become more aggressive in its rate hikes given its recent
statement noting increased inflationary pressures. Additionally, sharply higher
crude oil and commodity prices, as well as the General Motors announcement that
it was slashing its full-year earnings forecast by more than 50%, also weighed
on market sentiment.
Also contributing positively to the Portfolios' relative performance were their
holdings in inflation-protected U.S. Treasuries, a position that we exited late
in the period. The Portfolios' modest allocation to high yield and a hedged
Japanese government position were also positive contributors. Security selection
and sector weightings in other non-Treasury sectors had only a marginal impact
on performance.
Market Review and Investment Strategy
During the semi-annual reporting period, the Federal Reserve ("the Fed")
continued to raise interest rates in increments of 25 basis points, taking the
benchmark rate from 1.75% to 2.75%. However, unlike as in the second half of
2004, when the market's mood had been uncharacteristically sanguine in the
context of rising rates, market sentiment soured late in the first quarter of
2005 and bond prices fell, especially in the intermediate part of the curve.
Markets were rattled primarily by two concerns: the fear that official rate
hikes could become more aggressive this year; and fallout from General Motors'
profit warning. Late in the period, yields jumped after the Fed stated that
inflation pressures had increased in recent months. Inflation fears were further
stoked by sharply higher oil and commodities prices. At the end of the reporting
period, crude oil hit a new high of $57.
For the semi-annual reporting period, U.S. Treasury returns lagged most sectors
of the market. In absolute terms, only the mortgage-backed sector outperformed
within the benchmark, returning 1.14%. Although mortgages were also swept up in
the March sell-off, for the period they benefited as convexity and volatility
concerns remained relatively benign, reflecting perceptions that refinancing
activity will be more muted in the context of higher interest rates. Not
surprisingly, the investment-grade corporate sector underperformed within the
benchmark, producing a return of only 0.17%. In addition to auto concerns, the
sector was hurt by increased evidence that mergers and acquisitions, leveraged
buyouts and corporate restructurings are on the rise. Outperforming for the
semi-annual reporting period were lower-rated high yield and emerging-market
debt, despite the sharp sell-off in March. According to Lehman Brothers, high
yield posted a return of 2.89%, while emerging-market debt returned 4.14%.
During the reporting period, the Portfolios remained positioned for U.S.
interest rates to continue to rise. The portfolio management team maintained the
Portfolios' average duration shorter than their benchmark, with the underweight
focused on the two- to five-year area of the yield curve. The team also
maintained the Portfolios barbelled duration structure. The Portfolios continued
to have moderate overweights in investment-grade corporates, mortgages and
Collateralized Mortgage Backed Securities (CMBS); as we believed these sectors
were likely to earn their yield advantage over Treasuries. Additionally, we
thought that waning volatility and favorable supply dynamics were positives for
the mortgage market. The Portfolios also continued to hold modest positions in
hedged Japanese government bonds, as we continued to anticipate a sharp slowdown
in Japanese growth in 2005, and thus stable-to-falling Japanese yields.
Bernstein Short Duration Plus Portfolio
Investment Objective and Strategy
Bernstein Short Duration Plus Portfolio (the "Portfolio") seeks to provide
safety of principal and a moderate rate of income that is subject to taxes.
Under normal circumstances, the Portfolio will invest at least 80% of its total
assets in securities rated A or better by nationally recognized statistical
rating organizations (NRSROs) and comparably rated commercial paper and notes.
The Portfolio's investments may consist of corporate bonds, notes, U.S.
Government and agency securities, asset-backed securities, mortgage-related
securities and inflation-protected securities, as well as others. The Portfolio
may also invest up to 20% of its total assets in fixed-income securities rated
BB or B by NRSROs, which are not investment grade. The Portfolio seeks to
maintain an effective duration of one to three years under normal market
conditions.
(Portfolio Manager Commentaries continued on next page)
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2005 Semiannual Report 3
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Portfolio Manager Commentaries (continued from previous page)
Bernstein U.S. Government Short Duration Portfolio
Investment Objective and Strategy
Bernstein U.S. Government Short Duration Portfolio (the "Portfolio") seeks to
provide safety of principal and a moderate rate of income that is generally
exempt from state and local taxes. Under normal circumstances, the Portfolio
will invest at least 80% of its assets in U.S. Government and agency securities.
Additionally, up to 10% of the Portfolio's total assets may be invested in other
securities rated A or better by nationally recognized statistical rating
organizations (NRSROs) and comparably rated commercial paper and notes. The
Portfolio seeks to maintain an effective duration of one to three years under
normal market conditions.
The income earned by the Portfolio is generally exempt from state and local
taxes, however states have different requirements for tax-exempt distributions
and there is no assurance that your distributions from the Portfolio's income
will not be subject to the state and local taxes of your state.
Investment Results
Both Bernstein Short Duration Plus and U.S. Government Short Duration Portfolios
outperformed their benchmark, the Merrill Lynch 1-3 Year Treasury Index, for the
six-month period ended March 31, 2005. Both Portfolios' relative outperformance
was primarily due to the Portfolios' allocation to non-Treasury sectors, all of
which outperformed the Treasury-only benchmark. The Portfolios'
shorter-than-benchmark duration during an environment of rising interest rates
also contributed positively to performance. Additionally, the Portfolios'
yield-curve structure, specifically their underweight positions in the two-year
area of the yield curve, further enhanced performance.
Market Review and Investment Strategy
During the semi-annual reporting period, the Federal Reserve (the "Fed")
continued to raise interest rates in increments of 25 basis points, taking the
benchmark rate from 1.75% to 2.75%. However, unlike as in the second half of
2004, when the market's mood had been uncharacteristically sanguine in the
context of rising rates, market sentiment soured late in the first quarter of
2005 and bond prices fell, especially in the intermediate part of the curve.
Markets were rattled primarily by two concerns: the fear that official rate
hikes could become more aggressive this year; and the fallout from General
Motors' profit warning and potential ratings downgrade to below
investment-grade. Late in the period, yields jumped after the Fed stated that
inflation pressures had increased in recent months. Inflation fears were further
stoked by sharply higher oil and commodities prices, with crude oil reaching new
highs. For the semi-annual period, the yield curve flattened significantly, with
short-term yields rising the most.
U.S. Treasury returns lagged most sectors of the market for the period. In
absolute terms, the mortgage-backed sector was the best performer, posting a
return of 1.06%, according to the Merrill Lynch Mortgage 0-3 Year WAL (Weighted
Average Life) Index. Although mortgages were also swept up in the March
sell-off, for the period they benefited as convexity and volatility concerns
remained relatively benign, reflecting perceptions that refinancing activity
will be more muted in the context of higher interest rates. Agency securities
returned (0.11)%, according to the Merrill Lynch 1-3 Year Agency Index, as
Government-sponsored enterprise (GSE) spreads were negatively impacted after
regulators found that Fannie Mae would need to restate its earnings and cover a
$9 billion capital shortfall due to accounting problems. The negative news,
however, was offset somewhat as investors remained more focused on supportive
technicals in the agency market such as limited supply and the belief that any
legislative outcome will ultimately create better financial conditions for GSEs.
Asset-backed securities returned 1.23%, as strong demand, particularly for
floating-rate assets, continued to dominate their fundamentals. Asset-backed
spreads continued to tighten from already historically tight levels at the start
of the period.
Although investment-grade corporates outperformed Treasuries, corporate returns
fell into negative territory for the reporting period at (0.15)%, as measured by
the Merrill Lynch 1-3 Year Corporate Index. Corporate returns were dampened late
in the period by General Motors' announcement that it was slashing its full-year
earnings
(Portfolio Manager Commentaries continued on next page)
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4 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
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Portfolio Manager Commentaries (continued from previous page)
forecast by more than 50%. Standard & Poor's subsequently downgraded
its outlook on General Motors to negative, and Fitch downgraded the automaker
one notch, to BBB-. In addition to auto concerns, the corporate sector was hurt
by increased evidence that mergers and acquisitions, leveraged buyouts and
corporate restructurings were on the rise.
During the reporting period, both Portfolios remained positioned for U.S.
interest rates to continue to rise. The portfolio management team maintained the
Portfolios' average duration shorter than their benchmark, with the underweight
focused on the two-year area of the yield curve. Bernstein Short Duration Plus
Portfolio continued to hold a significant allocation to non-Treasury securities;
mortgage-backed, and agency asset-backed securities and investment-grade
corporates. Bernstein U.S. Government Short Duration Portfolio continued to hold
a significant allocation to non-Treasury securities; and mortgage-backed and
agency asset-backed securities. We believed that these non-Treasury holdings
were likely to earn their yield advantage and outperform Treasuries.
Bernstein Short Duration
California Municipal Portfolio
Investment Objective and Strategy
Bernstein Short Duration California Municipal Portfolio (the "Portfolio") seeks
to provide safety of principal and moderate rate of return after taking account
of federal, state and local taxes for California residents. Under normal
circumstances, the Portfolio will invest at least 80% of its assets in municipal
securities issued by the state of California or its political subdivisions, or
otherwise exempt from California state income tax. The Portfolio may also invest
up to 20% of its net assets in fixed-income securities of U.S. issuers that are
not municipal securities if, in our opinion, these securities will enhance the
after-tax return for California investors.
Bernstein Short Duration
New York Municipal Portfolio
Investment Objective and Strategy
Bernstein Short Duration New York Municipal Portfolio (the "Portfolio") seeks to
provide safety of principal and moderate rate of return after taking account of
federal, state and local taxes for New York residents. Under normal
circumstances, the Portfolio will invest at least 80% of its assets in municipal
securities issued by the state of New York or its political subdivisions, or
otherwise exempt from New York state income tax. The Portfolio may also invest
up to 20% of its net assets in fixed-income securities of U.S. issuers that are
not municipal securities if, in our opinion, these securities will enhance the
after-tax return for New York investors.
Bernstein Short Duration
Diversified Municipal Portfolio
Investment Objective and Strategy
Bernstein Short Duration Diversified Municipal Portfolio (the "Portfolio") seeks
to provide safety of principal and maximize total return after taking account of
federal taxes. Under normal circumstances, the Portfolio will invest at least
80% of its assets in municipal securities. The Portfolio will invest no more
than 25% of its total assets in municipal securities of issuers located in any
one state.
Each of the Bernstein Short Duration California Municipal, Short Duration New
York Municipal and Short Duration Diversified Municipal Portfolios (the
"Portfolios") invests at least 80% of its total assets in municipal securities
rated A or better by nationally recognized statistical rating organizations
("NRSROs") and comparably rated municipal notes. Each of the Portfolios may
invest up to 20% of its assets in fixed-income securities rated BB or B by
NRSROs, which are not investment-grade. Each of the Portfolios seeks to maintain
an effective duration of one-half year to two and one-half years under normal
market conditions.
Investment Results
The chart on page 10 shows performance for the Bernstein Short Duration
California, New York and Diversified Municipal Portfolios compared with their
benchmark, the Lehman Brothers (LB) 1-Year Municipal Index, for the six- and
12-month periods ended March 31, 2005.
With solid economic growth and mounting inflationary pressures, the Federal
Reserve began raising short-term interest rates last summer. In response,
short-term municipal interest rates jumped sharply over both the last six and 12
months.
(Portfolio Manager Commentaries continued on next page)
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2005 Semiannual Report 5
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Portfolio Manager Commentaries (continued from previous page)
As a result, returns for the Bernstein Short Duration California, New York and
Diversified Municipal Portfolios were only modestly positive over both the six-
and 12-month periods ended March 31, 2005.
The extra yield for buying lower-rated bonds also narrowed over both the last
six and 12 months.
Stronger economic growth led to improving tax revenues for most state and local
government issuers; 46 of the 50 states reported higher revenues than forecast
at year-end. So far this year, tax revenues have been ahead of forecast for the
state of California. In New York, improving tax revenues were reported for New
York state and most local governments. Based on revenues received so far, New
York City is forecasting a budget surplus for this fiscal year.
In addition, investor demand for higher-yielding, but lower-credit-quality,
municipals remained strong throughout this period.
Market Review and Investment Strategy
Our sector and security selection for each of the three Short Duration Municipal
Portfolios consistently added return over both time horizons as investments we
made in lower-rated municipals performed well.
Small holdings of longer maturity, callable bonds in each of the three
Portfolios helped preserve capital over the last year, as they performed well
relative to short-term bonds.
The fact that the California and New York Portfolios had modestly less interest
rate risk than their benchmark over the last nine months also helped preserve
capital as short-term interest rates rose.
California and New York City general obligation bonds were among the best
performers in the Diversified Portfolio for the 12-month period as investors
recognized their improved financial conditions.
For the year, however, maturity selection detracted modestly from the
Diversified Portfolio's performance, as we did not reduce our interest-rate risk
until last summer, after interest rates had already risen significantly.
Bernstein California Municipal Portfolio
Investment Objective and Strategy
Bernstein California Municipal Portfolio (the "Portfolio") seeks to provide
safety of principal and maximize total return after taking account of federal,
state and local taxes for California residents. Under normal circumstances, the
Portfolio will invest at least 80% of its assets in municipal securities issued
by the state of California or its political subdivisions, or otherwise exempt
from California state income tax. The Portfolio may also invest up to 20% of its
net assets in fixed-income securities of U.S. issuers that are not municipal
securities if, in our opinion, these securities will enhance the after-tax
return for California investors.
Bernstein New York Municipal Portfolio
Investment Objective and Strategy
Bernstein New York Municipal Portfolio (the "Portfolio") seeks to provide safety
of principal and maximize total return after taking account of federal, state
and local taxes for New York residents. Under normal circumstances, the
Portfolio will invest at least 80% of its assets in municipal securities issued
by the state of New York or its political subdivisions, or otherwise exempt from
New York state income tax. The Portfolio may also invest up to 20% of its net
assets in fixed-income securities of U.S. issuers that are not municipal
securities if, in our opinion, these securities will enhance the after-tax
return for New York investors.
Bernstein Diversified Municipal Portfolio
Investment Objective and Strategy
Bernstein Diversified Municipal Portfolio (the "Portfolio") seeks to provide
safety of principal and maximize total return after taking account of federal
taxes. Under normal circumstances, the Portfolio will invest at least 80% of its
assets in municipal securities. The Portfolio will invest no more than 25% of
its total assets in municipal securities of issuers located in any one state.
Each of the Bernstein California Municipal, New York Municipal and Diversified
Municipal Portfolios (the "Portfolios") invests at least 80% of its total assets
in municipal securities rated A or better by nationally recognized statistical
rating organizations ("NRSROs") and comparably rated municipal notes. Each of
the Portfolios
(Portfolio Manager Commentaries continued on next page)
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6 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
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Portfolio Manager Commentaries (continued from previous page)
may invest up to 20% of its assets in fixed-income securities rated BB or B by
NRSROs, which are not investment-grade. Each of the Portfolios seeks to maintain
an effective duration of three and one-half to seven years under normal market
conditions.
Investment Results
The chart on page 10 shows performance for the Bernstein California, New York
and Diversified Municipal Portfolios compared with their benchmark, the Lehman
Brothers (LB) 5-Year General Obligation (GO) Municipal Index, for the six- and
12-month periods ended March 31, 2005.
With solid economic growth and mounting inflationary pressures, the Federal
Reserve began raising short-term interest rates last summer. In response, short-
and intermediate-term municipal interest rates jumped sharply over both the last
six and 12 months.
As a result, returns for the California Portfolio were only modestly positive
over both the six- and 12-month periods ended March 31, 2005, and returns for
the New York and Diversified Portfolios were modestly negative over the
six-month period and only modestly positive over the year.
The extra yield for buying lower-rated bonds also narrowed over both the last
six and 12 months.
Stronger economic growth led to improving tax revenues for most state and local
government issuers; 46 of the 50 states reported higher revenues than forecast
at year-end. So far this year, tax revenues have been ahead of forecast for the
state of California. In New York, improving tax revenues were reported for New
York state and most local governments. Based on revenues already received, New
York City is forecasting a budget surplus for this fiscal year.
In addition, investor demand for higher-yielding, but lower-credit-quality,
municipals remained strong throughout this period.
Market Review and Investment Strategy
Our sector and security selection for each of the three Municipal Portfolios
consistently added return over both time horizons, as investments we made in
lower-rated municipals performed well.
With the threat of a liquidity crisis behind it, California general obligation
bonds were among the best-performing bonds in the California Municipal Portfolio
for the 12-month period, as investors recognized their improving financial
condition. The rating agencies also raised their credit ratings on the state's
debt.
New York City general obligation bonds and New York state appropriation bonds
were among the best performers in the New York Municipal Portfolio for the
12-month period as investors recognized their improving financial conditions.
California and New York City general obligation bonds were among the best
performers in the Diversified Portfolio for the 12-month period as investors
recognized their improved financial conditions.
Maturity selection also added performance to each of the three Municipal
Portfolios over the last six months. During this time, the Portfolios had
modestly less interest-rate risk than the index and owned an overweight in
longer-maturity, callable bonds, which performed well relative to short- and
intermediate-term bonds. For the year, however, maturity selection detracted
modestly from performance, as we did not reduce our interest rate risk until
last summer, after interest rates had already risen significantly.
(Portfolio Manager Commentaries continued on next page)
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2005 Semiannual Report 7
Historical Performance
An Important Note About the Value of Historical Performance
The performance shown on pages 10-12 represents past performance and does not
guarantee future results. Performance information is as of the dates shown.
Current performance may be lower or higher than the performance information
shown. You may obtain performance information current to the most recent
month-end by visiting www.bernstein.com and clicking on "Updated Fund
Performance" at the bottom of any screen.
The investment return and principal value of an investment in the Portfolios
will fluctuate, so that your shares, when redeemed, may be worth more or less
than their original cost. 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,
policies, charges, expenses and risks. For a copy of the Fund's prospectus,
which contains this and other information, visit our website at
www.bernstein.com and click on "Prospectuses" at the bottom of any screen. You
should read the prospectus carefully before investing.
Returns are annualized for periods longer than one year and do not reflect the
deduction of taxes that a shareholder would pay on portfolio distributions or
the redemption of portfolio shares. Certain Emerging Markets Value Portfolio
performance data presented herein do not reflect the deduction of purchase and
redemption fees, which, when reflected as shown herein, reduces such before-fees
performance quoted. All fees and expenses related to the operation of the
Portfolios have been deducted, except as noted for Emerging Markets Value
Portfolio. Tax-Managed International, International and Emerging Markets Value
Portfolio returns throughout this report include dividends net of withholding
taxes. 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 on pages 10-12 reflect the performance of the Tax-Managed
International Portfolio and the International Portfolio using an all-value
investment style through August 2003. In September 2003, the investment style of
each of the Portfolios changed from all-value to a blend of growth and value.
During the reporting period, the Adviser waived a portion of its advisory fee or
reimbursed Bernstein Intermediate Duration Institutional Portfolio for a portion
of its expenses to the extent necessary to limit the Portfolio's expenses to
0.45%. This waiver extends through the Portfolio'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.
Benchmark Disclosures
None of the following indices or averages reflect fees and expenses associated
with the active management of a mutual fund portfolio. The Morgan Stanley
Capital International Europe, Australasia and Far East (MSCI EAFE) Index is a
market capitalization-weighted index that measures stock performance in 21
countries in Europe, Australasia and the Far East. The MSCI Emerging Markets
Index is a free float-adjusted market capitalization index that is designed to
measure equity market performance in the global emerging markets. The Lipper
Emerging Markets Index represents the performance for funds that have generally
similar investment objectives to their respective Bernstein Portfolios, although
some may have different investment policies and sales and management fees. The
Lehman Brothers Aggregate Bond Index represents the U.S. investment-grade
fixed-rate bond market, including government and credit securities, agency
mortgage passthrough securities, asset-backed securities and commercial
mortgage-backed securities. The Merrill Lynch 1-3 Year Treasury Index is
comprised of U.S. Treasury obligations with remaining maturities of 1-2.99
years. The Lehman Brothers 5-Year General Obligation Municipal Index is a
total-return performance benchmark for the intermediate-term, investment-grade
tax-exempt bond market. The Lehman Brothers 1-Year Municipal Index is a
total-return performance benchmark for the short-term municipal bond market with
maturities of up to 1.99 years. Lipper Composites are the equal-weighted average
returns of the funds in the relevant Lipper Analytical Services categories; the
average fund in a category may differ in composition from the portfolios.
Investors cannot invest directly in indices, and their results are not
indicative of the performance for any specific investment, including the
Portfolios.
(Historical Performance continued on next page)
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8 Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Historical Performance (continued from previous page)
A Word About Risk
Tax-Managed International and International Portfolios: Substantially all of the
Portfolios' assets will be invested in foreign securities. Foreign markets can
be more volatile than the U.S. market due to increased risks of adverse issuer,
political, regulatory, market or economic developments. In addition, because the
Portfolios will invest in foreign currency denominated securities, fluctuations
in the value of the Portfolios' investments may be magnified by changes in
foreign exchange rates. Because the Portfolios allocate between "growth" and
"value" stocks, an investment in the Portfolios is subject to the risk that this
allocation will result in lower returns when one style is outperforming another
than if the Portfolios had invested entirely in the outperforming style. In
addition, the transaction costs associated with the systematic rebalancing of
the Portfolios may be significant over time. The Tax-Managed International
Portfolio may employ strategies that take into account the tax impact of buy and
sell decisions on the Portfolio's shareholders. While the Portfolio seeks to
maximize after-tax returns, there can be no assurance that the strategies will
be effective, and the use of these strategies may affect the gross returns of
the Portfolio.
Emerging Markets Value Portfolio: This Portfolio invests a significant amount of
its assets in foreign securities which involves risks not associated with U.S.
investments, including currency fluctuations and political and economic changes.
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.
Intermediate Duration, Short Duration Plus, U.S. Government Short Duration,
Short Duration Diversified Municipal, Diversified Municipal, Short Duration
California Municipal, Short Duration New York Municipal, California Municipal
and New York Municipal Portfolios: Price fluctuation may be caused by changes in
the general level of interest rates or changes in bond credit-quality ratings.
Increases in interest rates may cause the value of the Portfolios' investments
to decline. Changes in interest rates have a greater effect on bonds with longer
maturities than on those with shorter maturities. Investments in the Portfolios
are not guaranteed because of fluctuation in the net asset value of the
underlying fixed-income-related investments. Similar to direct bond ownership,
bond funds have the same interest rate, inflation and credit risks that are
associated with the underlying bonds owned by the fund. Portfolio purchasers
should understand that, in contrast to owning individual bonds, there are
ongoing fees and expenses associated with owning shares of bond funds. The
Portfolios invest principally in bonds and other fixed-income securities.
Intermediate Duration, Short Duration Plus, Short Duration Diversified Municipal
and Diversified Municipal Portfolios: These Portfolios can invest up to 20% of
their assets in non-investment-grade bonds, which are subject to greater risk of
loss of principal and interest, as well as the possibility of greater market
risk, than higher-rated bonds.
Short Duration California Municipal, Short Duration
New York Municipal, California Municipal and New York Municipal Portfolios:
These Portfolios can invest up to 20% of their assets in non-investment-grade
bonds, which are subject to greater risk of loss of principal and interest, as
well as the possibility of greater market risk, than higher-rated bonds. The
Portfolios are "non-diversified" and therefore may hold more concentrated
positions and be subject to certain additional risks than a "diversified"
portfolio.
All Portfolios: In order to achieve their investment objectives, the Portfolios
may at times use certain types of investment derivatives, such as options,
futures, forwards and swaps. These instruments involve risks different from, and
in certain cases, greater than, the risks presented by more traditional
investments. Each Portfolio's risks are fully discussed in its prospectus.
(Historical Performance continued on next page)
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2005 Semiannual Report 9
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Historical Performance (continued from previous page)
TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
-------------------- -------------------------------------
PAST SIX PAST 12 PAST PAST SINCE INCEPTION
THROUGH MARCH 31, 2005 MONTHS MONTHS FIVE YEARS 10 YEARS INCEPTION DATE
====================================================================================================================================
SANFORD C. BERNSTEIN FUND PORTFOLIOS VS. THEIR BENCHMARKS AND LIPPER COMPOSITES
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Managed International 12.51% 14.02% 4.71% 9.35% 9.26% June 22, 1992
Pre-liquidation, after-tax 12.36 13.86 4.02 7.97 8.00
Post-liquidation, after-tax 8.76 9.75 3.79 7.47 7.52
- ------------------------------------------------------------------------------------------------------------------------------------
International 12.56 14.43 5.03 -- 5.85 April 30, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index (Cap, UH) 15.13 15.06 (1.15) 5.41
- ------------------------------------------------------------------------------------------------------------------------------------
International Large-Cap Core Lipper Composite 13.31 11.35 (3.95) 5.90
Emerging Markets Value December 15, 1995
Before deduction of purchase and
redemption fees 26.45 34.60 13.81 -- 7.99
After deduction of 2% purchase and
2% redemption fees--both paid
to the Portfolio, not to Bernstein 21.45 29.27 12.89 -- 7.52
- ------------------------------------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Index 19.54 17.02 4.52 4.88
- ------------------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets Index 18.87 16.94 4.49 --
- ------------------------------------------------------------------------------------------------------------------------------------
International Large-Cap Core Lipper Composite 13.31 11.35 (3.95) 5.90
Intermediate Duration 0.88 1.21 5.92 6.24 7.22 January 17, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 0.47 1.15 7.14 7.14
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Lipper Composite 0.36 0.77 6.17 6.15
Short Duration Plus (0.06) (0.21) 4.41 5.01 5.85 December 12, 1988
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Government Short Duration (0.06) (0.41) 4.26 4.76 5.56 January 3, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch 1-3 Year Treasury Index (0.24) (0.35) 4.61 5.34
- ------------------------------------------------------------------------------------------------------------------------------------
Short-Term Bond Lipper Composite 0.04 (0.04) 4.19 4.89
Short Duration Diversified Municipal 0.05 0.43 3.04 3.44 3.52 October 3, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration California Municipal 0.01 0.13 2.56 3.15 3.24 October 3, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration New York Municipal 0.06 0.46 2.80 3.22 3.30 October 3, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 1-Year Muni Index 0.01 0.47 3.30 3.88
- ------------------------------------------------------------------------------------------------------------------------------------
Short-Term Municipal Lipper Composite 0.02 0.29 3.09 3.56
Diversified Municipal (0.18) 0.62 4.81 4.86 5.56 January 9, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
California Municipal 0.16 0.75 4.40 4.71 5.30 August 6, 1990
- ------------------------------------------------------------------------------------------------------------------------------------
New York Municipal (0.16) 0.64 4.73 4.84 5.60 January 9, 1989
- ------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 5-Year GO Muni Index (0.32) 0.39 5.45 5.33
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Municipal Lipper Composite (0.21) 0.56 5.06 4.87
SANFORD C. BERNSTEIN FUND II PORTFOLIO VS. ITS BENCHMARK AND LIPPER COMPOSITE
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Duration Institutional 0.94% 1.30% -- -- 5.50% May 17, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 0.47 1.15 7.14 7.14
Intermediate Bond Lipper Composite 0.36 0.77 6.17 6.15
See Historical Performance and Benchmark Disclosures on pages 8-9.
(Historical Performance continued on next page)
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10 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
(Historical Performance continued from previous page)
Sanford C. Bernstein Fund, Inc.
- --------------------------------------------------------------------------------
Foreign-Stock Portfolios
- --------------------------------------------------------------------------------
Tax-Managed International
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- ------------------- ------------------ --------------
95:3 $25,000 $25,000 $25,000
4 $25,798 $25,940 $25,863
5 $25,785 $25,631 $26,111
6 $25,581 $25,182 $26,147
7 $26,971 $26,749 $27,606
8 $27,057 $25,729 $27,085
9 $27,225 $26,231 $27,653
10 $27,023 $25,526 $27,167
11 $27,112 $26,236 $27,441
12 $28,241 $27,294 $28,234
96:1 $29,406 $27,406 $28,810
2 $29,354 $27,498 $28,980
3 $29,875 $28,082 $29,473
4 $31,075 $28,899 $30,378
5 $31,127 $28,367 $30,381
6 $31,475 $28,526 $30,639
7 $30,275 $27,693 $29,493
8 $30,397 $27,753 $29,885
9 $31,545 $28,491 $30,552
10 $31,510 $28,199 $30,414
11 $32,866 $29,321 $31,862
12 $33,174 $28,944 $32,034
97:1 $33,155 $27,931 $31,935
2 $33,620 $28,388 $32,423
3 $34,345 $28,491 $32,537
4 $34,568 $28,642 $32,670
5 $35,683 $30,506 $34,679
6 $37,225 $32,188 $36,330
7 $39,139 $32,709 $37,424
8 $36,686 $30,266 $34,662
9 $38,879 $31,961 $36,866
10 $36,872 $29,505 $34,035
11 $36,463 $29,204 $33,841
12 $36,248 $29,459 $34,142
98:1 $38,253 $30,806 $35,019
2 $39,869 $32,782 $37,390
3 $42,998 $33,792 $39,237
4 $42,753 $34,059 $39,834
5 $44,042 $33,894 $39,874
6 $43,858 $34,151 $39,583
7 $44,533 $34,497 $40,156
8 $37,905 $30,223 $34,398
9 $36,084 $29,297 $33,256
10 $37,741 $32,350 $35,870
11 $39,930 $34,008 $37,775
12 $40,218 $35,349 $38,908
99:1 $40,286 $35,245 $39,289
2 $39,225 $34,405 $38,378
3 $41,686 $35,841 $39,759
4 $43,877 $37,293 $41,513
5 $42,860 $35,373 $39,811
6 $44,509 $36,752 $41,781
7 $45,164 $37,844 $42,843
8 $45,683 $37,982 $43,155
9 $45,232 $38,365 $43,380
10 $45,593 $39,802 $45,011
11 $46,112 $41,185 $48,184
12 $49,352 $44,881 $53,985
00:1 $46,442 $42,029 $50,773
2 $47,061 $43,161 $53,429
3 $48,550 $44,834 $54,241
4 $47,428 $42,475 $51,117
5 $47,405 $41,437 $49,614
6 $49,535 $43,058 $51,702
7 $48,413 $41,253 $49,789
8 $48,894 $41,611 $50,422
9 $46,809 $39,585 $47,407
10 $46,305 $38,649 $45,828
11 $45,549 $37,200 $43,903
12 $46,946 $38,522 $45,383
01:1 $47,859 $38,502 $45,560
2 $46,108 $35,616 $42,011
3 $43,672 $33,242 $38,977
4 $46,641 $35,552 $41,710
5 $45,423 $34,297 $40,333
6 $45,195 $32,894 $38,825
7 $44,078 $32,296 $37,812
8 $43,824 $31,478 $36,749
9 $38,622 $28,289 $32,975
10 $39,993 $29,014 $33,859
11 $40,551 $30,083 $35,152
12 $41,067 $30,262 $35,651
02:1 $39,854 $28,654 $33,919
2 $40,525 $28,855 $34,105
3 $42,901 $30,416 $35,838
4 $44,038 $30,618 $35,942
5 $45,329 $31,005 $36,186
6 $43,366 $29,771 $34,804
7 $39,208 $26,832 $31,282
8 $38,872 $26,771 $31,138
9 $33,835 $23,896 $27,706
10 $35,669 $25,181 $29,322
11 $38,226 $26,323 $30,600
12 $37,572 $25,438 $29,468
03:1 $36,604 $24,376 $28,106
2 $36,342 $23,817 $27,364
3 $34,771 $23,349 $26,831
4 $39,615 $25,637 $29,280
5 $42,207 $27,191 $30,900
6 $43,306 $27,848 $31,462
7 $44,432 $28,522 $32,069
8 $45,191 $29,211 $32,698
9 $45,898 $30,111 $33,345
10 $48,333 $31,988 $35,192
11 $49,119 $32,699 $35,977
12 $52,161 $35,254 $38,560
04:01 $52,507 $35,752 $39,166
2 $53,198 $36,578 $39,906
3 $53,597 $36,784 $39,814
4 $52,666 $35,951 $38,719
5 $52,693 $36,072 $38,750
6 $53,570 $36,863 $39,452
7 $51,948 $35,666 $38,010
8 $52,666 $35,824 $38,180
9 $54,315 $36,760 $39,123
10 $55,486 $38,014 $40,381
11 $58,677 $40,611 $42,869
12 $61,330 $42,392 $44,675
05:01 $60,081 $41,614 $43,682
2 $62,715 $43,412 $45,550
3 $61,113 $42,322 $44,332
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- ----------------- ------------------ --------------
99:4 $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 $23,318
5 $30,202 $24,181 $23,336
6 $30,695 $24,711 $23,759
7 $29,759 $23,909 $22,891
8 $30,137 $24,015 $22,993
9 $31,089 $24,643 $23,561
10 $31,729 $25,483 $24,318
11 $33,584 $27,224 $25,817
12 $35,143 $28,418 $26,904
05:01 $34,398 $27,896 $26,306
2 $35,921 $29,102 $27,431
3 $34,994 $28,371 $26,698
- --------------------------------------------------------------------------------
Emerging Markets Value
- --------------------------------------------------------------------------------
Growth of $25,000
[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)+ (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 $36,301 $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 $38,639 $31,124 $32,337
10 $40,016 $31,869 $33,324
11 $44,854 $34,821 $36,065
12 $48,217 $36,497 $37,933
05:01 $48,340 $36,613 $38,068
2 $53,317 $39,828 $41,242
3 $47,884 $37,204 $38,438
Taxable-Bond Portfolios
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- ----------------- -------------------- -------------------
95:3 $25,000 $25,000 $25,000
4 $25,307 $25,323 $25,349
5 $26,191 $26,216 $26,330
6 $26,402 $26,382 $26,523
7 $26,299 $26,310 $26,464
8 $26,601 $26,605 $26,783
9 $26,922 $26,839 $27,044
10 $27,350 $27,172 $27,396
11 $27,735 $27,552 $27,806
12 $28,172 $27,902 $28,196
96:1 $28,274 $28,086 $28,384
2 $27,722 $27,606 $27,890
3 $27,565 $27,418 $27,696
4 $27,449 $27,251 $27,541
5 $27,436 $27,202 $27,485
6 $27,731 $27,512 $27,854
7 $27,834 $27,575 $27,930
8 $27,840 $27,553 $27,883
9 $28,283 $28,003 $28,369
10 $28,859 $28,568 $28,998
11 $29,405 $29,051 $29,494
12 $29,181 $28,795 $29,220
97:1 $29,214 $28,879 $29,309
2 $29,275 $28,937 $29,382
3 $28,965 $28,633 $29,057
4 $29,342 $29,005 $29,492
5 $29,563 $29,254 $29,771
6 $29,919 $29,579 $30,124
7 $30,530 $30,339 $30,936
8 $30,380 $30,072 $30,672
9 $30,733 $30,490 $31,125
10 $31,149 $30,850 $31,576
11 $31,236 $30,937 $31,722
12 $31,415 $31,215 $32,041
98:1 $31,782 $31,618 $32,452
2 $31,782 $31,573 $32,428
3 $31,886 $31,684 $32,539
4 $32,010 $31,820 $32,709
5 $32,300 $32,103 $33,019
6 $32,458 $32,334 $33,299
7 $32,587 $32,396 $33,370
8 $32,909 $32,791 $33,913
9 $33,372 $33,516 $34,708
10 $33,105 $33,271 $34,524
11 $33,443 $33,424 $34,720
12 $33,574 $33,534 $34,824
99:1 $33,899 $33,749 $35,073
2 $33,408 $33,121 $34,461
3 $33,666 $33,360 $34,652
4 $33,804 $33,460 $34,761
5 $33,676 $33,112 $34,459
6 $33,594 $32,989 $34,347
7 $33,435 $32,877 $34,201
8 $33,365 $32,825 $34,184
9 $33,719 $33,153 $34,580
10 $33,775 $33,196 $34,708
11 $33,828 $33,223 $34,706
12 $33,791 $33,080 $34,538
00:1 $33,671 $32,957 $34,425
2 $34,016 $33,277 $34,841
3 $34,365 $33,660 $35,300
4 $34,126 $33,475 $35,199
5 $33,946 $33,408 $35,183
6 $34,655 $34,082 $35,915
7 $34,902 $34,345 $36,241
8 $35,302 $34,791 $36,766
9 $35,529 $35,014 $36,998
10 $35,414 $35,091 $37,242
11 $35,845 $35,586 $37,851
12 $36,618 $36,262 $38,554
01:1 $37,331 $36,868 $39,184
2 $37,504 $37,196 $39,525
3 $37,635 $37,359 $39,724
4 $37,421 $37,158 $39,559
5 $37,673 $37,366 $39,798
6 $37,710 $37,478 $39,948
7 $38,385 $38,310 $40,841
8 $38,757 $38,697 $41,309
9 $39,009 $39,026 $41,790
10 $39,787 $39,740 $42,665
11 $39,429 $39,255 $42,076
12 $39,250 $38,992 $41,809
02:1 $39,500 $39,234 $42,148
2 $39,655 $39,540 $42,556
3 $39,043 $38,915 $41,848
4 $39,466 $39,557 $42,660
5 $39,847 $39,866 $43,022
6 $39,659 $39,961 $43,394
7 $39,912 $40,209 $43,918
8 $40,671 $40,885 $44,659
9 $41,149 $41,420 $45,382
10 $41,040 $41,200 $45,176
11 $41,297 $41,295 $45,164
12 $42,059 $42,120 $46,097
03:1 $42,138 $42,178 $46,136
2 $42,701 $42,757 $46,774
3 $42,695 $42,750 $46,738
4 $43,238 $43,177 $47,124
5 $43,988 $43,966 $48,003
6 $43,844 $43,913 $47,907
7 $42,338 $42,493 $46,297
8 $42,749 $42,754 $46,604
9 $43,780 $43,841 $47,838
10 $43,534 $43,495 $47,392
11 $43,694 $43,608 $47,505
12 $44,203 $44,024 $47,989
04:01 $44,557 $44,348 $48,375
2 $44,960 $44,749 $48,898
3 $45,265 $45,065 $49,264
4 $44,212 $44,000 $47,983
5 $43,982 $43,787 $47,790
6 $44,193 $43,984 $48,061
7 $44,571 $44,371 $48,537
8 $45,274 $45,127 $49,463
9 $45,416 $45,247 $49,597
10 $45,844 $45,592 $50,013
11 $45,584 $45,313 $49,614
12 $46,002 $45,689 $50,071
05:01 $46,287 $45,894 $50,385
2 $46,112 $45,689 $50,088
3 $45,814 $45,411 $49,830
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
Growth of $25,000
[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)
-------- ----------------- ----------------------- -------------------
95:3 $25,000 $25,000 $25,000
4 $25,219 $25,233 $25,223
5 $25,567 $25,707 $25,663
6 $25,709 $25,851 $25,801
7 $25,796 $25,910 $25,908
8 $25,946 $26,089 $26,062
9 $26,088 $26,240 $26,189
10 $26,322 $26,453 $26,410
11 $26,510 $26,678 $26,644
12 $26,746 $26,889 $26,848
96:1 $26,892 $27,090 $27,076
2 $26,797 $26,987 $26,962
3 $26,789 $26,963 $26,938
4 $26,844 $26,974 $26,961
5 $26,897 $27,017 $27,016
6 $27,050 $27,203 $27,210
7 $27,179 $27,307 $27,317
8 $27,299 $27,389 $27,411
9 $27,532 $27,635 $27,659
10 $27,859 $27,920 $27,971
11 $28,045 $28,140 $28,185
12 $28,025 $28,140 $28,185
97:1 $28,180 $28,264 $28,317
2 $28,256 $28,346 $28,382
3 $28,249 $28,315 $28,371
4 $28,444 $28,530 $28,603
5 $28,616 $28,724 $28,798
6 $28,791 $28,911 $28,997
7 $29,010 $29,226 $29,315
8 $29,080 $29,241 $29,342
9 $29,241 $29,454 $29,565
10 $29,418 $29,619 $29,785
11 $29,494 $29,687 $29,857
12 $29,578 $29,856 $30,061
98:1 $29,841 $30,116 $30,353
2 $29,881 $30,149 $30,379
3 $29,949 $30,264 $30,502
4 $30,081 $30,397 $30,645
5 $30,210 $30,555 $30,809
6 $30,329 $30,689 $30,969
7 $30,491 $30,815 $31,114
8 $30,700 $31,025 $31,505
9 $31,026 $31,391 $31,922
10 $31,061 $31,375 $32,079
11 $31,169 $31,441 $32,051
12 $31,333 $31,557 $32,164
99:1 $31,480 $31,699 $32,292
2 $31,378 $31,563 $32,134
3 $31,608 $31,800 $32,357
4 $31,723 $31,917 $32,462
5 $31,780 $31,857 $32,441
6 $31,882 $31,908 $32,542
7 $31,966 $31,937 $32,645
8 $32,034 $31,988 $32,739
9 $32,212 $32,215 $32,952
10 $32,301 $32,292 $33,040
11 $32,415 $32,386 $33,102
12 $32,518 $32,438 $33,150
00:1 $32,510 $32,428 $33,137
2 $32,692 $32,635 $33,358
3 $32,850 $32,821 $33,565
4 $32,866 $32,834 $33,652
5 $32,964 $32,920 $33,791
6 $33,320 $33,298 $34,141
7 $33,463 $33,498 $34,357
8 $33,689 $33,760 $34,611
9 $33,942 $34,036 $34,859
10 $33,920 $34,128 $35,047
11 $34,178 $34,418 $35,378
12 $34,572 $34,821 $35,800
01:1 $35,020 $35,288 $36,249
2 $35,209 $35,513 $36,484
3 $35,504 $35,759 $36,789
4 $35,609 $35,837 $36,887
5 $35,849 $36,049 $37,095
6 $35,995 $36,178 $37,221
7 $36,410 $36,631 $37,639
8 $36,685 $36,843 $37,856
9 $37,131 $37,215 $38,479
10 $37,532 $37,513 $38,842
11 $37,406 $37,344 $38,758
12 $37,458 $37,296 $38,772
02:1 $37,591 $37,404 $38,851
2 $37,638 $37,516 $39,038
3 $37,475 $37,302 $38,775
4 $37,762 $37,601 $39,208
5 $37,960 $37,807 $39,366
6 $38,177 $37,856 $39,696
7 $38,457 $38,004 $40,181
8 $38,585 $38,244 $40,319
9 $38,904 $38,497 $40,652
10 $38,903 $38,515 $40,744
11 $38,985 $38,543 $40,622
12 $39,366 $38,918 $41,004
03:1 $39,421 $38,985 $40,998
2 $39,647 $39,213 $41,169
3 $39,680 $39,265 $41,244
4 $39,839 $39,428 $41,321
5 $40,060 $39,675 $41,476
6 $40,113 $39,739 $41,540
7 $39,847 $39,355 $41,314
8 $39,890 $39,395 $41,341
9 $40,236 $39,814 $41,717
10 $40,130 $39,680 $41,562
11 $40,176 $39,687 $41,540
12 $40,377 $39,892 $41,781
04:01 $40,504 $40,007 $41,866
2 $40,688 $40,191 $42,066
3 $40,849 $40,322 $42,198
4 $40,436 $39,934 $41,791
5 $40,327 $39,857 $41,752
6 $40,378 $39,882 $41,749
7 $40,520 $40,027 $41,900
8 $40,762 $40,282 $42,190
9 $40,786 $40,290 $42,153
10 $40,911 $40,409 $42,281
11 $40,781 $40,298 $42,072
12 $40,888 $40,400 $42,160
05:01 $40,929 $40,398 $42,145
2 $40,843 $40,361 $42,050
3 $40,761 $40,307 $42,052
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Growth of $25,000
[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)
-------- ----------------- -------------------- -------------------
95:3 $25,000 $25,000 $25,000
4 $25,220 $25,215 $25,223
5 $25,606 $25,712 $25,663
6 $25,786 $25,840 $25,801
7 $25,846 $25,871 $25,908
8 $25,986 $26,060 $26,062
9 $26,117 $26,209 $26,189
10 $26,320 $26,442 $26,410
11 $26,518 $26,696 $26,644
12 $26,702 $26,917 $26,848
96:1 $26,841 $27,111 $27,076
2 $26,761 $26,986 $26,962
3 $26,771 $26,954 $26,938
4 $26,756 $26,959 $26,961
5 $26,788 $26,992 $27,016
6 $26,958 $27,173 $27,210
7 $27,060 $27,262 $27,317
8 $27,153 $27,336 $27,411
9 $27,361 $27,571 $27,659
10 $27,658 $27,861 $27,971
11 $27,842 $28,075 $28,185
12 $27,794 $28,067 $28,185
97:1 $27,942 $28,199 $28,317
2 $28,013 $28,272 $28,382
3 $28,007 $28,221 $28,371
4 $28,199 $28,427 $28,603
5 $28,371 $28,595 $28,798
6 $28,546 $28,746 $28,997
7 $28,763 $29,045 $29,315
8 $28,812 $29,057 $29,342
9 $28,969 $29,257 $29,565
10 $29,168 $29,462 $29,785
11 $29,220 $29,527 $29,857
12 $29,363 $29,672 $30,061
98:1 $29,575 $29,924 $30,353
2 $29,611 $29,945 $30,379
3 $29,699 $30,044 $30,502
4 $29,806 $30,161 $30,645
5 $29,930 $30,315 $30,809
6 $30,065 $30,448 $30,969
7 $30,220 $30,570 $31,114
8 $30,469 $30,882 $31,505
9 $30,809 $31,258 $31,922
10 $30,900 $31,311 $32,079
11 $30,921 $31,305 $32,051
12 $30,994 $31,396 $32,164
99:1 $31,110 $31,547 $32,292
2 $31,016 $31,424 $32,134
3 $31,224 $31,609 $32,357
4 $31,340 $31,732 $32,462
5 $31,328 $31,704 $32,441
6 $31,407 $31,713 $32,542
7 $31,491 $31,755 $32,645
8 $31,557 $31,812 $32,739
9 $31,753 $32,012 $32,952
10 $31,842 $32,095 $33,040
11 $31,923 $32,179 $33,102
12 $31,950 $32,188 $33,150
00:1 $31,949 $32,211 $33,137
2 $32,130 $32,395 $33,358
3 $32,290 $32,650 $33,565
4 $32,416 $32,768 $33,652
5 $32,510 $32,824 $33,791
6 $32,802 $33,152 $34,141
7 $32,968 $33,348 $34,357
8 $33,214 $33,594 $34,611
9 $33,435 $33,836 $34,859
10 $33,601 $34,029 $35,047
11 $33,906 $34,363 $35,378
12 $34,293 $34,720 $35,800
01:1 $34,710 $35,164 $36,249
2 $34,901 $35,432 $36,484
3 $35,115 $35,658 $36,789
4 $35,196 $35,758 $36,887
5 $35,359 $35,966 $37,095
6 $35,434 $36,063 $37,221
7 $35,823 $36,445 $37,639
8 $36,091 $36,642 $37,856
9 $36,651 $37,122 $38,479
10 $37,000 $37,445 $38,842
11 $36,869 $37,306 $38,758
12 $36,882 $37,269 $38,772
02:1 $36,977 $37,384 $38,851
2 $37,161 $37,571 $39,038
3 $36,973 $37,353 $38,775
4 $37,355 $37,716 $39,208
5 $37,488 $37,878 $39,366
6 $37,753 $38,113 $39,696
7 $38,167 $38,475 $40,181
8 $38,321 $38,636 $40,319
9 $38,637 $38,883 $40,652
10 $38,700 $38,942 $40,744
11 $38,587 $38,851 $40,622
12 $38,963 $39,171 $41,004
03:1 $38,996 $39,180 $40,998
2 $39,164 $39,356 $41,169
3 $39,178 $39,379 $41,244
4 $39,281 $39,455 $41,321
5 $39,474 $39,577 $41,476
6 $39,480 $39,597 $41,540
7 $39,161 $39,300 $41,314
8 $39,144 $39,310 $41,341
9 $39,447 $39,622 $41,717
10 $39,340 $39,488 $41,562
11 $39,354 $39,486 $41,540
12 $39,524 $39,664 $41,781
04:01 $39,607 $39,743 $41,866
2 $39,806 $39,904 $42,066
3 $39,950 $39,998 $42,198
4 $39,539 $39,649 $41,791
5 $39,424 $39,541 $41,752
6 $39,437 $39,559 $41,749
7 $39,604 $39,699 $41,900
8 $39,798 $39,936 $42,190
9 $39,812 $39,901 $42,153
10 $39,952 $40,011 $42,281
11 $39,811 $39,874 $42,072
12 $39,895 $39,957 $42,160
05:01 $39,919 $39,960 $42,145
2 $39,852 $39,886 $42,050
3 $39,788 $39,854 $42,052
* Portfolio, benchmark and Lipper returns are from the close of business on
March 31, 1995 (except Emerging Markets Value Portfolio which is from
December 31, 1995) through close of business on March 31, 2005.
+ Reflects the growth of $25,000 in the Portfolio after deduction of the 2%
purchase fee each investor must pay to the Portfolio 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 $49,858.
See Historical Performance and Benchmark Disclosures on pages 8-9.
(Historical Performance continued on next page)
- --------------------------------------------------------------------------------
2005 Semiannual Report 11
- --------------------------------------------------------------------------------
(Historical Performance continued from previous page)
Sanford C. Bernstein Fund, Inc. Municipal Bond Portfolio (Intermediate and
Short Duration)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Short Duration Diversified Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- --------------------- ------------------------ -------------------
95:3 $25,000 $25,000 $25,000
4 $25,066 $25,091 $25,083
5 $25,334 $25,327 $25,346
6 $25,444 $25,413 $25,437
7 $25,573 $25,599 $25,587
8 $25,680 $25,734 $25,713
9 $25,731 $25,806 $25,774
10 $25,841 $25,911 $25,898
11 $25,975 $26,034 $26,053
12 $26,065 $26,132 $26,165
96:1 $26,197 $26,282 $26,322
2 $26,231 $26,346 $26,354
3 $26,221 $26,363 $26,304
4 $26,253 $26,425 $26,333
5 $26,319 $26,492 $26,391
6 $26,402 $26,621 $26,486
7 $26,514 $26,734 $26,608
8 $26,550 $26,786 $26,666
9 $26,677 $26,907 $26,797
10 $26,780 $27,044 $26,944
11 $26,943 $27,208 $27,111
12 $26,991 $27,267 $27,155
97:1 $27,117 $27,424 $27,250
2 $27,183 $27,512 $27,367
3 $27,156 $27,498 $27,296
4 $27,241 $27,609 $27,389
5 $27,382 $27,748 $27,556
6 $27,489 $27,858 $27,696
7 $27,617 $28,029 $27,920
8 $27,653 $28,064 $27,920
9 $27,791 $28,209 $28,110
10 $27,876 $28,318 $28,212
11 $27,935 $28,405 $28,296
12 $28,060 $28,532 $28,449
98:1 $28,186 $28,681 $28,594
2 $28,273 $28,781 $28,663
3 $28,336 $28,863 $28,723
4 $28,378 $28,898 $28,723
5 $28,501 $29,049 $28,901
6 $28,566 $29,156 $28,999
7 $28,671 $29,256 $29,092
8 $28,802 $29,432 $29,301
9 $28,909 $29,572 $29,454
10 $29,011 $29,712 $29,554
11 $29,095 $29,801 $29,610
12 $29,165 $29,885 $29,708
99:1 $29,312 $30,052 $29,868
2 $29,417 $30,160 $29,871
3 $29,457 $30,185 $29,913
4 $29,516 $30,255 $29,988
5 $29,564 $30,314 $30,000
6 $29,559 $30,287 $29,895
7 $29,632 $30,396 $29,990
8 $29,666 $30,469 $29,993
9 $29,749 $30,572 $30,065
10 $29,778 $30,639 $30,075
11 $29,894 $30,733 $30,177
12 $29,914 $30,759 $30,180
00:1 $30,005 $30,876 $30,198
2 $30,076 $30,969 $30,310
3 $30,197 $31,103 $30,455
4 $30,242 $31,178 $30,486
5 $30,278 $31,229 $30,519
6 $30,519 $31,485 $30,769
7 $30,670 $31,661 $30,957
8 $30,818 $31,823 $31,121
9 $30,871 $31,894 $31,193
10 $30,995 $32,045 $31,324
11 $31,091 $32,166 $31,430
12 $31,316 $32,405 $31,685
01:1 $31,595 $32,790 $31,951
2 $31,699 $32,898 $32,066
3 $31,844 $33,068 $32,229
4 $31,897 $33,131 $32,252
5 $32,097 $33,366 $32,458
6 $32,193 $33,497 $32,588
7 $32,370 $33,644 $32,768
8 $32,569 $33,846 $32,990
9 $32,717 $34,012 $33,083
10 $32,863 $34,159 $33,222
11 $32,852 $34,191 $33,162
12 $32,916 $34,276 $33,188
02:1 $33,156 $34,554 $33,378
2 $33,320 $34,678 $33,538
3 $33,060 $34,436 $33,316
4 $33,325 $34,698 $33,580
5 $33,489 $34,850 $33,701
6 $33,694 $35,021 $33,879
7 $33,821 $35,150 $34,028
8 $33,898 $35,267 $34,161
9 $33,964 $35,346 $34,301
10 $33,874 $35,294 $34,155
11 $33,975 $35,371 $34,219
12 $34,133 $35,596 $34,479
03:1 $34,209 $35,678 $34,537
2 $34,310 $35,768 $34,706
3 $34,318 $35,767 $34,666
4 $34,357 $35,810 $34,744
5 $34,530 $35,924 $34,966
6 $34,510 $35,971 $34,963
7 $34,351 $35,956 $34,746
8 $34,410 $36,003 $34,836
9 $34,633 $36,172 $35,122
10 $34,638 $36,132 $35,074
11 $34,692 $36,167 $35,137
12 $34,767 $36,206 $35,182
04:01 $34,849 $36,283 $35,263
2 $34,928 $36,412 $35,431
3 $34,923 $36,417 $35,358
4 $34,812 $36,330 $35,120
5 $34,749 $36,273 $35,062
6 $34,799 $36,307 $35,093
7 $34,932 $36,450 $35,235
8 $35,060 $36,604 $35,436
9 $35,053 $36,582 $35,453
10 $35,101 $36,582 $35,499
11 $35,040 $36,535 $35,414
12 $35,148 $36,592 $35,527
05:01 $35,177 $36,621 $35,515
2 $35,120 $36,616 $35,504
3 $35,071 $36,587 $35,460
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- --------------------- ------------------------ -------------------
95:3 $25,000 $25,000 $25,000
4 $25,100 $25,091 $25,083
5 $25,341 $25,327 $25,346
6 $25,424 $25,413 $25,437
7 $25,605 $25,599 $25,587
8 $25,685 $25,734 $25,713
9 $25,749 $25,806 $25,774
10 $25,856 $25,911 $25,898
11 $25,966 $26,034 $26,053
12 $26,041 $26,132 $26,165
96:1 $26,193 $26,282 $26,322
2 $26,219 $26,346 $26,354
3 $26,200 $26,363 $26,304
4 $26,246 $26,425 $26,333
5 $26,290 $26,492 $26,391
6 $26,393 $26,621 $26,486
7 $26,505 $26,734 $26,608
8 $26,544 $26,786 $26,666
9 $26,652 $26,907 $26,797
10 $26,777 $27,044 $26,944
11 $26,920 $27,208 $27,111
12 $26,967 $27,267 $27,155
97:1 $27,070 $27,424 $27,250
2 $27,132 $27,512 $27,367
3 $27,126 $27,498 $27,296
4 $27,207 $27,609 $27,389
5 $27,305 $27,748 $27,556
6 $27,409 $27,858 $27,696
7 $27,554 $28,029 $27,920
8 $27,584 $28,064 $27,920
9 $27,690 $28,209 $28,110
10 $27,764 $28,318 $28,212
11 $27,816 $28,405 $28,296
12 $27,938 $28,532 $28,449
98:1 $28,057 $28,681 $28,594
2 $28,141 $28,781 $28,663
3 $28,198 $28,863 $28,723
4 $28,210 $28,898 $28,723
5 $28,326 $29,049 $28,901
6 $28,411 $29,156 $28,999
7 $28,544 $29,256 $29,092
8 $28,668 $29,432 $29,301
9 $28,791 $29,572 $29,454
10 $28,914 $29,712 $29,554
11 $28,998 $29,801 $29,610
12 $29,028 $29,885 $29,708
99:1 $29,171 $30,052 $29,868
2 $29,253 $30,160 $29,871
3 $29,267 $30,185 $29,913
4 $29,342 $30,255 $29,988
5 $29,359 $30,314 $30,000
6 $29,349 $30,287 $29,895
7 $29,448 $30,396 $29,990
8 $29,500 $30,469 $29,993
9 $29,625 $30,572 $30,065
10 $29,654 $30,639 $30,075
11 $29,720 $30,733 $30,177
12 $29,715 $30,759 $30,180
00:1 $29,822 $30,876 $30,198
2 $29,936 $30,969 $30,310
3 $30,047 $31,103 $30,455
4 $30,059 $31,178 $30,486
5 $30,133 $31,229 $30,519
6 $30,371 $31,485 $30,769
7 $30,517 $31,661 $30,957
8 $30,691 $31,823 $31,121
9 $30,770 $31,894 $31,193
10 $30,893 $32,045 $31,324
11 $30,992 $32,166 $31,430
12 $31,165 $32,405 $31,685
01:1 $31,459 $32,790 $31,951
2 $31,556 $32,898 $32,066
3 $31,678 $33,068 $32,229
4 $31,680 $33,131 $32,252
5 $31,877 $33,366 $32,458
6 $31,971 $33,497 $32,588
7 $32,120 $33,644 $32,768
8 $32,259 $33,846 $32,990
9 $32,349 $34,012 $33,083
10 $32,456 $34,159 $33,222
11 $32,501 $34,191 $33,162
12 $32,539 $34,276 $33,188
02:1 $32,751 $34,554 $33,378
2 $32,805 $34,678 $33,538
3 $32,620 $34,436 $33,316
4 $32,798 $34,698 $33,580
5 $32,904 $34,850 $33,701
6 $32,997 $35,021 $33,879
7 $33,083 $35,150 $34,028
8 $33,196 $35,267 $34,161
9 $33,277 $35,346 $34,301
10 $33,147 $35,294 $34,155
11 $33,182 $35,371 $34,219
12 $33,391 $35,596 $34,479
03:1 $33,445 $35,678 $34,537
2 $33,551 $35,768 $34,706
3 $33,571 $35,767 $34,666
4 $33,595 $35,810 $34,744
5 $33,752 $35,924 $34,966
6 $33,716 $35,971 $34,963
7 $33,542 $35,956 $34,746
8 $33,610 $36,003 $34,836
9 $33,820 $36,172 $35,122
10 $33,784 $36,132 $35,074
11 $33,852 $36,167 $35,137
12 $33,897 $36,206 $35,182
04:01 $33,968 $36,283 $35,263
2 $34,065 $36,412 $35,431
3 $34,054 $36,417 $35,358
4 $33,919 $36,330 $35,120
5 $33,881 $36,273 $35,062
6 $33,930 $36,307 $35,093
7 $34,033 $36,450 $35,235
8 $34,102 $36,604 $35,436
9 $34,094 $36,582 $35,453
10 $34,141 $36,582 $35,499
11 $34,080 $36,535 $35,414
12 $34,156 $36,592 $35,527
05:01 $34,209 $36,621 $35,515
2 $34,151 $36,616 $35,504
3 $34,098 $36,587 $35,460
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- --------------------- ------------------------ -------------------
95:3 $25,000 $25,000 $25,000
4 $25,076 $25,091 $25,083
5 $25,293 $25,327 $25,346
6 $25,393 $25,413 $25,437
7 $25,530 $25,599 $25,587
8 $25,625 $25,734 $25,713
9 $25,686 $25,806 $25,774
10 $25,774 $25,911 $25,898
11 $25,893 $26,034 $26,053
12 $25,979 $26,132 $26,165
96:1 $26,128 $26,282 $26,322
2 $26,193 $26,346 $26,354
3 $26,174 $26,363 $26,304
4 $26,196 $26,425 $26,333
5 $26,259 $26,492 $26,391
6 $26,342 $26,621 $26,486
7 $26,460 $26,734 $26,608
8 $26,457 $26,786 $26,666
9 $26,594 $26,907 $26,797
10 $26,728 $27,044 $26,944
11 $26,861 $27,208 $27,111
12 $26,894 $27,267 $27,155
97:1 $27,007 $27,424 $27,250
2 $27,077 $27,512 $27,367
3 $27,056 $27,498 $27,296
4 $27,147 $27,609 $27,389
5 $27,255 $27,748 $27,556
6 $27,368 $27,858 $27,696
7 $27,500 $28,029 $27,920
8 $27,518 $28,064 $27,920
9 $27,656 $28,209 $28,110
10 $27,743 $28,318 $28,212
11 $27,801 $28,405 $28,296
12 $27,903 $28,532 $28,449
98:1 $28,034 $28,681 $28,594
2 $28,101 $28,781 $28,663
3 $28,167 $28,863 $28,723
4 $28,188 $28,898 $28,723
5 $28,311 $29,049 $28,901
6 $28,400 $29,156 $28,999
7 $28,487 $29,256 $29,092
8 $28,616 $29,432 $29,301
9 $28,722 $29,572 $29,454
10 $28,826 $29,712 $29,554
11 $28,892 $29,801 $29,610
12 $28,954 $29,885 $29,708
99:1 $29,104 $30,052 $29,868
2 $29,168 $30,160 $29,871
3 $29,233 $30,185 $29,913
4 $29,276 $30,255 $29,988
5 $29,306 $30,314 $30,000
6 $29,284 $30,287 $29,895
7 $29,368 $30,396 $29,990
8 $29,411 $30,469 $29,993
9 $29,480 $30,572 $30,065
10 $29,518 $30,639 $30,075
11 $29,619 $30,733 $30,177
12 $29,620 $30,759 $30,180
00:1 $29,697 $30,876 $30,198
2 $29,791 $30,969 $30,310
3 $29,887 $31,103 $30,455
4 $29,936 $31,178 $30,486
5 $29,994 $31,229 $30,519
6 $30,215 $31,485 $30,769
7 $30,361 $31,661 $30,957
8 $30,482 $31,823 $31,121
9 $30,555 $31,894 $31,193
10 $30,671 $32,045 $31,324
11 $30,791 $32,166 $31,430
12 $31,036 $32,405 $31,685
01:1 $31,284 $32,790 $31,951
2 $31,386 $32,898 $32,066
3 $31,553 $33,068 $32,229
4 $31,551 $33,131 $32,252
5 $31,769 $33,366 $32,458
6 $31,858 $33,497 $32,588
7 $32,006 $33,644 $32,768
8 $32,191 $33,846 $32,990
9 $32,251 $34,012 $33,083
10 $32,415 $34,159 $33,222
11 $32,399 $34,191 $33,162
12 $32,433 $34,276 $33,188
02:1 $32,672 $34,554 $33,378
2 $32,782 $34,678 $33,538
3 $32,598 $34,436 $33,316
4 $32,777 $34,698 $33,580
5 $32,888 $34,850 $33,701
6 $33,007 $35,021 $33,879
7 $33,103 $35,150 $34,028
8 $33,202 $35,267 $34,161
9 $33,265 $35,346 $34,301
10 $33,171 $35,294 $34,155
11 $33,211 $35,371 $34,219
12 $33,432 $35,596 $34,479
03:1 $33,471 $35,678 $34,537
2 $33,588 $35,768 $34,706
3 $33,562 $35,767 $34,666
4 $33,623 $35,810 $34,744
5 $33,818 $35,924 $34,966
6 $33,793 $35,971 $34,963
7 $33,622 $35,956 $34,746
8 $33,696 $36,003 $34,836
9 $33,905 $36,172 $35,122
10 $33,900 $36,132 $35,074
11 $33,974 $36,167 $35,137
12 $34,032 $36,206 $35,182
04:01 $34,088 $36,283 $35,263
2 $34,194 $36,412 $35,431
3 $34,164 $36,417 $35,358
4 $34,027 $36,330 $35,120
5 $33,990 $36,273 $35,062
6 $34,039 $36,307 $35,093
7 $34,145 $36,450 $35,235
8 $34,275 $36,604 $35,436
9 $34,298 $36,582 $35,453
10 $34,321 $36,582 $35,499
11 $34,293 $36,535 $35,414
12 $34,375 $36,592 $35,527
05:01 $34,459 $36,621 $35,515
2 $34,372 $36,616 $35,504
3 $34,319 $36,587 $35,460
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[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)
- -------- --------------------- ------------------- -------------------
95:3 $25,000 $25,000 $25,000
4 $25,042 $25,043 $25,068
5 $25,676 $25,639 $25,616
6 $25,569 $25,544 $25,637
7 $25,805 $25,781 $25,996
8 $26,062 $26,034 $26,258
9 $26,163 $26,148 $26,337
10 $26,420 $26,399 $26,448
11 $26,718 $26,685 $26,673
12 $26,889 $26,863 $26,819
96:1 $27,090 $27,089 $27,138
2 $27,016 $27,002 $27,046
3 $26,766 $26,697 $26,903
4 $26,711 $26,646 $26,863
5 $26,714 $26,633 $26,830
6 $26,893 $26,793 $27,021
7 $27,085 $27,029 $27,199
8 $27,061 $27,034 $27,256
9 $27,310 $27,264 $27,461
10 $27,534 $27,526 $27,716
11 $27,940 $27,936 $28,101
12 $27,868 $27,852 $28,059
97:1 $27,971 $27,910 $28,135
2 $28,140 $28,114 $28,335
3 $27,913 $27,822 $28,014
4 $28,081 $27,958 $28,155
5 $28,370 $28,291 $28,461
6 $28,580 $28,545 $28,712
7 $29,105 $29,168 $29,232
8 $28,949 $28,929 $29,077
9 $29,209 $29,227 $29,338
10 $29,313 $29,361 $29,517
11 $29,411 $29,470 $29,612
12 $29,729 $29,838 $29,878
98:1 $29,937 $30,089 $30,141
2 $29,978 $30,101 $30,177
3 $29,999 $30,101 $30,229
4 $29,951 $29,941 $30,084
5 $30,223 $30,363 $30,442
6 $30,312 $30,448 $30,536
7 $30,394 $30,500 $30,646
8 $30,697 $30,945 $31,060
9 $30,957 $31,280 $31,376
10 $31,015 $31,270 $31,442
11 $31,035 $31,326 $31,486
12 $31,104 $31,433 $31,625
99:1 $31,430 $31,791 $31,944
2 $31,380 $31,610 $31,906
3 $31,403 $31,582 $31,951
4 $31,485 $31,667 $32,043
5 $31,398 $31,477 $31,934
6 $31,127 $31,027 $31,580
7 $31,231 $31,170 $31,747
8 $31,181 $31,014 $31,747
9 $31,195 $31,026 $31,858
10 $31,063 $30,800 $31,788
11 $31,317 $31,058 $31,957
12 $31,245 $30,912 $31,851
00:1 $31,192 $30,767 $31,837
2 $31,352 $31,001 $31,935
3 $31,771 $31,438 $32,221
4 $31,712 $31,312 $32,157
5 $31,623 $31,168 $32,144
6 $32,173 $31,820 $32,739
7 $32,480 $32,176 $33,096
8 $32,815 $32,569 $33,443
9 $32,768 $32,471 $33,387
10 $33,026 $32,714 $33,624
11 $33,172 $32,868 $33,755
12 $33,685 $33,558 $34,297
01:1 $34,053 $33,928 $34,891
2 $34,154 $34,026 $34,974
3 $34,447 $34,291 $35,254
4 $34,253 $33,948 $35,067
5 $34,600 $34,284 $35,414
6 $34,770 $34,504 $35,570
7 $35,122 $34,918 $35,968
8 $35,547 $35,445 $36,450
9 $35,596 $35,389 $36,541
10 $35,872 $35,718 $36,812
11 $35,691 $35,328 $36,539
12 $35,534 $35,063 $36,349
02:1 $35,962 $35,568 $36,931
2 $36,264 $35,977 $37,341
3 $35,766 $35,315 $36,590
4 $36,297 $36,000 $37,410
5 $36,477 $36,198 $37,657
6 $36,797 $36,571 $38,067
7 $37,125 $36,999 $38,482
8 $37,406 $37,351 $38,842
9 $37,880 $38,027 $39,344
10 $37,442 $37,419 $38,955
11 $37,353 $37,250 $38,905
12 $37,945 $38,032 $39,620
03:1 $37,911 $37,859 $39,716
2 $38,323 $38,395 $40,141
3 $38,297 $38,377 $40,108
4 $38,468 $38,611 $40,273
5 $39,178 $39,394 $40,939
6 $38,988 $39,210 $40,841
7 $38,068 $38,000 $39,940
8 $38,288 $38,284 $40,226
9 $39,182 $39,255 $41,279
10 $39,024 $39,037 $40,978
11 $39,262 $39,358 $41,127
12 $39,478 $39,590 $41,277
04:01 $39,641 $39,725 $41,462
2 $40,106 $40,288 $42,009
3 $39,933 $40,017 $41,845
4 $39,240 $39,163 $40,996
5 $39,117 $39,092 $40,848
6 $39,221 $39,188 $41,002
7 $39,578 $39,579 $41,352
8 $40,152 $40,212 $42,071
9 $40,251 $40,324 $42,142
10 $40,466 $40,553 $42,375
11 $40,171 $40,198 $42,084
12 $40,502 $40,583 $42,480
05:01 $40,607 $40,752 $42,463
2 $40,447 $40,556 $42,264
3 $40,180 $40,240 $42,008
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[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
-------- -------------------- ------------------- -------------------
95:3 $25,000 $25,000 $25,000
4 $25,058 $25,035 $25,068
5 $25,702 $25,653 $25,616
6 $25,533 $25,492 $25,637
7 $25,800 $25,765 $25,996
8 $26,033 $26,048 $26,258
9 $26,189 $26,194 $26,337
10 $26,463 $26,479 $26,448
11 $26,796 $26,786 $26,673
12 $26,954 $26,934 $26,819
96:1 $27,210 $27,173 $27,138
2 $27,115 $27,084 $27,046
3 $26,803 $26,772 $26,903
4 $26,766 $26,751 $26,863
5 $26,748 $26,743 $26,830
6 $26,945 $26,925 $27,021
7 $27,133 $27,164 $27,199
8 $27,149 $27,164 $27,256
9 $27,393 $27,387 $27,461
10 $27,637 $27,666 $27,716
11 $28,017 $28,106 $28,101
12 $27,957 $28,002 $28,059
97:1 $28,035 $28,056 $28,135
2 $28,198 $28,235 $28,335
3 $27,949 $27,967 $28,014
4 $28,092 $28,098 $28,155
5 $28,396 $28,466 $28,461
6 $28,627 $28,726 $28,712
7 $29,186 $29,389 $29,232
8 $29,029 $29,142 $29,077
9 $29,262 $29,434 $29,338
10 $29,362 $29,513 $29,517
11 $29,457 $29,634 $29,612
12 $29,730 $29,990 $29,878
98:1 $29,975 $30,272 $30,141
2 $30,035 $30,314 $30,177
3 $30,011 $30,262 $30,229
4 $29,941 $30,090 $30,084
5 $30,273 $30,505 $30,442
6 $30,361 $30,585 $30,536
7 $30,441 $30,676 $30,646
8 $30,784 $31,136 $31,060
9 $31,125 $31,597 $31,376
10 $31,155 $31,553 $31,442
11 $31,237 $31,638 $31,486
12 $31,254 $31,651 $31,625
99:1 $31,569 $32,021 $31,944
2 $31,491 $31,871 $31,906
3 $31,532 $31,918 $31,951
4 $31,567 $31,944 $32,043
5 $31,411 $31,749 $31,934
6 $31,165 $31,298 $31,580
7 $31,287 $31,470 $31,747
8 $31,210 $31,332 $31,747
9 $31,312 $31,445 $31,858
10 $31,159 $31,177 $31,788
11 $31,386 $31,455 $31,957
12 $31,234 $31,228 $31,851
00:1 $31,250 $31,247 $31,837
2 $31,501 $31,510 $31,935
3 $31,935 $32,001 $32,221
4 $31,757 $31,812 $32,157
5 $31,780 $31,803 $32,144
6 $32,314 $32,490 $32,739
7 $32,615 $32,867 $33,096
8 $33,060 $33,376 $33,443
9 $33,015 $33,246 $33,387
10 $33,207 $33,459 $33,624
11 $33,397 $33,623 $33,755
12 $33,898 $34,225 $34,297
01:1 $34,256 $34,659 $34,891
2 $34,328 $34,701 $34,974
3 $34,489 $34,864 $35,254
4 $34,197 $34,348 $35,067
5 $34,533 $34,801 $35,414
6 $34,668 $35,014 $35,570
7 $35,008 $35,430 $35,968
8 $35,518 $36,096 $36,450
9 $35,434 $36,002 $36,541
10 $35,746 $36,377 $36,812
11 $35,608 $36,068 $36,539
12 $35,447 $35,761 $36,349
02:1 $35,837 $36,315 $36,931
2 $36,102 $36,697 $37,341
3 $35,552 $35,930 $36,590
4 $36,014 $36,602 $37,410
5 $36,256 $36,891 $37,657
6 $36,481 $37,123 $38,067
7 $36,762 $37,509 $38,482
8 $37,102 $37,952 $38,842
9 $37,656 $38,739 $39,344
10 $36,935 $37,855 $38,955
11 $36,941 $37,821 $38,905
12 $37,508 $38,489 $39,620
03:1 $37,407 $38,229 $39,716
2 $37,849 $38,671 $40,141
3 $37,866 $38,670 $40,108
4 $38,076 $38,894 $40,273
5 $38,736 $39,655 $40,939
6 $38,492 $39,359 $40,841
7 $37,612 $38,216 $39,940
8 $37,822 $38,464 $40,226
9 $38,559 $39,385 $41,279
10 $38,454 $39,254 $40,978
11 $38,682 $39,563 $41,127
12 $38,887 $39,795 $41,277
04:01 $39,012 $39,907 $41,462
2 $39,485 $40,455 $42,009
3 $39,312 $40,152 $41,845
4 $38,578 $39,306 $40,996
5 $38,425 $39,203 $40,848
6 $38,602 $39,369 $41,002
7 $38,948 $39,767 $41,352
8 $39,479 $40,391 $42,071
9 $39,543 $40,508 $42,142
10 $39,803 $40,762 $42,375
11 $39,567 $40,448 $42,084
12 $39,887 $40,824 $42,480
05:01 $40,101 $41,041 $42,463
2 $39,891 $40,820 $42,264
3 $39,605 $40,499 $42,008
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[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)
-------- ------------------ ------------------- -------------------
95:3 25,000 $25,000 $25,000
4 25,081 $25,050 $25,068
5 25,736 $25,644 $25,616
6 25,628 $25,559 $25,637
7 25,845 $25,810 $25,996
8 26,122 $26,083 $26,258
9 26,204 $26,182 $26,337
10 26,465 $26,441 $26,448
11 26,764 $26,727 $26,673
12 26,930 $26,887 $26,819
96:1 27,134 $27,113 $27,138
2 27,003 $26,991 $27,046
3 26,771 $26,719 $26,903
4 26,738 $26,644 $26,863
5 26,723 $26,604 $26,830
6 26,904 $26,785 $27,021
7 27,099 $27,045 $27,199
8 27,081 $27,028 $27,256
9 27,334 $27,293 $27,461
10 27,584 $27,542 $27,716
11 27,935 $27,982 $28,101
12 27,880 $27,879 $28,059
97:1 27,965 $27,912 $28,135
2 28,156 $28,127 $28,335
3 27,908 $27,826 $28,014
4 28,079 $27,971 $28,155
5 28,348 $28,337 $28,461
6 28,563 $28,612 $28,712
7 29,091 $29,279 $29,232
8 28,914 $29,024 $29,077
9 29,176 $29,326 $29,338
10 29,303 $29,429 $29,517
11 29,382 $29,546 $29,612
12 29,704 $29,927 $29,878
98:1 29,936 $30,182 $30,141
2 29,957 $30,191 $30,177
3 29,979 $30,161 $30,229
4 29,866 $29,962 $30,084
5 30,228 $30,429 $30,442
6 30,343 $30,529 $30,536
7 30,383 $30,563 $30,646
8 30,758 $31,028 $31,060
9 31,019 $31,397 $31,376
10 31,098 $31,387 $31,442
11 31,162 $31,428 $31,486
12 31,251 $31,551 $31,625
99:1 31,599 $31,926 $31,944
2 31,502 $31,741 $31,906
3 31,524 $31,706 $31,951
4 31,586 $31,785 $32,043
5 31,453 $31,595 $31,934
6 31,132 $31,133 $31,580
7 31,259 $31,280 $31,747
8 31,208 $31,151 $31,747
9 31,248 $31,179 $31,858
10 31,093 $30,914 $31,788
11 31,352 $31,199 $31,957
12 31,240 $31,043 $31,851
00:1 31,212 $30,912 $31,837
2 31,423 $31,160 $31,935
3 31,823 $31,668 $32,221
4 31,715 $31,503 $32,157
5 31,670 $31,377 $32,144
6 32,244 $32,092 $32,739
7 32,530 $32,477 $33,096
8 32,866 $32,919 $33,443
9 32,788 $32,801 $33,387
10 33,050 $33,109 $33,624
11 33,216 $33,281 $33,755
12 33,801 $34,033 $34,297
01:1 34,169 $34,442 $34,891
2 34,218 $34,493 $34,974
3 34,483 $34,800 $35,254
4 34,309 $34,491 $35,067
5 34,627 $34,853 $35,414
6 34,767 $35,051 $35,570
7 35,092 $35,455 $35,968
8 35,516 $36,018 $36,450
9 35,408 $35,752 $36,541
10 35,734 $36,084 $36,812
11 35,497 $35,741 $36,539
12 35,336 $35,463 $36,349
02:1 35,817 $36,041 $36,931
2 36,170 $36,498 $37,341
3 35,660 $35,772 $36,590
4 36,192 $36,498 $37,410
5 36,341 $36,659 $37,657
6 36,661 $37,018 $38,067
7 36,989 $37,429 $38,482
8 37,321 $37,815 $38,842
9 37,826 $38,497 $39,344
10 37,384 $37,912 $38,955
11 37,237 $37,684 $38,905
12 37,910 $38,472 $39,620
03:1 37,871 $38,255 $39,716
2 38,311 $38,809 $40,141
3 38,228 $38,743 $40,108
4 38,422 $39,010 $40,273
5 39,107 $39,851 $40,939
6 38,940 $39,592 $40,841
7 38,009 $38,318 $39,940
8 38,230 $38,634 $40,226
9 39,133 $39,652 $41,279
10 38,947 $39,397 $40,978
11 39,215 $39,744 $41,127
12 39,409 $39,985 $41,277
04:01 39,577 $40,067 $41,462
2 40,046 $40,650 $42,009
3 39,845 $40,290 $41,845
4 39,148 $39,442 $40,996
5 38,998 $39,381 $40,848
6 39,107 $39,471 $41,002
7 39,501 $39,874 $41,352
8 40,086 $40,510 $42,071
9 40,162 $40,617 $42,142
10 40,384 $40,827 $42,375
11 40,093 $40,433 $42,084
12 40,405 $40,815 $42,480
05:01 40,546 $40,993 $42,463
2 40,390 $40,786 $42,264
3 40,100 $40,425 $42,008
Sanford C. Bernstein Fund II, Inc. Taxable-Bond Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Growth of $25,000
[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
10 $28,848 $28,591 $29,062
11 $28,685 $28,416 $28,831
12 $28,959 $28,652 $29,096
05:01 $29,150 $28,781 $29,279
2 $29,032 $28,652 $29,106
3 $28,849 $28,478 $28,956
* Portfolio, benchmark and Lipper returns are from the close of business on
March 31, 1995 (except Intermediate Duration Institutional Portfolio which
is from June 30, 2002) through close of business on March 31, 2005.
See Historical Performance and Benchmark Disclosures on pages 8-9.
(Historical Performance concluded)
- --------------------------------------------------------------------------------
12 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Fund Expenses--March 31, 2005
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
OCTOBER 1, 2004 MARCH 31, 2005 PERIOD* RATIO*
- --------------------------------------------------------------------------------------------------------------------
Tax-Managed International Class Shares
Actual $1,000 $1,125.10 $6.46 1.22%
Hypothetical (5% return before expenses) $1,000 $1,018.85 $6.14 1.22%
- ---------------------------------------------------------------------------------------------------------------------
International Class Shares
Actual $1,000 $1,125.62 $6.68 1.26%
Hypothetical (5% return before expenses) $1,000 $1,018.65 $6.34 1.26%
- ---------------------------------------------------------------------------------------------------------------------
Emerging Markets Value Class Shares
Actual $1,000 $1,264.54 $9.32 1.65%
Hypothetical (5% return before expenses) $1,000 $1,016.70 $8.30 1.65%
- ---------------------------------------------------------------------------------------------------------------------
Intermediate Duration Class Shares
Actual $1,000 $1,008.80 $3.00 0.60%
Hypothetical (5% return before expenses) $1,000 $1,021.94 $3.02 0.60%
- ---------------------------------------------------------------------------------------------------------------------
U.S. Government Short Duration Class Shares
Actual $1,000 $ 999.38 $3.74 0.75%
Hypothetical (5% return before expenses) $1,000 $1,021.19 $3.78 0.75%
- ---------------------------------------------------------------------------------------------------------------------
Intermediate Duration Institutional Class Shares
Actual $1,000 $1,009.39 $2.25 0.45%
Hypothetical (5% return before expenses) $1,000 $1,022.69 $2.27 0.45%
- ---------------------------------------------------------------------------------------------------------------------
Short Duration Diversified Municipal Class Shares
Actual $1,000 $1,000.51 $3.44 0.69%
Hypothetical (5% return before expenses) $1,000 $1,021.49 $3.48 0.69%
- ---------------------------------------------------------------------------------------------------------------------
Short Duration California Municipal Class Shares
Actual $1,000 $1,000.09 $3.94 0.79%
Hypothetical (5% return before expenses) $1,000 $1,020.99 $3.98 0.79%
- ---------------------------------------------------------------------------------------------------------------------
Short Duration New York Municipal Class Shares
Actual $1,000 $1,000.63 $3.69 0.74%
Hypothetical (5% return before expenses) $1,000 $1,021.24 $3.73 0.74%
- ---------------------------------------------------------------------------------------------------------------------
Diversified Municipal Class Shares
Actual $1,000 $ 998.23 $3.04 0.61%
Hypothetical (5% return before expenses) $1,000 $1,021.89 $3.07 0.61%
- ---------------------------------------------------------------------------------------------------------------------
California Municipal Class Shares
Actual $1,000 $1,001.59 $3.19 0.64%
Hypothetical (5% return before expenses) $1,000 $1,021.74 $3.23 0.64%
- ---------------------------------------------------------------------------------------------------------------------
New York Municipal Class Shares
Actual $1,000 $ 998.40 $3.14 0.63%
Hypothetical (5% return before expenses) $1,000 $1,021.79 $3.18 0.63%
- ---------------------------------------------------------------------------------------------------------------------
Short Duration Plus Class Shares
Actual $1,000 $ 999.42 $3.34 0.67%
Hypothetical (5% return before expenses) $1,000 $1,021.59 $3.38 0.67%
* 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/365
(to reflect the one-half-year period).
- --------------------------------------------------------------------------------
2005 Semiannual Report 13
- --------------------------------------------------------------------------------
Portfolio Summary--March 31, 2005
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Foreign Stock Portfolios
- --------------------------------------------------------------------------------
Tax-Managed International
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Country Breakdown(1) Industry Breakdown(2)
23.6% United Kingdom Automobiles 8.9%
21.5% Japan Banking 18.6
13.9% France Beverages and Tobacco 0.9
8.3% Switzerland Broadcasting and Publishing 0.7
6.3% Germany Building Materials 1.8
4.9% Spain Business and Public Services 1.3
4.3% Canada Chemicals 0.5
3.6% Netherlands Construction and Housing 3.8
3.0% Italy Data Processing 4.3
2.7% Australia Electrical and Electronics 2.8
2.7% Ireland Electronic Components and
1.5% Singapore Instruments 1.6
1.3% Sweden Energy Sources 8.4
1.2% Hong Kong Financial Services 2.6
1.0% Belgium Food and Household Products 5.8
0.2% Greece Health and Personal Care 7.5
Insurance 7.2
Leisure and Tourism 2.8
Machinery and Engineering 1.7
Merchandising 2.6
Metal--Nonferrous 2.5
Metal--Steel 3.0
Miscellaneous Materials 0.3
Paper and Forest Products 1.2
Telecommunications 3.0
Textiles and Apparel 1.7
Utilities--Electric and Gas 1.0
Wholesale and
International Trade 1.4
Repurchase Agreement 1.3
Cash and Other Assets,
Less Liabilities 0.8
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Country Breakdown(1) Industry Breakdown(2)
23.7% United Kingdom Automobiles 8.9%
21.2% Japan Banking 18.6
14.3% France Beverage and Tobacco 0.9
8.4% Switzerland Broadcasting and Publishing 0.7
6.1% Germany Building Materials 1.8
4.9% Spain Business and Public Services 1.3
4.2% Canada Chemicals 0.6
3.8% Netherlands Construction and Housing 3.7
3.1% Italy Data Processing 4.3
2.5% Australia Electrical and Electronics 3.2
2.7% Ireland Electronic Components and
1.5% Singapore Instruments 1.6
1.1% Sweden Energy Sources 8.8
1.2% Hong Kong Financial Services 2.5
1.1% Belgium Food and Household Products 5.7
0.2% Greece Health and Personal Care 7.6
Insurance 7.0
Leisure and Tourism 2.8
Machinery and Engineering 1.5
Merchandising 2.6
Metal--Nonferrous 2.3
Metal--Steel 2.9
Miscellaneous Materials 0.3
Paper and Forest Products 1.1
Telecommunications 3.1
Textiles/Apparel 1.8
Utilities--Electric and Gas 1.0
Wholesale and
International Trade 1.4
Repurchase Agreements 1.2
Cash and Other Assets,
Less Liabilities 0.8
- --------------------------------------------------------------------------------
Emerging Markets Value
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Country Breakdown(1) Industry Breakdown(2)
19.4% South Korea Automobiles 7.6%
15.4% Brazil Banking 24.5
13.4% Taiwan Broadcasting and Publishing 1.6
10.1% South Africa Building Materials 1.7
6.3% India Chemicals 5.3
5.6% Mexico Construction and Housing 2.9
5.4% China Electrical and Electronics 8.4
5.1% Turkey Electronic Components and
4.2% Israel Instruments 1.6
4.2% Thailand Energy Sources 11.1
3.5% Indonesia Financial Services 2.4
2.5% Hungary Food and Household Products 1.6
2.1% Malaysia Health and Personal Care 0.6
1.6% Philppines Insurance 3.6
1.2% Argentina Merchandising 0.1
Metal--Steel 11.4
Miscellaneous Materials 0.3
Multi-Industry 1.8
Paper and Forest Products 2.4
Real Estate 0.6
Telecommunications 4.8
Utilities--Electric,
Gas, and Water 3.7
Repurchase Agreement 1.3
Cash and Other Assets,
Less Liabilities 0.7
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.
- --------------------------------------------------------------------------------
14 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Portfolio Summary--March 31, 2005 (continued from previous page)
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Taxable Bond Portfolios
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1)
26.5% Federal National Mortgage Association
15.0% Corporate Bonds
7.8% U.S. Treasury Securities
6.4% Commercial Mortgage Backed Securities
5.4% Asset Backed Securities
2.8% Sovereign Debt
1.9% Government National Mortgage Securities
0.9% Federal Home Loan Mortgage Corporation
0.4% Collateralized Mortgage Obligations
32.9% Short Term
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1)
21.0% Federal National Mortgage Association
20.9% U.S. Treasury Securities
15.7% Corporate Bonds
9.0% Collateralized Mortgage Obligations
5.7% Federal Home Loan Mortgage Corporation
5.5% Asset Backed Securities
4.5% Commercial Mortgage Backed Securities
3.0% Federal Home Loan Bank
0.2% Government National Mortgage Securities
14.5% Short Term
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1)
32.9% U.S. Treasury Securities
22.6% Federal National Mortgage Association
5.5% Federal Home Loan Mortgage Corporation
9.4% Federal Farm Credit Bank
9.2% Federal Home Loan Bank
4.5% Collateralized Mortgage Obligations
1.4% Asset Backed Securities
14.5% Short Term
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1)
25.9% Federal National Mortgage Association
15.1% Corporate Bonds
6.8% U.S. Treasury Securities
2.7% Sovereign Debt
6.5% Commercial Mortgage Backed Securities
5.7% Asset Backed Securities
1.2% Federal Home Loan Mortgage Corporation
0.4% Collateralized Mortgage Obligations
2.0% Government National Mortgage Association
33.7% Short Term
1. The security type breakdown is expressed as a percentage of the
Portfolio's total investments and may vary over time.
- --------------------------------------------------------------------------------
2005 Semiannual Report 15
- --------------------------------------------------------------------------------
Portfolio Summary--March 31, 2005 (continued from previous page)
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Municipal Bond Portfolios (Short Duration)
- --------------------------------------------------------------------------------
Short Duration Diversified Municipal
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1) Quality Rating Breakdown(1)
30.6% Tax Supported 60.3% AAA
24.7% Insured 25.0% AA
17.2% Revenue 6.5% A
14.6% Tax Exempt Variable-Rate 5.5% Unrated
Demand Notes/Short-Term Notes 2.2% BBB
9.3% Pre-refunded/Escrowed 0.3% BB
3.6% Asset-Backed Securities 0.2% B
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1) Quality Rating Breakdown(1)
48.6% Insured 62.5% AAA
21.3% Tax Supported 21.1% A
15.4% Revenue 9.4% AA
7.6% Pre-refunded/Escrowed 5.3% Unrated
4.1% Tax Exempt Variable-Rate 1.7% BBB
Demand Notes/Short-Term Notes
3.0% Asset-Backed Securities
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1) Quality Rating Breakdown(1)
27.6% Insured 60.6% AAA
24.5% Tax Supported 19.3% AA
18.8% Tax Exempt Variable-Rate 14.5% A
Demand Notes 4.0% Unrated
16.1% Pre-refunded/Escrowed 1.6% BBB
12.8% Revenue
0.2% Asset-Backed Securities
1. 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.
- --------------------------------------------------------------------------------
16 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Portfolio Summary--March 31, 2005 (continued from previous page)
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Municipal Bond Portfolios (Intermediate Duration)
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1) Quality Rating Breakdown(1)
44.0% Insured 62.2% AAA
33.4% Tax Supported 18.0% AA
14.4% Revenue 10.5% A
6.1% Pre-refunded/Escrowed 5.8% Unrated
0.8% Inflation Adjusted 3.0% BBB
0.8% Tax Exempt Variable Rate 0.4% BB
Demand Notes 0.1% B
0.5% Asset-Backed Securities
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1) Quality Rating Breakdown(1)
56.1% Insured 62.1% AAA
20.5% Tax Supported 15.2% AA
18.9% Revenue 14.2% A
2.5% Asset-Backed Securities 4.8% Unrated
1.2% Pre-refunded/Escrowed 3.4% BBB
0.8% Tax Exempt Variable-Rate 0.3% BB
Demand Notes
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
[The following table was represented as a pie chart in the printed material.]
Security Type Breakdown(1) Quality Rating Breakdown(1)
42.1% Insured 65.0% AAA
30.4% Tax Supported 15.8% AA
15.0% Revenue 12.0% A
10.2% Pre-refunded/Escrowed 4.6% Unrated
1.6% Tax Exempt Variable-Rate 2.0% BBB
Demand Notes 0.6% BB
0.7% Asset-Backed Securities
1. 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.
- --------------------------------------------------------------------------------
2005 Semiannual Report 17
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--March 31, 2005 (Unaudited)
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, $691,914,000) $ 5,285,466,984 $ 3,170,449,822(a) $ 1,557,330,248
Foreign currency at value (b) 22,846,913(c) 13,566,612(c) 6,913,515
Cash in bank 778 517 416
Receivables:
Interest 3,593 1,576 1,050
Dividends 19,347,887 8,952,770 12,513,176
Investment securities sold 36,681,811 17,533,671 1,115,432
Capital shares sold 16,477,821 7,333,175 6,293,741
Foreign withholding tax reclaims 1,425,540 408,468 0
--------------- --------------- ---------------
Total assets 5,382,251,327 3,218,246,611 1,584,167,578
--------------- --------------- ---------------
LIABILITIES
Payable for collateral on securities lending at value (Note 1L) 0 691,914,000 0
Payables:
DIVIDENDS TO SHAREHOLDERS 0 0 0
Investment securities purchased 46,056,103 23,342,465 7,181,003
Capital shares redeemed 4,457,106 2,120,805 308,750
Management fee (Note 2A) 4,171,935 2,032,464 1,674,516
Shareholder servicing and administration fee (Note 2B) 1,152,327 536,592 348,523
Transfer Agent fee (Note 2B) 46,078 18,377 28,808
Distribution fee payable 682 12,797 0
Accrued expenses 344,418 209,851 230,796
Foreign capital gains taxes 0 0 6,071,885
Margin owed to broker on futures contracts 153,937 87,075 0
--------------- --------------- ---------------
Total liabilities 56,382,586 720,274,426 15,844,281
--------------- --------------- ---------------
NET ASSETS (d) $ 5,325,868,741 $ 2,497,972,185 $ 1,568,323,297
=============== =============== ===============
Cost of investments (including cash collateral on
securities loaned) $ 4,185,811,262 $ 2,668,014,100 $ 966,777,200
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 44,009,970
NET ASSET VALUE, OFFERING AND ===============
REDEMPTION PRICE PER SHARE $ 35.64
===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 236,744 $ 118,154 $ 44,010
Additional paid-in capital 3,898,073,659 2,149,674,219 821,837,910
Undistributed net investment income 3,932,275 1,557,182 8,401,841
Accumulated net realized gain (loss) on investment
and foreign currency transactions 324,081,870 (155,767,877) 153,358,614
Unrealized appreciation/(depreciation) of:
Investments and futures 1,099,518,335 502,358,073 584,481,163*
Foreign currency denominated assets and liabilities 25,858 32,434 199,759
--------------- --------------- ---------------
$ 5,325,868,741 $ 2,497,972,185 $ 1,568,323,297
=============== =============== ===============
(a) Includes securities on loan with a value of $661,057,021.
(b) Cost: $22,818,505, $13,548,381 and $6,797,981, respectively (Note 1).
(c) The amounts of U.S. $1,252,226 and $685,743, respectively, have been
segregated as collateral for financial futures contracts outstanding at
March 31, 2005.
(d) See page 19 for share class information on net assets value, offering
price and redemption price per share of the Tax-Managed International and
International Portfolios.
* Net of accrued foreign capital gains taxes of $6,071,885.
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.
- --------------------------------------------------------------------------------
18 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 $ 5,324,476,126
Shares of capital stock outstanding 236,681,898
---------------
Net asset value, offering and redemption price per share $ 22.50
===============
International Class Shares
Net Assets $ 2,476,358,342
Shares of capital stock outstanding 117,125,387
---------------
Net asset value, offering and redemption price per share $ 21.14
===============
Class A Shares
Net Assets $ 752,558 $ 8,863,419
Shares of capital stock outstanding 33,541 420,199
--------------- ---------------
Net asset value and redemption price per share $ 22.44 $ 21.09
Sales charge--4.25% of public offering price 1.00 .94
--------------- ---------------
Maximum offering price $ 23.44 $ 22.03
=============== ===============
Class B Shares
Net Assets $ 125,262 $ 2,054,485
Shares of capital stock outstanding 5,615 98,058
--------------- ---------------
Net asset value and offering price per share $ 22.31 $ 20.95
=============== ===============
Class C Shares
Net Assets $ 514,795 $ 10,695,939
Shares of capital stock outstanding 23,086 510,327
--------------- ---------------
Net asset value and offering price per share $ 22.30 $ 20.96
=============== ===============
- --------------------------------------------------------------------------------
2005 Semiannual Report 19
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--March 31, 2005 (Unaudited)
(continued)
INTERMEDIATE
INTERMEDIATE U.S. GOVERNMENT DURATION
DURATION SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities at value $ 4,147,277,237 $ 93,971,090 $ 833,884,352
Cash in bank 0 0 0
Receivables:
Interest 16,307,616 509,217 3,294,869
Investment securities sold 388,896,064 0 62,136,634
Capital shares sold 8,443,514 11,150 3,302,019
Prepaid registration fee 0 0 29,189
Appreciation of swap agreement (Note 1M) 0 0 0
Appreciation of foreign currency contracts (Note 5) 2,079,824 0 417,319
--------------- --------------- ---------------
Total assets 4,563,004,255 94,491,457 903,064,382
--------------- --------------- ---------------
LIABILITIES
Due to custodian 372,733 10,273 96,473
Payables:
Dividends to shareholders 3,516,486 76,083 720,268
Investment securities purchased 1,467,273,807 2,009,785 291,342,126
Swap contracts at value (Cost $159,304, $34,592) (Note 1M) 723,808 0 157,227
Capital shares redeemed 2,725,005 99,893 86,759
Deferred income on dollar rolls 635,903 1,733 130,267
Management fee (Note 2A) 1,216,274 39,809 195,544
Shareholder servicing and administration fee (Note 2B) 260,845 7,962 0
Transfer Agent fee (Note 2B) 16,141 1,927 5,266
Accrued expenses 218,422 22,012 63,736
Margin owed to broker on futures contracts 146,844 0 0
Depreciation of swap agreement (Note 1M) 0 0 0
--------------- --------------- ---------------
Total liabilities 1,447,106,268 2,269,477 292,797,666
--------------- --------------- ---------------
NET ASSETS $ 3,085,897,987 $ 92,221,980 $ 610,266,716
=============== =============== ===============
Cost of investments $ 4,153,987,445 $ 94,808,379 $ 835,042,287
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 233,215,615 7,371,106 40,102,768
=============== =============== ===============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 13.23 $ 12.51 $ 15.22
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 233,216 $ 7,371 $ 40,103
Additional paid-in capital 3,098,522,485 94,167,650 613,209,821
UNDISTRIBUTED NET INVESTMENT INCOME/(EXCESS DISTRIBUTIONS) (4,145,775) (69,554) (283,773)
Accumulated net realized loss
on investment, futures and foreign currency transactions (3,565,859) (1,046,198) (1,846,657)
Unrealized appreciation (depreciation) of:
Investments, futures and swaps (7,274,712) (837,289) (1,280,570)
Foreign currency denominated assets and liabilities 2,128,632 0 427,792
--------------- --------------- ---------------
$ 3,085,897,987 $ 92,221,980 $ 610,266,716
=============== =============== ===============
SHORT DURATION SHORT DURATION SHORT DURATION
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities at value $ 247,724,415 $ 63,978,408 $ 133,088,472
Cash in bank 2,575,127 85,076 68,366
Receivables:
Interest 3,502,128 746,194 1,520,473
Investment securities sold 1,701,913 0 60,000
Capital shares sold 168,700 400,000 1,107,099
Prepaid registration fee 33,103 0 0
Appreciation of swap agreement (Note 1M) 84,031 32,957 31,789
Appreciation of foreign currency contracts (Note 5) 0 0 0
--------------- --------------- ---------------
Total assets 255,789,417 65,242,635 135,876,199
--------------- --------------- ---------------
LIABILITIES
Due to custodian 0 0 0
Payables:
Dividends to shareholders 164,220 38,640 75,951
Investment securities purchased 1,215,914 0 12,117,574
Swap contracts at value (Cost $159,304, $34,592) (Note 1M) 0 0 0
Capital shares redeemed 1,562,659 376,479 639,369
Deferred income on dollar rolls 0 0 0
Management fee (Note 2A) 108,554 28,193 52,630
Shareholder servicing and administration fee (Note 2B) 21,864 5,610 10,522
Transfer Agent fee (Note 2B) 2,556 2,591 3,208
Accrued expenses 24,068 11,955 19,581
Margin owed to broker on futures contracts 0 0 0
Depreciation of swap agreement (Note 1M) 136,860 18,171 65,462
--------------- --------------- ---------------
Total liabilities 3,236,695 481,639 12,984,297
--------------- --------------- ---------------
NET ASSETS $ 252,552,722 $ 64,760,996 $ 122,891,902
=============== =============== ===============
Cost of investments $ 249,403,326 $ 64,396,288 $ 133,505,076
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 20,226,516 5,198,719 9,939,556
=============== =============== ===============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 12.49 $ 12.46 $ 12.36
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 20,227 $ 5,199 $ 9,940
Additional paid-in capital 254,730,034 65,373,782 124,060,177
UNDISTRIBUTED NET INVESTMENT INCOME/(EXCESS DISTRIBUTIONS) 14,400 (13,203) 12,647
Accumulated net realized loss
on investment, futures and foreign currency transactions (461,996) (200,443) (731,293)
Unrealized appreciation (depreciation) of:
Investments, futures and swaps (1,749,943) (404,339) (459,569)
Foreign currency denominated assets and liabilities 0 0 0
--------------- --------------- ---------------
$ 252,552,722 $ 64,760,996 $ 122,891,902
=============== =============== ===============
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.
- --------------------------------------------------------------------------------
20 & 21
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--March 31, 2005 (Unaudited)
(continued)
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities at value $ 3,024,268,704 $ 971,673,393 $ 1,333,718,091
Cash in bank 142,560 54,563 147,744
Receivables:
Interest 37,097,535 12,095,733 18,075,262
Investment securities sold 2,950,074 0 225,000
Capital shares sold 9,881,561 6,033,583 3,392,568
Appreciation of swap agreement (Note 1M) 1,042,104 314,607 309,939
--------------- --------------- ---------------
Total assets 3,075,382,538 990,171,879 1,355,868,604
--------------- --------------- ---------------
LIABILITIES
Payables:
Dividends to shareholders 2,776,688 906,109 1,314,043
Investment securities purchased 61,372,935 3,141,352 14,795,454
Capital shares redeemed 3,705,833 1,847,001 2,363,016
Management fee (Note 2A) 1,189,855 416,893 552,692
Shareholder servicing and administration fee (Note 2B) 233,292 74,618 100,617
Transfer Agent fee (Note 2B) 18,055 0 16,380
Distribution fee payable 162,780 65,570 97,583
Accrued expenses 151,211 82,475 95,711
Depreciation of swap agreement (Note 1M) 656,904 231,471 501,636
--------------- --------------- ---------------
Total liabilities 70,267,553 6,765,489 19,837,132
--------------- --------------- ---------------
NET ASSETS (e) $ 3,005,114,985 $ 983,406,390 $ 1,336,031,472
=============== =============== ===============
Cost of investments $ 2,988,457,862 $ 958,148,833 $ 1,312,977,254
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 214,203 $ 69,338 $ 96,368
Additional paid-in capital 2,973,595,717 972,450,226 1,317,196,574
Undistributed net investment income 232,574 4,977 92,269
Accumulated net realized loss on investment
and futures transactions (5,090,399) (2,723,652) (1,835,407)
Unrealized appreciation/(depreciation) of investments
and swaps 36,162,890 13,605,501 20,481,668
--------------- --------------- ---------------
$ 3,005,114,985 $ 983,406,390 $ 1,336,031,472
=============== =============== ===============
(e) See page 23 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.
- --------------------------------------------------------------------------------
22 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 $2,755,612,724 $ 878,453,925 $1,188,536,338
Shares of capital stock outstanding 196,424,619 61,937,903 85,724,281
-------------- -------------- --------------
Net asset value and offering price per share $ 14.03 $ 14.18 $ 13.86
============== ============== ==============
Class A Shares
Net Assets $ 89,527,583 $ 41,231,197 $ 50,566,180
Shares of capital stock outstanding 6,379,687 2,907,282 3,648,515
-------------- -------------- --------------
Net asset value and redemption price per share $ 14.03 $ 14.18 $ 13.86
Sales charge--4.25% of public offering price .62 .63 .62
-------------- -------------- --------------
Maximum offering price $ 14.65 $ 14.81 $ 14.48
============== ============== ==============
Class B Shares
Net Assets $ 83,247,322 $ 32,320,634 $ 53,753,215
Shares of capital stock outstanding 5,931,353 2,278,586 3,880,054
-------------- -------------- --------------
Net asset value and offering price per share $ 14.04 $ 14.18 $ 13.85
============== ============== ==============
Class C Shares
Net Assets $ 76,727,356 $ 31,400,634 $ 43,175,739
Shares of capital stock outstanding 5,467,347 2,214,059 3,115,064
-------------- -------------- --------------
Net asset value and offering price per share $ 14.03 $ 14.18 $ 13.86
============== ============== ==============
- --------------------------------------------------------------------------------
2005 Semiannual Report 23
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--March 31, 2005 (Unaudited)
(continued)
SHORT
DURATION PLUS
PORTFOLIO
- --------------------------------------------------------------------------------
ASSETS
Investments in securities at value $ 538,214,933
Receivables:
Interest 3,331,651
Capital shares sold 498,024
-------------
Total assets 542,044,608
-------------
LIABILITIES
Due to custodian 229,110
Payables:
Dividends to shareholders 476,934
Investment securities purchased 15,044,707
Capital shares redeemed 614,017
Deferred income on dollar rolls 12,849
Management fee (Note 2A) 212,599
Shareholder servicing and administration fee (Note 2B) 34,803
Transfer Agent fee (Note 2B) 7,340
Distribution fee payable 70,359
Accrued expenses 23,215
-------------
Total liabilities 16,725,933
-------------
NET ASSETS $ 525,318,675
=============
Cost of investments $ 543,517,434
=============
NET ASSETS CONSIST OF:
Capital stock, at par $ 42,148
Additional paid-in capital 536,937,515
Undistributed net investment income/
(excess distributions) (1,003,771)
Accumulated net realized loss on
investment transactions (5,354,716)
Unrealized appreciation/(depreciation) of
investments (5,302,501)
-------------
$ 525,318,675
=============
CALCULATION OF MAXIMUM OFFERING PRICE
Short Duration Plus Class Shares
Net assets $ 408,109,857
Shares of capital stock outstanding 32,743,487
-------------
Net asset value and offering price per share $ 12.46
=============
Short Duration Class A Shares
Net assets $ 51,116,214
Shares of capital stock outstanding 4,100,771
-------------
Net asset value and redemption price per share $ 12.47
Sales charge--4.25% of public offering price 0.55
-------------
Maximum offering price $ 13.02
=============
Short Duration Class B Shares
Net assets $ 35,937,199
Shares of capital stock outstanding 2,883,548
-------------
Net asset value and offering price per share $ 12.46
=============
Short Duration Class C Shares
Net assets $ 30,155,405
Shares of capital stock outstanding 2,420,452
-------------
Net asset value and offering price per share $ 12.46
=============
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.
- --------------------------------------------------------------------------------
24 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
This page intentionally left blank.
- --------------------------------------------------------------------------------
2005 Semiannual Report 25
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Operations for the Six Months Ended March 31, 2005 (Unaudited)
EMERGING
TAX-MANAGED MARKETS
INTERNATIONAL INTERNATIONAL VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest $ 650,170 $ 808,115 $ 99,040
Income from dollar rolls 0 0 0
Dividends (net of foreign withholding taxes of
$3,706,082, $1,749,042 and $3,430,178, respectively) 35,560,330 17,051,814 24,295,894
------------- ------------- -------------
Total income 36,210,500 17,859,929 24,394,934
------------- ------------- -------------
Expenses (Notes 1 and 2):
Management Fee 23,091,672 11,259,281 9,381,837
Shareholder servicing and administration fee 6,347,288 2,971,580 1,946,344
Custodian and Transfer Agent fees 1,134,035 640,314 1,426,886
Distribution fees--Class A 408 7,570 0
Distribution fees--Class B 420 6,980 0
Distribution fees--Class C 1,589 37,702 0
Distribution fees--Class R 0 22 0
Auditing and tax fees 89,720 48,234 25,684
Directors' fees and expenses 43,042 20,258 11,887
Legal fees 55,184 35,480 16,725
Registration fees 113,449 50,516 24,014
Printing fees 36,139 22,888 11,310
Miscellaneous 58,437 34,075 38,153
------------- ------------- -------------
Total expenses 30,971,383 15,134,900 12,882,840
Less: expenses waived and reimbursed by the Adviser
or Transfer Agent (Note 2A and 2B) (8,996) (3,868) 0
------------- ------------- -------------
Net expenses 30,962,387 15,131,032 12,882,840
------------- ------------- -------------
Net investment income 5,248,113 2,728,897 11,512,094
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 319,625,482 106,781,695 154,653,616*
Futures transactions 1,349,998 141,623 0
Foreign currency transactions 3,935,483 2,422,539 (556,799)
Swap transactions 0 0 0
------------- ------------- -------------
Net realized gain (loss) on investment
and foreign currency transactions 324,910,963 109,345,857 154,096,817
------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/(depreciation) of:
Investments, futures and swaps 251,597,335 163,924,904 181,302,760+
Foreign currency denominated assets and liabilities (501,834) (322,722) 166,923
------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments and foreign currency
denominated assets and liabilities 251,095,501 163,602,182 181,469,683
------------- ------------- -------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 576,006,464 272,948,039 335,566,500
------------- ------------- -------------
Net increase (decrease) in net assets resulting from operations $ 581,254,577 $ 275,676,936 $ 347,078,594
============= ============= =============
INTERMEDIATE
INTERMEDIATE U.S. GOVERNMENT DURATION
DURATION SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest $ 52,024,399 $ 1,392,026 $ 10,809,428
Income from dollar rolls 13,253,018 52,908 2,848,974
Dividends (net of foreign withholding taxes of
$3,706,082, $1,749,042 and $3,430,178, respectively) 3,113 0 647
------------- ------------- -------------
Total income 65,280,530 1,444,934 13,659,049
------------- ------------- -------------
Expenses (Notes 1 and 2):
Management Fee 6,908,041 236,308 1,546,281
Shareholder servicing and administration fee 1,479,717 47,262 0
Custodian and Transfer Agent fees 282,756 56,510 107,703
Distribution fees--Class A 0 0 0
Distribution fees--Class B 0 0 0
Distribution fees--Class C 0 0 0
Distribution fees--Class R 0 0 0
Auditing and tax fees 55,306 2,430 30,023
Directors' fees and expenses 26,848 916 9,220
Legal fees 43,984 2,929 25,031
Registration fees 99,372 7,553 20,264
Printing fees 36,330 958 3,476
Miscellaneous 14,830 1,801 10,225
------------- ------------- -------------
Total expenses 8,947,184 356,667 1,752,223
Less: expenses waived and reimbursed by the Adviser
or Transfer Agent (Note 2A and 2B) 0 0 (360,570)
------------- ------------- -------------
Net expenses 8,947,184 356,667 1,391,653
------------- ------------- -------------
Net investment income 56,333,346 1,088,267 12,267,396
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (3,740,173) (298,403) (863,853)
Futures transactions 1,267,099 0 200,972
Foreign currency transactions (269,069) 0 (44,475)
Swap transactions 220,938 0 48,032
------------- ------------- -------------
Net realized gain (loss) on investment
and foreign currency transactions (2,521,205) (298,403) (659,324)
------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/(depreciation) of:
Investments, futures and swaps (33,324,290) (859,961) (6,533,607)
Foreign currency denominated assets and liabilities 3,625,513 0 742,104
------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments and foreign currency
denominated assets and liabilities (29,698,777) (859,961) (5,791,503)
------------- ------------- -------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (32,219,982) (1,158,364) (6,450,827)
------------- ------------- -------------
Net increase (decrease) in net assets resulting from operations $ 24,113,364 $ (70,097) $ 5,816,569
============= ============= =============
SHORT DURATION SHORT DURATION SHORT DURATION
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest $ 3,296,658 $ 894,273 $ 1,590,958
Income from dollar rolls 0 0 0
Dividends (net of foreign withholding taxes of
$3,706,082, $1,749,042 and $3,430,178, respectively) 0 0 0
------------- ------------- -------------
Total income 3,296,658 894,273 1,590,958
------------- ------------- -------------
Expenses (Notes 1 and 2):
Management Fee 642,636 173,945 300,679
Shareholder servicing and administration fee 128,887 34,789 60,136
Custodian and Transfer Agent fees 80,806 57,935 66,988
Distribution fees--Class A 0 0 0
Distribution fees--Class B 0 0 0
Distribution fees--Class C 0 0 0
Distribution fees--Class R 0 0 0
Auditing and tax fees 3,801 760 3,750
Directors' fees and expenses 3,012 566 1,168
Legal fees 2,441 1,071 3,974
Registration fees 20,019 2,702 3,530
Printing fees 1,409 558 2,144
Miscellaneous 2,548 770 1,950
------------- ------------- -------------
Total expenses 885,559 273,096 444,319
Less: expenses waived and reimbursed by the Adviser
or Transfer Agent (Note 2A and 2B) 0 0 0
------------- ------------- -------------
Net expenses 885,559 273,096 444,319
------------- ------------- -------------
Net investment income 2,411,099 621,177 1,146,639
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (253,285) (144,932) (202,454)
Futures transactions 0 0 0
Foreign currency transactions 0 0 0
Swap transactions 12,826 (1,906) 8,548
------------- ------------- -------------
Net realized gain (loss) on investment
and foreign currency transactions (240,459) (146,838) (193,906)
------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/(depreciation) of:
Investments, futures and swaps (2,197,128) (481,750) (843,204)
Foreign currency denominated assets and liabilities 0 0 0
------------- ------------- -------------
Net increase (decrease) in unrealized appreciation/
(depreciation) on investments and foreign currency
denominated assets and liabilities (2,197,128) (481,750) (843,204)
------------- ------------- -------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (2,437,587) (628,588) (1,037,110)
------------- ------------- -------------
Net increase (decrease) in net assets resulting from operations $ (26,488) $ (7,411) $ 109,529
============= ============= =============
* Net of foreign capital gains taxes of $286,461.
+ Net of change in foreign capital gains taxes of $(618,944).
See Notes to Financial Statements.
26 & 27
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Operations for the Six Months Ended March 31, 2005 (Unaudited)
(continued)
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest $ 52,987,506 $ 17,633,216 $ 25,454,448
------------ ------------ ------------
Total income 52,987,506 17,633,216 25,454,448
------------ ------------ ------------
Expenses (Notes 1 and 2):
Management fee 6,766,917 2,428,557 3,185,351
Shareholder servicing fee 1,313,250 432,033 573,074
Custodian and transfer agent fees 324,949 141,672 198,167
Distribution fees--Class A 144,065 58,667 79,325
Distribution fees--Class B 453,497 172,910 282,632
Distribution fees--Class C 417,345 168,313 246,731
Auditing and tax fees 57,729 21,883 30,414
Printing fees 44,078 16,094 27,185
Registration fees 110,437 13,184 32,026
Legal fees 34,613 10,791 12,504
Directors' fees and expenses 21,815 7,515 11,248
Miscellaneous 37,791 14,449 16,571
------------ ------------ ------------
Total expenses 9,726,486 3,486,068 4,695,228
Less: expense offset arrangement (Note 2B) (50) (26) (29)
------------ ------------ ------------
Net expense 9,726,436 3,486,042 4,695,199
------------ ------------ ------------
Net investment income 43,261,070 14,147,174 20,759,249
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 1,388,472 (1,945) 999,860
Swap transactions (63,084) (25,804) 66,396
------------ ------------ ------------
Net realized gain (loss) on investment transactions 1,325,388 (27,749) 1,066,256
------------ ------------ ------------
Net decrease in unrealized appreciation/(depreciation) of:
Investments, futures and swaps (51,785,509) (13,283,517) (24,561,908)
------------ ------------ ------------
Net realized and unrealized loss on
investment transactions (50,460,121) (13,311,266) (23,495,652)
------------ ------------ ------------
Net increase (decrease) in net assets resulting from operations $ (7,199,051) $ 835,908 $ (2,736,403)
============ ============ ============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
28 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
SHORT
DURATION PLUS
PORTFOLIO
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Income:
Interest $ 9,006,277
Income from dollar rolls 349,638
-----------
Total income 9,355,915
-----------
Expenses (Notes 1 and 2):
Management fee 1,296,775
Shareholder servicing fee 207,074
Custodian and transfer agent fees 171,301
Distribution fees--Short Duration Class A 80,948
Distribution fees--Short Duration Class B 201,274
Distribution fees--Short Duration Class C 175,475
Distribution fees--Short Duration Class R 20
Auditing and tax fees 17,993
Directors' fees and expenses 3,889
Legal fees 6,530
Registration fees 82,753
Printing fees 35,720
Miscellaneous 6,198
-----------
Total expenses 2,285,950
Less: expense offset arrangement (Note 2B) (57)
-----------
Net expenses 2,285,893
-----------
Net investment income 7,070,022
-----------
REALIZED AND UNREALIZED LOSS ON
INVESTMENT TRANSACTIONS
Net realized loss on:
Investment transactions (1,815,496)
-----------
Net realized loss on investment transactions (1,815,496)
-----------
Net decrease in unrealized appreciation/(depreciation) of:
Investments (5,675,668)
-----------
Net realized and unrealized loss on investment transactions (7,491,164)
-----------
Net decrease in net assets resulting from operations $ (421,142)
===========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 29
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Changes in Net Assets
----------------------------------- -----------------------------------
TAX-MANAGED
INTERNATIONAL INTERNATIONAL
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- -------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 5,248,113 $ 33,189,444 $ 2,728,897 $ 15,459,065
Net realized gain (loss) on investment
and foreign currency transactions 324,910,963 239,680,030 109,345,857 158,890,388
Increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign
currency denominated assets and liabilities 251,095,501 396,395,071 163,602,182 170,461,959
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 581,254,577 669,264,545 275,676,936 344,811,412
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (38,549,732) (61,238,586) (19,681,886) (18,338,621)
Distributions from net realized gain on
investment transactions (a) (64,402,318) 0 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (102,952,050) (61,238,586) (19,681,886) (18,338,621)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 523,934,483 1,020,243,092 215,449,556 383,372,088
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 97,862,728 54,534,862 19,096,435 17,787,574
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 621,797,211 1,074,777,954 234,545,991 401,159,662
Cost of shares redeemed (386,134,831) (632,148,009) (191,959,659) (354,908,912)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 235,662,380 442,629,945 42,586,332 46,250,750
--------------- --------------- --------------- ---------------
Net increase in net assets 713,964,907 1,050,655,904 298,581,382 372,723,541
NET ASSETS:
Beginning of period 4,611,903,834 3,561,247,930 2,199,390,803 1,826,667,262
--------------- --------------- --------------- ---------------
End of period (b) $ 5,325,868,741 $ 4,611,903,834 $ 2,497,972,185 $ 2,199,390,803
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 3,932,275 $ 37,233,894 $ 1,557,182 $ 18,510,171
=============== =============== =============== ===============
(a) See page 36 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 $9,767,835 and
$9,217,750 for the six months ended March 31, 2005 and the year ended September
30, 2004, respectively.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
30 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
----------------------------------- -----------------------------------
EMERGING INTERMEDIATE
MARKETS VALUE DURATION
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 11,512,094 $ 16,252,022 $ 56,333,346 $ 97,226,406
Net realized gain (loss) on investment
and foreign currency transactions 154,096,817 134,577,282 (2,521,205) 28,542,196
Increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign
currency denominated assets and liabilities 181,469,683 216,028,280 (29,698,777) (29,008,182)
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 347,078,594 366,857,584 24,113,364 96,760,420
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,635,948) (9,586,370) (57,452,856) (99,678,637)
Distributions from net realized gain on
investment transactions (a) (36,713,975) 0 (8,277,788) 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (39,349,923) (9,586,370) (65,730,644) (99,678,637)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 185,549,616 285,871,489 472,754,143 815,660,806
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 38,641,601 9,082,473 18,758,455 19,340,469
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 224,191,217 294,953,962 491,512,598 835,001,275
Cost of shares redeemed (324,964,151) (189,259,509) (216,800,736) (381,541,966)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions (100,772,934)* 105,694,453* 274,711,862 453,459,309
--------------- --------------- --------------- ---------------
Net increase in net assets 206,955,737 462,965,667 233,094,582 450,541,092
NET ASSETS:
Beginning of period 1,361,367,560 898,401,893 2,852,803,405 2,402,262,313
--------------- --------------- --------------- ---------------
End of period (b) $ 1,568,323,297 $ 1,361,367,560 $ 3,085,897,987 $ 2,852,803,405
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 8,401,841 $ (474,305) $ (4,145,775) $ (3,026,625)
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2005 Semiannual Report 31
- --------------------------------------------------------------------------------
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
------------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- -------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 1,088,267 $ 2,099,165 $ 12,267,396 $ 20,658,605
Net realized gain (loss) on investment
and foreign currency transactions (298,403) (499,571) (659,324) 4,547,440
Decrease in unrealized appreciation/
(depreciation) of investments, futures, and swaps (859,961) (663,686) (5,791,503) (4,929,922)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets resulting
from operations (70,097) 935,908 5,816,569 20,276,123
------------- ------------- ------------- -------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (1,213,776) (2,366,550) (12,517,372) (21,141,826)
Distributions from net realized gain on
investment transactions (a) (7,475) (1,171,234) (3,830,748) (6,664,869)
------------- ------------- ------------- -------------
Total dividends and distributions
to shareholders (1,221,251) (3,537,784) (16,348,120) (27,806,695)
------------- ------------- ------------- -------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 11,810,815 26,280,515 88,248,436 246,095,145
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 645,750 2,415,624 8,627,777 15,841,958
------------- ------------- ------------- -------------
Total proceeds from shares sold 12,456,565 28,696,139 96,876,213 261,937,103
Cost of shares redeemed (12,538,007) (45,060,481) (85,326,415) (109,675,335)
------------- ------------- ------------- -------------
Increase (decrease) in net assets from
capital-share transactions (81,442) (16,364,342) 11,549,798 152,261,768
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (1,372,790) (18,966,218) 1,018,247 144,731,196
NET ASSETS:
Beginning of period 93,594,770 112,560,988 609,248,469 464,517,273
------------- ------------- ------------- -------------
End of period (b) $ 92,221,980 $ 93,594,770 $ 610,266,716 $ 609,248,469
============= ============= ============= =============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (69,555) $ 55,955 $ (283,773) $ (33,797)
============= ============= ============= =============
(a) See page 36 for share class information on dividend distributions of the
Diversified Municipal Portfolio.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
32 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
---------------------------------- -----------------------------------
SHORT DURATION SHORT DURATION
DIVERSIFIED MUNICIPAL CALIFORNIA MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- -----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 2,411,099 $ 4,344,201 $ 621,177 $ 1,228,920
Net realized gain (loss) on investment
and foreign currency transactions (240,459) (263,292) (146,838) (50,446)
Decrease in unrealized appreciation/
(depreciation) of investments, futures, and swaps (2,197,128) (1,181,343) (481,750) (532,415)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets resulting
from operations (26,488) 2,899,566 (7,411) 646,059
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,394,785) (4,265,828) (617,285) (1,227,532)
Distributions from net realized gain on
investment transactions (a) 0 (315,786) 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (2,394,785) (4,581,614) (617,285) (1,227,532)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 73,988,207 151,818,429 18,192,573 59,632,686
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 956,561 2,062,452 374,520 762,968
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 74,944,768 153,880,881 18,567,093 60,395,654
Cost of shares redeemed (73,699,219) (132,119,645) (24,818,179) (67,995,139)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 1,245,549 21,761,236 (6,251,086) (7,599,485)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (1,175,724) 20,079,188 (6,875,782) (8,180,958)
NET ASSETS:
Beginning of period 253,728,446 233,649,258 71,636,778 79,817,736
--------------- --------------- --------------- ---------------
End of period (b) $ 252,552,722 $ 253,728,446 $ 64,760,996 $ 71,636,778
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 14,400 $ (1,914) $ (13,203) $ (17,095)
=============== =============== =============== ===============
---------------------------------- -----------------------------------
SHORT DURATION
NEW YORK MUNICIPAL DIVERSIFIED MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- -----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- ---------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 1,146,639 $ 2,222,556 $ 43,261,070 $ 80,344,194
Net realized gain (loss) on investment
and foreign currency transactions (193,906) 175,041 1,325,388 (2,676,633)
Decrease in unrealized appreciation/
(depreciation) of investments, futures, and swaps (843,204) (1,049,893) (51,785,509) (10,548,395)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets resulting
from operations 109,529 1,347,704 (7,199,051) 67,119,166
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (1,142,518) (2,204,693) (43,085,599) (80,061,703)
Distributions from net realized gain on
investment transactions (a) 0 0 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (1,142,518) (2,204,693) (43,085,599) (80,061,703)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 34,825,750 95,152,474 528,440,742 876,220,074
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 504,782 1,018,598 8,891,420 18,981,822
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 35,330,532 96,171,072 537,332,162 895,201,896
Cost of shares redeemed (34,581,394) (93,079,427) (279,083,893) (499,857,512)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 749,138 3,091,645 258,248,269 395,344,384
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (283,851) 2,234,656 207,963,619 382,401,847
NET ASSETS:
Beginning of period 123,175,753 120,941,097 2,797,151,366 2,414,749,519
--------------- --------------- --------------- ---------------
End of period (b) $ 122,891,902 $ 123,175,753 $ 3,005,114,985 $ 2,797,151,366
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 12,647 $ 8,526 $ 232,574 $ 57,103
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2005 Semiannual Report 33
- --------------------------------------------------------------------------------
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
---------------------------------- -----------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- -----------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 14,147,174 $ 25,545,068 $ 20,759,249 $ 39,925,958
Net realized gain (loss) on investment transactions (27,749) (1,686,444) 1,066,256 56,382
Decrease in unrealized appreciation/
(depreciation) of investments, futures, and swaps (13,283,517) (2,041,584) (24,561,908) (9,511,265)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets resulting
from operations 835,908 21,817,040 (2,736,403) 30,471,075
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (14,109,628) (25,501,477) (20,739,475) (39,773,105)
Distributions from net realized gain on investment
transactions (a) (675,420) (584,016) 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions to shareholders (14,785,048) (26,085,493) (20,739,475) (39,773,105)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 156,625,060 314,353,362 202,053,517 351,775,089
Net proceeds from sales of shares issued to
shareholders on reinvestment of dividends
and distributions 4,150,142 7,597,543 6,134,257 12,764,315
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 160,775,202 321,950,905 208,187,774 364,539,404
Cost of shares redeemed (115,630,514) (194,387,540) (135,340,652) (277,559,965)
--------------- --------------- --------------- ---------------
Increase in net assets from
capital-share transactions 45,144,688 127,563,365 72,847,122 86,979,439
--------------- --------------- --------------- ---------------
Net increase in net assets 31,195,548 123,294,912 49,371,244 77,677,409
NET ASSETS:
Beginning of period 952,210,842 828,915,930 1,286,660,228 1,208,982,819
--------------- --------------- --------------- ---------------
End of period (b) $ 983,406,390 $ 952,210,842 $ 1,336,031,472 $ 1,286,660,228
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 4,977 $ (32,569) $ 92,269 $ 72,495
=============== =============== =============== ===============
(a) See pages 36 & 37 for share class information on dividend distributions of
the California Municipal and New York Municipal Portfolios.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
34 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
-------------------------------
SHORT
DURATION PLUS
PORTFOLIO
-------------------------------
SIX MONTHS YEAR
ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04
- -------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 7,070,022 $ 12,474,360
Net realized loss on investment transactions (1,815,496) (2,924,390)
Decrease in unrealized appreciation/
(depreciation) of investments and futures (5,675,668) (3,115,801)
------------- -------------
Net increase (decrease) in net assets resulting
from operations (421,142) 6,434,169
------------- -------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (7,761,789) (13,515,809)
Distributions from net realized gain on
investment transactions (a) (520,245) (664,559)
------------- -------------
Total dividends and distributions to shareholders (8,282,034) (14,180,368)
------------- -------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 89,472,863 278,798,276
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 3,899,954 6,885,041
------------- -------------
Total proceeds from shares sold 93,372,817 285,683,317
Cost of shares redeemed (123,896,897) (285,806,515)
------------- -------------
Increase (decrease) in net assets from
capital-share transactions (30,524,080) (123,198)
------------- -------------
Net increase (decrease) in net assets (39,227,256) (7,869,397)
NET ASSETS:
Beginning of period 564,545,931 572,415,328
------------- -------------
End of period (b) $ 525,318,675 $ 564,545,931
============= =============
(b) Includes undistributed net investment
income/(excess distributions) of: $ (1,003,771) $ (312,004)
============= =============
(a) See page 37 for share class information on dividend distributions of the
Short Duration Plus Portfolio.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 35
- --------------------------------------------------------------------------------
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
---------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04(a) (UNAUDITED) 9/30/04(a)(b)
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Tax-Managed International and International
Class Shares, respectively $ (38,546,859) $ (61,238,586) $ (19,608,810) $ (18,338,621)
Class A (1,635) 0 (32,240) 0
Class B (374) 0 (6,949) 0
Class C (864) 0 (33,812) 0
Class R 0 0 (75) 0
------------- -------------- ------------- -------------
$ (38,549,732) $ (61,238,586) $ (19,681,886) $ (18,338,621)
============= ============== ============= =============
Distributions from net realized gain on
investment transactions
Tax-Managed International Class Shares $ (64,395,815) $ 0
Class A (2,457) 0
Class B (1,067) 0
Class C (2,979) 0
------------- -------------
$ (64,402,318) $ 0
============= =============
---------------------------------- ---------------------------------
DIVERSIFIED CALIFORNIA
MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED 3/31/05 ENDED ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Municipal Class $ (39,920,231) $ (71,778,247) $ (12,872,178) $ (22,579,474)
Class A (1,340,790) (3,592,307) (537,476) (1,260,900)
Class B (950,115) (2,382,683) (354,573) (789,230)
Class C (874,463) (2,308,466) (345,401) (871,873)
------------- -------------- ------------- -------------
$ (43,085,599) $ (80,061,703) $ (14,109,628) $ (25,501,477)
============= ============== ============= =============
Distributions from net realized gain on
investment transactions
Municipal Class $ 0 $ 0 $ (600,291) $ (488,770)
Class A 0 0 (27,031) (35,696)
Class B 0 0 (24,289) (27,760)
Class C 0 0 (23,809) (31,790)
$ 0 $ 0 $ (675,420) $ (584,016)
============= ============== ============= =============
(a) Tax-Managed International and International Classes 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.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
36 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
NEW YORK
MUNICIPAL
PORTFOLIO
-------------------------------
NEW YORK
MUNICIPAL
PORTFOLIO
-------------------------------
SIX MONTHS YEAR
ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04
- -------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Municipal Class $ (18,718,432) $ (34,837,419)
Class A (795,934) (2,076,117)
Class B (653,542) (1,448,511)
Class C (571,567) (1,411,058)
------------- --------------
$ (20,739,475) $ (39,773,105)
============= ==============
-------------------------------
SHORT
DURATION PLUS
PORTFOLIO
-------------------------------
SIX MONTHS YEAR
ENDED 3/31/05 ENDED
(UNAUDITED) 9/30/04(b)
- -------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Short Duration Plus Class
Class A $ (6,277,952) $ (10,557,602)
Class B (730,661) (1,788,909)
Class C (402,716) (602,808)
Class R (350,363) (566,368)
(97) (122)
------------ --------------
$ (7,761,789) $ (13,515,809)
============ ==============
Distributions from net realized gain on
investment transactions
Short Duration Plus Class
Class A $ (395,649) $ (476,390)
Class B (50,066) (103,659)
Class C (39,845) (42,750)
Class R (34,676) (41,760)
(9) 0
------------ --------------
$ (520,245) $ (664,559)
============ ==============
- --------------------------------------------------------------------------------
2005 Semiannual Report 37
- --------------------------------------------------------------------------------
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
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED) 9/30/04 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 20.42 $ 17.53 $ 13.10
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.02 0.15 0.24
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 2.51 3.04 4.39
------------- ------------- -------------
Total from investment operations 2.53 3.19 4.63
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.17) (0.30) (0.20)
Distributions from net realized gain on
investment transactions (0.28) 0 0
------------- ------------- -------------
Total distributions (0.45) (0.30) (0.20)
------------- ------------- -------------
Net asset value, end of period $ 22.50 $ 20.42 $ 17.53
============= ============= =============
Total return (b) 12.51% 18.34% 35.65%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 5,324,476 $ 4,611,550 $ 3,561,248
Average net assets (000 omitted) $ 5,091,781 $ 4,206,956 $ 2,890,486
Ratio of expenses to average net assets 1.22%* 1.24% 1.25%
Ratio of net investment income to average
net assets 0.21%* 0.79% 1.59%
Portfolio turnover rate 33% 71% 28%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 15.22 $ 20.44 $ 20.02
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.17 0.21 0.21
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (2.00) (3.48) 0.51
------------- ------------- -------------
Total from investment operations (1.83) (3.27) 0.72
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.29) (0.16) 0
Distributions from net realized gain on
investment transactions 0 (1.79) (0.30)
------------- ------------- -------------
Total distributions (0.29) (1.95) (0.30)
------------- ------------- -------------
Net asset value, end of period $ 13.10 $ 15.22 $ 20.44
============= ============= =============
Total return (b) (12.39)% (17.49)% 3.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,365,421 $ 2,420,323 $ 3,029,742
Average net assets (000 omitted) $ 2,708,477 $ 2,828,736 $ 3,467,670
Ratio of expenses to average net assets 1.25% 1.25% 1.24%
Ratio of net investment income to average
net assets 1.04% 1.14% 1.02%
Portfolio turnover rate 64% 46% 41%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
38 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
---------------------------------------------------
INTERNATIONAL PORTFOLIO
INTERNATIONAL CLASS
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED) 9/30/04 9/30/03
------------- ------------- --------------
Net asset value, beginning of period $ 18.94 $ 16.06 $ 11.95
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.02 0.14 0.23
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 2.35 2.91 4.04
------------- ------------- -------------
Total from investment operations 2.37 3.05 4.27
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.17) (0.17) (0.16)
Distributions from net realized gain on
investment transactions 0 0 0
------------- ------------- -------------
Total distributions (0.17) (0.17) (0.16)
------------- ------------- -------------
Net asset value, end of period $ 21.14 $ 18.94 $ 16.06
============= ============= =============
Total return (b) 12.56% 19.05% 36.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,476,358 $ 2,190,687 $ 1,826,667
Average net assets (000 omitted) $ 2,383,795 $ 2,045,596 $ 1,572,731
Ratio of expenses to average net assets 1.26%* 1.28% 1.29%
Ratio of net investment income to average
net assets 0.23%* 0.76% 1.63%
Portfolio turnover rate 30% 92% 28%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- --------------
Net asset value, beginning of period $ 14.16 $ 20.44 $ 20.11
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.14 0.18 0.23
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (1.90) (3.11) 0.31
------------- ------------- -------------
Total from investment operations (1.76) (2.93) 0.54
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.45) (0.79) (0.19)
Distributions from net realized gain on
investment transactions 0 (2.56) (0.02)
------------- ------------- -------------
Total distributions (0.45) (3.35) (0.21)
------------- ------------- -------------
Net asset value, end of period $ 11.95 $ 14.16 $ 20.44
============= ============= =============
Total return (b) (13.01)% (16.95)% 2.72%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,299,449 $ 1,426,683 $ 1,907,921
Average net assets (000 omitted) $ 1,539,788 $ 1,718,245 $ 2,238,111
Ratio of expenses to average net assets 1.29% 1.28% 1.25%
Ratio of net investment income to average
net assets 0.97% 1.06% 1.09%
Portfolio turnover rate 67% 45% 24%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual 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:
---------------------------------------------------
EMERGING MARKETS
VALUE PORTFOLIO
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED) 9/30/04 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 28.91 $ 20.81 $ 13.65
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.25 0.36 0.26
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 7.11 7.76 6.87
------------- ------------- -------------
Total from investment operations 7.36 8.12 7.13
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.06) (0.22) (0.08)
Distributions from net realized gain on
investment transactions (0.78) 0 0
------------- ------------- -------------
Total distributions (0.84) (0.22) (0.08)
------------- ------------- -------------
Portfolio transaction fee 0.21 0.20 0.11
------------- ------------- -------------
Net asset value, end of period $ 35.64 $ 28.91 $ 20.81
============= ============= =============
Total return (b) 21.45%(c) 34.66%(c) 47.21%(c)
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 1,568,323 $ 1,361,368 $ 898,402
Average net assets (000 omitted) $ 1,561,353 $ 1,150,902 $ 653,705
Ratio of expenses to average net assets 1.65%* 1.72% 1.72%
Ratio of net investment income to average
net assets 1.48%* 1.41% 1.57%
Portfolio turnover rate 10% 44% 38%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- --------------
Net asset value, beginning of period $ 12.48 $ 16.91 $ 17.67
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.13 0.17 0.14
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 1.04 (4.34) (1.01)
------------- ------------- -------------
Total from investment operations 1.17 (4.17) (0.87)
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.13) (0.09) (0.10)
Distributions from net realized gain on
investment transactions 0 (0.28) 0
------------- ------------- -------------
Total distributions (0.13) (0.37) (0.10)
------------- ------------- -------------
Portfolio transaction fee 0.13 0.11 0.21
------------- ------------- -------------
Net asset value, end of period $ 13.65 $ 12.48 $ 16.91
============= ============= =============
Total return (b) 5.98%(c) (27.36)%(c) (7.63)%(c)
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 518,984 $ 499,414 $ 593,883
Average net assets (000 omitted) $ 588,195 $ 578,168 $ 718,397
Ratio of expenses to average net assets 1.73% 1.75% 1.71%
Ratio of net investment income to average
net assets 0.89% 1.10% 0.75%
Portfolio turnover rate 34% 34% 28%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
40 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
---------------------------------------------------
INTERMEDIATE
DURATION PORTFOLIO
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 13.41 $ 13.43 $ 13.08
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.25 0.50 0.47
Net realized and unrealized gain (loss) on
investments (0.13) (0.01) 0.35
------------- ------------- -------------
Total from investment operations 0.12 0.49 0.82
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.26) (0.51) (0.47)
Distributions from net realized gain on
investment transactions (0.04) 0 0
------------- ------------- -------------
Total distributions (0.30) (0.51) (0.47)
------------- ------------- -------------
Net asset value, end of period $ 13.23 $ 13.41 $ 13.43
============= ============= =============
Total return (b) 0.88% 3.74% 6.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 3,085,898 $ 2,852,803 $ 2,402,262
Average net assets (000 omitted) $ 2,967,564 $ 2,612,933 $ 2,249,030
Ratio of expenses to average net assets 0.60%* 0.61% 0.61%
Ratio of net investment income to average
net assets 3.81%* 3.72% 3.55%
Portfolio turnover rate 321% 660% 796%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- --------------
Net asset value, beginning of period $ 12.98 $ 12.51 $ 12.67
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.59 0.72 0.81
Net realized and unrealized gain (loss) on
investments 0.10 0.47 (0.16)
------------- ------------- -------------
Total from investment operations 0.69 1.19 0.65
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.59) (0.68) (0.81)
Distributions from net realized gain on
investment transactions 0 (0.04) 0
------------- ------------- -------------
Total distributions (0.59) (0.72) (0.81)
------------- ------------- -------------
Net asset value, end of period $ 13.08 $ 12.98 $ 12.51
============= ============= =============
Total return (b) 5.48% 9.80% 5.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,151,988 $ 2,130,691 $ 2,041,914
Average net assets (000 omitted) $ 2,135,339 $ 2,060,159 $ 2,298,018
Ratio of expenses to average net assets 0.61% 0.61% 0.60%
Ratio of net investment income to average
net assets 4.57% 5.66% 6.48%
Portfolio turnover rate 727% 532% 378%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual 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:
---------------------------------------------------
U.S. GOVERNMENT
SHORT DURATION PORTFOLIO
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED) 9/30/04 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 12.68 $ 13.00 $ 13.23
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.15 0.26 0.31
Net realized and unrealized gain (loss) on
investment transactions (0.16) (0.14) (0.04)
------------- ------------- -------------
Total from investment operations (0.01) 0.12 0.27
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.16) (0.30) (0.31)
Dividends from net realized gain on
investment transactions 0.00 (e) (0.14) (0.19)
------------- ------------- -------------
Total distributions (0.16) (0.44) (0.50)
------------- ------------- -------------
Net asset value, end of period $ 12.51 $ 12.68 $ 13.00
============= ============= =============
Total return (b) (0.06)% 0.93% 2.10%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 92,222 $ 93,595 $ 112,561
Average net assets (000 omitted) $ 94,783 $ 101,777 $ 120,631
Ratio of expenses to average net assets 0.75%* 0.80% 0.76%
Ratio of expenses to average net assets
excluding interest expense 0.75%* 0.78% 0.76%
Ratio of net investment income to average
net assets 2.30%* 2.06% 2.39%
Portfolio turnover rate 98% 358% 323%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- --------------
Net asset value, beginning of period $ 13.07 $ 12.49 $ 12.46
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.40 0.59 0.61
Net realized and unrealized gain (loss) on
investment transactions 0.16 0.58 0.03
------------- ------------- -------------
Total from investment operations 0.56 1.17 0.64
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.40) (0.59) (0.61)
Dividends from net realized gain on
investment transactions 0 0 0
------------- ------------- -------------
Total distributions (0.40) (0.59) (0.61)
------------- ------------- -------------
Net asset value, end of period $ 13.23 $ 13.07 $ 12.49
============= ============= =============
Total return (b) 5.42% 9.62% 5.30%
Ratios/Supplemental Data
Net assets, end of period (000 omitted) $ 115,400 $ 101,664 $ 95,617
Average net assets (000 omitted) $ 106,080 $ 101,326 $ 112,827
Ratio of expenses to average net assets 0.74% 0.72% 0.72%
Ratio of expenses to average net assets
excluding interest expense 0.74% 0.72% 0.72%
Ratio of net investment income to average
net assets 3.04% 4.65% 4.91%
Portfolio turnover rate 230% 344% 160%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
42 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
---------------------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED PERIOD ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03 9/30/02(e)
------------- ----------- ----------- ------------
Net asset value, beginning of period $ 15.48 $ 15.74 $ 15.44 $ 15.00(f)
----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net 0.30 0.60 0.56 0.25
Net realized and unrealized gain (loss) on
investment transactions (0.16) (0.03) 0.41 0.44
----------- ----------- ----------- -----------
Total from investment operations 0.14 0.57 0.97 0.69
----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.31) (0.61) (0.57) (0.25)
Dividends from net realized gain on investment transactions (0.09) (0.22) (0.10) 0
----------- ----------- ----------- -----------
Total distributions (0.40) (0.83) (0.67) (0.25)
----------- ----------- ----------- -----------
Net asset value, end of period $ 15.22 $ 15.48 $ 15.74 $ 15.44
=========== =========== =========== ===========
Total return (b) 0.94% 3.76% 6.44% 4.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 610,267 $ 609,248 $ 464,517 $ 328,393
Average net assets (000 omitted) $ 620,212 $ 535,624 $ 383,604 $ 237,462
Ratio of expenses to average net assets 0.45%* 0.45% 0.45% 0.45%*
Ratio of expenses to average net assets before reimbursement 0.57%* 0.58% 0.64% 0.75%*
Ratio of net investment income to average
net assets 3.97%* 3.86% 3.64% 4.37%*
Portfolio turnover rate 334% 682% 791% 324%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 43
- --------------------------------------------------------------------------------
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
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED) 9/30/04 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 12.60 $ 12.69 $ 12.79
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.12 0.22 0.29
Net realized and unrealized gain (loss) on
investment transactions (0.11) (0.07) (0.05)
------------- ------------- -------------
Total from investment operations 0.01 0.15 0.24
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.01) 0
Dividends from tax-exempt net investment income (0.12) (0.21) (0.29)
Distributions from net realized gain on
investment transactions 0 (0.02) (0.05)
------------- ------------- -------------
Total distributions (0.12) (0.24) (0.34)
------------- ------------- -------------
Net asset value, end of period $ 12.49 $ 12.60 $ 12.69
============= ============= =============
Total return (b) 0.05% 1.21% 1.97%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 252,553 $ 253,728 $ 233,649
Average net assets (000 omitted) $ 258,483 $ 240,126 $ 220,768
Ratio of expenses to average net assets 0.69%* 0.69% 0.71%
Ratio of net investment income to average
net assets 1.87%* 1.81% 2.30%
Portfolio turnover rate 44% 84% 57%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- --------------
Net asset value, beginning of period $ 12.70 $ 12.44 $ 12.49
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.37 0.47 0.47
Net realized and unrealized gain (loss) on
investment transactions 0.10 0.26 (0.01)
------------- ------------- -------------
Total from investment operations 0.47 0.73 0.46
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.01) (0.01)
Dividends from tax-exempt net investment income (0.37) (0.46) (0.46)
Distributions from net realized gain on
investment transactions (0.01) 0 (0.04)
------------- ------------- -------------
Total distributions (0.38) (0.47) (0.51)
------------- ------------- -------------
Net asset value, end of period $ 12.79 $ 12.70 $ 12.44
============= ============= =============
Total return (b) 3.81% 5.98% 3.77%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 200,696 $ 156,920 $ 158,315
Average net assets (000 omitted) $ 182,317 $ 144,315 $ 168,807
Ratio of expenses to average net assets 0.71% 0.71% 0.71%
Ratio of net investment income to average
net assets 2.92% 3.73% 3.75%
Portfolio turnover rate 56% 77% 99%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
44 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
---------------------------------------------------
SHORT DURATION CALIFORNIA
MUNICIPAL PORTFOLIO
---------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 12.57 $ 12.67 $ 12.69
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.11 0.20 0.22
Net realized and unrealized gain (loss) on
investment transactions (0.11) (0.10) (0.02)
------------- ------------- -------------
Total from investment operations 0 0.10 0.20
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.01) (0.01)
Dividends from tax-exempt net investment income (0.11) (0.19) (0.21)
Distributions from net realized gain on
investment transactions 0 0 0
------------- ------------- -------------
Total distributions (0.11) (0.20) (0.22)
------------- ------------- -------------
Net asset value, end of period $ 12.46 $ 12.57 $ 12.67
============= ============= =============
Total return (b) 0.01% 0.81% 1.63%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 64,761 $ 71,637 $ 79,818
Average net assets (000 omitted) $ 69,769 $ 77,177 $ 80,862
Ratio of expenses to average net assets 0.79%* 0.78% 0.80%
Ratio of net investment income to average
net assets 1.79%* 1.59% 1.77%
Portfolio turnover rate 36% 90% 72%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 12.68 $ 12.51 $ 12.53
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.35 0.46 0.45
Net realized and unrealized gain (loss) on
investment transactions 0.01 0.17 0.02
------------- ------------- -------------
Total from investment operations 0.36 0.63 0.47
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.03) (0.03)
Dividends from tax-exempt net investment income (0.35) (0.43) (0.42)
Distributions from net realized gain on
investment transactions 0 0 (0.04)
------------- ------------- -------------
Total distributions (0.35) (0.46) (0.49)
------------- ------------- -------------
Net asset value, end of period $ 12.69 $ 12.68 $ 12.51
============= ============= =============
Total return (b) 2.87% 5.13% 3.87%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 74,648 $ 54,073 $ 58,089
Average net assets (000 omitted) $ 61,944 $ 55,681 $ 83,374
Ratio of expenses to average net assets 0.79% 0.79% 0.73%
Ratio of net investment income to average
net assets 2.70% 3.66% 3.58%
Portfolio turnover rate 28% 60% 94%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 45
- --------------------------------------------------------------------------------
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
--------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 12.47 $ 12.55 $ 12.57
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.12 0.22 0.26
Net realized and unrealized gain (loss) on
investment transactions (0.11) (0.08) (0.02)
------------- ------------- -------------
Total from investment operations 0.01 0.14 0.24
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.01) 0
Dividends from tax-exempt net
investment income (0.12) (0.21) (0.26)
------------- ------------- -------------
Total distributions (0.12) (0.22) (0.26)
------------- ------------- -------------
Net asset value, end of period $ 12.36 $ 12.47 $ 12.55
============= ============= =============
Total return (b) 0.06% 1.16% 1.92%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 122,892 $ 123,176 $ 120,941
Average net assets (000 omitted) $ 120,602 $ 123,457 $ 119,346
Ratio of expenses to average net assets 0.74%* 0.74% 0.76%
Ratio of net investment income to average
net assets 1.91%* 1.80% 2.06%
Portfolio turnover rate 43% 68% 47%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 12.54 $ 12.31 $ 12.35
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.36 0.44 0.48
Net realized and unrealized gain (loss) on
investment transactions 0.03 0.23 (0.04)
------------- ------------- -------------
Total from investment operations 0.39 0.67 0.44
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.03) (0.01)
Dividends from tax-exempt net
investment income (0.36) (0.41) (0.47)
------------- ------------- -------------
Total distributions (0.36) (0.44) (0.48)
------------- ------------- -------------
Net asset value, end of period $ 12.57 $ 12.54 $ 12.31
============= ============= =============
Total return (b) 3.14% 5.55% 3.64%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 116,307 $ 87,919 $ 93,774
Average net assets (000 omitted) $ 102,743 $ 94,322 $ 106,683
Ratio of expenses to average net assets 0.77% 0.73% 0.72%
Ratio of net investment income to average
net assets 2.83% 3.56% 3.91%
Portfolio turnover rate 38% 93% 65%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
46 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
--------------------------------------------------
DIVERSIFIED MUNICIPAL PORTFOLIO
MUNICIPAL CLASS
--------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 14.27 $ 14.34 $ 14.37
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.22 0.45 0.51
Net realized and unrealized gain (loss) on
investment transactions (0.24) (0.07) (0.03)
------------- ------------- -------------
Total from investment operations (0.02) 0.38 0.48
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.02) (0.01)
Dividends from tax-exempt net
investment income (0.22) (0.43) (0.50)
Distributions from net realized gain on
investment transactions 0 0 0
------------- ------------- -------------
Total distributions (0.22) (0.45) (0.51)
------------- ------------- -------------
Net asset value, end of period $ 14.03 $ 14.27 $ 14.34
============= ============= =============
Total return (b) (0.18)% 2.73% 3.44%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,755,613 $ 2,509,749 $ 2,045,981
Average net assets (000 omitted) $ 2,633,716 $ 2,261,248 $ 1,844,104
Ratio of expenses to average net assets 0.61%* 0.61% 0.63%
Ratio of net investment income to average
net assets 3.05%* 3.19% 3.58%
Portfolio turnover rate 15% 41% 38%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 14.05 $ 13.50 $ 13.47
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.56 0.59 0.58
Net realized and unrealized gain (loss) on
investment transactions 0.32 0.55 0.08
------------- ------------- -------------
Total from investment operations 0.88 1.14 0.66
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.01) (0.01)
Dividends from tax-exempt net
investment income (0.56) (0.58) (0.57)
Distributions from net realized gain on
investment transactions 0 0 (0.05)
------------- ------------- -------------
Total distributions (0.56) (0.59) (0.63)
------------- ------------- -------------
Net asset value, end of period $ 14.37 $ 14.05 $ 13.50
============= ============= =============
Total return (b) 6.42% 8.63% 5.04%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,731,818 $ 1,388,653 $ 1,205,781
Average net assets (000 omitted) $ 1,532,681 $ 1,277,970 $ 1,329,585
Ratio of expenses to average net assets 0.64% 0.63% 0.63%
Ratio of net investment income to average
net assets 3.96% 4.30% 4.30%
Portfolio turnover rate 22% 26% 35%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 47
- --------------------------------------------------------------------------------
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
--------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 14.38 $ 14.46 $ 14.59
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.21 0.43 0.47
Net realized and unrealized gain (loss) on
investment transactions (0.19) (0.07) (0.13)
------------- ------------- -------------
Total from investment operations 0.02 0.36 0.34
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.02) (0.03)
Dividends from tax-exempt net
investment income (0.21) (0.41) (0.44)
Distributions from net realized gain on
investment transactions (0.01) (0.01) 0
------------- ------------- -------------
Total distributions (0.22) (0.44) (0.47)
------------- ------------- -------------
Net asset value, end of period $ 14.18 $ 14.38 $ 14.46
============= ============= =============
Total return (b) 0.16% 2.55% 2.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 878,454 $ 843,206 $ 685,360
Average net assets (000 omitted) $ 866,441 $ 752,372 $ 625,249
Ratio of expenses to average net assets 0.64%* 0.64% 0.66%
Ratio of net investment income to average
net assets 2.99%* 3.01% 3.26%
Portfolio turnover rate 11% 52% 44%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 14.23 $ 13.81 $ 13.69
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.51 0.57 0.57
Net realized and unrealized gain (loss) on
investment transactions 0.36 0.42 0.16
------------- ------------- -------------
Total from investment operations 0.87 0.99 0.73
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.04) (0.02)
Dividends from tax-exempt net
investment income (0.51) (0.53) (0.55)
Distributions from net realized gain on
investment transactions 0 0 (0.04)
------------- ------------- -------------
Total distributions (0.51) (0.57) (0.61)
------------- ------------- -------------
Net asset value, end of period $ 14.59 $ 14.23 $ 13.81
============= ============= =============
Total return (b) 6.27% 7.33% 5.44%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 597,222 $ 491,194 $ 450,744
Average net assets (000 omitted) $ 541,454 $ 460,729 $ 524,573
Ratio of expenses to average net assets 0.66% 0.65% 0.64%
Ratio of net investment income to average
net assets 3.57% 4.07% 4.15%
Portfolio turnover rate 31% 46% 48%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
48 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
--------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
MUNICIPAL CLASS
--------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED)(g) 9/30/04(g) 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 14.11 $ 14.21 $ 14.23
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.23 0.47 0.50
Net realized and unrealized gain (loss) on
investment transactions (0.25) (0.10) (0.02)
------------- ------------- -------------
Total from investment operations (0.02) 0.37 0.48
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income 0 (0.01) (0.01)
Dividends from tax-exempt net investment income (0.23) (0.46) (0.49)
Distributions from net realized gain on
investment transactions 0 0 0
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 0 0
------------- ------------- -------------
Total distributions (0.23) (0.47) (0.50)
------------- ------------- -------------
Net asset value, end of period $ 13.86 $ 14.11 $ 14.21
============= ============= =============
Total return (b) (0.16)% 2.63% 3.45%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,188,536 $ 1,121,213 $ 1,006,023
Average net assets (000 omitted) $ 1,149,298 $ 1,055,386 $ 954,250
Ratio of expenses to average net assets 0.63%* 0.63% 0.65%
Ratio of net investment income to average
net assets 3.27%* 3.31% 3.53%
Portfolio turnover rate 19% 39% 29%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 13.85 $ 13.37 $ 13.36
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.54 0.57 0.57
Net realized and unrealized gain (loss) on
investment transactions 0.38 0.48 0.07
------------- ------------- -------------
Total from investment operations 0.92 1.05 0.64
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.01) (0.02) 0
Dividends from tax-exempt net investment income (0.53) (0.55) (0.57)
Distributions from net realized gain on
investment transactions 0 0 (0.05)
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 0 (0.01)
------------- ------------- -------------
Total distributions (0.54) (0.57) (0.63)
------------- ------------- -------------
Net asset value, end of period $ 14.23 $ 13.85 $ 13.37
============= ============= =============
Total return (b) 6.83% 7.99% 4.93%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 940,302 $ 763,728 $ 673,723
Average net assets (000 omitted) $ 835,184 $ 713,704 $ 743,412
Ratio of expenses to average net assets 0.66% 0.64% 0.64%
Ratio of net investment income to average
net assets 3.89% 4.17% 4.33%
Portfolio turnover rate 37% 29% 33%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 49
- --------------------------------------------------------------------------------
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
--------------------------------------------------
SIX MONTHS
ENDED 3/31/05 YEAR ENDED YEAR ENDED
(UNAUDITED) 9/30/04 9/30/03
------------- ------------- -------------
Net asset value, beginning of period $ 12.67 $ 12.84 $ 12.78
----------- ----------- -----------
Income from investment operations:
Investment income, net 0.17 0.30 0.37
Net realized and unrealized gain (loss) on
investment and futures transactions (0.18) (0.12) 0.06
----------- ----------- -----------
Total from investment operations (0.01) 0.18 0.43
----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.19) (0.33) (0.37)
Distributions from net realized gain
on investment transactions (0.01) (0.02) 0
Distributions in excess of net investment
income due to timing differences 0 0 0
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 0 0
----------- ----------- -----------
Total distributions (0.20) (0.35) (0.37)
----------- ----------- -----------
Net asset value, end of period $ 12.46 $ 12.67 $ 12.84
=========== =========== ===========
Total return (b) (0.06)% 1.37% 3.42%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 408,110 $ 421,881 $ 413,100
Average net assets (000 omitted) $ 415,285 $ 411,043 $ 408,848
Ratio of expenses to average net assets 0.67%* 0.70% 0.67%
Ratio of expenses to average net assets
excluding interest expense 0.67%* 0.68% 0.66%
Ratio of net investment income to average
net assets 2.78%* 2.39% 2.89%
Portfolio turnover rate 97% 359% 286%
YEAR ENDED YEAR ENDED YEAR ENDED
9/30/02 9/30/01(a) 9/30/00
------------- ------------- -------------
Net asset value, beginning of period $ 12.69 $ 12.25 $ 12.33
------------- ------------- -------------
Income from investment operations:
Investment income, net 0.50 0.68 0.72
Net realized and unrealized gain (loss) on
investment and futures transactions 0.09 0.44 (0.08)
------------- ------------- -------------
Total from investment operations 0.59 1.12 0.64
------------- ------------- -------------
Less distributions:
Dividends from taxable net investment income (0.50) (0.66) (0.72)
Distributions from net realized gain
on investment transactions 0 0 0
Distributions in excess of net investment
income due to timing differences 0 (0.01) 0
Distributions in excess of net realized
gain on investment transactions
due to timing differences 0 (0.01) 0
------------- ------------- -------------
Total distributions (0.50) (0.68) (0.72)
------------- ------------- -------------
Net asset value, end of period $ 12.78 $ 12.69 $ 12.25
============= ============= =============
Total return (b) 4.78% 9.40% 5.37%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 397,719 $ 367,738 $ 407,516
Average net assets (000 omitted) $ 377,656 $ 377,112 $ 490,232
Ratio of expenses to average net assets 0.67% 0.67% 0.66%
Ratio of expenses to average net assets
excluding interest expense 0.67% 0.67% 0.66%
Ratio of net investment income to average
net assets 3.95% 5.48% 5.88%
Portfolio turnover rate 226% 377% 194%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
50 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
* Annualized
(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 six months ending March 31, 2005 and 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 26.45%, 40.22%, 53.28%, 10.35%, (24.37)% and (3.82)%, respectively.
(d) Amount is less than .005.
(e) Commenced operations May 17, 2002.
(f) 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.
(g) 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 Statement 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 the net investments income per share was as follows:
YEAR
ENDED 9/30/04
Short Duration Diversified 0.03%
Short Duration California 0.00%
Short Duration New York 0.01%
Diversified Municipal Class 0.01%
California Municipal Class 0.00%
New York Municipal Class 0.01%
Intermediate Duration n/a
Intermediate Duration Institutional n/a
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Semiannual Report 51
- --------------------------------------------------------------------------------
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. As of February 23, 2005, the Class
R shares are no longer being offered to shareholders. 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. Each class of shares has 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,
- --------------------------------------------------------------------------------
52 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
the last available closing settlement price is used; securities traded
in the over-the-counter market, ("OTC") (but excluding 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.
- --------------------------------------------------------------------------------
2005 Semiannual Report 53
- --------------------------------------------------------------------------------
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.
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.
- --------------------------------------------------------------------------------
54 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
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.
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 asset as well as a corresponding liability in the Statements of
Assets and Liabilities. At March 31, 2005, the International Portfolio
had securities on loan with a value of $661,057,021 and had received
collateral of $693,130,068, of which $691,914,000 was cash collateral
and $1,216,068 was collateral in the form of U.S. Government securities.
The International Portfolio earned $505,504 from securities lending
transactions for the six months ended March 31, 2005. The amount is
reflected in the Statements of Operations as a component of interest
income.
M. Swap Agreements
The Funds may enter into swaps to hedge their 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 Funds, and/or the termination
value at the end of the contract. Therefore, the Funds consider 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 Funds have adopted the method of accounting
for interim payments on swap contracts in accordance with Financial
Accounting Standards Board Statement No. 133. The Funds accrue 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
- --------------------------------------------------------------------------------
2005 Semiannual Report 55
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
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.
The Fund may enter into credit default swaps. The Fund may purchase
credit protection on the referenced obligation of the credit default
swap ("Buy Contract") or provide credit protection on the referenced
obligation of the credit default swap ("Sale Contract"). A sale/(buy) in
a credit default swap provides upon the occurrence of a credit event, as
defined in the swap agreement, for the Fund to buy/(sell) from/(to) the
counterparty at the notional amount (the "Notional Amount") and
receive/(deliver) the principal amount of the referenced obligation. If
a credit event occurs, the maximum payout amount for a Sale Contract is
limited to the Notional Amount of the swap contract ("Maximum Payout
Amount"). During the term of the swap agreement, the Portfolio
receives/(pays) semi-annual fixed payments from/(to) the respective
counterparty, calculated at the agreed upon interest rate applied to the
Notional Amount. These interim payments are recorded within unrealized
appreciation/ depreciation of swap contracts on the statement of assets
and liabilities.
Credit default swaps may involve greater risks than if the Fund had
invested in the referenced obligation directly. Credit default swaps are
subject to general market risk, liquidity risk, counterparty risk and
credit risk. If the Fund is a buyer and no credit event occurs, it will
lose its investment. In addition, if the Fund is a seller and a credit
event occurs, the value of the referenced obligation received by the
Fund coupled with the periodic payments previously received, may be less
than the Maximum Payout Amount it pays to the buyer, resulting in a loss
to the Fund.
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.
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 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 Agreements 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 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.
Prior to October 27, 2004, each of the Portfolios of Sanford C.
Bernstein Fund, Inc. paid the Adviser an investment management fee,
based on the annual rate, for such services as follows:
AVERAGE DAILY NET ASSETS
FIRST $1 BILLION THEREAFTER
--------------------------------------------------------------------------------------------
Intermediate Duration, Short Duration Plus, .500% .450%
U.S. Government Short Duration, Diversified Municipal,
California Municipal, and New York Municipal Portfolios
- --------------------------------------------------------------------------------
56 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
AVERAGE DAILY NET ASSETS
FIRST NEXT NEXT
$1 BILLION $3 BILLION $2 BILLION THEREAFTER
=================================================================================================================
Tax-Managed International and 1% .900% .875% .850%
International Portfolios
-----------------------------------------------------------------------------------------------------------------
Short Duration Diversified Municipal, Short Duration .500% of the average daily net assets
California Municipal, and Short Duration New York
Municipal Portfolios
-----------------------------------------------------------------------------------------------------------------
AVERAGE DAILY NET ASSETS
FIRST
$1 BILLION THEREAFTER
=================================================================================================================
Emerging Markets Value Portfolio 1.25% 1.125%
-----------------------------------------------------------------------------------------------------------------
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
FIRST NEXT
$250 MILLION $500 MILLION THEREAFTER
=================================================================================================================
Short Duration California Municipal, Short Duration 0.50% 0.45% 0.40%
Diversified Municipal, Short Duration New York
Municipal, U.S. Government Short Duration, and
Short Duration Plus Portfolios
FIRST NEXT
$1 BILLION $2 BILLION THEREAFTER
=================================================================================================================
New York Municipal, California Municipal, Diversified 0.50% 0.45% 0.40%
Municipal, and Intermediate Duration Portfolios
FIRST NEXT NEXT
$1 BILLION $3 BILLION $2 BILLION THEREAFTER
=================================================================================================================
Tax-Managed International and International Portfolios 1.00% 0.90% 0.85% 0.75%
FIRST NEXT
$1 BILLION $1 BILLION THEREAFTER
=================================================================================================================
Emerging Markets Value Portfolio 1.25% 1.125% 1.00%
The Intermediate Duration Institutional Portfolio pays the Adviser an
advisory fee at an annual rate of .50% of the average daily net assets
of the Portfolio for the first $1 billion and .45% thereafter.
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, 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
six months ended March 31, 2005, the aggregate amount of such fee waiver
was $360,570.
- --------------------------------------------------------------------------------
2005 Semiannual Report 57
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
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 six months ended March 31,
2005, such compensation amounted to: Tax-Managed International, $4;
International, $5,132; Diversified Municipal Portfolio, $26,763;
California Municipal Portfolio, $9,000; New York Municipal Portfolio,
$14,877; and Short Duration Plus Portfolio, $27,131. During the period,
AGIS voluntarily agreed to waive a portion of its fees for such services
for the Tax-Managed International and International Portfolios. Such
waivers amounted to $8,996 and $3,868, respectively, for the six months
ended March 31, 2005.
For the six months ended March 31, 2005, 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
$50, $26, $29 and $57, 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 $ 93,457 $ 94,647 $1,394,315 $780,762 $1,394,315 $517,209
Class C 280,217 371,991 704,461 685,176 704,461 526,980
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
- --------------------------------------------------------------------------------
58 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
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.
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 six months ended March 31, 2005, as
follows:
FRONT-END CONTINGENT DEFERRED SALES CHARGES
SALES CHARGES ---------------------------------------
PORTFOLIO CLASS A CLASS A CLASS B CLASS C
====================================================================================
Tax-Managed International $1,016 $ 0 $ 15 $ 0
International 1,182 0 51 0
Diversified Municipal 6,152 2,742 91,571 6,449
California Municipal 2,468 5,989 0 0
New York Municipal 3,413 3,556 42,088 6,314
Short Duration Plus 4,009 3,200 54,271 6,622
For the six months ended March 31, 2005 the International and Emerging
Markets Value Portfolios paid brokerage commissions to Sanford C.
Bernstein & Co., LLC, in the amount of $1,004 and $8,055, respectively,
and the Tax-Managed International and International Portfolios paid
commissions to Sanford C. Bernstein & Co., Ltd., in the amount of
$173,008 and $41,738, respectively.
NOTE 3. Investment Security Transactions
A. Purchases and Sales
For the period from October 1, 2004 through March 31, 2005, 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 $ 1,747,120,870 $ 0 $1,650,932,833 $ 0
International 740,665,004 0 95,384,209 0
Emerging Markets Value 198,931,317 0 54,940,077 0
Intermediate Duration 888,572,849 7,778,779,601 68,978,943 7,882,591,300
U.S. Government Short Duration 0 86,633,386 507,163 88,562,845
Intermediate Duration Institutional 184,091,349 1,686,614,734 48,193,649 1,734,655,235
Short Duration Diversified Municipal 105,849,727 0 07,936,911 0
Short Duration California Municipal 24,053,206 0 28,179,238 0
Short Duration New York Municipal 53,494,959 0 48,461,871 0
Diversified Municipal 808,693,465 0 13,739,550 0
California Municipal 195,872,440 0 03,682,522 0
New York Municipal 321,293,017 0 44,854,079 0
Short Duration Plus 55,930,856 451,518,397 76,042,743 478,889,607
- --------------------------------------------------------------------------------
2005 Semiannual Report 59
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
B. Distributions to Shareholders
The tax character of distributions to be paid for the year ending
September 30, 2005, will be determined at the end of the fiscal year.
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
============ ============
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
============ ============
- --------------------------------------------------------------------------------
60 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
=========== ============
- --------------------------------------------------------------------------------
2005 Semiannual Report 61
- --------------------------------------------------------------------------------
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 APPRECIATION/ EARNINGS/
INCOME OTHER 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.
- --------------------------------------------------------------------------------
62 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.
- --------------------------------------------------------------------------------
2005 Semiannual Report 63
- --------------------------------------------------------------------------------
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 March 31, 2005, 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 three existing
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, 200 million each to the
four existing 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 period ended March 31, 2005 and the year ended
September 30, 2004, were as follows:
- --------------------------------------------------------------------------------
64 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
---------------------------------------------------------------------
TAX-MANAGED INTERNATIONAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- -----------------------------------
SHARES AMOUNT
----------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
========================================================================================================================
Tax-Managed International Class Shares
Shares sold 23,777,529 52,134,283 $ 522,929,612 $ 1,019,883,754
Shares issued to shareholders on
reinvestment of dividends 4,555,651 2,890,030 97,855,405 54,534,862
Shares redeemed (17,508,797) (32,330,589) (386,125,007) (632,135,649)
----------- ----------- --------------- ---------------
Net increase 10,824,383 22,693,724 234,660,010 442,282,967
Beginning of period 225,857,515 203,163,791 3,662,301,045 3,220,018,078
----------- ----------- --------------- ---------------
End of period 236,681,898 225,857,515 $ 3,896,961,055 $ 3,662,301,045
=========== =========== =============== ===============
========================================================================================================================
Tax-Managed International Class A Shares (a)
Shares sold 26,835 6,981 $ 602,645 $ 138,270
Shares issued to shareholders on
reinvestment of dividends 205 0 4,390 0
Shares redeemed (6) (474) (116) (9,360)
----------- ----------- --------------- ---------------
Net increase 27,034 6,507 606,919 128,910
Beginning of period 6,507 0 128,910 0
----------- ----------- --------------- ---------------
End of period 33,541 6,507 $ 735,829 $ 128,910
=========== =========== =============== ===============
========================================================================================================================
Tax-Managed International Class B Shares (a)
Shares sold 3,210 2,794 $ 72,320 $ 55,653
Shares issued to shareholders on
reinvestment of dividends 50 0 1,059 0
Shares redeemed (382) (57) (8,415) (1,123)
----------- ----------- --------------- ---------------
Net increase 2,878 2,737 64,964 54,530
Beginning of period 2,737 0 54,530 0
----------- ----------- --------------- ---------------
End of period 5,615 2,737 $ 119,494 $ 54,530
=========== =========== =============== ===============
========================================================================================================================
Tax-Managed International Class C Shares (a)
Shares sold 14,879 8,280 $ 329,906 $ 165,415
Shares issued to shareholders on
reinvestment of dividends 87 0 1,874 0
Shares redeemed (63) (97) (1,293) (1,877)
----------- ----------- --------------- ---------------
Net increase 14,903 8,183 330,487 163,538
Beginning of period 8,183 0 163,538 0
----------- ----------- --------------- ---------------
End of period 23,086 8,183 $ 494,025 $ 163,538
=========== =========== =============== ===============
(a) Class A, B and C Shares commenced distribution on January 30, 2004.
- --------------------------------------------------------------------------------
2005 Semiannual Report 65
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
---------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- -----------------------------------
SHARES AMOUNT
----------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
========================================================================================================================
International Class Share
Shares sold 9,769,276 20,830,061 $ 202,872,919 $ 374,436,163
Shares issued to shareholders on
reinvestment of dividends 945,230 1,022,862 19,065,301 17,787,574
Shares redeemed (9,262,814) (19,917,739) (191,105,524) (354,463,245)
----------- ----------- --------------- ---------------
Net increase 1,451,692 1,935,184 30,832,696 37,760,492
Beginning of period 115,673,695 113,738,511 2,098,715,783 2,060,955,291
----------- ----------- --------------- ---------------
End of period 117,125,387 115,673,695 $ 2,129,548,479 $ 2,098,715,783
=========== =========== =============== ===============
========================================================================================================================
International Class A Shares (a)
Shares sold 272,916 181,016 $ 5,736,426 $ 3,336,881
Shares issued to shareholders on
reinvestment of dividends 1,066 0 21,460 0
Shares redeemed (18,986) (15,813) (399,636) (290,505)
----------- ----------- --------------- ---------------
Net increase 254,996 165,203 5,358,250 3,046,376
Beginning of period 165,203 0 3,046,376 0
----------- ----------- --------------- ---------------
End of period 420,199 165,203 $ 8,404,626 $ 3,046,376
=========== =========== =============== ===============
========================================================================================================================
International Class B Shares (a)
Shares sold 56,885 53,641 $ 1,173,015 $ 984,733
Shares issued to shareholders on
reinvestment of dividends 216 0 4,324 0
Shares redeemed (7,380) (5,304) (153,857) (96,448)
----------- ----------- --------------- ---------------
Net increase 49,721 48,337 1,023,482 888,285
Beginning of period 48,337 0 888,285 0
----------- ----------- --------------- ---------------
End of period 98,058 48,337 $ 1,911,767 $ 888,285
=========== =========== =============== ===============
========================================================================================================================
International Class C Shares (a)
Shares sold 276,266 250,874 $ 5,667,196 $ 4,604,211
Shares issued to shareholders on
reinvestment of dividends 266 0 5,350 0
Shares redeemed (13,881) (3,198) (289,299) (58,714)
----------- ----------- --------------- ---------------
Net increase 262,651 247,676 5,383,247 4,545,497
Beginning of period 247,676 0 4,545,497 0
----------- ----------- --------------- ---------------
End of period 510,327 247,676 $ 9,928,744 $ 4,545,497
=========== =========== =============== ===============
========================================================================================================================
International Class R Shares (b)
Shares sold 0 534 $ 0 $ 10,100
Shares redeemed (534) 0 (11,343) 0
----------- ----------- --------------- ---------------
Net increase (decrease) (534) 534 (11,343) 10,100
Beginning of period 534 0 10,100 0
----------- ----------- --------------- ---------------
End of period 0 534 $ (1,243) $ 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. These shares
are no longer being offered to shareholders as of February 23, 2005.
- --------------------------------------------------------------------------------
66 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
----------------------------- -----------------------------------
EMERGING INTERMEDIATE
MARKETS VALUE DURATION
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
========================================================================================================================
Shares sold 5,148,265 10,871,494 35,289,622 61,026,683
Shares issued to shareholders
on reinvestment of dividends
and distributions 1,190,437 384,525 1,398,328 1,446,809
Shares redeemed (9,421,556) (7,328,884) (16,186,175) (28,567,549)
---------- ---------- ----------- -----------
Net increase (decrease)
in shares outstanding (3,082,854) 3,927,135 20,501,775 33,905,943
Shares outstanding at
beginning of period 47,092,824 43,165,689 212,713,840 178,807,897
---------- ---------- ----------- -----------
Shares outstanding at
end of period 44,009,970 47,092,824 233,215,615 212,713,840
========== ========== =========== ===========
----------------------------- -----------------------------------
U.S. GOVERNMENT INTERMEDIATE DURATION
SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
========================================================================================================================
Shares sold 934,486 2,054,195 5,721,859 15,914,321
Shares issued to shareholders
on reinvestment of dividends
and distributions 51,192 188,809 558,556 1,023,015
Shares redeemed (994,024) (3,521,347) (5,526,011) (7,094,674)
---------- ---------- ---------- -----------
Net increase (decrease)
in shares outstanding (8,346) (1,278,343) 754,404 9,842,662
Shares outstanding at
beginning of period 7,379,452 8,657,795 39,348,364 29,505,702
---------- ---------- ---------- -----------
Shares outstanding at
end of period 7,371,106 7,379,452 40,102,768 39,348,364
========== ========== ========== ===========
- --------------------------------------------------------------------------------
2005 Semiannual Report 67
- --------------------------------------------------------------------------------
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
--------------------------- --------------------------- ---------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
=======================================================================================================================
Shares sold 5,887,026 12,018,742 1,451,377 4,724,131 2,799,566 7,611,430
Shares issued to shareholders
on reinvestment of dividends
and distributions 76,149 163,224 29,888 60,450 40,612 81,453
Shares redeemed (5,868,549) (10,456,901) (1,980,613) (5,386,518) (2,780,338) (7,446,664)
---------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease)
in shares outstanding 94,626 1,725,065 (499,348) (601,937) 59,840 246,219
Shares outstanding at
beginning of period 20,131,890 18,406,825 5,698,067 6,300,004 9,879,716 9,633,497
---------- ----------- ---------- ---------- ---------- ----------
Shares outstanding at
end of period 20,226,516 20,131,890 5,198,719 5,698,067 9,939,556 9,879,716
========== =========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------
68 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
---------------------------------------------------------------------
DIVERSIFIED MUNICIPAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- -----------------------------------
SHARES AMOUNT
----------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
========================================================================================================================
Municipal Class
Shares sold 35,841,213 56,402,771 $ 509,612,471 $ 803,722,850
Shares issued to shareholders on
reinvestment of dividends 493,914 996,289 7,021,833 14,194,124
Shares redeemed (15,823,389) (24,148,120) (224,883,717) (343,673,316)
------------ ----------- --------------- ---------------
Net increase 20,511,738 33,250,940 291,750,587 474,243,658
Beginning of period 175,912,881 142,661,941 2,429,726,990 1,955,483,332
------------ ----------- --------------- ---------------
End of period 196,424,619 175,912,881 $ 2,721,477,577 $ 2,429,726,990
============ =========== =============== ===============
========================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 873,397 2,791,398 $ 12,438,287 $ 39,770,226
Shares issued to shareholders on
reinvestment of dividends 58,009 156,489 824,963 2,232,359
Shares converted from Class B 50,118 40,949 708,322 585,547
Shares redeemed (1,741,809) (5,661,852) (24,769,904) (80,491,325)
------------ ----------- --------------- ---------------
Net decrease (760,285) (2,673,016) (10,798,332) (37,903,193)
Beginning of period 7,139,972 9,812,988 101,452,919 139,356,112
------------ ----------- --------------- ---------------
End of period 6,379,687 7,139,972 $ 90,654,587 $ 101,452,919
============ =========== =============== ===============
========================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 158,670 869,273 $ 2,259,495 $ 12,394,497
Shares issued to shareholders on
reinvestment of dividends 42,240 97,407 600,812 1,388,562
Shares converted to Class A (50,132) (40,951) (708,322) (585,547)
Shares redeemed (949,697) (2,258,595) (13,491,076) (32,100,577)
------------ ----------- --------------- ---------------
Net decrease (798,919) (1,332,866) (11,339,091) (18,903,065)
Beginning of period 6,730,272 8,063,138 95,318,319 114,221,384
------------ ----------- --------------- ---------------
End of period 5,931,353 6,730,272 $ 83,979,228 $ 95,318,319
============ =========== =============== ===============
========================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 240,358 1,383,803 $ 3,422,167 $ 19,746,954
Shares issued to shareholders on
reinvestment of dividends 31,202 81,839 443,812 1,166,777
Shares redeemed (1,070,983) (3,026,407) (15,230,874) (43,006,747)
------------ ----------- --------------- ---------------
Net decrease (799,423) (1,560,765) (11,364,895) (22,093,016)
Beginning of period 6,266,770 7,827,535 89,063,423 111,156,439
------------ ----------- --------------- ---------------
End of period 5,467,347 6,266,770 $ 77,698,528 $ 89,063,423
============ =========== =============== ===============
- --------------------------------------------------------------------------------
2005 Semiannual Report 69
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
--------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
--------------------------------------------------------------------
----------------------------- ----------------------------------
SHARES AMOUNT
----------------------------- ----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
=======================================================================================================================
Municipal Class
Shares sold 10,241,741 19,362,604 $ 147,161,235 $ 278,229,856
Shares issued to shareholders on
reinvestment of dividends 221,241 380,194 3,178,658 5,464,063
Shares redeemed (7,143,435) (8,521,055) (102,636,357) (122,550,941)
---------- ---------- -------------- --------------
Net increase 3,319,547 11,221,743 47,703,536 161,142,978
Beginning of period 58,618,356 47,396,613 818,413,383 657,270,405
---------- ---------- -------------- --------------
End of period 61,937,903 58,618,356 $ 866,116,919 $ 818,413,383
========== ========== ============== ==============
=======================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 547,563 1,601,314 $ 7,850,132 $ 22,992,722
Shares issued to shareholders on
reinvestment of dividends 29,923 62,048 429,790 892,517
Shares converted from Class B 17,693 42,663 254,405 616,038
Shares redeemed (359,109) (2,739,651) (5,154,286) (39,262,227)
---------- ---------- -------------- --------------
Net increase (decrease) 236,070 (1,033,626) 3,380,041 (14,760,950)
Beginning of period 2,671,212 3,704,838 38,438,279 53,199,229
---------- ---------- -------------- --------------
End of period 2,907,282 2,671,212 $ 41,818,320 $ 38,438,279
========== ========== ============== ==============
=======================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 16,687 413,439 $ 240,505 $ 5,912,975
Shares issued to shareholders on
reinvestment of dividends 19,887 42,707 285,715 613,905
Shares converted to Class A (17,715) (42,664) (254,405) (616,038)
Shares redeemed (223,448) (690,338) (3,205,825) (9,878,652)
---------- ---------- -------------- --------------
Net decrease (204,589) (276,856) (2,934,010) (3,967,810)
Beginning of period 2,483,175 2,760,031 35,650,128 39,617,938
---------- ---------- -------------- --------------
End of period 2,278,586 2,483,175 $ 32,716,118 $ 35,650,128
========== ========== ============== ==============
=======================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 77,755 458,392 $ 1,118,783 $ 6,601,771
Shares issued to shareholders on
reinvestment of dividends 17,818 43,617 255,979 627,058
Shares redeemed (304,984) (1,541,591) (4,379,641) (22,079,682)
---------- ---------- -------------- --------------
Net decrease (209,411) (1,039,582) (3,004,879) (14,850,853)
Beginning of period 2,423,470 3,463,052 34,873,086 49,723,939
---------- ---------- -------------- --------------
End of period 2,214,059 2,423,470 $ 31,868,207 $ 34,873,086
========== ========== ============== ==============
- --------------------------------------------------------------------------------
70 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
--------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
--------------------------------------------------------------------
----------------------------- ----------------------------------
SHARES AMOUNT
----------------------------- ----------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
=======================================================================================================================
Municipal Class
Shares sold 13,691,392 21,638,209 $ 192,382,168 $ 305,291,848
Shares issued to shareholders on
reinvestment of dividends 338,937 689,237 4,763,350 9,719,528
Shares redeemed (7,759,694) (13,656,099) (109,055,517) (192,281,514)
---------- ----------- --------------- ---------------
Net increase 6,270,635 8,671,347 88,090,001 122,729,862
Beginning of period 79,453,646 70,782,299 1,079,419,281 956,689,419
---------- ----------- --------------- ---------------
End of period 85,724,281 79,453,646 $ 1,167,509,282 $ 1,079,419,281
========== =========== =============== ===============
=======================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 409,773 1,615,750 $ 5,759,286 $ 22,800,191
Shares issued to shareholders on
reinvestment of dividends 43,815 94,136 615,435 1,327,825
Shares converted from Class B 27,703 37,929 386,161 535,934
Shares redeemed (678,580) (3,428,933) (9,537,167) (48,289,760)
---------- ----------- --------------- ---------------
Net decrease (197,289) (1,681,118) (2,776,285) (23,625,810)
Beginning of period 3,845,804 5,526,922 53,961,341 77,587,151
---------- ----------- --------------- ---------------
End of period 3,648,515 3,845,804 $ 51,185,056 $ 53,961,341
========== =========== =============== ===============
=======================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 104,451 671,588 $ 1,470,872 $ 9,478,863
Shares issued to shareholders on
reinvestment of dividends 34,463 74,192 484,020 1,045,533
Shares converted to Class A (27,721) (37,911) (386,161) (535,934)
Shares redeemed (356,381) (1,012,852) (5,001,392) (14,209,122)
---------- ----------- --------------- ---------------
Net decrease (245,188) (304,983) (3,432,661) (4,220,660)
Beginning of period 4,125,242 4,430,225 57,967,103 62,187,763
---------- ----------- --------------- ---------------
End of period 3,880,054 4,125,242 $ 54,534,442 $ 57,967,103
========== =========== =============== ===============
=======================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 146,038 966,957 $ 2,055,030 $ 13,668,253
Shares issued to shareholders on
reinvestment of dividends 19,315 47,599 271,452 671,429
Shares redeemed (809,590) (1,585,393) (11,360,415) (22,243,635)
---------- ----------- --------------- ---------------
Net decrease (644,237) (570,837) (9,033,933) (7,903,953)
Beginning of period 3,759,301 4,330,138 53,098,095 61,002,048
---------- ----------- --------------- ---------------
End of period 3,115,064 3,759,301 $ 44,064,162 $ 53,098,095
========== =========== =============== ===============
- --------------------------------------------------------------------------------
2005 Semiannual Report 71
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
-------------------------------------------------------------------
SHORT DURATION PLUS PORTFOLIO
-------------------------------------------------------------------
----------------------------- ---------------------------------
SHARES AMOUNT
----------------------------- ---------------------------------
SIX MONTHS SIX MONTHS
ENDED 3/31/05 YEAR ENDED ENDED 3/31/05 YEAR ENDED
(UNAUDITED) 9/30/04 (UNAUDITED) 9/30/04
======================================================================================================================
Short Duration Plus Class
Shares sold 5,368,478 13,779,853 $ 67,576,210 $ 175,398,530
Shares issued to shareholders on
reinvestment of dividends and distributions 216,225 354,625 2,722,413 4,518,277
Shares redeemed (6,147,604) (12,999,054) (77,402,530) (165,694,224)
---------- ----------- --------------- --------------
Net increase (decrease) (562,901) 1,135,424 (7,103,907) 14,222,583
Beginning of period 33,306,388 32,170,964 422,597,621 408,375,038
---------- ----------- --------------- --------------
End of period 32,743,487 33,306,388 $ 415,493,714 $ 422,597,621
========== =========== =============== ==============
======================================================================================================================
Short Duration Class A Shares (a)
Shares sold 1,085,179 4,016,683 $ 13,672,507 $ 51,202,933
Shares issued to shareholders on
reinvestment of dividends and distributions 47,301 117,905 595,546 1,502,975
Shares converted from Class B 53,139 30,110 666,564 381,919
Shares redeemed (1,725,825) (6,692,833) (21,752,161) (85,093,395)
---------- ----------- --------------- --------------
Net decrease (540,206) (2,528,135) (6,817,544) (32,005,568)
Beginning of period 4,640,977 7,169,112 60,079,836 92,085,404
---------- ----------- --------------- --------------
End of period 4,100,771 4,640,977 $ 53,262,292 $ 60,079,836
========== =========== =============== ==============
======================================================================================================================
Short Duration Class B Shares (a)
Shares sold 293,216 2,184,212 $ 3,692,470 $ 27,779,246
Shares issued to shareholders on
reinvestment of dividends and distributions 26,686 36,545 335,868 465,440
Shares converted to Class A (53,172) (30,122) (666,564) (381,919)
Shares redeemed (879,289) (1,366,618) (11,072,811) (17,378,283)
---------- ----------- --------------- --------------
Net increase (decrease) (612,559) 824,017 (7,711,037) 10,484,484
Beginning of period 3,496,107 2,672,090 44,744,023 34,259,539
---------- ----------- --------------- --------------
End of period 2,883,548 3,496,107 $ 37,032,986 $ 44,744,023
========== =========== =============== ==============
======================================================================================================================
Short Duration Class C Shares (a)
Shares sold 307,122 1,887,697 $ 3,865,113 $ 24,025,648
Shares issued to shareholders on
reinvestment of dividends and distributions 19,560 31,272 246,127 398,349
Shares redeemed (1,032,403) (1,358,186) (12,993,050) (17,258,694)
---------- ----------- --------------- --------------
Net increase (decrease) (705,721) 560,783 (8,881,810) 7,165,303
Beginning of period 3,126,173 2,565,390 40,072,263 32,906,960
---------- ----------- --------------- --------------
End of period 2,420,452 3,126,173 $ 31,190,453 $ 40,072,263
========== =========== =============== ==============
======================================================================================================================
Short Duration Class R Shares (b)
Shares sold 0 779 $ 0 $ 10,000
Shares redeemed (779) 0 (9,782) 0
---------- ----------- --------------- --------------
Net increase (decrease) (779) 779 (9,782) 10,000
Beginning of period 779 0 10,000 0
---------- ----------- --------------- --------------
End of period 0 779 $ 218 $ 10,000
========== =========== =============== ==============
(a) Class A, B and C Shares commenced distribution on May 21, 2003.
(b) Class R Shares commenced distribution on February 17, 2004. These shares
are no longer being offered to shareholders as of February 23, 2005.
- --------------------------------------------------------------------------------
72 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
period ended March 31, 2005.
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 period ended March 31, 2005.
NOTE 8. Legal Proceedings
As has been previously reported, the staff of the U.S. Securities and
Exchange Commission ("SEC") and the 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 relationships 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 Trust, 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, Independent Directors of the Sanford C. Bernstein Fund,
Inc. and Sanford C. Bernstein Fund, Inc. II (the "Independent
Directors") have designated an independent economic consultant and
independent counsel to investigate the above mentioned matters.
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 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
- --------------------------------------------------------------------------------
2005 Semiannual Report 73
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
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 Fund as
a defendant. 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 Judicial
Panel on Multidistrict Litigation transferring and centralizing all of
the mutual fund cases involving market 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, and the NASD has issued
requests for information, in connection with this matter and the Adviser
has provided documents and other information to the SEC and NASD and is
cooperating fully with the investigations. On March 11, 2005,
discussions commenced with the NASD that management believes will
conclude these investigations.
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 Fund's shares or other adverse consequences to
the AllianceBernstein Mutual Fund. 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 Fund.
NOTE 9. Subsequent Events
Effective May 2, 2005, the Emerging Markets Value Portfolio changed its
name to Emerging Markets Portfolio and the investment style of the
Portfolio changed from all-value to a blend of growth and value.
Effective May 2, 2005, the portfolio transaction fee payable to the
Emerging Markets Portfolio when shares of the Portfolio are purchased or
sold was reduced from 2% to 1%.
- --------------------------------------------------------------------------------
74 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
Roger Hertog
President
Rosalie J. Wolf*
Chairman
Irwin Engelman*
Director
William Kristol*
Director
Thomas B. Stiles II*
Director
================================================================================
OFFICERS
- --------------------------------------------------------------------------------
Philip L. Kirstein
Senior Vice President and
Independent Compliance Officer
Mark D. Gersten
Treasurer and Chief Financial Officer
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, the Governance, Nominating and
Compensation Committee and the Independent Directors Committee.
- --------------------------------------------------------------------------------
2005 Semiannual Report 75
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund II, Inc.
================================================================================
BOARD OF DIRECTORS
- --------------------------------------------------------------------------------
William H. Foulk, Jr.*
Chairman
Marc O. Mayer
President
Ruth Block*
David H. Dievler*
John H. Dobkin*
Michael J. Downey*
================================================================================
OFFICERS
- --------------------------------------------------------------------------------
Philip L. Kirstein
Senior Vice President and
Independent Compliance Officer
Matthew D. W. Bloom
Vice President
Alison M. Martier
Vice President
Greg Wilensky
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, the Governance and Nominating Committee
and the Independent Directors Committee.
- --------------------------------------------------------------------------------
76 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement
The Board of Directors, including the Directors that are not interested
persons of the Fund (the "Independent Directors"), last approved the
Investment Management Agreement between the Sanford C. Bernstein Fund,
Inc. (the "Fund") and Alliance Capital Management, L.P. (the "Investment
Manager") (the "Investment Advisory Agreement") at an in-person meeting
held on October 27, 2004. In approving the Investment Advisory
Agreement, the Board of Directors considered all information it deemed
reasonably necessary to evaluate the terms of the Agreement and consider
whether continuance of the Agreement would be in the best interests of
the Fund. The Board received materials relating to its consideration of
the Investment Advisory Agreement, including: (i) fees and expense
ratios of each of the Short Duration Plus Portfolio, U.S. Government
Short Duration Portfolio, Intermediate Duration Portfolio, Diversified
Municipal Portfolio, New York Municipal Portfolio, California Municipal
Portfolio, Short Duration Diversified Municipal Portfolio, Short
Duration New York Municipal Portfolio, Short Duration California
Portfolio, Tax-Managed International Portfolio, International Portfolio
and Emerging Markets Value Portfolio (each a "Portfolio" and
collectively, the "Portfolios") in comparison to the fees and expense
ratios of a peer group of funds; (ii) information on the investment
performance of each Portfolio, a peer group of funds and an appropriate
benchmark index; (iii) sales and redemption data for each Portfolio;
(iv) the economic outlook and the general investment outlook in the
markets; (v) information with respect to the Investment Manager's
profitability with respect to each Portfolio, including details
regarding the methodology used to calculate profitability; (vi)
information regarding fees paid to service providers that are affiliates
of the Investment Manager; and (vii) information regarding the
Investment Manager's compliance record. The matters discussed below were
considered separately by the Independent Directors in an executive
session, during which experienced counsel that is independent of the
Investment Manager provided guidance to the Independent Directors.
Fees and Expenses
The Board of Directors, including the Independent Directors, compared
the fees and expense ratios of each Portfolio (before and after any fee
waivers and expense reimbursements) against fees and expense ratios of a
peer group of funds with similar investment objectives ("peer group").
Both the peer group category and the funds within the peer group, with
respect to the fee and expense data, were selected by Lipper, Inc.
("Lipper"), an independent provider of investment company data.
The Board considered data based on information provided by Lipper,
particularly that:
o the Short Duration Plus Portfolio's weighted average management
fee for both Private Client Class and Class A shares was below
the median weighted average management fee of its peer group.
The Board also noted that the weighted average expense ratio for
both Private Client Class and Class A shares was below the
median weighted average expense ratio of its peer group. The
weighted average total expenses of the Portfolio's Private
Client Class was below the median weighted average total
expenses of its peer group, but the weighted average total
expenses of the Class A shares was above the respective peer
group median.
o the U.S. Government Short Duration Portfolio's weighted average
management fee was below the median weighted average management
fee of its peer group. The weighted average expense ratio and
weighted average total expenses of the Portfolio were also below
the median weighted average expense ratio and weighted average
total expenses of its peer group.
o Intermediate Duration Portfolio's weighted average management
fee was below the median weighted average management fee of its
peer group. The weighted average expense ratio and weighted
average total expenses of the Portfolio were also below the
median weighted average expense ratio and weighted average total
expenses of its peer group.
o California Municipal Portfolio's weighted average management fee
for both Private Client Class and Class A shares was above the
median weighted average management fee of its peer group. The
Board also noted that the weighted average expense ratio and
weighted average total expenses of the Private Client Class were
below the median weighted average expense ratio and weighted
average total expenses of its peer group, but that the weighted
average expense ratio and weighted average total expenses of the
Class A shares were above their respective peer group medians.
o the Diversified Municipal Portfolio's weighted average
management fee for both Private Client Class and Class A shares
was below the median weighted average management fee of its peer
group. The Board also noted that the weighted average expense
ratio and weighted average total expenses of the Private Client
Class were below the median weighted average expense ratio and
weighted average total expenses of its peer group, but that the
weighted average expense ratio and weighted average total
expenses of the Class A shares were above their respective peer
group medians.
- --------------------------------------------------------------------------------
2005 Semiannual Report 77
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
o the New York Municipal Portfolio's weighted average management
fee for both Private Client Class and Class A shares was above
the median weighted average management fee of its peer group.
The Board also noted that the weighted average expense ratio and
weighted average total expenses of the Private Client Class were
below the median weighted average expense ratio and weighted
average total expenses of its peer group, but that the weighted
average expense ratio and weighted average total expenses of the
Class A shares were above their respective peer group medians.
o the Short Duration California Municipal Portfolio's weighted
average management fee was above the median weighted average
management fee of its peer group. The Board also noted, however,
that the weighted average expense ratio and weighted average
total expenses of the Portfolio were below the median weighted
average expense ratio and weighted average total expenses of its
peer group.
o the Short Duration Diversified Municipal Portfolio's weighted
average management fee was above the median weighted average
management fee of its peer group. The Board also noted, however,
that the weighted average expense ratio and weighted average
total expenses of the Portfolio were below the median weighted
average expense ratio and weighted average total expenses of its
peer group.
o the Short Duration New York Municipal Portfolio's weighted
average management fee was above the median weighted average
management fee of its peer group. The Board also noted, however,
that the weighted average expense ratio and weighted average
total expenses of the Portfolio were below the median weighted
average expense ratio and weighted average total expenses of its
peer group.
o the International Value Portfolio's weighted average management
fee was above the median weighted average management fee of its
peer group. The Board also noted, however, that the weighted
average expense ratio and weighted average total expenses of the
Portfolio were below the median weighted average expense ratio
and weighted average total expenses of its peer group.
o the Tax-Managed International Value Portfolio's weighted average
management fee was above the median weighted average management
fee of its peer group. The Board also noted, however, that the
weighted average expense ratio and weighted average total
expenses of the Portfolio were below the median weighted average
expense ratio and weighted average total expenses of its peer
group.
o the Emerging Markets Value Portfolio's weighted average
management fee was above the median weighted average management
fee of its peer group. The Board also noted, however, that the
weighted average expense ratio and weighted average total
expenses of the Portfolio were below the median weighted average
expense ratio and weighted average total expenses of its peer
group.
The Board also received and considered information about the services
rendered, and the fee rates offered, to other clients advised by the
Investment Manager, and noted that the Investment Manager serves as
adviser to over 100 investment portfolios.
Nature, Extent and Quality of Services
The Board of Directors, including the Independent Directors, considered
the nature, quality and extent of services performed by the Investment
Manager and its affiliates. The Board used its knowledge and experience
gained as directors of the Fund in evaluating the quality of the
services of the Investment Manager, including the scope and quality of
the Investment Manager's investment management capabilities, other
resources dedicated to performing their services and the quality of
their administrative and other services. Particularly, the Board
considered the background and experience of the Investment Manager's
senior management. The Board also reviewed the qualifications,
backgrounds and responsibilities of the investment staff primarily
responsible for day-to-day portfolio management services for each
Portfolio. In further evaluating the quality of services provided by the
Investment Manager, the Board was informed that in management's
judgment, the Investment Manager has the resources to attract and retain
highly qualified investment professionals, including research and
advisory personnel. In particular, the Board was informed that the
Investment Manager's investment staff consists of:
o 66 Fixed-Income Portfolio Managers, 42 Fixed-Income Credit
Research Analysts, 5 Structured Analysts, 6 Fixed-Income
Economists, 7 Fixed-Income Quantitative Analysts and 10
Fixed-Income Traders.
- --------------------------------------------------------------------------------
78 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
o 15 Senior International Portfolio Managers (including 1
economist), 42 International Associate Portfolio Managers, 1
International Research Director, 68 International Research
Analysts (which includes 46 fundamental and 22 quantitative) and
11 International Traders.
o 6 Senior Emerging Markets Value Portfolio Managers (including 1
economist), 42 Emerging Markets Value Associate Portfolio
Managers, 1 Emerging Markets Value Research Director, 68
Emerging Markets Value Research Analysts (which includes 46
fundamental and 22 quantitative) and 11 Emerging Markets Value
Traders.
The Board also considered the allocation of responsibilities as well as
the factors which impacted the making and implementing of investment
decisions for the Portfolios.
The Board then reviewed the compliance and administrative services of
the Investment Manager that support their investment advisory services
provided to the Fund and noted that such staff was sufficient to ensure
a high level of quality service to the Fund.
The Board concluded that it was satisfied with the nature, quality and
extent of the services provided by the Investment Manager.
Fund Performance
The Board of Directors, including the Independent Directors, received
and considered information about each Portfolio's investment
performance, as well as the performance of its peer group and the
performance of an appropriate benchmark index. The Board was provided
with performance data versus each Portfolio's peer group, based on net
yield, for the year-to-date, 1-year, 5-year and since inception periods
ending June 30, 2004 ("relevant periods") and versus each Portfolio's
appropriate benchmark index, both before and after fees, for the 1-year
and since inception periods ending June 30, 2004. Both the funds
included in each Portfolio's peer group and the comparative performance
data were provided to the Investment Manager by Lipper. The Board noted
that:
(i) the Short Duration Plus Portfolio outperformed the median of its
peer group over all relevant periods. Both before and after
fees, the Portfolio outperformed its benchmark index, the
Merrill Lynch 1-3 Year Treasury Index, over the 1-year period
ended June 30, 2004. Before fees, the Portfolio outperformed its
benchmark over the since inception period ended June 30, 2004.
Net of fees, the Portfolio underperformed against the benchmark
index for the since inception period.
(ii) the U.S. Government Short Duration Portfolio outperformed the
median of its peer group over all relevant periods with the
exception of the since inception period in which it
underperformed against the median. Before fees, the Portfolio
outperformed its benchmark index, the Merrill Lynch 1-3 Year
Treasury Index, over the 1-year and since inception periods
ended June 30, 2004. Net of fees, the Portfolio underperformed
against the benchmark index for both of the aforementioned
periods.
(iii) the Intermediate Duration Portfolio outperformed the median of
its peer group over the year-to-date and 1-year periods but
underperformed against the median over the 5-year and since
inception periods. Both before and after fees, the Portfolio
outperformed its benchmark index, the Lehman Aggregate Bond
Index, over the 1-year period ended June 30, 2004 but
underperformed against the benchmark index over the since
inception period ended June 30, 2004.
(iv) the Diversified Municipal Portfolio outperformed the median of
its peer group over the year-to-date and 1-year periods but
underperformed against the median over the 5-year and since
inception periods. Both before and after fees, the Portfolio
outperformed its benchmark index, the Lehman 5 Year General
Obligation Municipal Bond Index, over the 1-year period ended
June 30, 2004. Before fees, the Portfolio also outperformed its
benchmark index over the since inception period ended June 30,
2004. Net of fees, the Portfolio underperformed against the
benchmark index for the since inception period.
(v) the New York Municipal Portfolio outperformed the median of its
peer group over the year-to-date and 1-year periods and matched
the median performance over the since inception period but
underperformed against the median over the 5-year period. Both
before and after fees, the Portfolio outperformed its benchmark
index, the Lehman 5 Year General Obligation Municipal Bond
Index, over the 1-year period ended June 30, 2004. Before fees,
the Portfolio also outperformed its benchmark index over the
since inception period ended June 30, 2004. Net of fees, the
Portfolio underperformed against the benchmark index for the
since inception period.
- --------------------------------------------------------------------------------
2005 Semiannual Report 79
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
(vi) the California Municipal Portfolio outperformed the median of
its peer group over the year-to-date and 1-year periods but
underperformed against the median over the 5-year and since
inception periods. Before fees, the Portfolio outperformed its
benchmark index, the Lehman 5 Year General Obligation Municipal
Bond Index, over the 1-year and since inception periods ended
June 30, 2004. Net of fees, the Portfolio underperformed against
the benchmark index for both of the aforementioned periods.
(vii) the Short Duration Diversified Municipal Portfolio outperformed
the median of its peer group over all relevant periods with the
exception of the since inception period in which it
underperformed against the median. Before fees, the Portfolio
outperformed its benchmark index, the Lehman 1 Year Municipal
Bond Index, over the 1-year and since inception periods ended
June 30, 2004. Net of fees, the Portfolio underperformed against
the benchmark index for both of the aforementioned periods.
(viii) the Short Duration New York Municipal Portfolio outperformed the
median of its peer group over the year-to-date and 1-year
periods but underperformed against the median over the 5-year
and since inception periods. Before fees, the Portfolio
outperformed its benchmark index, the Lehman 1 Year Municipal
Bond Index, over the 1-year and since inception periods ended
June 30, 2004. Net of fees, the Portfolio underperformed against
the benchmark index for both of the aforementioned periods.
(ix) the Short Duration California Municipal Portfolio outperformed
the median of its peer group over the year-to-date and 1-year
periods but underperformed against the median over the 5-year
and since inception periods. Before fees, the Portfolio
outperformed its benchmark index, the Lehman 1 Year Municipal
Bond Index, over the 1-year and since inception periods ended
June 30, 2004. Net of fees, the Portfolio underperformed against
the benchmark index for both of the aforementioned periods.
(x) the Tax-Managed International Portfolio outperformed the median
of its peer group over the 5-year and since inception periods
but underperformed against the median over the year-to-date and
1-year periods. Both before and after fees, the Portfolio
outperformed its benchmark index, the MSCI EAFE Foreign-Stock
Market Index (Cap, UH), over the since inception period ended
June 30, 2004, but underperformed against the benchmark index
for the 1-year period ended June 30, 2004.
(xi) the International Portfolio outperformed the median of its peer
group over the 5-year and since inception periods but
underperformed against the median over the year-to-date and
1-year periods. Both before and after fees, the Portfolio
outperformed its benchmark index, the MSCI EAFE Foreign-Stock
Market Index (Cap, UH), over the since inception period ended
June 30, 2004, but underperformed against the benchmark index
for the 1-year period ended June 30, 2004.
(xii) the Emerging Markets Value Portfolio outperformed the median of
its peer group over the 1-year, 5-year and since inception
periods but underperformed against the median over the
year-to-date period. Both before and after fees, the Portfolio
outperformed its benchmark index, the MSCI Emerging Markets
Index, over the 1-year and since inception periods ended June
30.
The Board noted that the underperformance of some of the Portfolios net
of fees versus their respective indices was at least partly due to the
fact that the Portfolios' benchmarks don't account for the fees that
would be charged if some entity were able to replicate them and offer
them to retail investors.
The Board concluded that the performance generated by the Investment
Manger was satisfactory considering the size of the Portfolios and their
expense levels.
Profitability
The Board of Directors, including the Independent Directors, considered
the level of the Investment Manager's profits in respect of its
management of the Fund. Among the materials provided to the Independent
Directors in connection therewith was a report describing the cost
allocation methodology employed by the Investment Manager. After
reviewing all relevant factors, the Board of Directors, including the
Independent Directors, concluded that the level of the Investment
Manager's profits in respect of its management of the Fund was
reasonable.
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80 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
Economies of Scale
The Board of Directors, including the Independent Directors, considered
whether there have been economies of scale in respect of the management
of the Fund, whether the Fund has appropriately benefited from any
economies of scale, and whether there is potential for realization of
any further economies of scale. Following this consideration, the Board
determined that the advisory fee structure should be amended to the
revised advisory fee schedule below.
Other Benefits to the Investment Manager
The Board of Directors, including the Independent Directors, also took
into account not only the advisory fees payable by the Portfolios, but
also so-called "fallout benefits" to the Investment Manger, such as the
engagement of affiliates of the Investment Manager as service providers
to the Portfolios, including for administrative and transfer agency
services. It also considered other benefits potentially derived from an
increase in the Investment Manager's business as a result of the
Investment Manger's relationship with the Fund.
The Board concluded that other ancillary benefits that the Investment
Manager could be expected to receive with regard to providing investment
advisory and other services to the Fund, such as those noted above, were
reasonable.
No single factor was considered in isolation or to be determinative to
the decision of the Board to approve the Investment Advisory Agreement.
Rather, the Board concluded, in light of a weighing and balancing of all
factors considered, that it was in the best interests of each Portfolio
to approve the continuation of the Investment Advisory Agreement as
amended, including the fees to be charged for services thereunder.
Advisory Fee Rate Schedule
On the basis of the information considered, the Board concluded that the
advisory fee rates for each Portfolio of the Fund should be amended as
follows:
Advisory Fee Schedule
Portfolio Effective October 28, 2004 Previous Advisory Fee Schedule
====================================================================================================================================
U.S. Government Short .50% of the first $250 million; .50% of the first $1 billion;
.45% of assets in excess of $250 million up to, .45% of assets in excess of $1 billion
Duration Portfolio but not exceeding $750 million;
.40% of assets in excess of $750 million
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration Plus Portfolio .50% of the first $250 million; .50% of the first $1 billion;
.45% of assets in excess of $250 million up to, .45% of assets in excess of $1 billion
but not exceeding $750 million;
.40% of assets in excess of $750 million
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Duration Portfolio .50% of the first $1 billion; .50% of the first $1 billion;
.45% of assets in excess of $1 billion up to, .45% of assets in excess of $1 billion
but not exceeding $3 billion;
.40% of assets in excess of $3 billion
- ------------------------------------------------------------------------------------------------------------------------------------
New York Municipal Portfolio .50% of the first $1 billion; .50% of the first $1 billion;
.45% of assets in excess of $1 billion up to, .45% of assets in excess of $1 billion
but not exceeding $3 billion;
.40% of assets in excess of $3 billion
- ------------------------------------------------------------------------------------------------------------------------------------
California Municipal Portfolio .50% of the first $1 billion; .50% of the first $1 billion;
.45% of assets in excess of $1 billion up to, .45% of assets in excess of $1 billion
but not exceeding $3 billion;
.40% of assets in excess of $3 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Municipal Portfolio .50% of the first $1 billion; .50% of the first $1 billion;
.45% of assets in excess of $1 billion up to, .45% of assets in excess of $1 billion
but not exceeding $3 billion;
.40% of assets in excess of $3 billion
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2005 Semiannual Report 81
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
Advisory Fee Schedule
Portfolio Effective October 28, 2004 Previous Advisory Fee Schedule
====================================================================================================================================
Short Duration California .50% of the first $250 million; .50%
Municipal Portfolio .45% of assets in excess of $250 million up to,
but not exceeding $750 million;
.40% of assets in excess of $750 million
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration Diversified .50% of the first $250 million; .50%
Municipal Portfolio .45% of assets in excess of $250 million up to,
but not exceeding $750 million;
.40% of assets in excess of $750 million
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration New York .50% of the first $250 million; .50%
Municipal Portfolio .45% of assets in excess of $250 million up to,
but not exceeding $750 million;
.40% of assets in excess of $750 million
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Value Portfolio 1.25% of the first $1 billion; 1.25%
1.125% of assets in excess of $1 billion up to,
but not exceeding $2 billion;
1.00% of assets in excess of $2 billion
- ------------------------------------------------------------------------------------------------------------------------------------
International Portfolio 1.00% of the first $1 billion; 1.00% of the first $1 billion;
.90% of assets in excess of $1 billion up to, .90% of assets in excess of $1 billion
but not exceeding $4 billion; up to, but not exceeding $4 billion;
.85% of assets in excess of $4 billion up to, .875% of assets in excess of $4 billion
but not exceeding $6 billion; up to, but not exceeding $6 billion;
.75% of assets in excess of $6 billion .85% of assets in excess of $6 billion
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Managed International 1.00% of the first $1 billion; 1.00% of the first $1 billion;
Portfolio .90% of assets in excess of $1 billion up to, .90% of assets in excess of $1 billion
but not exceeding $4 billion; up to, but not exceeding $4 billion;
.85% of assets in excess of $4 billion up to, .875% of assets in excess of $4 billion
but not exceeding $6 billion; up to, but not exceeding $6 billion;
.75% of assets in excess of $6 billion .85% of assets in excess of $6 billion
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
82 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund II, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
The Fund's disinterested directors (the "directors") unanimously
approved the continuance of the Advisory Agreement between the Fund and
the Adviser at a meeting held on December 14-16, 2004. Intermediate
Duration Institutional Portfolio is the Fund's sole portfolio and is
sometimes referred to as the "Fund" in this section.
In preparation for the meeting, the directors had requested from the
Adviser and evaluated extensive materials, including performance and
expense information for other investment companies with similar
investment objectives derived from data compiled by Lipper Inc.
("Lipper"). Prior to voting, the directors reviewed the proposed
continuance of the Advisory Agreement with management and with
experienced counsel who are independent of the Adviser and received a
memorandum from such counsel discussing the legal standards for their
consideration of the proposed continuance. The directors also discussed
the proposed continuance in three private sessions at which only the
directors, their independent counsel and the Fund's Independent
Compliance Officer were present. In reaching their determinations
relating to continuance of the Advisory Agreement, the directors
considered all factors they believed relevant, including the following:
(i) information comparing the performance of the Fund to other
investment companies with similar investment objectives and to
an index;
(ii) the nature, extent and quality of investment, compliance,
administrative and other services rendered by the Adviser;
(iii) payments received by the Adviser from all sources in respect of
the Fund and all investment companies in the AllianceBernstein
Fund complex;
(iv) the costs borne by, and profitability of, the Adviser and its
affiliates in providing services to the Fund and to all
investment companies in the AllianceBernstein Fund complex;
(v) comparative fee and expense data for the Fund and other
investment companies with similar investment objectives;
(vi) the extent to which economies of scale would be realized as the
Fund grows and whether fee levels reflect these economies of
scale for the benefit of investors;
(vii) the Adviser's policies and practices regarding allocation of
portfolio transactions of the Fund, including the extent to
which the Adviser benefits from soft dollar arrangements;
(viii) portfolio turnover rates of the Fund;
(ix) fall-out benefits which the Adviser and its affiliates receive
from their relationships to the Fund;
(x) the professional experience and qualifications of the Fund's
portfolio management team and other senior personnel of the
Adviser; and
(xi) the terms of the Advisory Agreement.
The directors also considered their knowledge of the nature and quality
of the services provided by the Adviser to the Fund gained from their
experience as directors or trustees of most of the funds advised by the
Adviser, their overall confidence in the Adviser's integrity and
competence they have gained from that experience and the Adviser's
responsiveness to concerns raised by them in the past, including the
Adviser's willingness to consider and implement organizational and
operational changes designed to improve investment results and the
services provided to the AllianceBernstein Funds.
In their deliberations, the directors did not identify any particular
information that was all-important or controlling, and each director
attributed different weights to the various factors.
The directors determined that the overall arrangements between the Fund
and the Adviser, as provided in the Advisory Agreement, were fair and
reasonable in light of the services performed, expenses incurred and
such other matters as the directors considered relevant in the exercise
of their business judgment.
The material factors and conclusions that formed the basis for the
directors' reaching their determinations to approve the continuance of
the Advisory Agreement (including their determinations that the Adviser
should continue to be the investment adviser for the Fund, and that the
fees payable to the Adviser pursuant to the Advisory Agreement are
appropriate) were separately discussed by the directors.
Nature, extent and quality of services provided by the Adviser
The directors noted that, under the Advisory Agreement, the Adviser,
subject to the control of the directors, administers the Fund's business
and other affairs. The Adviser manages the investment of the assets of
the Fund, including making purchases
- --------------------------------------------------------------------------------
2005 Semiannual Report 83
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund II, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
and sales of portfolio securities consistent with the Fund's investment
objective and policies. The Adviser also provides the Fund with such
office space, administrative and other services (exclusive of, and in
addition to, any such services provided by any others retained by the
Fund) and executive and other personnel as are necessary for the Fund's
operations. The Adviser pays all of the compensation of directors of the
Fund who are affiliated persons of the Adviser and of the officers of
the Fund.
The directors also considered that the Advisory Agreement for the Fund
provides that the Fund will reimburse the Adviser for the cost of
certain clerical, accounting, administrative and other services provided
at the Fund's request by employees of the Adviser or its affiliates.
These "at no more than cost" reimbursements are approved by the
directors on a quarterly basis and result in a higher rate of total
compensation from the Fund to the Adviser than the stated fee rates in
the Fund's Advisory Agreement. The directors noted that no
reimbursements have been made to date by the Fund in light of the
expense cap for the Fund.
The directors considered the scope and quality of services provided by
the Adviser under the Advisory Agreement and noted that the scope of
services provided had expanded over time as a result of regulatory and
other developments. The directors noted that, for example, the Adviser
is responsible for maintaining and monitoring its own and, to varying
degrees, the Fund's compliance programs, and these compliance programs
have recently been refined and enhanced in light of new regulatory
requirements. The directors considered the quality of the investment
research capabilities of the Adviser and the other resources it has
dedicated to performing services for the Fund. The quality of
administrative and other services, including the Adviser's role in
coordinating the activities of the Fund's other service providers, also
were considered. The directors also considered the Adviser's response to
recent regulatory compliance issues affecting many of the investment
companies in the AllianceBernstein Fund complex. The directors concluded
that, overall, they were satisfied with the nature, extent and quality
of services provided to the Fund under the Advisory Agreement.
Costs of Services Provided and Profitability to the Adviser
The directors reviewed a schedule of the revenues, expenses and related
notes indicating the profitability of the Fund to the Adviser for
calendar year 2003 and for the period from May 17, 2002 (inception) to
December 31, 2002. The directors reviewed the assumptions and methods of
allocation used by the Adviser in preparing fund-specific profitability
data, and noted the Adviser's representation to them that it believed
that the methods of allocation used in preparing the profitability
information were reasonable and appropriate and that the Adviser had
previously discussed with the directors that there is no generally
accepted allocation methodology for information of this type. The
memorandum from the Adviser described certain changes in allocations and
in the make-up of revenues and expenses items that affected the 2002 and
2003 profitability schedules provided to the directors.
The directors recognized that it is difficult to make comparisons of
profitability from fund management contracts because comparative
information is not generally publicly available and is affected by
numerous factors, including the structure of the particular adviser, the
types of funds it manages, its business mix, numerous assumptions
regarding allocations and the adviser's capital structure and cost of
capital. In considering profitability information, the directors
considered the effect of fall-out benefits on the Adviser's expenses.
The directors focused on the profitability of the Adviser's relationship
with the Fund before taxes and distribution expenses. The directors
recognized that the Adviser should generally be entitled to earn a
reasonable level of profits for the services it provides to the Fund
and, based on their review, concluded that they were satisfied that the
Adviser's level of profitability from its relationship with the Fund was
not excessive.
Fall-Out Benefits
The directors considered that the Adviser benefits from soft dollar
arrangements whereby it receives brokerage and research services from
many of the brokers and dealers that execute purchases and sales of
securities on behalf of its clients, including the Fund. While the Fund
does not normally engage in brokerage transactions, the Adviser may
benefit from soft dollar arrangements when the Fund purchases securities
in fixed price underwritings. They noted that the Adviser makes
presentations to the directors regarding its trading practices and
brokerage allocation policies, including its policies with respect to
soft dollar arrangements from time to time and had made a special
presentation to the directors earlier in 2004 on this subject. The
directors noted that the Adviser has represented to them that all of its
soft dollar arrangements are consistent with applicable legal
requirements including the achievement of best execution. At the special
presentation, the directors received and reviewed information concerning
the Adviser's soft dollar arrangements, which included a description of
the Adviser's policies and procedures with respect to allocating
portfolio transactions for brokerage and research services, data on the
dollar amount of commissions allocated for third-party research and
brokerage services and for proprietary research and brokerage services,
and a list of firms providing third-party research and brokerage to the
Adviser.
- --------------------------------------------------------------------------------
84 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund II, Inc.
Information Regarding the Review and Approval of Each Fund's Management
Agreement (continued)
The directors also noted that shares of the Fund are distributed
exclusively through a subsidiary of the Adviser, and that such
subsidiary receives fees from its clients in connection with its
services.
The directors recognized that the Adviser's profitability would be
somewhat lower if it did not receive research for soft dollars or, if
the Adviser's subsidiary did not receive the other benefits described
above. The directors believe that the Adviser derives reputational and
other benefits from their association with the Fund.
Investment Results
In addition to the information reviewed by the directors in connection
with the meeting, the directors receive detailed comparative performance
information for the Fund at each regular Board meeting during the year.
At the meeting, the directors reviewed information showing performance
of the Fund compared to the funds in the Lipper Intermediate Investment
Grade Debt Average as of October 31, 2004 over the year to date ("YTD"),
1-year and since-inception periods (May 2002 inception) and compared to
the Lehman Aggregate Bond Index. The directors noted that the Fund's
performance was slightly below the Lipper median for the YTD period but
above the Lipper medians for the 1-year and since-inception periods.
Based on their review, the directors concluded that the Fund's relative
investment performance over time was satisfactory.
Advisory Fees and Other Expenses
The directors considered the advisory fee rate paid by the Fund to the
Adviser and information prepared by Lipper concerning fee rates paid by
other funds in the same Lipper category as the Fund. The directors
recognized that it is difficult to make comparisons of advisory fees
because there are variations in the services that are included in the
fees paid by other funds.
The directors also considered the total expense ratio of the Fund in
comparison to the fees and expenses of funds within the relevant Lipper
category. The expense ratio of the Fund was based on the Fund's latest
fiscal year expense ratio. The expense ratio of the Fund reflected fee
waivers and/or expense reimbursements as a result of an applicable
expense limitation undertaking by the Adviser. The directors recognized
that the expense ratio information for the Fund potentially reflected on
the Adviser's provision of services, as the Adviser is responsible for
coordinating services provided to the Fund by others. The directors
noted that the expense ratios of some funds in the Fund's Lipper
category also were lowered by waivers or reimbursements by those funds'
investment advisers, which in some cases were voluntary and perhaps
temporary.
The information reviewed by the directors showed that the Fund's at
current size contractual effective fee rate of 50 basis points was below
both the Lipper average and the Lipper median and that to date the
Adviser had not requested reimbursement of administrative expenses
pursuant to the Advisory Agreement. The directors also noted that the
Fund's expense ratio, which benefits from a cap implemented by the
Adviser at a rate that is lower than the advisory fee rate, was
significantly lower than the Lipper median. The directors concluded that
the Fund's expense ratio was highly satisfactory.
Economies of Scale
The directors noted that the advisory fee schedule for the Fund contains
breakpoints so that, if assets were to increase over the breakpoint
levels, the fee rates would be reduced on the incremental assets. The
directors recognized that there is no direct relationship between the
economies of scale realized by funds and those realized by the Adviser
as assets increase, largely because economies of scale are realized (if
at all) by the Adviser across a variety of products and services, and
not only in respect of a single fund. The directors do not believe there
is a uniform methodology for establishing breakpoints that give effect
to fund-specific services provided by the Adviser and to the economies
of scale that the Adviser may realize in its overall mutual fund
business or those components of it which directly or indirectly affect
the Fund's operations. The directors observed that in the mutual fund
industry as a whole, as well as among funds similar to the Fund, there
is no uniformity or pattern in the fees and asset levels at which
breakpoints (if any) apply. Depending on the age and size of a
particular fund and its adviser's cost structure, different conclusions
can be drawn as to whether there are economies of scale to be realized
at any particular level of assets, notwithstanding the intuitive
conclusion that such economies exist, or will be realized at some level
of total assets. Moreover, because different advisers have different
cost structures and service models, it is difficult to draw meaningful
conclusions from the comparison of a fund's advisory fee breakpoints
with those of comparable funds. The directors noted that the Fund's net
assets are well below the initial breakpoint in the advisory agreements
of AllianceBernstein Funds that have breakpoints. The directors agreed
to monitor the asset level of the Fund and stated that they would expect
to seek to implement additional breakpoints if the Fund reaches a size
such that the directors believe that meaningful economies of scale are
likely being realized by the Adviser.
- --------------------------------------------------------------------------------
2005 Semiannual Report 85
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 of the Americas, New York, NY 10105
(212) 756-4097
SCBMFSEMIANN0305
Sanford C. Bernstein Fund, Inc.
Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
MARCH 31, 2005
- --------------------------------------------------------------------------------
Schedule of Investments
To the Semiannual Report
For the Taxable Bond
Portfolios
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
This page intentionally left blank.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Intermediate Duration Portfolio
March 31, 2005 (Unaudited)
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 7.07%
- --------------------------------------------------------------------------------
$144,125,000 3.75%, 03/31/2007 (a) $ 144,012,439
8,950,000 3.50%, 02/15/2010 (a) 8,686,745
19,325,000 4.25%, 11/15/2014 (a) 18,925,668
48,350,000 4.00%, 02/15/2015 (a) 46,453,761
----------------
Total U.S. Treasury Notes (Cost $218,678,772) 218,078,613
----------------
================================================================================
U.S. TREASURY BONDS: 3.46%
- --------------------------------------------------------------------------------
98,005,000 5.375%, 02/15/2031 (a) 106,813,983
----------------
Total U.S. Treasury Bonds (Cost $107,822,302) 106,813,983
----------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 0.47%
- --------------------------------------------------------------------------------
2,399,642 Countrywide Home Loans, 2,387,931
Series 2003-49 Class A1,
1.642%, 12/19/2033 (a)(b)
2,027,282 Deutsche Mortgage Securities Inc., 2,027,606
Series 2004-4 Class 1A,
3.06%, 04/25/2034 (a)(b)
10,227,086 Washington Mutual, Series 10,227,086
2005-AR2 Class 2A22,
2.87%, 01/25/2045 (a)(b)
----------------
Total Collateralized Mortgage Obligations
(Cost $14,651,698) 14,642,623
----------------
================================================================================
MORTGAGE PASS-THROUGHS: 39.40%
- --------------------------------------------------------------------------------
9,799,214 Federal National Mortgage 10,122,923
Association Pool,
6.00%, 11/01/2016-02/01/2017 (a)
185,145,000 Federal National Mortgage 180,979,237
Association Pool TBA,
4.50%, 04/25/2020 (c)
234,832,000 Federal National Mortgage 236,927,019
Association Pool TBA,
5.50%, 04/25/2020-04/25/2035 (c)
8 Federal Home Loan Mortgage 9
Corp. Pool, 8.50%, 05/01/2025 (a)
114,823,806 Federal National Mortgage 119,322,328
Association Pool,
6.50%, 01/01/2026-12/01/2034 (a)
3,125 Government National Mortgage 3,406
Association Pool,
8.50%, 11/15/2026 (a)
4,991 Government National Mortgage 5,288
Association Pool,
7.00%, 10/15/2027 (a)
50,840,761 Federal National Mortgage 49,849,381
Association Pool,
5.00%, 02/01/2034 (a)
55,175,000 Government National Mortgage 54,399,129
Association Pool TBA,
5.00%, 04/15/2035 (c)
34,960,000 Federal Home Loan Mortgage 35,768,450
Corp. Pool TBA,
6.00%, 04/15/2035 (c)
24,305,000 Government National Mortgage 24,958,197
Association Pool TBA,
6.00%, 04/15/2035 (c)
222,530,000 Federal National Mortgage 227,397,844
Association Pool TBA,
6.00%, 04/25/2035 (c)
62,200,000 Federal National Mortgage 64,532,500
Association Pool TBA,
6.50%, 04/25/2035 (c)
217,025,000 Federal National Mortgage 211,531,663
Association Pool TBA,
5.00%, 05/25/2035 (c)
----------------
Total Mortgage Pass-Throughs
(Cost $1,219,731,752) 1,215,797,374
----------------
================================================================================
AEROSPACE/DEFENSE: 0.06%
- --------------------------------------------------------------------------------
1,865,000 Boeing Capital Corp., Senior Note, 1,879,176
4.75%, 08/25/2008 (a)
----------------
Total Aerospace/Defense (Cost $1,862,802) 1,879,176
----------------
================================================================================
AUTOMOTIVE: 0.57%
- --------------------------------------------------------------------------------
980,000 Ford Motor Credit Co., 923,117
5.70%, 01/15/2010 (a)
4,145,000 General Motors Acceptance Corp., 3,981,256
7.75%, 01/19/2010 (a)
244,000 TRW Automotive, Senior 273,280
Subordinated Note,
11.00%, 02/15/2013,
Callable 02/15/2008 @ 105.50 (a)
2,005,000 General Motors Acceptance Corp., 1,731,927
6.75%, 12/01/2014 (a)
2,805,000 Ford Motor Co., 2,307,457
6.375%, 02/01/2029 (a)
2,765,000 Ford Motor Co., 2,501,178
7.45%, 07/16/2031 (a)
6,890,000 General Motors Corp., 5,895,993
8.375%, 07/15/2033 (a)
----------------
Total Automotive (Cost $19,725,394) 17,614,208
----------------
================================================================================
BANKING: 2.44%
- --------------------------------------------------------------------------------
16,075,000 Mizuho Financial Group Ltd. 17,364,762
(Cayman),
8.375%, 04/27/2009 (a)
4,770,000 Suntrust Bank, 4,772,910
3.04%, 06/02/2009 (a)(b)
4,435,000 Wells Fargo & Co., Senior Note, 4,336,423
4.20%, 01/15/2010 (a)
Schedule of Investments--Intermediate Duration Portfolio 1
================================================================================
Principal Amount Description Market Value
================================================================================
$ 4,100,000 Huntington National Bank, $ 4,018,738
Senior Note,
4.375%, 01/15/2010 (a)
8,595,000 JP Morgan Chase & Co., 9,409,978
6.75%, 02/01/2011 (a)
1,210,000 UFJ Bank Ltd., Subordinated Note, 1,344,810
7.40%, 06/15/2011 (a)
2,884,000 Capital One Bank, Subordinated Note, 3,096,883
6.50%, 06/13/2013 (a)
2,366,000 UFJ Finance Aruba AEC, 2,547,259
6.75%, 07/15/2013 (a)
1,290,000 Bank of America Corp., Senior Note, 1,310,606
5.375%, 06/15/2014 (a)
4,365,000 The Chuo Mitsui Trust & 4,173,678
Banking Co., Ltd.,
5.506%, 04/15/2049,
Callable 04/15/2015 @ 100.00
(a)(d)
7,490,000 RBS Capital Trust III, 7,598,193
5.512%, 09/29/2049,
Callable 09/30/2014 @ 100.00
(a)(b)
6,460,000 Barclays Bank plc, 7,632,942
8.55%, 09/29/2049,
Callable 06/15/2011 @ 100.00
(a)(b)(d)
8,005,000 RBS Capital Trust I, 7,730,204
4.709%, 12/29/2049,
Callable 07/01/2013 @ 100.00
(a)(b)
----------------
Total Banking (Cost $74,623,706) 75,337,386
----------------
================================================================================
BROADCASTING/MEDIA: 0.81%
- --------------------------------------------------------------------------------
3,485,000 WPP Finance Corp. (United 3,603,410
Kingdom),
5.875%, 06/15/2014 (a)
11,760,000 TimeWarner Entertainment Co., 14,409,234
Senior Debenture,
8.375%, 03/15/2023 (a)
6,765,000 News America Holdings, 7,049,164
6.55%, 03/15/2033 (a)
----------------
Total Broadcasting/Media (Cost $24,644,734) 25,061,808
----------------
================================================================================
BUILDING/REAL ESTATE: 0.15%
- --------------------------------------------------------------------------------
2,965,000 iStar Financial, Inc., Senior Note, 2,868,362
5.15%, 03/01/2012 (a)
1,530,000 William Lyon Homes, Inc., 1,683,000
10.75%, 04/01/2013,
Callable 04/01/2008 @ 105.38 (a)
----------------
Total Building/Real Estate (Cost $4,692,821) 4,551,362
----------------
================================================================================
CABLE: 0.48%
- --------------------------------------------------------------------------------
2,115,000 British Sky Broadcasting Group plc, 2,268,968
6.875%, 02/23/2009 (a)
710,000 Insight Midwest LP, Senior Note, 741,950
9.75%, 10/01/2009,
Callable 05/11/2005 @ 104.88 (a)
2,730,000 Charter Communications 2,716,350
Operating LLC, Senior Note,
8.00%, 04/30/2012 (a)(d)
8,135,000 Comcast Corp., 8,046,694
5.30%, 01/15/2014 (a)
897,000 PanAmSat Corp., 946,335
9.00%, 08/15/2014,
Callable 08/15/2009 @ 104.50 (a)
----------------
Total Cable (Cost $15,050,006) 14,720,297
----------------
================================================================================
CHEMICALS: 0.12%
- --------------------------------------------------------------------------------
3,600,000 Union Carbide Corp., Debenture, 3,601,800
7.75%, 10/01/2096 (a)
----------------
Total Chemicals (Cost $3,519,001) 3,601,800
----------------
================================================================================
COMMUNICATIONS: 1.85%
- --------------------------------------------------------------------------------
5,595,000 Telus Corp., 5,955,458
7.50%, 06/01/2007 (a)
11,555,000 Telecom Italia Capital Corp., 11,046,800
4.00%, 01/15/2010 (a)(d)
20,505,000 Sprint Capital Corp., 23,964,152
8.375%, 03/15/2012 (a)
15,580,000 SBC Communications, Inc., 15,185,530
5.10%, 09/15/2014 (a)
825,000 Verizon Global Funding Corp., 997,093
7.75%, 12/01/2030 (a)
----------------
Total Communications (Cost $58,500,436) 57,149,033
----------------
================================================================================
COMMUNICATIONS--FIXED: 0.42%
- --------------------------------------------------------------------------------
10,250,000 British Telecommunications plc, 11,908,440
8.125%, 12/15/2010 (a)
1,020,000 Cincinnati Bell, Inc., Senior 1,004,700
Subordinated Note,
8.375%, 01/15/2014,
Callable 01/15/2009 @ 104.19 (a)
----------------
Total Communications--Fixed (Cost $13,266,120) 12,913,140
----------------
================================================================================
COMMUNICATIONS--MOBILE: 0.56%
- --------------------------------------------------------------------------------
1,385,000 Rural Cellular Corp., 1,412,700
8.25%, 03/15/2012,
Callable 03/15/08 @ 104.12 (a)
3,800,000 Verizon Global Funding Corp., 4,310,876
7.375%, 09/01/2012 (a)
8,790,000 AT&T Wireless Services Inc., 11,596,743
Senior Note,
8.75%, 03/01/2031 (a)
----------------
Total Communications--Mobile
(Cost $16,179,381) 17,320,319
----------------
2 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.27%
- --------------------------------------------------------------------------------
$ 7,530,000 Hutchison Whampoa $ 8,289,596
International Ltd.,
7.45%, 11/24/2033 (a)(d)
----------------
Total Conglomerate/Miscellaneous
(Cost $7,676,032) 8,289,596
----------------
================================================================================
CONSUMER MANUFACTURING: 0.23%
- --------------------------------------------------------------------------------
2,800,000 Fortune Brands Inc., 2,748,864
2.875%, 12/01/2006 (a)
2,160,000 Broder Brothers, Senior Note, 2,365,200
11.25%, 10/15/2010,
Callable 10/15/2007 @ 105.62 (a)
1,990,000 Visant Corp., 1,970,100
7.625%, 10/01/2012,
Callable 10/01/2008 @ 103.81 (a)
----------------
Total Consumer Manufacturing (Cost $6,971,184) 7,084,164
----------------
================================================================================
ENERGY: 0.51%
- --------------------------------------------------------------------------------
1,040,000 Hilcorp Energy I LP, Senior Note, 1,154,400
10.50%, 09/01/2010,
Callable 09/01/2007 @ 105.25
(a)(d)
4,930,000 Conoco Inc., Senior Note, 5,876,688
6.95%, 04/15/2029 (a)
7,255,000 Valero Energy Corp., 8,746,099
7.50%, 04/15/2032 (a)
----------------
Total Energy (Cost $14,183,829) 15,777,187
----------------
================================================================================
ENTERTAINMENT/LEISURE: 0.04%
- --------------------------------------------------------------------------------
1,095,000 NCL Corp., Senior Note, 1,131,956
10.625%, 07/15/2014,
Callable 07/15/2009 @ 105.31
(a)(d)
----------------
Total Entertainment/Leisure (Cost $1,095,000) 1,131,956
----------------
================================================================================
FINANCIAL: 5.57%
- --------------------------------------------------------------------------------
2,945,000 CIT Group Inc., Medium-Term Note, 2,949,320
3.04%, 05/18/2007 (a)(b)
22,130,000 General Electric Capital 22,152,772
Corp., Medium-Term Note,
3.11%, 06/22/2007 (a)(b)
8,840,000 Household Finance Corp., 9,369,719
6.50%, 11/15/2008 (a)
9,990,000 American General Finance 9,965,215
Corp., Medium-Term Note,
4.625%, 05/15/2009 (a)
3,435,000 Citigroup Inc., 3,440,369
3.10%, 06/09/2009 (a)(b)
58,100,000 Dow Jones, Cdx High Yield Series 3-3, 56,429,625
8.00%, 12/29/2009 (a)(d)
5,700,000 Berkshire Hathaway Finance Corp., 5,535,504
4.20%, 12/15/2010 (a)
5,150,000 Ford Motor Credit Co., 5,116,705
7.375%, 02/01/2011 (a)
6,600,000 Countrywide Home Loans, Inc., 6,248,695
Medium-Term Note, Series L,
4.00%, 03/22/2011 (a)
6,275,000 General Electric Capital Corp., 6,126,822
4.375%, 11/21/2011 (a)
1,250,000 CIT Group, Inc., Senior Note, 1,445,833
7.75%, 04/02/2012 (a)
2,855,000 Household Finance Corp., 3,182,546
7.00%, 05/15/2012 (a)
4,790,000 Goldman Sachs Group Inc., 4,607,329
4.75%, 07/15/2013 (a)
2,775,000 Ford Motor Credit Co., 2,688,184
7.00%, 10/01/2013 (a)
18,963,000 Citigroup, Inc., Subordinated Note, 18,617,418
5.00%, 09/15/2014 (a)
2,695,000 SLM Corp., Medium-Term Note, 2,661,353
5.05%, 11/14/2014 (a)
3,450,000 Merrill Lynch & Co., Inc., 3,343,395
5.00%, 01/15/2015 (a)
3,310,000 CBA Capital Trust I, 3,313,442
5.805%, 06/15/2015 (a)(d)
3,640,000 Royal & Sun Alliance Insurance 4,635,234
Group plc,
8.95%, 10/15/2029 (a)
----------------
Total Financial (Cost $171,046,063) 171,829,480
----------------
================================================================================
FOOD/BEVERAGE: 0.22%
- --------------------------------------------------------------------------------
6,900,000 Kraft Foods, Inc., 6,956,359
5.25%, 10/01/2013 (a)
----------------
Total Food/Beverage (Cost $7,077,326) 6,956,359
----------------
================================================================================
GAMING: 0.04%
- --------------------------------------------------------------------------------
1,110,000 Riviera Holdings Corp., 1,226,550
11.00%, 06/15/2010,
Callable 06/15/2006 @ 105.50 (a)
----------------
Total Gaming (Cost $1,162,865) 1,226,550
----------------
================================================================================
HEALTHCARE: 0.22%
- --------------------------------------------------------------------------------
1,796,000 WellPoint, Inc., 1,762,639
3.75%, 12/14/2007 (a)(d)
830,000 Universal Hospital Services Inc., 850,750
Senior Note,
10.125%, 11/01/2011,
Callable 11/01/2007 @ 105.06 (a)
440,000 Concentra Operating Corp., 466,400
9.125%, 06/01/2012,
Callable 06/01/2008 @ 104.56 (a)
3,550,000 Humana Inc., Senior Note, 3,689,363
6.30%, 08/01/2018 (a)
----------------
Total Healthcare (Cost $6,617,310) 6,769,152
----------------
Schedule of Investments--Intermediate Duration Portfolio 3
================================================================================
Principal Amount Description Market Value
================================================================================
INDUSTRIAL: 0.08%
- --------------------------------------------------------------------------------
$ 985,000 FastenTech Inc., Senior Note, $ 1,058,875
11.50%, 05/01/2011,
Callable 05/01/2007 @ 105.75
(a)(b)(d)
1,278,000 H&E Equipment Services LLC, 1,437,750
11.125%, 06/15/2012,
Callable 06/15/2007 @ 105.56 (a)
----------------
Total Industrial (Cost $2,320,117) 2,496,625
----------------
================================================================================
INSURANCE: 1.04%
- --------------------------------------------------------------------------------
4,125,000 MetLife Inc., 4,075,529
5.00%, 11/24/2013 (a)
3,825,000 Assurant Inc., 3,883,633
5.625%, 02/15/2014 (a)
4,025,000 Liberty Mutual Group, 3,955,959
5.75%, 03/15/2014 (a)(d)
1,125,000 Fairfax Financial Holdings Ltd., 1,001,250
7.375%, 04/15/2018 (a)
10,015,000 Mangrove Bay Pass-Through Trust, 9,931,876
6.102%, 07/15/2033,
Callable 07/15/2013 @ 100
(a)(b)(d)
8,625,000 Zurich Capital Trust, 9,406,434
8.376%, 06/01/2037,
Callable 06/01/2007 @ 104.19
(a)(d)
----------------
Total Insurance (Cost $32,891,902) 32,254,681
----------------
================================================================================
METALS/MINING: 0.02%
- --------------------------------------------------------------------------------
605,000 AK Steel Corp., 592,900
7.875%, 02/15/2009,
Callable 05/11/2005 @ 102.65 (a)
----------------
Total Metals/Mining (Cost $540,875) 592,900
----------------
================================================================================
PAPER/PACKAGING: 0.88%
- --------------------------------------------------------------------------------
4,060,000 Weyerhaeuser Co., 4,233,066
5.95%, 11/01/2008 (a)
2,575,000 Sealed Air Corp., 2,604,463
5.625%, 07/15/2013 (a)(d)
2,470,000 Packaging Corp. of America, 2,445,673
5.75%, 08/01/2013 (a)
5,165,000 International Paper Co., 5,149,123
5.30%, 04/01/2015 (a)
10,895,000 Weyerhaeuser Co., 12,737,399
7.375%, 03/15/2032 (a)
----------------
Total Paper/Packaging (Cost $26,663,085) 27,169,724
----------------
================================================================================
PETROLEUM PRODUCTS: 0.51%
- --------------------------------------------------------------------------------
2,725,000 Kerr-McGee Corp., 2,914,216
6.875%, 09/15/2011 (a)
1,840,000 Tengizchevroil Finance Co., 1,821,600
6.124%, 11/15/2014 (a)(d)
4,590,000 Amerada Hess Corp., 5,486,216
7.875%, 10/01/2029 (a)
4,885,000 Amerada Hess Corp., 5,432,208
7.125%, 03/15/2033 (a)
----------------
Total Petroleum Products (Cost $14,730,854) 15,654,240
----------------
================================================================================
PUBLIC UTILITIES--ELECTRIC & GAS: 1.39%
- --------------------------------------------------------------------------------
2,805,000 Consumers Energy Co., 2,775,093
Series C, 4.25%, 04/15/2008 (a)
350,000 Southern Natural Gas Co., 379,505
8.875%, 03/15/2010,
Callable 03/15/2007 @ 104.44 (a)
995,000 Calpine Corp., 781,075
8.50%, 07/15/2010,
Callable 07/15/2007 @ 104.25 (a)(d)
3,005,000 Nisource Finance Corp., 3,426,836
7.875%, 11/15/2010 (a)
5,770,000 Carolina Power & Light Co., 6,256,907
6.50%, 07/15/2012 (a)
2,400,000 MidAmerican Energy Holdings 2,492,481
Co., Senior Note,
5.875%, 10/01/2012 (a)
2,540,000 Public Service Co. of Colorado, 3,000,891
7.875%, 10/01/2012 (a)
1,960,000 Union Electric Co., 1,911,788
5.10%, 10/01/2019 (a)
445,000 Southern Natural Gas Co., 454,519
7.35%, 02/15/2031 (a)
13,220,000 FirstEnergy Corp., Series C, 14,974,320
7.375%, 11/15/2031 (a)
6,200,000 Pacific Gas & Electric Co., 6,366,253
6.05%, 03/01/2034 (a)
----------------
Total Public Utilities--Electric & Gas
(Cost $41,478,247) 42,819,668
----------------
================================================================================
PUBLIC UTILITIES--TELEPHONE: 0.23%
- --------------------------------------------------------------------------------
7,010,000 Telecom Italia Capital, 7,148,139
6.375%, 11/15/2033 (a)
----------------
Total Public Utilities--Telephone
(Cost $6,964,636) 7,148,139
----------------
================================================================================
PUBLISHING: 0.02%
- --------------------------------------------------------------------------------
555,000 American Media Operations Inc., 571,650
8.875%, 01/15/2011,
Callable 01/15/2007 @ 104.44 (a)
----------------
Total Publishing (Cost $544,918) 571,650
----------------
================================================================================
RETAIL: 0.06%
- --------------------------------------------------------------------------------
1,972,000 Petro Stopping Centers LP, 2,031,160
9.00%, 02/15/2012,
Callable 02/15/2008 @ 104.50 (a)
----------------
Total Retail (Cost $2,060,851) 2,031,160
----------------
4 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
SERVICE: 0.38%
- --------------------------------------------------------------------------------
$ 9,390,000 Pershing Road Development $ 9,390,000
Company LLC,
3.31%, 09/01/2026,
Callable 06/01/2005 @ 102.50
(a)(b)(d)
2,440,000 Republic Services, Inc., 2,450,370
6.086%, 03/15/2035 (a)(d)
----------------
Total Service (Cost $11,866,343) 11,840,370
----------------
================================================================================
SUPERMARKET/DRUG: 0.32%
- --------------------------------------------------------------------------------
4,390,000 Safeway, Inc., 4,652,351
6.50%, 03/01/2011 (a)
4,610,000 Albertson's Inc., Debenture, 5,104,680
7.45%, 08/01/2029 (a)
----------------
Total Supermarket/Drug (Cost $9,762,459) 9,757,031
----------------
================================================================================
TECHNOLOGY: 0.11%
- --------------------------------------------------------------------------------
1,720,000 International Business Machines 1,711,297
Corp., Medium-Term Note,
4.375%, 06/01/2009 (a)
650,000 Telcordia Technologies, Inc., 645,125
Senior Subordinated Note,
10.00%, 03/15/2013,
Callable 03/15/2008 @ 105.00
(a)(d)
1,200,000 Amkor Technology Inc., Senior Note, 1,008,000
7.75%, 05/15/2013,
Callable 01/15/2008 @ 103.88 (a)
----------------
Total Technology (Cost $3,532,158) 3,364,422
----------------
================================================================================
UTILITIES: 0.51%
- --------------------------------------------------------------------------------
5,805,000 Txu Australia Holdings Pty Ltd., 6,172,747
6.15%, 11/15/2013 (a)(d)
3,125,000 Duke Capital LLC, Senior Note, 3,117,025
5.50%, 03/01/2014 (a)
5,475,000 Duke Capital, LLC., Senior Note, 6,495,359
8.00%, 10/01/2019 (a)
----------------
Total Utilities (Cost $15,948,006) 15,785,131
----------------
================================================================================
ASSET-BACKED SECURITIES: 7.33%
- --------------------------------------------------------------------------------
9,690,000 Bank One Issuance Trust, 9,699,109
Series 2004-A4 Class A4,
2.85%, 02/16/2010 (a)(b)
11,130,000 Discover Card Master Trust I, 11,137,012
Series 2004-1 Class A,
2.84%, 04/16/2010 (a)(b)
19,775,000 Superior Wholesale Inventory 19,805,849
Financing Trust VIII, Series
2003-A8 Class A,
2.94%, 09/15/2010 (a)(b)
30,140,000 MBNA Credit Card Master Note 30,333,197
Trust, Series 2001-A5 Class A5,
3.02%, 03/15/2011 (a)
15,190,000 Citibank Omni Master Trust, 15,211,418
Series 1996-5 Class A,
3.04%, 12/16/2011 (a)(b)(d)
9,305,000 American Express Credit 9,296,253
Account Master Trust,
Series 2005-1 Class A,
2.88%, 10/15/2012 (a)(b)
2,390,615 RAAC, Series 2004-SP1 Class AI1, 2,391,356
3.03%, 06/25/2013 (a)(b)
11,151,332 SLM Student Loan Trust, 11,165,272
Series 2003-C Class A1,
3.11%, 09/15/2016 (a)(b)
16,460,000 Citibank Credit Card Issuance 16,223,470
Trust, Series 2004-A8 Class A8,
4.90%, 12/12/2016 (a)
3,610,101 Residential Funding Mortgage 3,607,285
Securities Inc.,
Series 2004-HS2 Class AI1,
3.00%, 12/25/2018 (a)(b)
3,647,869 Residential Asset Securities Corp., 3,648,453
Series 2004-KS7 Class AI1,
3.00%, 10/25/2021 (a)(b)
7,626,037 Bear Stearns Asset-Backed 7,621,309
Securities, Inc.,
Series 2005-SD1 Class 1A1,
3.00%, 04/25/2022 (a)(b)
2,579,050 Residential Asset Mortgage 2,577,838
Products Inc., Series 2004-RS6
Class AI1,
3.00%, 08/25/2022 (a)(b)
1,579,964 Residential Asset Mortgage 1,579,711
Products Inc., Series 2004-RS2
Class AI1,
2.98%, 01/25/2024 (a)(b)
4,439,402 Residential Asset Securities Corp., 4,447,748
Series 2002-KS7 Class A2,
3.22%, 11/25/2032 (a)(b)
5,561,808 Residential Asset Securities Corp., 5,572,376
Series 2003-KS3 Class A2,
3.15%, 05/25/2033 (a)(b)
3,080,488 Centex Home Equity, 3,082,891
Series 2003-C Class AV,
3.15%, 09/25/2033 (a)(b)
8,371,156 Structured Asset Investment 8,372,495
Loan Trust, Series 2004-5
Class A2,
3.03%, 05/25/2034 (a)(b)
7,214,670 Morgan Stanley ABS Capital I, 7,218,061
Series 2004-HE4 Class A3,
3.05%, 05/25/2034 (a)(b)
858,512 Ameriquest Mortgage Securities 858,512
Inc., Series 2004-R4 Class A2,
2.96%, 06/25/2034 (a)(b)
Schedule of Investments--Intermediate Duration Portfolio 5
================================================================================
Principal Amount Description Market Value
================================================================================
$ 4,255,548 Equity One ABS Inc., $ 4,256,867
Series 2004-3 Class AF1, 3.01%,
07/25/2034 (a)(b)
11,595,438 Aegis Asset-Backed Securities 11,600,887
Trust, Series 2004-3 Class A2A,
3.05%, 09/25/2034 (a)(b)
10,099,356 Morgan Stanley ABS Capital I, 10,096,225
Series 2005-WMC1 Class A2A,
2.95%, 01/25/2035 (a)(b)
11,952,959 Residential Asset Mortgage 11,936,106
Products, Inc.,
Series 2005-RS1 Class AII1,
2.96%, 01/25/2035 (a)(b)
12,421,390 Structured Asset Investment Loan 12,407,851
Trust, Series 2005-1 Class A3,
2.97%, 02/25/2035 (a)(b)(d)
1,962,818 Merrill Lynch Mortgage 1,962,818
Investors, Inc.,
Series 2004-SL1 Class A,
3.11%, 04/25/2035 (a)(b)
----------------
Total Asset-Backed Securities
(Cost $226,449,362) 226,110,369
----------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 8.62%
- --------------------------------------------------------------------------------
8,440,000 LB-UBS Commercial Mortgage 8,210,432
Trust, Series 2004-C7 Class A2,
3.992%, 10/15/2029 (a)
9,380,000 LB-UBS Commercial Mortgage 9,194,933
Trust, Series 2004-C8 Class A2,
4.201%, 12/15/2029 (a)
8,940,000 LB-UBS Commercial Mortgage 8,705,057
Trust, Series 2005-C1 Class A4,
4.742%, 02/15/2030 (a)
84 Commercial Mortgage Asset 90
Trust, Series 1999-C1 Class A3,
6.64%, 01/17/2032 (a)
9,240,000 Greenwich Capital Commercial 8,709,347
Funding Corp.,
Series 2003-C1 Class A4,
4.111%, 07/05/2035 (a)
300,000 Greenwich Capital Commercial 296,265
Funding Corp.,
Series 2003-C2 Class A3,
4.533%, 01/05/2036 (a)
7,790,000 CS First Boston Mortgage 7,623,761
Securities Corp.,
Series 2003-CK2 Class A2,
3.861%, 03/15/2036 (a)
10,070,000 CS First Boston Mortgage 9,840,907
Securities Corp.,
Series 2004-C5 Class A2,
4.183%, 11/15/2037 (a)
9,775,000 JP Morgan Chase Commercial 9,483,607
Mortgage Securities,
Series 2004-C1 Class A2,
4.302%, 01/15/2038 (a)
10,900,000 CS First Boston Mortgage 10,803,971
Securities Corp.,
Series 2005-C1 Class A4,
5.014%, 02/15/2038 (a)
13,780,000 Banc of America Commercial 14,141,311
Mortgage, Inc.,
Series 2004-3 Class A5,
5.306%, 06/10/2039 (a)
9,640,000 GE Capital Commercial Mortgage 9,691,092
Corp., Series 2004-C3 Class A4,
5.189%, 07/10/2039 (a)
7,390,000 Merrill Lynch Mortgage Trust, 7,210,201
Series 2004-KEY Class A2,
4.166%, 08/12/2039 (a)
8,705,000 Banc of America Commercial 8,439,933
Mortgage, Inc.,
Series 2004-1 Class A2,
4.037%, 11/10/2039 (a)
12,600,000 Banc of America Commercial 12,313,728
Mortgage, Inc.,
Series 2004-1 Class A4,
4.76%, 11/10/2039 (a)
13,195,000 Morgan Stanley Capital I, 12,876,605
Series 2005-T17 Class A5,
4.78%, 12/13/2041 (a)
16,915,000 Morgan Stanley Capital I, 16,969,974
Series 2005-HQ5 Class A4,
5.168%, 01/14/2042 (a)
8,850,000 Banc of America Commercial 8,681,584
Mortgage, Inc.,
Series 2004-4 Class A3,
4.128%, 07/10/2042 (a)
13,285,000 Greenwich Capital Commercial 13,069,119
Funding Corp.,
Series 2005-GG3 Class A2,
4.305%, 08/10/2042 (a)
12,665,000 Greenwich Capital Commercial 12,385,863
Funding Corp.,
Series 2005-GG3 Class A4,
4.799%, 08/10/2042 (a)
16,215,000 Merrill Lynch Mortgage Trust, 16,255,700
Series 2005-MKB2 Class A2,
4.806%, 09/12/2042 (a)
13,405,000 Banc of America Commercial 13,472,414
Mortgage, Inc.,
Series 2005-1 Class A3,
4.877%, 11/10/2042
11,835,000 Banc of America Commercial 11,569,186
Mortgage, Inc.,
Series 2004-6 Class A2,
4.161%, 12/10/2042 (a)
9,275,000 Morgan Stanley Capital I, 8,960,114
Series 2004-T13 Class A2,
3.94%, 09/13/2045 (a)
13,500,000 JP Morgan Chase Commercial 13,456,238
Mortgage Securities,
Series 2005-LDP1 Class A2,
4.625%, 03/15/2046 (a)
6 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 13,750,000 JP Morgan Chase Commercial $ 13,643,988
Mortgage Securities,
Series 2005-LDP1 Class A4,
5.038%, 03/15/2046 (a)
----------------
Total Commercial Mortgage-Backed Securities
(Cost $269,190,189) 266,005,420
----------------
================================================================================
SOVEREIGN DEBT: 3.70%
- --------------------------------------------------------------------------------
6,450,000,000 Japan (Govt of), Series 265, 61,235,300
1.50%, 12/20/2014 (a)
14,390,000 Russian Federation, 14,785,725
5.00%, 03/31/2030 (a)
22,315,000 United Mexican States, 23,653,900
7.50%, 04/08/2033 (a)
13,035,000 Brazil (Republic of), 14,488,403
11.00%, 08/17/2040,
Callable 08/17/2015 @ 100.00 (a)
----------------
Total Sovereign Debt (Cost $115,298,096) 114,163,328
----------------
================================================================================
SHORT-TERM INVESTMENTS: 44.23%
- --------------------------------------------------------------------------------
Commercial Paper: 15.54%
50,000,000 UBS Finance, LLC, 50,000,000
2.83%, 04/01/2005
50,000,000 A.I.G. Funding, Inc., 49,954,666
2.72%, 04/13/2005
50,000,000 Citicorp, 49,954,667
2.72%, 04/13/2005
50,000,000 Fortis Funding, 49,954,583
2.725%, 04/13/2005
50,000,000 Bank of Montreal, 49,954,500
2.73%, 04/13/2005
50,000,000 Morgan Stanley, 49,954,500
2.73%, 04/13/2005
50,000,000 Prudential Funding LLC, 49,954,500
2.73%, 04/13/2005
50,000,000 General Electric Capital Services, 49,954,000
2.76%, 04/13/2005,
50,000,000 Societe Generale North America, 49,953,917
2.765%, 04/13/2005
15,000,000 A.I.G. Funding, Inc., 14,986,150
2.77%, 04/13/2005
15,000,000 Fortis Funding, 14,986,100
2.78%, 04/13/2005
----------------
Total Commercial Paper (Cost $479,607,583) 479,607,583
----------------
U.S. Government Sponsored Agency
Obligations: 15.13%
41,500,000 Federal Home Loan Banks, 41,500,000
0.00%, 04/01/2005
26,570,000 Federal Home Loan Mortgage Corp., 26,547,858
0.00%, 04/13/2005
399,955,000 Federal Home Loan Banks, 398,725,139
0.00%, 05/12/2005
----------------
Total U.S. Government Sponsored Agency
Obligations (Cost $466,772,997) 466,772,997
----------------
U.S. Treasury Bills: 13.56%
134,720,000 2.54%, 04/07/2005 134,668,806
284,175,000 2.62%, 04/14/2005 283,917,427
----------------
Total U.S. Treasury Bills (Cost $418,586,233) 418,586,233
----------------
Total Short-Term Investments
(Cost $1,364,966,813) 1,364,966,813
----------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost
$4,153,987,455) (e) 134.39% $ 4,147,277,237
Cash and Other Assets, Less Liabilities (34.39) (1,061,379,250)
------- ----------------
Net Assets (Equivalent to $13.23 per
share based on 233,215,615 shares
of capital stock outstanding) 100.00% $ 3,085,897,987
======= ================
=========================================================================================================================
CREDIT DEFAULT SWAP CONTRACTS
- -------------------------------------------------------------------------------------------------------------------------
Notional Interest Termination Unrealized
Swap Counterparty & Referenced Obligation Amount Rate Date Depreciation
- -------------------------------------------------------------------------------------------------------------------------
Buy:
JP Morgan Chase
Dow Jones High Volume, 4.00%, 06/20/2010 87,500,000 0.90% 06/20/2010 $ (564,504)
=========================================================================================================================
=========================================================================================================================
FORWARD EXCHANGE CURRENCY CONTRACTS
- -------------------------------------------------------------------------------------------------------------------------
Contract Amount U.S. $ Value on U.S. $ Unrealized
(000) Origination Date Current Value Appreciation
- -------------------------------------------------------------------------------------------------------------------------
Purchase Contract:
Japanese Yen Settling 04/22/2005 2,150,019 $ 20,080,495 $ 20,138,370 $ 57,875
Sale Contract:
Japanese Yen Settling 04/22/2005 8,935,786 85,719,907 83,697,958 2,021,949
-----------
$ 2,079,824
-----------
Schedule of Investments--Intermediate Duration Portfolio 7
================================================================================
(a) Positions, or portion thereof, with an aggregate market value of
$1,731,031,805 have been segregated to collateralize open forward exchange
currency contracts.
(b) Variable rate coupon, rate shown as of March 31, 2005.
(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 qualified institutional
buyers. At March 31, 2005, the aggregate market value of these securities
amounted to $173,489,220 or 5.62% of net assets.
(e) At March 31, 2005, the cost basis of investment securities owned was
substantially identical for both book and tax. Gross unrealized
appreciation of investments was $15,288,515 and gross unrealized
depreciation of investments was $21,998,723, resulting in net unrealized
depreciation of $6,710,208.
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
8 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Short Duration Plus Portfolio
March 31, 2005 (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 21.43%
- --------------------------------------------------------------------------------
$ 93,935,000 3.00%, 12/31/2006 $ 92,742,495
20,330,000 3.50%, 08/15/2009 19,835,249
----------------
Total U.S. Treasury Notes (Cost $113,880,573) 112,577,744
----------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY
OBLIGATIONS: 14.22%
- --------------------------------------------------------------------------------
16,295,000 Federal Home Loan Bank, 16,021,603
2.25%, 05/15/2006
28,685,000 Federal National Mortgage 28,456,237
Association,
3.25%, 06/28/2006
30,470,000 Federal Home Loan Mortgage 30,241,475
Corp.,
3.75%, 08/03/2007
----------------
Total U.S. Government Sponsored Agency
Obligations (Cost $75,568,867) 74,719,315
----------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 14.85%
- --------------------------------------------------------------------------------
3,500,000 Winston Funding Ltd., Series 2003-1 3,510,955
Class A2,
3.59%, 04/23/2009 (a)(b)
4,350,939 Federal Home Loan Mortgage Corp., 4,361,817
Series 2571 Class FB,
3.16%, 02/15/2018 (a)
1,232,302 Residential Asset Mortgage 1,231,723
Products Inc.,
Series 2004-RS6 Class Al1,
3.00%, 08/25/2022 (a)
685,694 Residential Asset Mortgage 685,584
Products Inc.,
Series 2004-RS2 Class Al1,
2.98%, 01/25/2024 (a)
8,628,138 MLCC Mortgage Investors Inc., 8,658,164
Series 2003-F Class A1
3.17%, 10/25/2028 (a)
7,408,663 MLCC Mortgage Investors Inc., 7,411,256
Series 2004-A Class A1,
3.08%, 04/25/2029 (a)
575,389 First Franklin Mortgage Loan 575,930
Asset-Backed Certificates,
Series 2000-FF1 Class A,
3.08%, 09/25/2030 (a)
3,780,958 Structured Asset Securities Corp., 3,807,047
Series 2002-11A Class 1A1,
3.78%, 06/25/2032 (a)
742,924 Countrywide Asset-Backed 744,432
Certificates,
Series 2003-BC1 Class A1,
3.25%, 03/25/2033 (a)
917,389 Federal National Mortgage 915,334
Association, Series 2003-W7
Class A4,
4.06%, 03/25/2033
5,350,000 Long Beach Mortgage Loan Trust, 5,448,353
Series 2003-1 Class M2,
4.90%, 03/25/2033 (a)
1,374,205 Centex Home Equity, 1,375,277
Series 2003-C Class AV,
3.15%, 09/25/2033 (a)
4,525,748 Ace Securities Corp., 4,527,151
Series 2003-OPI Class A2,
3.21%, 12/25/2033 (a)
3,629,492 Credit Suisse First Boston 3,402,431
Mortgage Securities Corp.,
Series 2004-2R Class A1,
5.21%, 12/28/2033 (a)(b)
3,895,690 Chase Mortgage Finance Corp., 3,917,116
Series 2003-S15 Class 1A1,
6.00%, 01/25/2034
29,525 Renaissance Home Equity Loan 29,534
Trust, Series 2003-4 Class A2,
3.05%, 03/25/2034 (a)
361,540 Ameriquest Mortgage Securities Inc., 361,540
Series 2004-R4 Class A2,
2.96%, 06/25/2034 (a)
2,095,039 Equity One ABS Inc., 2,095,688
Series 2004-3 Class AF1,
3.01%, 07/25/2034 (a)
6,700,000 Long Beach Mortgage Loan Trust, 6,720,971
Series 2004-3 Class M2,
3.45%, 07/25/2034 (a)
3,145,486 Master Asset Securitization Trust, 3,131,521
Series 2004-9 Class 3A1,
5.25%, 07/25/2034
2,508,824 Merrill Lynch Mortgage Investors, Inc., 2,510,755
Series 2004-WMC1 Class A2,
3.15%, 10/25/2034 (a)
2,904,948 Morgan Stanley Mortgage Loan 2,936,263
Trust, Series 2004-8AR Class 4A1,
5.461%, 10/25/2034
3,076,268 Bank of America Funding Corp., 3,096,263
Series 2004-B Class 5A1,
5.24%, 11/20/2034
2,884,955 Wells Fargo Mortgage Backed 2,861,962
Securities Trust,
Series 2004-W Class A1,
4.62%, 11/25/2034
3,024,326 Bear Stearns Alt-A Trust, 3,027,350
Series 2004-11 Class 2A3,
5.06%, 11/25/2034
Schedule of Investments--Short Duration Plus Portfolio 9
================================================================================
Principal Amount Description Market Value
================================================================================
676,841 Federal National Mortgage 674,194
Association, Series 2003-W6
Class 1A23,
2.90%, 10/25/2042
----------------
Total Collateralized Mortgage Obligations
(Cost $78,018,611) 78,018,611
----------------
================================================================================
MORTGAGE PASS-THROUGHS: 16.38%
- --------------------------------------------------------------------------------
244,617 Federal Home Loan Mortgage 247,655
Corp. Pool,
9.00%, 03/17/2008
37,368,198 Federal National Mortgage 39,414,389
Association Pool,
7.00%, 03/01/2009-11/01/2034
7,974,526 Federal National Mortgage 8,239,541
Association Pool,
6.00%, 12/01/2013-06/01/2017
617,211 Federal National Mortgage 651,266
Association Pool,
7.50%, 03/01/2015
1,086,098 Federal National Mortgage 1,148,212
Association Pool,
8.00%, 08/01/2016
12,325,000 Federal National Mortgage 12,725,563
Association Pool TBA,
6.00%, 04/25/2020 (c)
2,100,000 Federal National Mortgage 2,207,625
Association Pool TBA,
7.00%, 04/25/2020 (c)
19,375,775 Federal National Mortgage 20,121,932
Association Pool,
6.50%, 03/01/2026-10/01/2034
1,183,573 Government National Mortgage 1,269,664
Association Pool,
7.50%, 03/15/2032
----------------
Total Mortgage Pass-Throughs
(Cost $86,432,830) 86,025,847
----------------
================================================================================
AUTOMOTIVE: 0.63%
- --------------------------------------------------------------------------------
3,370,000 DaimlerChrysler North America, 3,322,618
4.125%, 03/07/2007
----------------
Total Automotive (Cost $3,366,904) 3,322,618
----------------
================================================================================
BANKING: 0.77%
- --------------------------------------------------------------------------------
4,135,000 Washington Mutual, Inc., 4,023,959
4.20%, 01/15/2010
15,000 Wells Fargo & Co., 14,666
4.20%, 01/15/2010
----------------
Total Banking (Cost $4,120,158) 4,038,625
----------------
================================================================================
BROADCASTING/MEDIA: 1.01%
- --------------------------------------------------------------------------------
5,200,000 AOL TimeWarner, Inc., 5,306,262
6.125%, 04/15/2006
----------------
Total Broadcasting/Media (Cost $5,364,934) 5,306,262
----------------
================================================================================
CABLE: 1.41%
- --------------------------------------------------------------------------------
3,230,000 Comcast Cable Communications Inc., 3,479,278
8.375%, 05/01/2007
3,665,000 British Sky Broadcasting Group plc, 3,931,805
6.875%, 02/23/2009
----------------
Total Cable (Cost $7,486,195) 7,411,083
----------------
================================================================================
COMMUNICATIONS: 1.41%
- --------------------------------------------------------------------------------
2,665,000 Sprint Capital Corp., 2,739,561
6.00%, 01/15/2007
4,785,000 SBC Communications, Inc., 4,654,001
4.125%, 09/15/2009
----------------
Total Communications (Cost $7,556,005) 7,393,562
----------------
================================================================================
ENERGY: 0.48%
- --------------------------------------------------------------------------------
2,645,000 Valero Energy Corp., 2,519,664
3.50%, 04/01/2009
----------------
Total Energy (Cost $2,634,054) 2,519,664
----------------
================================================================================
FINANCIAL: 4.22%
- --------------------------------------------------------------------------------
5,475,000 General Motors Acceptance 5,513,122
Corp., Medium-Term Note,
6.75%, 01/15/2006
5,230,000 CIT Group Inc., 5,530,647
7.375%, 04/02/2007
5,640,000 Goldman Sachs Group Inc., 5,592,466
4.125%, 01/15/2008
5,765,000 Ford Motor Credit Co., 5,524,623
5.625%, 10/01/2008
----------------
Total Financial (Cost $22,716,651) 22,160,858
----------------
================================================================================
FOOD/BEVERAGE: 1.26%
- --------------------------------------------------------------------------------
6,775,000 Kraft Foods, Inc., 6,596,045
4.125%, 11/12/2009
----------------
Total Food/Beverage (Cost $6,735,648) 6,596,045
----------------
================================================================================
HEALTHCARE: 1.27%
- --------------------------------------------------------------------------------
3,470,000 Anthem Inc., 3,407,255
3.50%, 09/01/2007
3,310,000 Wellpoint, Inc., 3,248,517
3.75%, 12/14/2007 (b)
----------------
Total Healthcare (Cost $6,773,460) 6,655,772
----------------
10 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
PAPER/PACKAGING: 0.23%
- --------------------------------------------------------------------------------
$ 1,190,000 Weyerhaeuser Co., $ 1,231,285
6.125%, 03/15/2007
----------------
Total Paper/Packaging (Cost $1,258,249) 1,231,285
----------------
================================================================================
PUBLIC UTILITIES--ELECTRIC & GAS: 1.20%
- --------------------------------------------------------------------------------
4,500,000 CenterPoint Energy Resources 4,560,318
Corp., Series B,
8.125%, 07/15/2005
1,800,000 Pacific Gas & Electric Co., 1,732,153
3.60%, 03/01/2009
----------------
Total Public Utilities--Electric & Gas
(Cost $6,357,359) 6,292,471
----------------
================================================================================
PUBLIC UTILITIES--TELEPHONE: 0.78%
- --------------------------------------------------------------------------------
4,200,000 Telecom Italia Capital Corp., 4,090,178
4.00%, 11/15/2008
----------------
Total Public Utilities--Telephone
(Cost $4,198,545) 4,090,178
----------------
================================================================================
SERVICE: 0.82%
- --------------------------------------------------------------------------------
4,180,000 PHH Corp., 4,316,485
6.00%, 03/01/2008
----------------
Total Service (Cost $4,387,445) 4,316,485
----------------
================================================================================
SUPERMARKET/DRUG: 0.64%
- --------------------------------------------------------------------------------
3,495,000 Safeway, Inc., 3,390,416
4.125%, 11/01/2008
----------------
Total Supermarket/Drug (Cost $3,493,618) 3,390,416
----------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 4.57%
- --------------------------------------------------------------------------------
5,201,000 Greenwich Capital Commercial 5,207,501
Funding Corp.,
Series 2003-FL1 Class B,
3.376%, 07/15/2018 (a)(b)
3,310,000 LB-UBS Commercial Mortgage 3,219,968
Trust, Series 2004-C7, Class A2,
3.992%, 10/15/2029
6,740,531 Asset Securitization Corp., 6,997,682
Series 1996-MD6 Class A1C,
7.04%, 11/13/2029
683,385 Commercial Mortgage Acceptance 690,834
Corp., Series 1997-ML1 Class A2,
6.53%, 12/15/2030
7,675,000 Nomura Asset Securities Corp., 7,896,117
Series 1996-MD5 Class A1B,
7.12%, 04/13/2039
----------------
Total Commercial Mortgage-Backed Securities
(Cost $24,597,581) 24,012,102
----------------
================================================================================
SHORT-TERM INVESTMENTS: 14.87%
- --------------------------------------------------------------------------------
U.S. Government Sponsored Agency
Obligations: 9.83%
51,600,000 Federal Home Loan Bank, 51,600,000
0.01%, 04/01/2005
70,000 Federal Home Loan Mortgage 70,000
Corp.,
0.01%, 04/13/2005
----------------
Total U.S. Government Sponsored Agency
Obligations (Cost $51,670,000) 51,670,000
----------------
U.S. Treasury Bill: 5.04%
26,490,000 2.62%, 04/14/2005 26,465,990
----------------
Total U.S. Treasury Bill (Cost $26,465,990) 26,465,990
----------------
Total Short-Term Investments
(Cost $78,135,990) 78,135,990
----------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost
$543,517,434) (d) 102.45% $ 538,214,933
Cash and Other Assets, Less
Liabilities (2.45) (12,896,258)
------- ----------------
Net Assets 100.00% $ 525,318,675
======= ================
- --------------------------------------------------------------------------------
(a) Variable rate coupon, rate shown as of March 31, 2005.
(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 March 31, 2005, the aggregate market value of these securities
amounted to $15,369,404 or 2.93% of net assets.
(c) When-issued security.
(d) At March 31, 2005, the cost basis of investment securities owned was
substantially identical for both book and tax. Gross unrealized appreciation
of investments was $156,108 and gross unrealized depreciation of investments
was $5,458,609, resulting in net unrealized depreciation of $5,302,501.
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
Schedule of Investments--Short Duration Plus Portfolio 11
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
U.S. Government Short Duration Portfolio
March 31, 2005 (Unaudited)
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 33.47%
- --------------------------------------------------------------------------------
$ 8,400,000 1.125%, 06/30/2005 $ 8,367,189
16,970,000 3.00%, 12/31/2006 16,754,566
5,885,000 3.50%, 08/15/2009 5,741,783
----------------
Total U.S. Treasury Notes (Cost $31,174,737) 30,863,538
----------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY
OBLIGATIONS: 29.59%
- --------------------------------------------------------------------------------
4,000,000 Federal Home Loan Bank, 3,915,960
2.04%, 06/12/2006
4,000,000 Federal Farm Credit Bank, 3,919,600
2.05%, 06/12/2006
4,670,000 Federal National Mortgage 4,632,757
Association,
3.25%, 06/28/2006,
Callable 06/28/2005 @ 100.00
5,000,000 Federal Farm Credit Bank, 4,913,580
3.25%, 06/15/2007
4,940,000 Federal Home Loan Mortgage 4,902,950
Corp.,
3.75%, 08/03/2007,
Callable 08/03/2005 @ 100.00
250,000 Federal National Mortgage 245,390
Association,
3.50%, 01/28/2008
5,000,000 Federal Home Loan Bank, 4,756,695
3.00%, 04/15/2009
----------------
Total U.S. Government Sponsored Agency
Obligations (Cost $27,708,922) 27,286,932
----------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 5.99%
- --------------------------------------------------------------------------------
1,103,055 Federal Home Loan Mortgage 1,105,812
Corp., Series 2571 Class FB,
3.16%, 02/15/2018 (a)
196,955 Residential Asset Mortgage 196,863
Products Inc.,
Series 2004-RS6 Class AI1,
3.00%, 05/25/2022 (a)
112,110 Residential Asset Mortgage 112,092
Products Inc.,
Series 2004-RS2 Class AI1,
2.98%, 01/25/2024 (a)
1,219,567 MLCC Mortgage Investors, Inc., 1,219,994
Series 2004-A Class A1,
3.08%, 04/25/2029 (a)
180,698 Federal National Mortgage 180,293
Association, Series 2003-W7
Class A4, 4.06%, 03/25/2033
1,493,609 Structured Asset Securities Corp., 1,485,096
Series 2003-23H Class 1A1,
5.50%, 07/25/2033
225,434 Centex Home Equity, 225,610
Series 2003-C Class AV,
3.15%, 09/25/2033 (a)
732,106 Ace Securities Corp., 732,333
Series 2003-OP1 Class A2,
3.21%, 12/25/2033 (a)
58,765 Ameriquest Mortgage Securities 58,765
Inc., Series 2004-R4 Class A2,
2.96%, 06/25/2034 (a)
209,705 Federal National Mortgage 208,885
Association, Series 2003-W6
Class 1A23,
2.90%, 10/25/2042
----------------
Total Collateralized Mortgage Obligations
(Cost $5,570,227) 5,525,743
----------------
================================================================================
MORTGAGE PASS-THROUGHS: 18.06%
- --------------------------------------------------------------------------------
7,937,195 Federal National Mortgage 8,370,119
Association Pool,
7.00%, 03/01/2009-09/01/2033
1,717,614 Federal National Mortgage 1,774,672
Association Pool,
6.00%, 12/01/2013-11/01/2016
220,432 Federal National Mortgage 232,595
Association Pool,
7.50%, 03/01/2015
411,304 Federal National Mortgage 434,826
Association Pool,
8.00%, 07/01/2017
1,840,000 Federal National Mortgage 1,899,800
Association Pool TBA,
6.00%, 04/25/2020 (b)
3,450,459 Federal National Mortgage 3,584,606
Association Pool,
6.50%, 02/01/2029-10/01/2034
251,155 Federal Home Loan Mortgage 264,752
Corp. Pool,
7.00%, 04/01/2032
90,000 Federal National Mortgage 94,809
Association Pool TBA,
7.00%, 04/25/2035 (b)
----------------
Total Mortgage Pass-Throughs
(Cost $16,715,795) 16,656,179
----------------
12 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
SHORT-TERM INVESTMENTS: 14.79%
- --------------------------------------------------------------------------------
U.S. Government Sponsored Agency
Obligations: 8.39%
$ 6,600,000 Federal Home Loan Bank, $ 6,600,000
0.00%, 04/01/2005
1,140,000 Federal Home Loan Mortgage 1,139,050
Corp.,
0.00%, 04/13/2005
----------------
Total U.S. Government Sponsored Agency
Obligations (Cost $7,739,050) 7,739,050
----------------
U.S. Treasury Bill: 6.40%
5,905,000 2.64%, 04/14/2005 5,899,648
----------------
Total U.S. Treasury Bill (Cost $5,899,648) 5,899,648
----------------
Total Short-Term Investments (Cost $13,638,698) 13,638,698
----------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $94,808,379) (c) 101.90% $ 93,971,090
Cash and Other Assets, Less
Liabilities (1.90) (1,749,110)
------- ----------------
Net Assets (Equivalent to
$12.51 per share based on
7,371,106 shares of capital
stock outstanding) 100.00% $ 92,221,980
======= ================
- --------------------------------------------------------------------------------
(a) Variable rate coupon, rate shown as of March 31, 2005.
(b) When-issued security.
(c) At March 31, 2005, the cost basis of investment securities owned was
substantially identical for both book and tax. Gross unrealized appreciation
of investments was $17,691 and gross unrealized depreciation of investments
was $854,981, resulting in net unrealized depreciation of $837,289.
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
Schedule of Investments--U.S. Government Short Duration Portfolio 13
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund II, Inc.
Schedule of Investments
Intermediate Duration Institutional Portfolio
March 31, 2005 (Unaudited)
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 6.34%
$29,860,000 3.75%, 03/31/2007 (a) $ 29,836,679
9,220,000 4.00%, 02/15/2015 (a) 8,858,401
----------------
Total U.S. Treasury Notes (Cost $38,695,581) 38,695,080
----------------
================================================================================
U.S. TREASURY BONDS: 2.98%
- --------------------------------------------------------------------------------
16,695,000 5.375%, 02/15/2031 (a) 18,195,597
----------------
Total U.S. Treasury Bonds (Cost $18,345,935) 18,195,597
----------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 0.49%
- --------------------------------------------------------------------------------
438,103 Countrywide Home Loans, 435,965
Series 2003-49 Class A1,
1.642%, 12/19/2033 (a)(b)
472,272 Deutsche Mortgage Securities 472,347
Inc., Series 2004-4 Class 1A1,
3.06%, 04/25/2034 (a)(b)
2,094,586 Washington Mutual, Series 2,094,586
2005-AR2 Class 2A22,
2.87%, 01/25/2045 (a)(b)
----------------
Total Collateralized Mortgage Obligations
(Cost $3,004,506) 3,002,898
----------------
================================================================================
MORTGAGE PASS-THROUGHS: 39.61%
- --------------------------------------------------------------------------------
2,030,957 Federal National Mortgage 2,098,522
Association Pool,
6.00%, 02/01/2017 (a)
36,635,000 Federal National Mortgage 35,810,712
Association Pool TBA,
4.50%, 04/25/2020 (c)
47,020,000 Federal National Mortgage 47,446,275
Association Pool TBA,
5.50%, 04/25/2020-04/25/2035 (c)
22,672,754 Federal National Mortgage 23,564,165
Association Pool,
6.50%, 08/01/2027-10/01/2034 (a)
10,752,608 Federal National Mortgage 10,542,936
Association Pool,
5.00%, 02/01/2034 (a)
11,675,000 Government National Mortgage 11,510,826
Association Pool TBA,
5.00%, 04/15/2035 (c)
9,560,000 Federal Home Loan Mortgage 9,781,075
Corp. Pool TBA,
6.00%, 04/15/2035 (c)
4,695,000 Government National Mortgage 4,821,178
Association Pool TBA,
6.00%, 04/15/2035 (c)
40,960,000 Federal National Mortgage 41,856,000
Association Pool TBA,
6.00%, 04/25/2035 (c)
12,705,000 Federal National Mortgage 13,181,437
Association Pool TBA,
6.50%, 04/25/2035 (c)
42,205,000 Federal National Mortgage 41,136,707
Association Pool TBA,
5.00%, 05/25/2035 (c)
----------------
Total Mortgage Pass-Throughs
(Cost $242,523,988) 241,749,833
----------------
================================================================================
AEROSPACE/DEFENSE: 0.06%
- --------------------------------------------------------------------------------
365,000 Boeing Capital Corp., Senior Note, 367,774
4.75%, 08/25/2008 (a)
----------------
Total Aerospace/Defense (Cost $364,570) 367,774
----------------
================================================================================
AUTOMOTIVE: 0.59%
- --------------------------------------------------------------------------------
205,000 Ford Motor Credit Co., 193,101
5.70%, 01/15/2010 (a)
1,040,000 General Motors Acceptance Corp., 998,916
7.75%, 01/19/2010 (a)
42,000 TRW Automotive, Senior 47,040
Subordinated Note,
11.00%, 02/15/2013,
Callable 02/15/2008 @ 105.50 (a)
2,000 Keystone Automotive Operations Inc., 2,010
Senior Subordinated Note,
9.75%, 11/01/2013,
Callable 11/01/2008 @ 104.88 (a)
400,000 General Motors Acceptance Corp., 345,522
6.75%, 12/01/2014 (a)
565,000 Ford Motor Co., 464,782
6.375%, 02/01/2029 (a)
565,000 Ford Motor Co., 511,090
7.45%, 07/16/2031 (a)
1,250,000 General Motors Corp., 1,069,665
8.375%, 07/15/2033 (a)
----------------
Total Automotive (Cost $4,056,746) 3,632,126
----------------
================================================================================
BANKING: 2.79%
- --------------------------------------------------------------------------------
3,370,000 Mizuho Financial Group Ltd. 3,640,389
(Cayman),
8.375%, 04/27/2009 (a)
1,015,000 Suntrust Bank, 1,015,619
3.04%, 06/02/2009 (a)(b)
955,000 Wells Fargo & Co., Senior Note, 933,773
4.20%, 01/15/2010 (a)
980,000 Huntington National Bank, 960,577
Senior Note,
4.375%, 01/15/2010 (a)
1,820,000 JP Morgan Chase & Co., 1,992,572
6.75%, 02/01/2011 (a)
14 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
280,000 UFJ Bank Ltd., Subordinated Note, 311,196
7.40%, 06/15/2011 (a)
680,000 Capital One Bank, Subordinated Note, 730,194
6.50%, 06/13/2013 (a)
500,000 UFJ Finance Aruba AEC, 538,305
6.75%, 07/15/2013 (a)
290,000 Bank of America Corp., Senior Note, 294,632
5.375%, 06/15/2014 (a)
120,000 Royal Bank of Scotland Group plc, 118,970
Subordinated Note,
5.00%, 10/01/2014 (a)
905,000 The Chuo Mitsui Trust & 865,333
Banking Co., Ltd.,
5.506%, 04/15/2049,
Callable 04/15/2015 @ 100.00
(a)(d)
1,950,000 RBS Capital Trust III, 1,978,168
5.512%, 09/29/2049,
Callable 09/30/2014 @ 100.00
(a)(b)
1,400,000 Barclays Bank plc, 1,654,198
8.55%, 09/29/2049,
Callable 06/15/2011 @ 100.00
(a)(b)(d)
2,095,000 RBS Capital Trust I, 2,023,083
4.709%, 12/29/2049,
Callable 07/01/2013 @ 100.00
(a)(b)
----------------
Total Banking (Cost $16,877,818) 17,057,009
----------------
================================================================================
BROADCASTING/MEDIA: 1.07%
- --------------------------------------------------------------------------------
890,000 News America Holdings, 1,110,757
9.25%, 02/01/2013 (a)
735,000 WPP Finance Corp. (United 759,973
Kingdom),
5.875%, 06/15/2014 (a)
2,555,000 TimeWarner Entertainment Co., 3,130,578
Senior Debenture,
8.375%, 03/15/2023 (a)
1,480,000 News America Holdings, 1,542,167
6.55%, 03/15/2033 (a)
----------------
Total Broadcasting/Media (Cost $6,179,929) 6,543,475
----------------
================================================================================
BUILDING/REAL ESTATE: 0.15%
- --------------------------------------------------------------------------------
590,000 iStar Financial, Inc., Senior Note, 570,770
5.15%, 03/01/2012 (a)
305,000 William Lyon Homes, Inc., 335,500
10.75%, 04/01/2013,
Callable 04/01/2008 @ 105.38 (a)
----------------
Total Building/Real Estate (Cost $934,430) 906,270
----------------
================================================================================
CABLE: 0.49%
- --------------------------------------------------------------------------------
445,000 British Sky Broadcasting Group plc, 477,395
6.875%, 02/23/2009 (a)
105,000 Insight Midwest LP, Senior 109,725
Note, 9.75%, 10/01/2009,
Callable 05/11/2005 @ 104.88 (a)
570,000 Charter Communications 567,150
Operating LLC, Senior Note,
8.00%, 04/30/2012 (a)(d)
1,665,000 Comcast Corp., 1,646,927
5.30%, 01/15/2014 (a)
192,000 PanAmSat Corp., 202,560
9.00%, 08/15/2014,
Callable 08/15/2009 @ 104.50 (a)
----------------
Total Cable (Cost $3,073,323) 3,003,757
----------------
================================================================================
CHEMICALS: 0.12%
- --------------------------------------------------------------------------------
735,000 Union Carbide Corp., Debenture, 735,368
7.75%, 10/01/2096 (a)
----------------
Total Chemicals (Cost $718,463) 735,368
----------------
================================================================================
COMMUNICATIONS: 1.71%
- --------------------------------------------------------------------------------
1,480,000 Telus Corp., 1,575,349
7.50%, 06/01/2007 (a)
2,465,000 Telecom Italia Capital Corp., 2,356,587
4.00%, 01/15/2010 (a)(d)
4,035,000 Sprint Capital Corp., 4,715,696
8.375%, 03/15/2012 (a)
1,610,000 SBC Communications, Inc., 1,569,236
5.10%, 09/15/2014 (a)
165,000 Verizon Global Funding Corp., 199,419
7.75%, 12/01/2030 (a)
----------------
Total Communications (Cost $10,685,662) 10,416,287
----------------
================================================================================
COMMUNICATIONS--FIXED: 0.45%
- --------------------------------------------------------------------------------
2,175,000 British Telecommunications plc, 2,526,913
8.125%, 12/15/2010 (a)
205,000 Cincinnati Bell, Inc., 201,925
Senior Subordinated Note,
8.375%, 01/15/2014,
Callable 01/15/2009 @ 104.19 (a)
----------------
Total Communications--Fixed (Cost $2,803,170) 2,728,838
----------------
================================================================================
COMMUNICATIONS--MOBILE: 0.61%
- --------------------------------------------------------------------------------
15,000 AT&T Wireless Services Inc., 17,061
Senior Note,
7.875%, 03/01/2011 (a)
275,000 Rural Cellular Corp., 280,500
8.25%, 03/15/2012,
Callable 03/15/08 @ 104.12 (a)
830,000 Verizon Global Funding Corp., 941,586
7.375%, 09/01/2012 (a)
Schedule of Investments--Intermediate Duration Institutional Portfolio 15
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,875,000 AT&T Wireless Services Inc., $ 2,473,708
Senior Note,
8.75%, 03/01/2031 (a)
----------------
Total Communications--Mobile (Cost $3,510,783) 3,712,855
----------------
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.27%
- --------------------------------------------------------------------------------
1,480,000 Hutchison Whampoa 1,629,297
International Ltd.,
7.45%, 11/24/2033 (a)(d)
----------------
Total Conglomerate/Miscellaneous
(Cost $1,513,767) 1,629,297
----------------
================================================================================
CONSUMER MANUFACTURING: 0.23%
- --------------------------------------------------------------------------------
540,000 Fortune Brands Inc., 530,138
2.875%, 12/01/2006 (a)
425,000 Broder Brothers, Senior Note, 465,375
11.25%, 10/15/2010,
Callable 10/15/2007 @ 105.62 (a)
415,000 Visant Corp., 410,850
7.625%, 10/01/2012,
Callable 10/01/2008 @ 103.81 (a)
----------------
Total Consumer Manufacturing
(Cost $1,384,174) 1,406,363
----------------
================================================================================
ENERGY: 0.57%
- --------------------------------------------------------------------------------
200,000 Hilcorp Energy I LP, Senior Note, 222,000
10.50%, 09/01/2010,
Callable 09/01/2007 @ 105.25
(a)(d)
1,150,000 Conoco Inc., Senior Note, 1,370,830
6.95%, 04/15/2029 (a)
1,585,000 Valero Energy Corp., 1,910,760
7.50%, 04/15/2032 (a)
----------------
Total Energy (Cost $3,214,215) 3,503,590
----------------
================================================================================
ENTERTAINMENT/LEISURE: 0.04%
- --------------------------------------------------------------------------------
235,000 NCL Corp., Senior Note, 242,931
10.625%, 07/15/2014,
Callable 07/15/2009 @ 105.31
(a)(d)
----------------
Total Entertainment/Leisure (Cost $235,000) 242,931
----------------
================================================================================
FINANCIAL: 5.08%
- --------------------------------------------------------------------------------
530,000 CIT Group Inc., Medium-Term Note, 530,777
3.04%, 05/18/2007 (a)(b)
1,880,000 Household Finance Corp., 1,992,655
6.50%, 11/15/2008 (a)
2,160,000 American General Finance Corp., 2,154,641
Medium-Term Note,
4.625%, 05/15/2009 (a)
720,000 Citigroup Inc., 721,125
3.10%, 06/09/2009 (a)(b)
12,065,000 Dow Jones Cdx, High Yield 11,718,131
Series 3-3,
8.00%, 12/29/2009 (a)(d)
1,225,000 Berkshire Hathaway Finance Corp., 1,189,648
4.20%, 12/15/2010 (a)
940,000 Ford Motor Credit Co., 933,923
7.375%, 02/01/2011 (a)
1,375,000 Countrywide Home Loans, Inc., 1,301,811
Medium-Term Note, Series L,
4.00%, 03/22/2011 (a)
1,435,000 General Electric Capital Corp., 1,401,114
4.375%, 11/21/2011 (a)
1,100,000 CIT Group, Inc., Senior Note, 1,272,333
7.75%, 04/02/2012 (a)
565,000 Household Finance Corp., 629,821
7.00%, 05/15/2012 (a)
650,000 Goldman Sachs Group Inc., 625,212
4.75%, 07/15/2013 (a)
590,000 Ford Motor Credit Co., 571,542
7.00%, 10/01/2013 (a)
3,671,000 Citigroup, Inc., Subordinated Note, 3,604,100
5.00%, 09/15/2014 (a)
790,000 Merrill Lynch & Co., Inc., 765,589
5.00%, 01/15/2015 (a)
650,000 CBA Capital Trust I, 650,676
5.805%, 06/15/2015 (a)(d)
720,000 Royal & Sun Alliance Insurance 916,859
Group, plc,
8.95%, 10/15/2029 (a)
----------------
Total Financial (Cost $31,133,410) 30,979,957
----------------
================================================================================
FOOD/BEVERAGE: 0.43%
- --------------------------------------------------------------------------------
1,400,000 Kraft Foods Inc., 1,411,435
5.25%, 10/01/2013 (a)
1,125,000 Anheuser-Busch Cos., Inc., 1,201,560
Debenture,
5.95%, 01/15/2033 (a)
----------------
Total Food/Beverage (Cost $2,549,906) 2,612,995
----------------
================================================================================
GAMING: 0.04%
- --------------------------------------------------------------------------------
220,000 Riviera Holdings Corp., 243,100
11.00%, 06/15/2010,
Callable 06/15/2006 @ 105.50 (a)
----------------
Total Gaming (Cost $230,478) 243,100
----------------
================================================================================
HEALTHCARE: 0.22%
- --------------------------------------------------------------------------------
388,000 WellPoint, Inc., 380,793
3.75%, 12/14/2007 (a)(d)
175,000 Universal Hospital Services Inc., 179,375
Senior Note,
10.125%, 11/01/2011,
Callable 11/01/2007 @ 105.06 (a)
16 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 80,000 Concentra Operating Corp., $ 84,800
9.125%, 06/01/2012,
Callable 06/01/2008 @ 104.56 (a)
685,000 Humana Inc., Senior Note, 711,891
6.30%, 08/01/2018 (a)
----------------
Total Healthcare (Cost $1,328,697) 1,356,859
----------------
================================================================================
INDUSTRIAL: 0.08%
- --------------------------------------------------------------------------------
185,000 FastenTech Inc., Senior Note, 198,875
11.50%, 05/01/2011,
Callable 05/01/2007 @ 105.75
(a)(b)(d)
250,000 H&E Equipment Services LLC, 281,250
11.125%, 06/15/2012,
Callable 06/15/2007 @ 105.56 (a)
----------------
Total Industrial (Cost $446,111) 480,125
----------------
================================================================================
INSURANCE: 1.04%
- --------------------------------------------------------------------------------
780,000 MetLife Inc., 770,645
5.00%, 11/24/2013 (a)
735,000 Assurant Inc., 746,267
5.625%, 02/15/2014 (a)
855,000 Liberty Mutual Group, 840,334
5.75%, 03/15/2014 (a)(d)
220,000 Fairfax Financial Holdings Ltd., 195,800
7.375%, 04/15/2018 (a)
1,910,000 Mangrove Bay Pass-Through Trust, 1,894,147
6.102%, 07/15/2033,
Callable 07/15/2013 @ 100
(a)(b)(d)
1,740,000 Zurich Capital Trust, 1,897,646
8.376%, 06/01/2037,
Callable 06/01/2007 @ 104.19
(a)(d)
----------------
Total Insurance (Cost $6,470,857) 6,344,839
----------------
================================================================================
METALS/MINING: 0.02%
- --------------------------------------------------------------------------------
105,000 AK Steel Corp., 102,900
7.875%, 02/15/2009,
Callable 05/11/2005 @ 102.65 (a)
----------------
Total Metals/Mining (Cost $93,939) 102,900
----------------
================================================================================
PAPER/PACKAGING: 0.93%
- --------------------------------------------------------------------------------
830,000 Weyerhaeuser Co., 865,380
5.95%, 11/01/2008 (a)
5,000 International Paper Co., 5,482
6.75%, 09/01/2011 (a)
465,000 Sealed Air Corp., 470,321
5.625%, 07/15/2013 (a)(d)
460,000 Packaging Corp. of America, 455,469
5.75%, 08/01/2013 (a)
1,015,000 International Paper Co., 1,011,880
5.30%, 04/01/2015 (a)
2,440,000 Weyerhaeuser Co., 2,852,616
7.375%, 03/15/2032 (a)
----------------
Total Paper/Packaging (Cost $5,554,025) 5,661,148
----------------
================================================================================
PETROLEUM PRODUCTS: 0.53%
- --------------------------------------------------------------------------------
20,000 Amerada Hess Corp., 21,418
6.65%, 08/15/2011 (a)
545,000 Kerr-McGee Corp., 582,843
6.875%, 09/15/2011 (a)
405,000 Tengizchevroil Finance Co., 400,950
6.124%, 11/15/2014 (a)(d)
900,000 Amerada Hess Corp., 1,075,729
7.875%, 10/01/2029 (a)
1,020,000 Amerada Hess Corp., 1,134,258
7.125%, 03/15/2033 (a)
----------------
Total Petroleum Products (Cost $3,094,091) 3,215,198
----------------
================================================================================
PUBLIC UTILITIES--ELECTRIC & GAS: 1.43%
- --------------------------------------------------------------------------------
600,000 Consumers Energy Co., Series C, 593,603
4.25%, 04/15/2008 (a)
55,000 Southern Natural Gas Co., 59,636
8.875%, 03/15/2010,
Callable 03/15/2007 @ 104.44 (a)
200,000 Calpine Corp., 157,000
8.50%, 07/15/2010,
Callable 07/15/2007 @ 104.25
(a)(d)
590,000 Nisource Finance Corp., 672,823
7.875%, 11/15/2010 (a)
1,135,000 Carolina Power & Light Co., 1,230,778
6.50%, 07/15/2012 (a)
410,000 MidAmerican Energy Holdings Co., 425,799
Senior Note,
5.875%, 10/01/2012 (a)
410,000 Public Service Co. of Colorado, 484,396
7.875%, 10/01/2012 (a)
410,000 Union Electric Co., 399,915
5.10%, 10/01/2019 (a)
75,000 Southern Natural Gas Co., 76,604
7.35%, 02/15/2031 (a)
2,870,000 FirstEnergy Corp., Series C, 3,250,855
7.375%, 11/15/2031 (a)
1,340,000 Pacific Gas & Electric Co., 1,375,932
6.05%, 03/01/2034 (a)
----------------
Total Public Utilities--Electric & Gas
(Cost $8,456,166) 8,727,341
----------------
Schedule of Investments--Intermediate Duration Institutional Portfolio 17
================================================================================
Principal Amount Description Market Value
================================================================================
PUBLIC UTILITIES--TELEPHONE: 0.24%
- --------------------------------------------------------------------------------
$ 1,445,000 Telecom Italia Capital, $ 1,473,475
6.375%, 11/15/2033 (a)
----------------
Total Public Utilities--Telephone
(Cost $1,437,402) 1,473,475
----------------
================================================================================
PUBLISHING: 0.02%
- --------------------------------------------------------------------------------
115,000 American Media Operations Inc., 118,450
8.875%, 01/15/2011,
Callable 01/15/2007 @ 104.44 (a)
----------------
Total Publishing (Cost $112,911) 118,450
----------------
================================================================================
RETAIL: 0.07%
- --------------------------------------------------------------------------------
405,000 Petro Stopping Centers LP, 417,150
9.00%, 02/15/2012,
Callable 02/15/2008 @ 104.50 (a)
----------------
Total Retail (Cost $423,416) 417,150
----------------
================================================================================
SERVICE: 0.41%
- --------------------------------------------------------------------------------
2,015,000 Pershing Road Development 2,015,000
Company LLC,
3.31%, 09/01/2026,
Callable 06/01/2005 @ 102.50
(a)(b)(d)
480,000 Republic Services, Inc., 482,040
6.086%, 03/15/2035 (a)(d)
----------------
Total Service (Cost $2,502,149) 2,497,040
----------------
================================================================================
SUPERMARKET/DRUG: 0.33%
- --------------------------------------------------------------------------------
860,000 Safeway, Inc., 911,394
6.50%, 03/01/2011 (a)
995,000 Albertson's Inc., Debenture, 1,101,770
7.45%, 08/01/2029 (a)
----------------
Total Supermarket/Drug (Cost $2,016,621) 2,013,164
----------------
================================================================================
TECHNOLOGY: 0.12%
- --------------------------------------------------------------------------------
355,000 International Business Machines 353,204
Corp., Medium-Term Note,
4.375%, 06/01/2009 (a)
130,000 Telcordia Technologies, Inc., 129,025
Senior Subordinated Note,
10.00%, 03/15/2013,
Callable 03/15/2008 @ 105.00 (a)(d)
275,000 Amkor Technology Inc., Senior Note, 231,000
7.75%, 05/15/2013,
Callable 01/15/2008 @ 103.88 (a)
----------------
Total Technology (Cost $751,427) 713,229
----------------
================================================================================
UTILITIES: 0.52%
- --------------------------------------------------------------------------------
1,150,000 Txu Australia Holdings Pty Ltd., 1,222,852
6.15%, 11/15/2013 (a)(d)
660,000 Duke Capital LLC, Senior Note, 658,316
5.50%, 03/01/2014 (a)
1,085,000 Duke Capital, LLC, Senior Note, 1,287,208
8.00%, 10/01/2019 (a)
----------------
Total Utilities (Cost $3,197,475) 3,168,376
----------------
================================================================================
ASSET-BACKED SECURITIES: 7.80%
- --------------------------------------------------------------------------------
1,910,000 Bank One Issuance Trust, 1,911,795
Series 2004-A4 Class A4,
2.85%, 02/16/2010 (a)(b)
2,220,000 Discover Card Master Trust I, 2,221,399
Series 2004-1 Class A,
2.84%, 04/16/2010 (a)(b)
3,785,000 Superior Wholesale Inventory 3,790,905
Financing Trust VIII,
Series 2003-A8 Class A,
2.94%, 09/15/2010 (a)(b)
5,715,000 MBNA Credit Card Master Note 5,751,633
Trust, Series 2001-A5 Class A5,
3.02%, 03/15/2011 (a)
2,940,000 Citibank Omni Master Trust, 2,944,145
Series 1996-5 Class A,
3.04%, 12/16/2011 (a)(b)(d)
1,845,000 American Express Credit 1,843,266
Account Master Trust,
Series 2005-1 Class A,
2.88%, 10/15/2012 (a)(b)
511,138 RAAC Series 2004-SP1 Class AI1, 511,296
3.03%, 06/25/2013 (a)(b)
1,988,993 SLM Student Loan Trust, 1,991,479
Series 2003-C Class A1,
3.11%, 09/15/2016 (a)(b)
3,575,000 Citibank Credit Card Issuance 3,523,627
Trust, Series 2004-A8 Class A8,
4.90%, 12/12/2016 (a)
939,027 Residential Funding Mortgage 938,295
Securities Inc.,
Series 2004-HS2 Class AI1,
3.00%, 12/25/2018 (a)(b)
933,595 Residential Asset Securities Corp., 933,744
Series 2004-KS7 Class AI1,
3.00%, 10/25/2021 (a)(b)
1,619,322 Bear Stearns Asset-Backed 1,618,318
Securities, Inc.,
Series 2005-SD1 Class 1A1,
3.00%, 04/25/2022 (a)(b)
638,774 Residential Asset Mortgage Products 638,474
Inc., Series 2004-RS6 Class AI1,
3.00%, 08/25/2022 (a)(b)
410,634 Residential Asset Mortgage Products 410,568
Inc., Series 2004-RS2 Class AI1,
2.98%, 01/25/2024 (a)(b)
18 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,070,161 Residential Asset Securities $ 1,072,172
Corp., Series 2002-KS7 Class A2,
3.22%, 11/25/2032 (a)(b)
623,657 Centex Home Equity, 624,143
Series 2003-C Class AV,
3.15%, 09/25/2033 (a)(b)
2,359,969 Residential Asset Mortgage 2,360,940
Products, Inc.,
Series 2004-RS12 Class AI1,
2.99%, 05/25/2034 (a)
1,708,453 Structured Asset Investment 1,708,726
Loan Trust, Series 2004-5 Class A2,
3.03%, 05/25/2034 (a)(b)
1,477,773 Morgan Stanley ABS Capital I, 1,478,468
Series 2004-HE4 Class A3,
3.05%, 05/25/2034 (a)(b)
207,039 Ameriquest Mortgage Securities 207,039
Inc., Series 2004-R4 Class A2,
2.96%, 06/25/2034 (a)(b)
1,083,528 Equity One ABS Inc., 1,083,864
Series 2004-3 Class AF1,
3.01%, 07/25/2034 (a)(b)
2,476,393 Aegis Asset-Backed Securities 2,477,557
Trust, Series 2004-3 Class A2A,
3.05%, 09/25/2034 (a)(b)
2,066,867 Morgan Stanley ABS Capital I, 2,066,227
Series 2005-WMC1 Class A2A,
2.95%, 01/25/2035 (a)(b)
2,452,997 Residential Asset Mortgage 2,449,538
Products, Inc.,
Series 2005-RS1 Class AII1,
2.96%, 01/25/2035 (a)(b)
2,561,447 Structured Asset Investment 2,558,655
Loan Trust,
Series 2005-1 Class A3,
2.97%, 02/25/2035 (a)(b)(d)
468,426 Merrill Lynch Mortgage 468,426
Investors, Inc.,
Series 2004-SL1 Class A,
3.11%, 04/25/2035 (a)(b)
----------------
Total Asset-Backed Securities
(Cost $47,657,117) 47,584,699
----------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 8.94%
- --------------------------------------------------------------------------------
1,975,000 LB-UBS Commercial Mortgage 1,921,280
Trust, Series 2004-C7 Class A2,
3.992%, 10/15/2029 (a)
2,025,000 LB-UBS Commercial Mortgage 1,985,047
Trust, Series 2004-C8 Class A2,
4.201%, 12/15/2029 (a)
1,760,000 LB-UBS Commercial Mortgage 1,713,747
Trust, Series 2005-C1 Class A4,
4.742%, 02/15/2030 (a)
2,035,000 Greenwich Capital Commercial 1,918,130
Funding Corp.,
Series 2003-C1 Class A4,
4.111%, 07/05/2035 (a)
895,000 Greenwich Capital Commercial 883,857
Funding Corp.,
Series 2003-C2 Class A3,
4.533%, 01/05/2036 (a)
1,695,000 CS First Boston Mortgage 1,658,829
Securities Corp.,
Series 2003-CK2 Class A2,
3.861%, 03/15/2036 (a)
2,170,000 CS First Boston Mortgage 2,120,633
Securities Corp.,
Series 2004-C5 Class A2,
4.183%, 11/15/2037 (a)
245,000 JP Morgan Chase Commercial 237,697
Mortgage Securities,
Series 2004-C1 Class A2,
4.302%, 01/15/2038 (a)
2,150,000 CS First Boston Mortgage 2,131,059
Securities Corp.,
Series 2005-C1 Class A4,
5.014%, 02/15/2038 (a)
2,845,000 Banc of America Commercial 2,919,596
Mortgage, Inc.,
Series 2004-3 Class A5,
5.306%, 06/10/2039 (a)
2,030,000 GE Capital Commercial Mortgage 2,040,759
Corp., Series 2004-C3 Class A4,
5.189%, 07/10/2039 (a)
1,605,000 Merrill Lynch Mortgage Trust, 1,565,950
Series 2004-KEY Class A2,
4.166%, 08/12/2039 (a)
2,060,000 Banc of America Commercial 1,997,273
Mortgage, Inc.,
Series 2004-1 Class A2,
4.037%, 11/10/2039 (a)
2,980,000 Banc of America Commercial 2,912,294
Mortgage, Inc.,
Series 2004-1 Class A4,
4.76%, 11/10/2039 (a)
2,850,000 Morgan Stanley Capital I, 2,781,229
Series 2005-T17 Class A5,
4.78%, 12/13/2041 (a)
3,745,000 Morgan Stanley Capital I, 3,757,171
Series 2005-HQ5 Class A4,
5.168%, 01/14/2042 (a)
1,900,000 Banc of America Commercial 1,863,843
Mortgage, Inc.,
Series 2004-4 Class A3,
4.128%, 07/10/2042 (a)
2,620,000 Greenwich Capital Commercial 2,577,425
Funding Corp.,
Series 2005-GG3 Class A2,
4.305%, 08/10/2042 (a)
Schedule of Investments--Intermediate Duration Institutional Portfolio 19
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,520,000 Greenwich Capital Commercial $ 2,464,459
Funding Corp.,
Series 2005-GG3 Class A4,
4.799%, 08/10/2042 (a)
3,175,000 Merrill Lynch Mortgage Trust, 3,182,969
Series 2005-MKB2 Class A2,
4.806%, 09/12/2042 (a)
2,650,000 Banc of America Commercial 2,663,327
Mortgage, Inc.,
Series 2005-1 Class A3,
4.877%, 11/10/2042
2,565,000 Banc of America Commercial 2,507,390
Mortgage, Inc.,
Series 2004-6 Class A2,
4.161%, 12/10/2042 (a)
1,555,000 Morgan Stanley Capital I, 1,502,208
Series 2004-T13 Class A2,
3.94%, 09/13/2045 (a)
2,665,000 JP Morgan Chase Commercial 2,656,361
Mortgage Securities,
Series 2005-LDP1 Class A2,
4.625%, 03/15/2046 (a)
2,620,000 JP Morgan Chase Commercial 2,599,800
Mortgage Securities,
Series 2005-LDP1 Class A4,
5.038%, 03/15/2046 (a)
----------------
Total Commercial Mortgage-Backed Securities
(Cost $55,147,045) 54,562,333
----------------
================================================================================
SOVEREIGN DEBT: 3.72%
- --------------------------------------------------------------------------------
1,260,000,000 Japan (Govt of), Series 265, 11,962,245
1.50%, 12/20/2014 (a)
3,110,000 Russian Federation, 3,195,525
5.00%, 03/31/2030 (a)
4,420,000 United Mexican States, 4,685,200
7.50%, 04/08/2033 (a)
2,595,000 Brazil (Republic of), 2,884,342
11.00%, 08/17/2040,
Callable 08/17/2015 @ 100.00 (a)
----------------
Total Sovereign Debt (Cost $22,961,670) 22,727,312
----------------
================================================================================
SHORT-TERM INVESTMENTS: 46.10%
- --------------------------------------------------------------------------------
Commercial Paper: 16.37%
20,000,000 UBS Finance, LLC, 20,000,000
2.83%, 04/01/2005
10,000,000 A.I.G. Funding, Inc., 9,990,934
2.72%, 04/13/2005
10,000,000 Citicorp, 9,990,933
2.72%, 04/13/2005
10,000,000 Fortis Funding, 9,990,917
2.725%, 04/13/2005
10,000,000 Bank of Montreal, 9,990,900
2.73%, 04/13/2005
10,000,000 Morgan Stanley, 9,990,900
2.73%, 04/13/2005
10,000,000 Prudential Funding LLC, 9,990,900
2.73%, 04/13/2005
10,000,000 General Electric Capital 9,990,800
Services,
2.76%, 04/13/2005
10,000,000 Societe Generale North America, 9,990,783
2.765%, 04/13/2005
----------------
Total Commercial Paper (Cost $99,927,067) 99,927,067
----------------
U.S. Government Sponsored Agency
Obligations: 12.96%
18,200,000 Federal Home Loan Banks, 18,200,000
0.00%, 04/01/2005
61,090,000 Federal Home Loan Banks, 60,902,148
0.00%, 05/12/2005
----------------
Total U.S. Government Sponsored Agency
Obligations (Cost $79,102,148) 79,102,148
----------------
U.S. Treasury Bills: 16.77%
45,420,000 2.54%, 04/07/2005 45,402,740
56,975,000 2.62%, 04/14/2005 56,923,359
----------------
Total U.S. Treasury Bills (Cost $102,326,099) 102,326,099
----------------
Total Short-Term Investments
(Cost $281,355,314) 281,355,314
----------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $835,042,287) (e) 136.64% $ 833,884,352
Cash and Other Assets, Less Liabilities (36.64) (223,617,636)
------- ----------------
Net Assets (Equivalent to $15.22
per share based on 40,102,768
shares of capital stock outstanding) 100.00% $ 610,266,716
======= ================
20 Sanford C. Bernstein Fund, Inc.--2005 Semiannual Report
==========================================================================================================================
CREDIT DEFAULT SWAP CONTRACTS
- --------------------------------------------------------------------------------------------------------------------------
Notional Interest Termination Unrealized
Swap Counterparty & Referenced Obligation Amount Rate Date Depreciation
- --------------------------------------------------------------------------------------------------------------------------
Buy:
JP Morgan Chase
Dow Jones High Volume, 4.00%, 06/20/2010 19,000,000 0.90% 06/20/2010 $ (122,635)
==========================================================================================================================
FORWARD EXCHANGE CURRENCY CONTRACTS
- --------------------------------------------------------------------------------------------------------------------------
Contract U.S. $ U.S. $
Amount Value on Current Unrealized
(000) Origination Date Value Appreciation
- --------------------------------------------------------------------------------------------------------------------------
Purchase Contract:
Japanese Yen Settling 04/22/2005 458,535 $ 4,282,570 $ 4,294,913 $ 12,343
Sale Contract:
Japanese Yen Settling 04/22/2005 1,789,747 17,168,825 16,763,849 404,976
- --------------------------------------------------------------------------------------------------------------------------
$ 417,319
- --------------------------------------------------------------------------------------------------------------------------
(a) Positions, or portion thereof, with an aggregate market value of
$344,321,500 have been segregated to collateralize open forward exchange
currency contracts.
(b) Variable rate coupon, rate shown as of March 31, 2005.
(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 qualified institutional
buyers. At March 31, 2005, the aggregate market value of these securities
amounted to $35,498,086 or 5.82% of net assets.
(e) At March 31, 2005, the cost basis of investment securities owned was
substantially identical for both book and tax. Gross unrealized
appreciation of investments was $3,033,503 and gross unrealized
depreciation of investments was $4,191,438, resulting in net unrealized
depreciation of $1,157,935.
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
Schedule of Investments--Intermediate Duration Institutional Portfolio 21
SCBMFSEMIANNTAX0305
ITEM 2. CODE OF ETHICS.
Not applicable when filing a semi-annual report to shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable when filing a semi-annual report to shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable when filing a semi-annual report to shareholders
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 over
financial reporting during the second fiscal quarter of the period 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(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
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Marc O. Mayer
President
Date: May 27, 2005
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: May 27, 2005
By: /s/ Mark D. Gersten
-------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: May 27, 2005