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: September 30, 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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ANNUAL REPORT
SEPTEMBER 30, 2005
Fixed-Income
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International Equity
Investments
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Table of Contents
Portfolio Manager Commentaries ............................................ 1
Historical Performance .................................................... 8
Mountain Charts ........................................................... 11
Fund Expenses ............................................................. 13
Portfolio Summaries ....................................................... 14
Statements of Assets and Liabilities ...................................... 18
Statements of Operations .................................................. 26
Statements of Changes in Net Assets ....................................... 30
Financial Highlights ...................................................... 38
Notes to Financial Statements ............................................. 52
Directors and Officers .................................................... 79
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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.
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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--November 18, 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 annual reporting period ended
September 30, 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% to 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% to 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 Bernstein International Portfolios compared with their
benchmark, the MSCI EAFE Index (cap-weighted, unhedged), for the six- and
12-month periods ended September 30, 2005.
Both Portfolios outperformed their benchmark over the six-month period, but
trailed it over the 12-month reporting period. Overall, value as a style
significantly outperformed growth during the 12-month period, which was
reflected in the Portfolios: the value segment of the Portfolios contributed to
relative performance, while growth holdings detracted from performance.
For the 12-month period ended September 30, 2005, positive stock selection in
industrial and energy shares was not sufficient to offset the impact from
holdings in the consumer, financial and resources sectors. Within resources
(which had the largest impact), several companies held by the Portfolios
declined during the period, including an aluminum company and a paper company.
The Portfolios were also impacted by sector overweights and underweights within
the period.
During the most recent six-month period ended September 30, 2005, positive stock
selection in industrial and energy shares drove relative performance with stock
selection in the consumer sectors, offsetting some of the gains. Within
industrials, most of the gains came from the Portfolios' Japanese holdings.
These shares benefited from strong second-quarter GDP data, suggesting that
pronounced job and wage increases may at last be laying the foundations for a
self-sustaining recovery. This trend was also the factor behind the strong
returns of the Portfolios' Japanese financial holdings. Portfolio negatives in
the six-month period were concentrated in the Portfolios' consumer shares.
Market Review and Investment Strategy
International equity markets rallied in the third quarter of 2005 amid renewed
optimism about near-term economic and corporate earnings growth. As a result,
the MSCI EAFE Index finished up 9.26% for the six-month period ended September
30, 2005. The Index was up a very strong 25.79% in the 12-month period,
reflecting current strong returns and the powerful rally in the fourth quarter
of 2004 when stocks surged 15.3%.
Unsurprisingly, energy stocks led the market during the six-and 12-month
periods, buoyed by sustained high oil prices, but the performance was
broad-based with strong gains in most sectors. Cyclically-sensitive
industrial-commodities stocks did particularly well while the consumer cyclical,
telecom and technology sectors lagged the market.
(Portfolio Manager Commentaries continued on next page)
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2005 Annual Report 1
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Portfolio Manager Commentaries (continued from previous page)
The turnaround in sentiment from the second quarter reflected mounting evidence
that global economic expansion remains on track despite record-breaking oil
prices. In Japan, investor optimism about economic reform was fueled by Prime
Minister Junichiro Koizumi's emphatic election victory and encouraging
second-quarter GDP data showing that private consumption contributed most to
growth. While Europe's performance remained sluggish, a surge in largely
cash-financed merger and acquisition activity highlighted the increased level of
confidence in company boardrooms. Additionally, consensus forecasts call for
Hurricanes Katrina and Rita putting only a relatively small and temporary damper
on the U.S. economy, given the economy's robustness prior to the events and the
likely massive private and public spending on reconstruction.
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 Portfolio
Investment Objective and Strategy
Prior to May 2, 2005, the Bernstein Emerging Markets Portfolio was known as the
Bernstein Emerging Markets Value Portfolio (the "Portfolio"). Under normal
circumstances, approximately 50% of the value of the Portfolio will consist of
emerging markets value stocks and 50% will consist of emerging markets growth
stocks. The Portfolio will be rebalanced as necessary to maintain this targeted
allocation. However, depending on market conditions, the actual weightings of
securities from each investment discipline may vary, normally from 45% to 55%.
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
Portfolio and its benchmark, the Morgan Stanley Capital International Emerging
Markets (MSCI EM) Index for the six- and 12-month periods ended September 30,
2005.
Performance in the emerging markets in both the six- and 12-month periods ended
September 30, 2005 was strong and broad-based, with every sector registering
sizeable positive returns in both periods. As a result, both the Portfolio and
its benchmark posted strong returns.
For the 12-month period ended September 30, 2005, the Portfolio outperformed its
benchmark, with large relative contributions coming from holdings in the
financial, consumer discretionary and materials sectors. The Portfolio
underperformed its benchmark during the most recent six-month period ending
September 30, 2005. Stock selection in the financial and industrials sectors was
the biggest contributor to relative performance, while picks in the energy and
materials sectors were among the biggest detractors. Due to the strong returns
achieved by the Portfolio during both periods, the modest transactional (i.e.,
idle) cash held in the Portfolio created a drag on relative performance in both
periods.
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 annual reporting period.
As noted above, the Portfolio's investment strategy was broadened to seek
investment opportunities using both the value-style and growth-style of
investing. Since the transition from an all value-style of investing to a blend
of value and growth was not yet completed as of September 30, 2005, the
Portfolio allocation between the two investment styles was approximately 58%
value-style and 42% growth-style as of the end of the reporting period.
Bernstein Intermediate Duration Portfolio and Bernstein Intermediate Duration
Institutional Portfolio
Investment Objective and Strategy
Bernstein Intermediate Duration and Bernstein Intermediate Duration
Institutional Portfolio (the "Portfolios") seek to
(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)
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 Bernstein Intermediate Duration Institutional Portfolios compared with their
benchmark, the Lehman Brothers (LB) Aggregate Bond Index, for the six- and
12-month periods ended September 30, 2005.
Both Portfolios outperformed their benchmark for both the six-and 12-month
periods ended September 30, 2005. Both Portfolios' shorter-than-benchmark
duration, with an underweight focused on the two- to five-year area of the yield
curve, was the primary contributor to their outperformance versus their
benchmark during both time frames. U.S. interest rates, particularly in the
short and intermediate area of the yield curve, rose as the Federal Reserve
tightened monetary policy at a measured pace.
For the annual period under review, the yield curve flattened by 189 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 156 basis points and 82 basis points, respectively. Ten-year
yields rose more modestly by 20 basis points while longer 30-year maturity
Treasuries actually declined by 32 basis points.
Also contributing positively to relative performance were the Portfolios'
holdings in hedged non-U.S. government bonds. The Portfolios' modest allocations
to high yield and emerging market debt, as well as a general underweight to U.S.
governments, also added to each Portfolio's premium.
Market Review and Investment Strategy
Investment-grade fixed income returns were moderate during the annual reporting
period reflecting generally higher interest rates, a significant flattening of
the yield curve, and modest spread movement in the non-Treasury sectors. The
U.S. Treasury market, as measured by the Lehman Brothers Treasury Index, posted
a return of 2.48% for the reporting period despite the headwinds of continued
rate increases by the Federal Reserve. Beginning in June 2004, the Federal
Reserve hiked the Fed Funds benchmark rate 12 times for a total of 300 basis
points, bringing the Fed Funds target from its all-time low of 1% to 4%. With
rates rising, Treasury Inflation-Protected Securities (TIPS) outperformed
conventional Treasuries at 3.84%, according to the Lehman Brothers 1-10 Year
TIPS Index. Non-U.S. dollar government bonds also outperformed as global bond
yields remained stable or actually declined. Hedged global bonds ex-U.S.,
returned 7.01%, according to JP Morgan, significantly outperforming their U.S.
counterparts.
Corporate securities continued to benefit from favorable liquidity, robust
investor demand and strong corporate earnings, returning 2.57% for the annual
period, according to Lehman Brothers. Corporate spreads remained relatively
stable, ending the year with an average spread of 88 basis points over
Treasuries. Most industries posted positive returns with airlines,
aerospace/defense and media/cable outperforming, while the automotive industry
underperformed.
Asset-backed securities and collateralized mortgage-backed securities (CMBS)
also posted modest returns of 1.88% and 1.94%, respectively, and outperformed
other benchmark sectors on a duration adjusted basis. Mortgage pass-through
securities returned 3.29%, benefiting from relatively low volatility and strong
foreign demand. The non-benchmark sectors continued to outperform, supported by
strong investor demand for yield. High yield corporate securities returned 6.71%
while emerging-market debt posted 14.96%, according to Lehman Brothers.
During the 12-month period ended September 30, 2005, the Portfolios remained
positioned for U.S. interest rates to rise. Accordingly, the management team
kept its Portfolios' overall duration shorter than that of the benchmark. Also,
each Portfolio was underweight in short and intermediate maturities to help
protect against the negative effect of rising short-term interest rates. As a
further buffer against rising U.S. interest rates, a portion of the Portfolios
was invested in hedged non-U.S. government bonds and inflation-protected
(Portfolio Manager Commentaries continued on next page)
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2005 Annual Report 3
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Portfolio Manager Commentaries (continued from previous page)
Treasuries. The Portfolios' underweight to U.S. Treasuries and agencies was
maintained while moderate overweight positions in CMBS were held. Exposure to
investment-grade credit was reduced to a modest underweight during the period.
Additionally, the Portfolios continued to have small positions in both high
yield and dollar-denominated emerging-market debt.
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.
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.
To the extent the Portfolio is invested in U.S. government and agency
securities, 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
The chart on page 10 shows performance for the Bernstein Short Duration Plus and
Bernstein U.S. Government Short Duration Portfolios compared with their
benchmark, the Merrill Lynch 1-3 Year Treasury Index, for the six- and 12-month
periods ended September 30, 2005.
The Bernstein U.S. Government Short Duration Portfolio marginally underperformed
its benchmark, while the Bernstein Short Duration Plus Portfolio outperformed
its benchmark for the 12-month period ended September 30, 2005. For the 12-month
period under review, yield curve structure was the largest positive contributor
to relative performance for both Portfolios. The duration of both Portfolios was
positioned shorter than that of the benchmark as expectations were for U.S.
interest rates to rise, particularly at the short end of the yield curve.
During the annual reporting period, the yield curve flattened by 189 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 156 basis points and 82 basis points, respectively. Ten-year
yields rose more modestly by 20 basis points while longer 30-year maturity
Treasuries actually declined by 32 basis points. The significant flattening of
the yield curve was spurred by prospects that the Federal Reserve would continue
to unwind its overly accommodative monetary policy.
Also contributing positively to both Portfolios' relative performance was their
exposure to non-U.S. Treasury holdings. Corporate securities, asset-backed
securities (ABS), collateralized mortgage-backed securities (CMBS) and mortgage
pass-throughs all posted positive excess returns over Treasuries.
Market Review and Investment Strategy
Investment-grade fixed-income returns were moderate during the annual reporting
period, reflecting generally higher interest rates, a significant flattening of
the yield curve, and modest spread movement in the non-Treasury sectors. The
U.S. Treasury market, as measured by the Merrill Lynch 1-3 Year Treasury Index,
posted a return of 0.98% for the 12-month period ended September 30, 2005
despite the headwinds of continued rate increases by the Federal Reserve.
Beginning in June 2004, the Federal Reserve hiked the Fed Funds benchmark rate
12 times for a total of 300 basis points, bringing the Fed Funds target from
(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)
its all-time low of 1% to 4%. With rates rising, inflation-protected Treasuries
(TIPS) outperformed conventional Treasuries at 3.84%, according to the Lehman
Brothers 1-10 Year TIPS Index.
Corporate securities continued to benefit from favorable liquidity, robust
investor demand and strong corporate earnings, returning 1.47% for the annual
period under review, according to the Merrill Lynch 1-3 Year Corporate Index.
Corporate spreads remained relatively stable with most industries posting
positive returns. By industry: airlines, aerospace/defense and media/cable
outperformed while the automotive industry underperformed. ABS and CMBS also
posted modest returns of 1.88% and 1.94%, respectively; however they
outperformed other benchmark sectors on a duration-adjusted basis, according to
Lehman Brothers. Mortgage pass-through securities, according to the Merrill
Lynch 0-3 Year (WAL) Index, returned 2.38%, benefiting from relatively low
volatility and strong demand from government-sponsored entities.
During the reporting period, the Portfolios remained positioned for U.S.
interest rates to rise. Accordingly, the Portfolios' management team kept both
Portfolios' overall duration shorter than that of the benchmark to help protect
against the negative effects of rising interest rates. As a further buffer
against rising U.S. interest rates, the management team continued to invest a
portion of the Portfolios in inflation-protected Treasuries and floating-rate
securities. Additionally, exposure to non-Treasury securities, including
structured product and mortgage pass-through securities, was maintained in both
Portfolios along with an allocation to corporate securities in the Bernstein
Short Duration Plus Portfolio. The management team believed 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 a 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 a 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, Bernstein Short
Duration New York Municipal and Bernstein 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.
(Portfolio Manager Commentaries continued on next page)
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2005 Annual Report 5
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Portfolio Manager Commentaries (continued from previous page)
Investment Results
The chart on page 10 shows performance for each of the Bernstein Short Duration
Portfolios compared to their benchmark, the Lehman Brothers (LB) 1-Year
Municipal Index, for the six- and 12-month periods ended September 30, 2005.
The Bernstein Short Duration California Portfolio and the Bernstein Short
Duration Diversified Portfolio marginally outperformed their benchmark and
Lipper composite during the six- and 12-month periods under review. The
Bernstein Short Duration California Portfolio modestly underperformed the
benchmark and composite during the same time frames. Security selection helped
all three Portfolios' performance during both periods under review. About a year
ago, the management team concluded that long-maturity, premium-coupon, callable
bonds were significantly undervalued. The management team established target
weights for the Portfolios of up to 5%. These bonds have performed relatively
well since then, as long-term yields have actually declined modestly while
short- and intermediate-term yields have risen. As a result, the yield advantage
of these bonds over comparable-duration intermediate bonds declined, and the
management team has been taking profits from the Portfolios' positions.
Returns by sector within the municipal market were generally in line with each
other, so there was limited opportunity to add value through credit research.
One exception was municipal tobacco-backed bonds, which strongly outperformed.
The management team has avoided this sector because of significant legal
challenges to the agreement underlying these bonds' security.
Market Review and Investment Strategy
Hurricane Katrina, which will likely go on record as the United States' most
severe and most costly natural disaster, is likely to lead, over the near term,
to higher energy prices, lower consumer spending and potentially weaker
employment on a national level. In the longer run, the federal government's
fiscal response to the hurricane should allow the U.S. economy to expand at a
healthy rate while increasing both inflation pressures and the federal budget
deficit. As such, we expect the U.S. Federal Reserve to prolong its
rate-tightening cycle into 2006. The Portfolios had very little exposure to the
region affected by the hurricane. Virtually all of the bonds that the Portfolios
held from the region were insured, pre-refunded or otherwise guaranteed. The
management team took advantage of opportunities to buy a small amount of
discounted bonds that were dumped into the market by investors nervous about the
impact of the hurricane.
The Portfolios' interest-rate risk remains modestly lower than that of the
benchmark as interest rates remain too low relative to the current rates of
inflation and economic growth, in the opinion of the management team. As a
result, all three of the Portfolios' small positions in long-maturity,
premium-coupon, callable bonds were sold during the summer and they are now in a
more concentrated maturity position. Such bonds performed well since the
management team started purchasing them a year ago, as long-term yields fell
while short- and intermediate-term yields rose. State of California bonds
continue to play a role in all three Portfolios. The management team has a
positive outlook on the credit quality of New York City and New York State. In
the case of New York City, the management team believes that there is room for
further spread narrowing.
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.
(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)
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 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, Bernstein
New York and Bernstein 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 September 30, 2005.
The Bernstein California Portfolio and the Bernstein New York Portfolio
outperformed their benchmark during the six- and 12-month periods under review.
The Bernstein Diversified Portfolio also outperformed the benchmark during the
12-month reporting period, but marginally trailed it during the six-month period
ended September 30, 2005. The returns of all three Portfolios were generally in
line with those of their Lipper composite and absolute returns were modestly
positive for both the six- and 12-month periods ended September 30, 2005.
Security selection helped the Portfolios' performance during both periods under
review. About a year ago, the management team concluded that long-maturity,
premium-coupon, callable bonds were significantly undervalued. The management
team established target weights for the Portfolios of up to 18%. These bonds
have performed relatively well since then, as long-term yields have actually
declined modestly while short- and intermediate-term yields have risen. As a
result, the yield advantage of these bonds over comparable-duration intermediate
bonds declined, and the management team has been taking profits from the
Portfolios' positions.
Returns by sector within the municipal market were generally in line with each
other, so there was limited opportunity to add value through credit research.
One exception was municipal tobacco-backed bonds, which strongly outperformed.
The management team has avoided this sector because of significant legal
challenges to the agreement underlying these bonds' security.
Market Review and Investment Strategy
Hurricane Katrina, which will likely go on record as the United States' most
severe and most costly natural disaster, is likely to lead, over the near term,
to higher energy prices, lower consumer spending and potentially weaker
employment on a national level. In the longer run, the federal government's
fiscal response to the hurricane should allow the U.S. economy to expand at a
healthy rate while increasing both inflation pressures and the federal budget
deficit. As such, we expect the U.S. Federal Reserve to prolong its
rate-tightening cycle into 2006. The Portfolios had very little exposure to the
region affected by the hurricane. Virtually all of the bonds that the Portfolios
held from the region were insured, pre-refunded or otherwise guaranteed. The
management team took advantage of opportunities to buy a small amount of
discounted bonds that were dumped into the market by investors nervous about the
impact of the hurricane.
The Portfolios' interest-rate risk remains modestly lower than that of the
benchmark as interest rates remain too low relative to the current rates of
inflation and economic growth, in the opinion of the management team. As a
result, the Portfolios' positions in long-maturity, premium-coupon, callable
bonds are being reduced. Such bonds performed well since the management team
started purchasing them a year ago, as long-term yields fell while short- and
intermediate-term yields rose. State of California bonds continue to play a role
in all three Portfolios. The management team has a positive outlook on the
credit quality of New York City and New York State. In the case of New York
City, the management team believes that there is room for further spread
narrowing.
(Portfolio Manager Commentaries concluded)
- --------------------------------------------------------------------------------
2005 Annual 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 Funds' 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 Bernstein Emerging Markets 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 Bernstein Emerging Markets
Portfolio. Bernstein Tax-Managed International Portfolio, Bernstein
International Portfolio and Bernstein Emerging Markets Portfolio returns
throughout this report include dividends net of withholding taxes. On April 30,
1999, the Bernstein International Value Portfolio (IVP) was split into two
portfolios: Bernstein International Value II (now known as International) for
tax-exempt investors such as 401(k) and other retirement plans; and Bernstein
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 10-11 reflect the performance of the Bernstein
Tax-Managed International Portfolio and the Bernstein International Portfolio
using an all-value investment style through August 2003. In September 2003, the
investment style of each of the Bernstein International Portfolios changed from
all value to a blend of growth and value. In May 2005, the investment style of
the Bernstein Emerging Markets Portfolio 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 pass-through 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
(Historical Performance continued on next page)
- --------------------------------------------------------------------------------
8 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Historical Performance (continued from previous page)
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.
A Word About Risk
Bernstein 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.
Bernstein Emerging Markets 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, accounting differences
and political instability 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. Because the
Portfolio allocates between "growth" and "value" stocks, an investment in the
Portfolio is subject to the risk that this allocation will result in lower
returns when one style is outperforming another than if the Portfolio had
invested entirely in the outperforming style. In addition, the transaction costs
associated with the systematic rebalancing of the Portfolio may be significant
over time.
Bernstein Intermediate Duration, Bernstein Short Duration Plus, Bernstein U.S.
Government Short Duration, Bernstein Short Duration Diversified Municipal,
Bernstein Diversified Municipal, Bernstein Short Duration California Municipal,
Bernstein Short Duration New York Municipal, Bernstein California Municipal and
Bernstein 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. High
yield bonds involve a greater risk of default and price volatility than other
bonds. Investing in non-investment grade securities presents special risks,
including credit risk.
Bernstein Intermediate Duration, Bernstein Short Duration Plus, Bernstein Short
Duration Diversified Municipal and Bernstein 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.
Bernstein Short Duration California Municipal, Bernstein Short Duration New York
Municipal, Bernstein California Municipal and Bernstein 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 Bernstein 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)
- --------------------------------------------------------------------------------
2005 Annual Report 9
================================================================================
Historical Performance (unaudited) (continued from previous page)
TOTAL RETURNS AVERAGE ANNUAL TOTAL RETURNS
-------------------- ------------------------------------
PAST SIX PAST 12 PAST PAST SINCE INCEPTION
THROUGH SEPTEMBER 30, 2005 MONTHS MONTHS FIVE YEARS 10 YEARS INCEPTION DATE
===================================================================================================================================
SANFORD C. BERNSTEIN FUND PORTFOLIOS VS. THEIR BENCHMARKS AND LIPPER COMPOSITES
- -----------------------------------------------------------------------------------------------------------------------------------
Tax-Managed International 9.87% 23.62% 7.48% 9.45% 9.67% June 22, 1992
Pre-liquidation, after-tax 9.87 23.44 6.78 8.07 8.45
Post-liquidation, after-tax 6.41 15.96 6.17 7.52 7.91
- -----------------------------------------------------------------------------------------------------------------------------------
International 10.08 23.90 7.70 -- 6.97 April 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 9.26 25.79 3.16 5.83
- -----------------------------------------------------------------------------------------------------------------------------------
International Large-Cap Core Lipper Composite 9.51 24.09 0.48 5.79
Emerging Markets December 15, 1995
Before deduction of purchase and
redemption fees 21.27 53.35 22.43 -- 9.70
After deduction of purchase and
redemption fees* 17.65 48.78 21.69 -- 9.36
- -----------------------------------------------------------------------------------------------------------------------------------
MSCI Emerging Markets Index 23.12 47.18 14.47 6.10
- -----------------------------------------------------------------------------------------------------------------------------------
Lipper Emerging Markets Index 22.68 45.83 14.51 --
- -----------------------------------------------------------------------------------------------------------------------------------
International Large-Cap Core Lipper Composite 9.51 24.09 0.48 5.79
Intermediate Duration 2.45 3.35 5.73 5.72 7.15 January 17, 1989
- -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 2.31 2.80 6.62 6.55
- -----------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Lipper Composite 1.98 2.35 5.75 5.61
Short Duration Plus 1.16 1.10 3.97 4.68 5.75 December 12, 1988
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. Government Short Duration 0.96 0.90 3.74 4.40 5.45 January 3, 1989
- -----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch 1-3 Year Treasury Index 1.23 0.98 4.08 4.98
- -----------------------------------------------------------------------------------------------------------------------------------
Short-Term Bond Lipper Composite 1.26 1.31 3.70 4.52
Short Duration Diversified Municipal 1.31 1.36 2.85 3.28 3.48 October 3, 1994
- -----------------------------------------------------------------------------------------------------------------------------------
Short Duration California Municipal 1.09 1.11 2.30 2.96 3.20 October 3, 1994
- -----------------------------------------------------------------------------------------------------------------------------------
Short Duration New York Municipal 1.30 1.37 2.62 3.07 3.27 October 3, 1994
- -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 1-Year Muni Index 1.14 1.16 3.02 3.67
- -----------------------------------------------------------------------------------------------------------------------------------
Short-Term Municipal Lipper Composite 1.11 1.13 2.82 3.36
Diversified Municipal 1.80 1.62 4.53 4.57 5.50 January 9, 1989
- -----------------------------------------------------------------------------------------------------------------------------------
California Municipal 1.93 2.09 4.10 4.42 5.25 August 6, 1990
- -----------------------------------------------------------------------------------------------------------------------------------
New York Municipal 2.06 1.90 4.53 4.56 5.55 January 9, 1989
- -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 5-Year GO Muni Index 1.83 1.51 5.08 4.97
Intermediate Municipal Lipper Composite 1.97 1.76 4.79 4.61
SANFORD C. BERNSTEIN FUND II PORTFOLIO VS. ITS BENCHMARK AND LIPPER COMPOSITE
Intermediate Duration Institutional 2.45% 3.41% -- -- 5.42% May 17, 2002
- -----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index 2.31 2.80 6.62% 6.55%
- -----------------------------------------------------------------------------------------------------------------------------------
Intermediate Bond Lipper Composite 1.98 2.35 5.75 5.61
* Prior to May 2, 2005, the Portfolio imposed a 2% fee on purchases and
redemptions. Effective May 2, 2005, the fees were reduced from 2% to 1%.
The fees are retained by the Portfolio, not paid to Bernstein.
See Historical Performance and Benchmark Disclosures on pages 8-9.
(Historical Performance continued on next page)
- --------------------------------------------------------------------------------
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
[GRAPHIC OMITTED]
[The following table was represented as a line graph in the printed material.]
Tax Managed MSCI EAFE Foreign Lipper
International Stock-Market Index International
Yr:Month (after all costs) (before all costs) Large-Cap Core
-------- ------------------- ------------------ ---------------
'95:9 $25,000 $25,000 $25,000
10 $24,815 $24,328 $24,560
11 $24,896 $25,005 $24,808
12 $25,933 $26,012 $25,525
96:1 $27,002 $26,119 $26,046
2 $26,955 $26,207 $26,199
3 $27,434 $26,764 $26,645
4 $28,535 $27,542 $27,463
5 $28,583 $27,035 $27,466
6 $28,903 $27,187 $27,699
7 $27,801 $26,393 $26,663
8 $27,913 $26,451 $27,018
9 $28,967 $27,153 $27,620
10 $28,935 $26,875 $27,496
11 $30,180 $27,945 $28,805
12 $30,463 $27,585 $28,960
97:1 $30,446 $26,620 $28,870
2 $30,872 $27,055 $29,312
3 $31,538 $27,153 $29,415
4 $31,743 $27,297 $29,535
5 $32,767 $29,074 $31,352
6 $34,183 $30,677 $32,844
7 $35,941 $31,173 $33,833
8 $33,688 $28,845 $31,336
9 $35,702 $30,461 $33,329
10 $33,859 $28,120 $30,769
11 $33,483 $27,833 $30,594
12 $33,286 $28,076 $30,866
98:1 $35,126 $29,360 $31,659
2 $36,610 $31,244 $33,803
3 $39,484 $32,206 $35,473
4 $39,259 $32,461 $36,012
5 $40,442 $32,303 $36,048
6 $40,273 $32,548 $35,785
7 $40,893 $32,878 $36,303
8 $34,807 $28,804 $31,098
9 $33,135 $27,921 $30,065
10 $34,657 $30,832 $32,428
11 $36,667 $32,411 $34,150
12 $36,932 $33,690 $35,175
99:1 $36,994 $33,591 $35,519
2 $36,019 $32,790 $34,695
3 $38,279 $34,159 $35,944
4 $40,291 $35,543 $37,529
5 $39,358 $33,712 $35,991
6 $40,871 $35,027 $37,772
7 $41,473 $36,068 $38,732
8 $41,950 $36,200 $39,014
9 $41,535 $36,564 $39,217
10 $41,867 $37,933 $40,692
11 $42,344 $39,251 $43,561
12 $45,319 $42,774 $48,805
00:1 $42,647 $40,056 $45,901
2 $43,215 $41,135 $48,302
3 $44,582 $42,729 $49,036
4 $43,552 $40,481 $46,212
5 $43,531 $39,492 $44,853
6 $45,487 $41,037 $46,742
7 $44,456 $39,316 $45,012
8 $44,898 $39,657 $45,584
9 $42,983 $37,726 $42,858
10 $42,521 $36,835 $41,431
11 $41,826 $35,454 $39,691
12 $43,109 $36,714 $41,028
01:1 $43,948 $36,695 $41,188
2 $42,340 $33,944 $37,980
3 $40,103 $31,681 $35,237
4 $42,829 $33,883 $37,708
5 $41,711 $32,687 $36,463
6 $41,501 $31,350 $35,100
7 $40,476 $30,780 $34,183
8 $40,243 $30,000 $33,223
9 $35,466 $26,961 $29,811
10 $36,724 $27,652 $30,610
11 $37,237 $28,671 $31,779
12 $37,711 $28,842 $32,230
02:1 $36,596 $27,309 $30,664
2 $37,213 $27,501 $30,833
3 $39,395 $28,988 $32,399
4 $40,439 $29,180 $32,493
5 $41,625 $29,550 $32,714
6 $39,822 $28,374 $31,464
7 $36,004 $25,573 $28,280
8 $35,695 $25,515 $28,150
9 $31,070 $22,775 $25,048
10 $32,754 $23,999 $26,508
11 $35,102 $25,088 $27,664
12 $34,502 $24,244 $26,640
03:1 $33,612 $23,232 $25,409
2 $33,372 $22,699 $24,739
3 $31,929 $22,253 $24,256
4 $36,377 $24,434 $26,471
5 $38,757 $25,914 $27,935
6 $39,767 $26,541 $28,443
7 $40,801 $27,183 $28,992
8 $41,498 $27,840 $29,560
9 $42,147 $28,698 $30,146
10 $44,383 $30,487 $31,816
11 $45,105 $31,164 $32,525
12 $47,898 $33,599 $34,860
04:01 $48,215 $34,074 $35,408
2 $48,850 $34,861 $36,077
3 $49,217 $35,057 $35,994
4 $48,362 $34,264 $35,004
5 $48,386 $34,379 $35,032
6 $49,192 $35,132 $35,666
7 $47,702 $33,992 $34,363
8 $48,362 $34,142 $34,517
9 $49,876 $35,035 $35,369
10 $50,951 $36,229 $36,506
11 $53,882 $38,704 $38,755
12 $56,318 $40,402 $40,388
05:01 $55,171 $39,661 $39,490
2 $57,590 $41,374 $41,179
3 $56,118 $40,335 $40,078
4 $54,447 $39,387 $39,193
5 $54,472 $39,406 $39,161
6 $55,245 $39,929 $39,673
7 $57,291 $41,153 $40,988
8 $59,286 $42,192 $42,324
9 $61,655 $44,072 $43,890
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[The following table was represented as a line graph in the printed material.]
MSCI EAFE Foreign Lipper
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
04:1 $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
05:1 $34,398 $27,896 $26,306
2 $35,921 $29,102 $27,431
3 $34,994 $28,371 $26,698
4 $33,968 $27,704 $26,108
5 $33,968 $27,717 $26,087
6 $34,464 $28,085 $26,428
7 $35,706 $28,946 $27,304
8 $37,014 $29,677 $28,194
9 $38,520 $30,999 $29,237
- --------------------------------------------------------------------------------
Emerging Markets
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[The following table was represented as a line graph in the printed material.]
Emerging Markets
(after deduction MSCI Emerging
of purchase and Markets Index Lipper Emerging
Yr:Month redemption fees+ (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 $48,861 $37,204 $38,438
4 $47,847 $36,212 $37,498
5 $48,875 $37,487 $38,658
6 $49,958 $38,781 $39,941
7 $53,687 $41,525 $42,698
8 $54,907 $41,899 $43,362
9 $58,661 $45,806 $47,156
Taxable Bond Portfolios
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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
-------- ----------------- -------------------- -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,397 $25,325 $25,310
11 $25,755 $25,704 $25,664
12 $26,161 $26,065 $25,990
96:1 $26,255 $26,238 $26,162
2 $25,743 $25,782 $25,714
3 $25,597 $25,603 $25,540
4 $25,490 $25,459 $25,384
5 $25,477 $25,407 $25,338
6 $25,751 $25,748 $25,627
7 $25,847 $25,819 $25,686
8 $25,853 $25,776 $25,665
9 $26,264 $26,225 $26,084
10 $26,799 $26,806 $26,611
11 $27,306 $27,265 $27,060
12 $27,098 $27,011 $26,822
97:1 $27,129 $27,094 $26,900
2 $27,185 $27,162 $26,954
3 $26,897 $26,861 $26,671
4 $27,247 $27,263 $27,017
5 $27,453 $27,520 $27,250
6 $27,783 $27,847 $27,552
7 $28,350 $28,598 $28,260
8 $28,211 $28,354 $28,012
9 $28,539 $28,772 $28,401
10 $28,926 $29,190 $28,736
11 $29,006 $29,324 $28,817
12 $29,173 $29,619 $29,076
98:1 $29,513 $30,000 $29,451
2 $29,513 $29,977 $29,410
3 $29,610 $30,080 $29,513
4 $29,725 $30,237 $29,640
5 $29,994 $30,524 $29,903
6 $30,141 $30,783 $30,119
7 $30,260 $30,848 $30,176
8 $30,559 $31,350 $30,544
9 $30,990 $32,084 $31,219
10 $30,741 $31,915 $30,991
11 $31,055 $32,096 $31,134
12 $31,177 $32,192 $31,237
99:1 $31,479 $32,422 $31,436
2 $31,023 $31,856 $30,852
3 $31,263 $32,033 $31,074
4 $31,391 $32,134 $31,167
5 $31,272 $31,855 $30,843
6 $31,196 $31,751 $30,729
7 $31,048 $31,616 $30,624
8 $30,983 $31,600 $30,575
9 $31,312 $31,967 $30,881
10 $31,364 $32,085 $30,921
11 $31,413 $32,082 $30,946
12 $31,378 $31,928 $30,813
00:1 $31,267 $31,823 $30,699
2 $31,588 $32,208 $30,997
3 $31,911 $32,632 $31,353
4 $31,690 $32,539 $31,181
5 $31,523 $32,524 $31,118
6 $32,181 $33,201 $31,747
7 $32,411 $33,502 $31,991
8 $32,781 $33,988 $32,407
9 $32,992 $34,201 $32,615
10 $32,885 $34,428 $32,686
11 $33,286 $34,990 $33,147
12 $34,004 $35,640 $33,777
01:1 $34,665 $36,222 $34,341
2 $34,826 $36,538 $34,647
3 $34,949 $36,721 $34,799
4 $34,749 $36,569 $34,611
5 $34,984 $36,790 $34,805
6 $35,018 $36,929 $34,910
7 $35,645 $37,754 $35,685
8 $35,990 $38,187 $36,045
9 $36,224 $38,631 $36,351
10 $36,946 $39,440 $37,017
11 $36,614 $38,896 $36,565
12 $36,448 $38,649 $36,320
02:1 $36,680 $38,962 $36,545
2 $36,824 $39,340 $36,830
3 $36,255 $38,685 $36,248
4 $36,649 $39,435 $36,847
5 $37,002 $39,770 $37,134
6 $36,828 $40,114 $37,223
7 $37,063 $40,598 $37,454
8 $37,768 $41,284 $38,083
9 $38,211 $41,952 $38,582
10 $38,110 $41,761 $38,377
11 $38,349 $41,750 $38,466
12 $39,057 $42,613 $39,233
03:1 $39,130 $42,649 $39,288
2 $39,653 $43,239 $39,827
3 $39,647 $43,206 $39,820
4 $40,151 $43,562 $40,218
5 $40,847 $44,374 $40,954
6 $40,714 $44,286 $40,904
7 $39,315 $42,798 $39,581
8 $39,697 $43,082 $39,824
9 $40,654 $44,222 $40,837
10 $40,426 $43,810 $40,515
11 $40,575 $43,915 $40,620
12 $41,047 $44,361 $41,007
04:01 $41,376 $44,718 $41,309
2 $41,750 $45,202 $41,683
3 $42,034 $45,541 $41,977
4 $41,055 $44,356 $40,985
5 $40,842 $44,178 $40,787
6 $41,038 $44,428 $40,970
7 $41,389 $44,868 $41,330
8 $42,042 $45,724 $42,035
9 $42,174 $45,848 $42,146
10 $42,571 $46,233 $42,468
11 $42,330 $45,864 $42,208
12 $42,718 $46,286 $42,558
05:01 $42,982 $46,577 $42,749
2 $42,820 $46,302 $42,559
3 $42,543 $46,064 $42,299
4 $42,984 $46,687 $42,784
5 $43,440 $47,193 $43,177
6 $43,691 $47,450 $43,402
7 $43,419 $47,018 $43,074
8 $43,893 $47,621 $43,558
9 $43,585 $47,130 $43,135
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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: 9 $25,000 $25,000 $25,000
10 $25,224 $25,203 $25,211
11 $25,405 $25,417 $25,434
12 $25,630 $25,618 $25,629
96:1 $25,771 $25,810 $25,847
2 $25,680 $25,712 $25,738
3 $25,672 $25,688 $25,715
4 $25,724 $25,699 $25,736
5 $25,775 $25,740 $25,789
6 $25,922 $25,917 $25,974
7 $26,046 $26,016 $26,077
8 $26,160 $26,094 $26,166
9 $26,384 $26,329 $26,403
10 $26,698 $26,600 $26,701
11 $26,875 $26,810 $26,905
12 $26,857 $26,810 $26,905
97:1 $27,005 $26,928 $27,031
2 $27,077 $27,006 $27,094
3 $27,070 $26,976 $27,083
4 $27,257 $27,182 $27,304
5 $27,422 $27,366 $27,491
6 $27,590 $27,544 $27,680
7 $27,800 $27,844 $27,984
8 $27,867 $27,858 $28,010
9 $28,022 $28,062 $28,223
10 $28,191 $28,219 $28,432
11 $28,264 $28,284 $28,501
12 $28,345 $28,445 $28,696
98:1 $28,596 $28,692 $28,975
2 $28,635 $28,724 $29,000
3 $28,700 $28,833 $29,118
4 $28,827 $28,960 $29,254
5 $28,950 $29,111 $29,410
6 $29,064 $29,239 $29,563
7 $29,220 $29,359 $29,701
8 $29,420 $29,558 $30,074
9 $29,732 $29,907 $30,473
10 $29,765 $29,892 $30,622
11 $29,869 $29,955 $30,596
12 $30,026 $30,066 $30,704
99:1 $30,167 $30,201 $30,825
2 $30,069 $30,071 $30,675
3 $30,290 $30,297 $30,888
4 $30,400 $30,409 $30,988
5 $30,454 $30,351 $30,968
6 $30,552 $30,400 $31,064
7 $30,633 $30,427 $31,163
8 $30,698 $30,476 $31,253
9 $30,869 $30,692 $31,456
10 $30,954 $30,766 $31,540
11 $31,063 $30,855 $31,599
12 $31,161 $30,904 $31,645
00:1 $31,154 $30,895 $31,633
2 $31,328 $31,093 $31,844
3 $31,480 $31,270 $32,041
4 $31,495 $31,282 $32,124
5 $31,590 $31,364 $32,256
6 $31,930 $31,724 $32,591
7 $32,067 $31,915 $32,797
8 $32,284 $32,164 $33,039
9 $32,526 $32,427 $33,277
10 $32,506 $32,515 $33,455
11 $32,753 $32,791 $33,772
12 $33,130 $33,175 $34,175
01:1 $33,560 $33,620 $34,603
2 $33,740 $33,835 $34,828
3 $34,024 $34,068 $35,118
4 $34,124 $34,143 $35,212
5 $34,354 $34,345 $35,411
6 $34,494 $34,468 $35,531
7 $34,892 $34,899 $35,930
8 $35,155 $35,102 $36,137
9 $35,582 $35,456 $36,732
10 $35,967 $35,740 $37,079
11 $35,846 $35,579 $36,999
12 $35,896 $35,533 $37,012
02:1 $36,023 $35,636 $37,087
2 $36,068 $35,743 $37,266
3 $35,912 $35,539 $37,014
4 $36,187 $35,823 $37,428
5 $36,377 $36,020 $37,578
6 $36,585 $36,067 $37,893
7 $36,853 $36,208 $38,356
8 $36,976 $36,436 $38,488
9 $37,282 $36,677 $38,806
10 $37,280 $36,694 $38,894
11 $37,359 $36,721 $38,777
12 $37,724 $37,079 $39,142
03:1 $37,777 $37,142 $39,137
2 $37,993 $37,359 $39,300
3 $38,026 $37,409 $39,372
4 $38,177 $37,564 $39,445
5 $38,389 $37,800 $39,593
6 $38,440 $37,861 $39,654
7 $38,185 $37,495 $39,438
8 $38,226 $37,532 $39,464
9 $38,558 $37,932 $39,823
10 $38,456 $37,805 $39,675
11 $38,501 $37,811 $39,654
12 $38,693 $38,006 $39,884
04:01 $38,815 $38,116 $39,965
2 $38,992 $38,291 $40,156
3 $39,145 $38,416 $40,282
4 $38,750 $38,046 $39,894
5 $38,645 $37,973 $39,857
6 $38,694 $37,996 $39,853
7 $38,830 $38,135 $39,998
8 $39,062 $38,378 $40,274
9 $39,085 $38,385 $40,239
10 $39,205 $38,499 $40,362
11 $39,080 $38,393 $40,162
12 $39,182 $38,490 $40,246
05:01 $39,222 $38,488 $40,232
2 $39,140 $38,454 $40,140
3 $39,061 $38,402 $40,143
4 $39,265 $38,584 $40,368
5 $39,372 $38,715 $40,520
6 $39,450 $38,815 $40,599
7 $39,376 $38,743 $40,484
8 $39,589 $38,953 $40,736
9 $39,515 $38,886 $40,635
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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)
-------- ----------------- -------------------- -------------------
95:9 $25,000 $25,000 $25,000
10 $25,195 $25,223 $25,211
11 $25,384 $25,465 $25,434
12 $25,560 $25,676 $25,629
96:1 $25,693 $25,861 $25,847
2 $25,617 $25,742 $25,738
3 $25,626 $25,711 $25,715
4 $25,612 $25,716 $25,736
5 $25,642 $25,747 $25,789
6 $25,805 $25,920 $25,974
7 $25,903 $26,005 $26,077
8 $25,992 $26,075 $26,166
9 $26,191 $26,300 $26,403
10 $26,476 $26,576 $26,701
11 $26,651 $26,780 $26,905
12 $26,605 $26,772 $26,905
97:1 $26,747 $26,898 $27,031
2 $26,815 $26,968 $27,094
3 $26,809 $26,919 $27,083
4 $26,993 $27,116 $27,304
5 $27,157 $27,276 $27,491
6 $27,325 $27,421 $27,680
7 $27,533 $27,706 $27,984
8 $27,580 $27,717 $28,010
9 $27,730 $27,908 $28,223
10 $27,920 $28,103 $28,432
11 $27,970 $28,165 $28,501
12 $28,107 $28,303 $28,696
98:1 $28,310 $28,544 $28,975
2 $28,344 $28,564 $29,000
3 $28,429 $28,658 $29,118
4 $28,531 $28,770 $29,254
5 $28,650 $28,917 $29,410
6 $28,779 $29,044 $29,563
7 $28,927 $29,160 $29,701
8 $29,166 $29,457 $30,074
9 $29,491 $29,817 $30,473
10 $29,578 $29,867 $30,622
11 $29,599 $29,861 $30,596
12 $29,668 $29,948 $30,704
99:1 $29,780 $30,092 $30,825
2 $29,690 $29,974 $30,675
3 $29,888 $30,151 $30,888
4 $30,000 $30,269 $30,988
5 $29,989 $30,242 $30,968
6 $30,064 $30,251 $31,064
7 $30,144 $30,290 $31,163
8 $30,207 $30,345 $31,253
9 $30,395 $30,536 $31,456
10 $30,480 $30,615 $31,540
11 $30,557 $30,695 $31,599
12 $30,583 $30,704 $31,645
00:1 $30,583 $30,725 $31,633
2 $30,756 $30,901 $31,844
3 $30,909 $31,145 $32,041
4 $31,029 $31,257 $32,124
5 $31,120 $31,310 $32,256
6 $31,399 $31,623 $32,591
7 $31,558 $31,810 $32,797
8 $31,793 $32,045 $33,039
9 $32,005 $32,276 $33,277
10 $32,164 $32,460 $33,455
11 $32,456 $32,778 $33,772
12 $32,827 $33,119 $34,175
01:1 $33,226 $33,543 $34,603
2 $33,408 $33,798 $34,828
3 $33,613 $34,014 $35,118
4 $33,691 $34,109 $35,212
5 $33,847 $34,307 $35,411
6 $33,918 $34,400 $35,531
7 $34,291 $34,764 $35,930
8 $34,548 $34,952 $36,137
9 $35,083 $35,410 $36,732
10 $35,418 $35,718 $37,079
11 $35,292 $35,586 $36,999
12 $35,305 $35,550 $37,012
02:1 $35,396 $35,660 $37,087
2 $35,572 $35,839 $37,266
3 $35,392 $35,631 $37,014
4 $35,757 $35,976 $37,428
5 $35,884 $36,131 $37,578
6 $36,138 $36,355 $37,893
7 $36,534 $36,700 $38,356
8 $36,682 $36,855 $38,488
9 $36,985 $37,090 $38,806
10 $37,045 $37,146 $38,894
11 $36,936 $37,060 $38,777
12 $37,296 $37,364 $39,142
03:1 $37,328 $37,374 $39,137
2 $37,490 $37,541 $39,300
3 $37,502 $37,563 $39,372
4 $37,601 $37,636 $39,445
5 $37,786 $37,752 $39,593
6 $37,791 $37,771 $39,654
7 $37,486 $37,487 $39,438
8 $37,470 $37,497 $39,464
9 $37,760 $37,795 $39,823
10 $37,657 $37,667 $39,675
11 $37,671 $37,665 $39,654
12 $37,833 $37,834 $39,884
04:01 $37,913 $37,910 $39,965
2 $38,104 $38,064 $40,156
3 $38,242 $38,153 $40,282
4 $37,848 $37,820 $39,894
5 $37,738 $37,717 $39,857
6 $37,750 $37,735 $39,853
7 $37,910 $37,868 $39,998
8 $38,096 $38,094 $40,274
9 $38,109 $38,061 $40,239
10 $38,244 $38,165 $40,362
11 $38,108 $38,035 $40,162
12 $38,188 $38,114 $40,246
05:01 $38,212 $38,117 $40,232
2 $38,148 $38,046 $40,140
3 $38,087 $38,016 $40,143
4 $38,267 $38,196 $40,368
5 $38,385 $38,341 $40,520
6 $38,446 $38,417 $40,599
7 $38,358 $38,327 $40,484
8 $38,545 $38,529 $40,736
9 $38,452 $38,452 $40,635
Each chart shows the growth of $25,000 for the 10-year period ending
September 30, 2005, or if the Portfolio's inception date is less than 10
years ago, growth is shown from the first full month after its inception
date.
* Portfolio, benchmark and Lipper returns are from the close of business on
September 30, 1995 (except Emerging Markets Portfolio which is from
December 31, 1995 and International Portfolio which is from April 30,
1999) through the close of business on September 30, 2005.
+ Reflects the growth of $25,000 in the Portfolio after deduction of the
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 redemption fee payable on closing out an investment in
the Portfolio. Before purchase and redemption charges and excluding these
fees, an investment of $25,000 in this Portfolio would have increased to
$60,462. The purchase fee is taken out of the first month's return and the
redemption fee is taken out of the last month's return. Prior to May 2,
2005, the Portfolio imposed a 2% fee on purchases and redemptions.
Effective May 2, 2005, the fees were reduced from 2% to 1%. The fees are
retained by the Portfolio, not paid to Bernstein.
See Historical Performance and Benchmark Disclosures on pages 8-9.
(Historical Performance continued on next page)
- --------------------------------------------------------------------------------
2005 Annual Report 11
================================================================================
Historical Performance (continued from previous page)
Sanford C. Bernstein Fund, Inc.
Municipal Bond Portfolios (Intermediate and Short Duration)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Short Duration Diversified Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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
-------- --------------------- ------------------------ -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,107 $25,102 $25,120
11 $25,237 $25,221 $25,271
12 $25,324 $25,316 $25,379
96:1 $25,452 $25,461 $25,532
2 $25,486 $25,523 $25,562
3 $25,476 $25,540 $25,514
4 $25,507 $25,600 $25,542
5 $25,571 $25,664 $25,598
6 $25,651 $25,790 $25,690
7 $25,760 $25,898 $25,808
8 $25,796 $25,949 $25,865
9 $25,919 $26,066 $25,992
10 $26,018 $26,199 $26,135
11 $26,177 $26,358 $26,297
12 $26,224 $26,415 $26,339
97:1 $26,346 $26,567 $26,431
2 $26,410 $26,652 $26,545
3 $26,385 $26,639 $26,476
4 $26,466 $26,746 $26,566
5 $26,604 $26,881 $26,728
6 $26,708 $26,988 $26,864
7 $26,832 $27,153 $27,082
8 $26,867 $27,188 $27,082
9 $27,001 $27,328 $27,266
10 $27,083 $27,433 $27,364
11 $27,141 $27,517 $27,446
12 $27,262 $27,641 $27,594
98:1 $27,385 $27,785 $27,735
2 $27,470 $27,881 $27,802
3 $27,531 $27,962 $27,860
4 $27,571 $27,995 $27,860
5 $27,691 $28,141 $28,033
6 $27,754 $28,245 $28,128
7 $27,856 $28,342 $28,218
8 $27,983 $28,512 $28,421
9 $28,087 $28,649 $28,569
10 $28,186 $28,784 $28,666
11 $28,268 $28,870 $28,721
12 $28,336 $28,951 $28,815
99:1 $28,479 $29,113 $28,971
2 $28,581 $29,218 $28,974
3 $28,620 $29,242 $29,014
4 $28,677 $29,309 $29,087
5 $28,723 $29,367 $29,099
6 $28,719 $29,340 $28,997
7 $28,790 $29,446 $29,090
8 $28,823 $29,518 $29,092
9 $28,903 $29,617 $29,162
10 $28,932 $29,682 $29,171
11 $29,044 $29,773 $29,270
12 $29,064 $29,798 $29,273
00:1 $29,152 $29,911 $29,291
2 $29,221 $30,002 $29,399
3 $29,339 $30,132 $29,540
4 $29,383 $30,204 $29,570
5 $29,417 $30,253 $29,602
6 $29,652 $30,501 $29,845
7 $29,798 $30,672 $30,027
8 $29,942 $30,829 $30,186
9 $29,994 $30,897 $30,256
10 $30,114 $31,044 $30,383
11 $30,208 $31,161 $30,486
12 $30,426 $31,393 $30,733
01:1 $30,697 $31,765 $30,991
2 $30,798 $31,870 $31,103
3 $30,939 $32,035 $31,261
4 $30,991 $32,096 $31,283
5 $31,185 $32,324 $31,483
6 $31,278 $32,450 $31,609
7 $31,450 $32,593 $31,783
8 $31,644 $32,788 $31,999
9 $31,787 $32,949 $32,089
10 $31,929 $33,092 $32,224
11 $31,918 $33,123 $32,166
12 $31,981 $33,205 $32,191
02:1 $32,214 $33,474 $32,375
2 $32,373 $33,595 $32,530
3 $32,120 $33,360 $32,316
4 $32,378 $33,614 $32,571
5 $32,537 $33,762 $32,688
6 $32,736 $33,927 $32,861
7 $32,860 $34,052 $33,006
8 $32,934 $34,165 $33,135
9 $32,999 $34,242 $33,270
10 $32,911 $34,191 $33,129
11 $33,010 $34,266 $33,191
12 $33,162 $34,484 $33,444
03:1 $33,237 $34,564 $33,500
2 $33,334 $34,650 $33,664
3 $33,343 $34,650 $33,625
4 $33,381 $34,691 $33,701
5 $33,549 $34,802 $33,915
6 $33,530 $34,847 $33,913
7 $33,375 $34,833 $33,703
8 $33,432 $34,878 $33,790
9 $33,649 $35,042 $34,067
10 $33,654 $35,003 $34,020
11 $33,706 $35,037 $34,081
12 $33,779 $35,075 $34,125
04:01 $33,859 $35,150 $34,204
2 $33,935 $35,275 $34,366
3 $33,930 $35,279 $34,296
4 $33,823 $35,195 $34,065
5 $33,761 $35,139 $34,008
6 $33,810 $35,173 $34,038
7 $33,940 $35,311 $34,177
8 $34,064 $35,461 $34,371
9 $34,057 $35,439 $34,388
10 $34,104 $35,439 $34,433
11 $34,045 $35,394 $34,351
12 $34,149 $35,449 $34,459
05:01 $34,177 $35,477 $34,448
2 $34,122 $35,472 $34,438
3 $34,074 $35,444 $34,394
4 $34,219 $35,512 $34,485
5 $34,255 $35,557 $34,532
6 $34,372 $35,704 $34,647
7 $34,383 $35,725 $34,664
8 $34,477 $35,784 $34,738
9 $34,520 $35,849 $34,776
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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
-------- --------------------- ------------------------ -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,104 $25,102 $25,120
11 $25,211 $25,221 $25,271
12 $25,284 $25,316 $25,379
96:1 $25,431 $25,461 $25,532
2 $25,457 $25,523 $25,562
3 $25,438 $25,540 $25,514
4 $25,483 $25,600 $25,542
5 $25,526 $25,664 $25,598
6 $25,625 $25,790 $25,690
7 $25,734 $25,898 $25,808
8 $25,773 $25,949 $25,865
9 $25,877 $26,066 $25,992
10 $25,999 $26,199 $26,135
11 $26,138 $26,358 $26,297
12 $26,183 $26,415 $26,339
97:1 $26,283 $26,567 $26,431
2 $26,343 $26,652 $26,545
3 $26,337 $26,639 $26,476
4 $26,416 $26,746 $26,566
5 $26,511 $26,881 $26,728
6 $26,612 $26,988 $26,864
7 $26,753 $27,153 $27,082
8 $26,782 $27,188 $27,082
9 $26,884 $27,328 $27,266
10 $26,957 $27,433 $27,364
11 $27,008 $27,517 $27,446
12 $27,126 $27,641 $27,594
98:1 $27,242 $27,785 $27,735
2 $27,323 $27,881 $27,802
3 $27,378 $27,962 $27,860
4 $27,390 $27,995 $27,860
5 $27,502 $28,141 $28,033
6 $27,585 $28,245 $28,128
7 $27,714 $28,342 $28,218
8 $27,834 $28,512 $28,421
9 $27,954 $28,649 $28,569
10 $28,073 $28,784 $28,666
11 $28,155 $28,870 $28,721
12 $28,184 $28,951 $28,815
99:1 $28,323 $29,113 $28,971
2 $28,402 $29,218 $28,974
3 $28,416 $29,242 $29,014
4 $28,489 $29,309 $29,087
5 $28,506 $29,367 $29,099
6 $28,496 $29,340 $28,997
7 $28,592 $29,446 $29,090
8 $28,642 $29,518 $29,092
9 $28,764 $29,617 $29,162
10 $28,792 $29,682 $29,171
11 $28,855 $29,773 $29,270
12 $28,851 $29,798 $29,273
00:1 $28,954 $29,911 $29,291
2 $29,066 $30,002 $29,399
3 $29,173 $30,132 $29,540
4 $29,185 $30,204 $29,570
5 $29,257 $30,253 $29,602
6 $29,488 $30,501 $29,845
7 $29,629 $30,672 $30,027
8 $29,798 $30,829 $30,186
9 $29,876 $30,897 $30,256
10 $29,995 $31,044 $30,383
11 $30,091 $31,161 $30,486
12 $30,258 $31,393 $30,733
01:1 $30,544 $31,765 $30,991
2 $30,639 $31,870 $31,103
3 $30,757 $32,035 $31,261
4 $30,759 $32,096 $31,283
5 $30,950 $32,324 $31,483
6 $31,041 $32,450 $31,609
7 $31,186 $32,593 $31,783
8 $31,321 $32,788 $31,999
9 $31,408 $32,949 $32,089
10 $31,512 $33,092 $32,224
11 $31,556 $33,123 $32,166
12 $31,593 $33,205 $32,191
02:1 $31,799 $33,474 $32,375
2 $31,852 $33,595 $32,530
3 $31,672 $33,360 $32,316
4 $31,845 $33,614 $32,571
5 $31,947 $33,762 $32,688
6 $32,038 $33,927 $32,861
7 $32,121 $34,052 $33,006
8 $32,230 $34,165 $33,135
9 $32,309 $34,242 $33,270
10 $32,183 $34,191 $33,129
11 $32,217 $34,266 $33,191
12 $32,420 $34,484 $33,444
03:1 $32,473 $34,564 $33,500
2 $32,576 $34,650 $33,664
3 $32,595 $34,650 $33,625
4 $32,618 $34,691 $33,701
5 $32,771 $34,802 $33,915
6 $32,736 $34,847 $33,913
7 $32,567 $34,833 $33,703
8 $32,633 $34,878 $33,790
9 $32,836 $35,042 $34,067
10 $32,801 $35,003 $34,020
11 $32,868 $35,037 $34,081
12 $32,911 $35,075 $34,125
04:01 $32,980 $35,150 $34,204
2 $33,074 $35,275 $34,366
3 $33,064 $35,279 $34,296
4 $32,932 $35,195 $34,065
5 $32,896 $35,139 $34,008
6 $32,943 $35,173 $34,038
7 $33,043 $35,311 $34,177
8 $33,111 $35,461 $34,371
9 $33,102 $35,439 $34,388
10 $33,149 $35,439 $34,433
11 $33,089 $35,394 $34,351
12 $33,163 $35,449 $34,459
05:01 $33,215 $35,477 $34,448
2 $33,158 $35,472 $34,438
3 $33,106 $35,444 $34,394
4 $33,215 $35,512 $34,485
5 $33,248 $35,557 $34,532
6 $33,380 $35,704 $34,647
7 $33,382 $35,725 $34,664
8 $33,438 $35,784 $34,738
9 $33,468 $35,849 $34,776
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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
-------- --------------------- ------------------------ -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,086 $25,102 $25,120
11 $25,202 $25,221 $25,271
12 $25,285 $25,316 $25,379
96:1 $25,430 $25,461 $25,532
2 $25,494 $25,523 $25,562
3 $25,475 $25,540 $25,514
4 $25,496 $25,600 $25,542
5 $25,558 $25,664 $25,598
6 $25,639 $25,790 $25,690
7 $25,753 $25,898 $25,808
8 $25,751 $25,949 $25,865
9 $25,884 $26,066 $25,992
10 $26,014 $26,199 $26,135
11 $26,143 $26,358 $26,297
12 $26,176 $26,415 $26,339
97:1 $26,286 $26,567 $26,431
2 $26,354 $26,652 $26,545
3 $26,333 $26,639 $26,476
4 $26,422 $26,746 $26,566
5 $26,528 $26,881 $26,728
6 $26,637 $26,988 $26,864
7 $26,766 $27,153 $27,082
8 $26,783 $27,188 $27,082
9 $26,918 $27,328 $27,266
10 $27,002 $27,433 $27,364
11 $27,058 $27,517 $27,446
12 $27,158 $27,641 $27,594
98:1 $27,285 $27,785 $27,735
2 $27,351 $27,881 $27,802
3 $27,415 $27,962 $27,860
4 $27,435 $27,995 $27,860
5 $27,555 $28,141 $28,033
6 $27,642 $28,245 $28,128
7 $27,726 $28,342 $28,218
8 $27,852 $28,512 $28,421
9 $27,956 $28,649 $28,569
10 $28,056 $28,784 $28,666
11 $28,121 $28,870 $28,721
12 $28,181 $28,951 $28,815
99:1 $28,327 $29,113 $28,971
2 $28,389 $29,218 $28,974
3 $28,453 $29,242 $29,014
4 $28,494 $29,309 $29,087
5 $28,524 $29,367 $29,099
6 $28,502 $29,340 $28,997
7 $28,584 $29,446 $29,090
8 $28,626 $29,518 $29,092
9 $28,693 $29,617 $29,162
10 $28,730 $29,682 $29,171
11 $28,828 $29,773 $29,270
12 $28,829 $29,798 $29,273
00:1 $28,904 $29,911 $29,291
2 $28,996 $30,002 $29,399
3 $29,089 $30,132 $29,540
4 $29,136 $30,204 $29,570
5 $29,193 $30,253 $29,602
6 $29,408 $30,501 $29,845
7 $29,550 $30,672 $30,027
8 $29,668 $30,829 $30,186
9 $29,739 $30,897 $30,256
10 $29,852 $31,044 $30,383
11 $29,968 $31,161 $30,486
12 $30,207 $31,393 $30,733
01:1 $30,449 $31,765 $30,991
2 $30,548 $31,870 $31,103
3 $30,711 $32,035 $31,261
4 $30,709 $32,096 $31,283
5 $30,920 $32,324 $31,483
6 $31,007 $32,450 $31,609
7 $31,152 $32,593 $31,783
8 $31,332 $32,788 $31,999
9 $31,390 $32,949 $32,089
10 $31,550 $33,092 $32,224
11 $31,534 $33,123 $32,166
12 $31,567 $33,205 $32,191
02:1 $31,799 $33,474 $32,375
2 $31,907 $33,595 $32,530
3 $31,728 $33,360 $32,316
4 $31,902 $33,614 $32,571
5 $32,010 $33,762 $32,688
6 $32,126 $33,927 $32,861
7 $32,219 $34,052 $33,006
8 $32,315 $34,165 $33,135
9 $32,377 $34,242 $33,270
10 $32,285 $34,191 $33,129
11 $32,324 $34,266 $33,191
12 $32,539 $34,484 $33,444
03:1 $32,577 $34,564 $33,500
2 $32,691 $34,650 $33,664
3 $32,666 $34,650 $33,625
4 $32,726 $34,691 $33,701
5 $32,915 $34,802 $33,915
6 $32,891 $34,847 $33,913
7 $32,724 $34,833 $33,703
8 $32,796 $34,878 $33,790
9 $33,000 $35,042 $34,067
10 $32,995 $35,003 $34,020
11 $33,067 $35,037 $34,081
12 $33,123 $35,075 $34,125
04:01 $33,178 $35,150 $34,204
2 $33,281 $35,275 $34,366
3 $33,252 $35,279 $34,296
4 $33,118 $35,195 $34,065
5 $33,083 $35,139 $34,008
6 $33,130 $35,173 $34,038
7 $33,233 $35,311 $34,177
8 $33,359 $35,461 $34,371
9 $33,382 $35,439 $34,388
10 $33,405 $35,439 $34,433
11 $33,377 $35,394 $34,351
12 $33,457 $35,449 $34,459
05:01 $33,539 $35,477 $34,448
2 $33,454 $35,472 $34,438
3 $33,403 $35,444 $34,394
4 $33,571 $35,512 $34,485
5 $33,630 $35,557 $34,532
6 $33,740 $35,704 $34,647
7 $33,716 $35,725 $34,664
8 $33,805 $35,784 $34,738
9 $33,838 $35,849 $34,776
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[The following table was represented as a line graph in the printed material.]
Lehman Brothers
Diversified Municipal Lipper Intermediate Five-year GO Index
Yr:Month (after all costs) Municipal Composite (before all costs)
-------- --------------------- ------------------- -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,246 $25,240 $25,105
11 $25,530 $25,513 $25,318
12 $25,694 $25,684 $25,458
96:1 $25,885 $25,899 $25,761
2 $25,815 $25,816 $25,673
3 $25,576 $25,525 $25,537
4 $25,523 $25,476 $25,499
5 $25,526 $25,463 $25,468
6 $25,697 $25,616 $25,649
7 $25,880 $25,842 $25,818
8 $25,858 $25,847 $25,872
9 $26,096 $26,066 $26,066
10 $26,309 $26,317 $26,309
11 $26,697 $26,709 $26,675
12 $26,628 $26,629 $26,634
97:1 $26,727 $26,685 $26,706
2 $26,889 $26,879 $26,896
3 $26,671 $26,600 $26,592
4 $26,833 $26,730 $26,725
5 $27,109 $27,048 $27,016
6 $27,309 $27,292 $27,254
7 $27,811 $27,887 $27,747
8 $27,662 $27,658 $27,600
9 $27,910 $27,943 $27,849
10 $28,010 $28,071 $28,019
11 $28,103 $28,175 $28,108
12 $28,408 $28,528 $28,361
98:1 $28,606 $28,767 $28,611
2 $28,645 $28,779 $28,645
3 $28,665 $28,779 $28,694
4 $28,620 $28,626 $28,556
5 $28,879 $29,030 $28,896
6 $28,964 $29,111 $28,986
7 $29,042 $29,161 $29,090
8 $29,332 $29,586 $29,483
9 $29,580 $29,906 $29,783
10 $29,636 $29,897 $29,846
11 $29,655 $29,951 $29,888
12 $29,721 $30,052 $30,019
99:1 $30,032 $30,395 $30,322
2 $29,984 $30,222 $30,286
3 $30,007 $30,195 $30,328
4 $30,085 $30,276 $30,416
5 $30,002 $30,095 $30,313
6 $29,743 $29,664 $29,976
7 $29,842 $29,801 $30,135
8 $29,794 $29,652 $30,135
9 $29,807 $29,663 $30,241
10 $29,682 $29,447 $30,174
11 $29,924 $29,694 $30,334
12 $29,856 $29,555 $30,234
00:1 $29,805 $29,416 $30,220
2 $29,958 $29,639 $30,314
3 $30,358 $30,057 $30,585
4 $30,302 $29,937 $30,525
5 $30,217 $29,799 $30,512
6 $30,743 $30,422 $31,077
7 $31,036 $30,763 $31,415
8 $31,356 $31,138 $31,745
9 $31,311 $31,045 $31,692
10 $31,557 $31,278 $31,917
11 $31,697 $31,425 $32,041
12 $32,187 $32,085 $32,556
01:1 $32,539 $32,437 $33,119
2 $32,636 $32,532 $33,199
3 $32,915 $32,785 $33,464
4 $32,730 $32,457 $33,286
5 $33,062 $32,779 $33,616
6 $33,224 $32,989 $33,764
7 $33,560 $33,384 $34,142
8 $33,967 $33,888 $34,600
9 $34,013 $33,834 $34,686
10 $34,276 $34,149 $34,943
11 $34,104 $33,777 $34,684
12 $33,954 $33,523 $34,504
02:1 $34,363 $34,006 $35,056
2 $34,652 $34,397 $35,445
3 $34,176 $33,764 $34,733
4 $34,683 $34,419 $35,511
5 $34,855 $34,609 $35,745
6 $35,161 $34,965 $36,135
7 $35,474 $35,374 $36,528
8 $35,743 $35,710 $36,870
9 $36,196 $36,357 $37,347
10 $35,777 $35,775 $36,977
11 $35,692 $35,614 $36,929
12 $36,257 $36,362 $37,609
03:1 $36,226 $36,197 $37,699
2 $36,619 $36,709 $38,103
3 $36,594 $36,691 $38,072
4 $36,757 $36,915 $38,228
5 $37,436 $37,664 $38,861
6 $37,255 $37,488 $38,767
7 $36,375 $36,331 $37,912
8 $36,585 $36,602 $38,184
9 $37,440 $37,531 $39,183
10 $37,289 $37,322 $38,898
11 $37,516 $37,629 $39,039
12 $37,722 $37,851 $39,181
04:01 $37,878 $37,980 $39,357
2 $38,322 $38,519 $39,876
3 $38,157 $38,260 $39,720
4 $37,496 $37,443 $38,914
5 $37,377 $37,375 $38,774
6 $37,477 $37,466 $38,920
7 $37,819 $37,840 $39,252
8 $38,367 $38,446 $39,934
9 $38,462 $38,553 $40,002
10 $38,667 $38,772 $40,223
11 $38,385 $38,432 $39,948
12 $38,701 $38,801 $40,324
05:01 $38,801 $38,962 $40,307
2 $38,648 $38,775 $40,118
3 $38,394 $38,473 $39,875
4 $38,853 $38,971 $40,362
5 $38,980 $39,165 $40,492
6 $39,163 $39,343 $40,654
7 $38,990 $39,124 $40,447
8 $39,232 $39,437 $40,701
9 $39,084 $39,232 $40,606
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[The following table was represented as a line graph in the printed material.]
Lehman Brothers Lipper Intermediate
California Municipal Five-year GO Index California
Yr:Month (after all costs) (before all costs) Municipal Composite
-------- --------------------- ------------------- -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,262 $25,105 $25,273
11 $25,580 $25,318 $25,566
12 $25,730 $25,458 $25,706
96:1 $25,975 $25,761 $25,935
2 $25,885 $25,673 $25,849
3 $25,587 $25,537 $25,552
4 $25,551 $25,499 $25,532
5 $25,534 $25,468 $25,524
6 $25,722 $25,649 $25,698
7 $25,902 $25,818 $25,926
8 $25,917 $25,872 $25,926
9 $26,150 $26,066 $26,139
10 $26,382 $26,309 $26,406
11 $26,745 $26,675 $26,825
12 $26,688 $26,634 $26,726
97:1 $26,763 $26,706 $26,777
2 $26,919 $26,896 $26,948
3 $26,681 $26,592 $26,692
4 $26,817 $26,725 $26,818
5 $27,107 $27,016 $27,169
6 $27,327 $27,254 $27,416
7 $27,862 $27,747 $28,050
8 $27,712 $27,600 $27,814
9 $27,933 $27,849 $28,092
10 $28,029 $28,019 $28,168
11 $28,120 $28,108 $28,284
12 $28,381 $28,361 $28,623
98:1 $28,615 $28,611 $28,892
2 $28,672 $28,645 $28,932
3 $28,649 $28,694 $28,883
4 $28,582 $28,556 $28,719
5 $28,899 $28,896 $29,115
6 $28,983 $28,986 $29,191
7 $29,060 $29,090 $29,278
8 $29,387 $29,483 $29,717
9 $29,712 $29,783 $30,157
10 $29,741 $29,846 $30,115
11 $29,819 $29,888 $30,196
12 $29,835 $30,019 $30,208
99:1 $30,136 $30,322 $30,562
2 $30,062 $30,286 $30,418
3 $30,101 $30,328 $30,464
4 $30,134 $30,416 $30,488
5 $29,986 $30,313 $30,302
6 $29,751 $29,976 $29,872
7 $29,867 $30,135 $30,036
8 $29,794 $30,135 $29,904
9 $29,891 $30,241 $30,012
10 $29,744 $30,174 $29,757
11 $29,961 $30,334 $30,021
12 $29,816 $30,234 $29,805
00:1 $29,832 $30,220 $29,823
2 $30,071 $30,314 $30,074
3 $30,486 $30,585 $30,543
4 $30,316 $30,525 $30,363
5 $30,338 $30,512 $30,353
6 $30,847 $31,077 $31,009
7 $31,134 $31,415 $31,369
8 $31,560 $31,745 $31,855
9 $31,517 $31,692 $31,731
10 $31,700 $31,917 $31,934
11 $31,881 $32,041 $32,090
12 $32,360 $32,556 $32,665
01:1 $32,701 $33,119 $33,080
2 $32,770 $33,199 $33,119
3 $32,924 $33,464 $33,275
4 $32,645 $33,286 $32,782
5 $32,965 $33,616 $33,215
6 $33,095 $33,764 $33,418
7 $33,419 $34,142 $33,816
8 $33,906 $34,600 $34,451
9 $33,826 $34,686 $34,362
10 $34,123 $34,943 $34,719
11 $33,992 $34,684 $34,424
12 $33,838 $34,504 $34,131
02:1 $34,210 $35,056 $34,660
2 $34,464 $35,445 $35,024
3 $33,939 $34,733 $34,292
4 $34,379 $35,511 $34,934
5 $34,610 $35,745 $35,210
6 $34,825 $36,135 $35,431
7 $35,093 $36,528 $35,800
8 $35,418 $36,870 $36,222
9 $35,947 $37,347 $36,973
10 $35,259 $36,977 $36,130
11 $35,264 $36,929 $36,097
12 $35,805 $37,609 $36,734
03:1 $35,709 $37,699 $36,486
2 $36,131 $38,103 $36,909
3 $36,147 $38,072 $36,907
4 $36,348 $38,228 $37,121
5 $36,977 $38,861 $37,847
6 $36,745 $38,767 $37,566
7 $35,905 $37,912 $36,474
8 $36,105 $38,184 $36,711
9 $36,809 $39,183 $37,590
10 $36,709 $38,898 $37,465
11 $36,927 $39,039 $37,760
12 $37,122 $39,181 $37,982
04:01 $37,242 $39,357 $38,088
2 $37,693 $39,876 $38,612
3 $37,528 $39,720 $38,322
4 $36,827 $38,914 $37,515
5 $36,681 $38,774 $37,416
6 $36,850 $38,920 $37,574
7 $37,180 $39,252 $37,955
8 $37,687 $39,934 $38,550
9 $37,749 $40,002 $38,662
10 $37,997 $40,223 $38,904
11 $37,772 $39,948 $38,605
12 $38,077 $40,324 $38,964
05:01 $38,281 $40,307 $39,170
2 $38,081 $40,118 $38,960
3 $37,808 $39,875 $38,653
4 $38,282 $40,362 $39,181
5 $38,406 $40,492 $39,320
6 $38,558 $40,654 $39,495
7 $38,390 $40,447 $39,271
8 $38,681 $40,701 $39,603
9 $38,536 $40,606 $39,389
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[The following table was represented as a line graph in the printed material.]
Lipper Intermediate Lehman Brothers
New York Municipal New York Five-year GO Index
Yr:Month (after all costs) Municipal Composite (before all costs)
-------- --------------------- ------------------- -------------------
'95:9 $25,000 $25,000 $25,000
10 $25,248 $25,248 $25,105
11 $25,534 $25,520 $25,318
12 $25,692 $25,673 $25,458
96:1 $25,887 $25,889 $25,761
2 $25,762 $25,772 $25,673
3 $25,541 $25,512 $25,537
4 $25,509 $25,441 $25,499
5 $25,495 $25,403 $25,468
6 $25,667 $25,575 $25,649
7 $25,854 $25,823 $25,818
8 $25,836 $25,808 $25,872
9 $26,078 $26,061 $26,066
10 $26,317 $26,298 $26,309
11 $26,651 $26,719 $26,675
12 $26,598 $26,620 $26,634
97:1 $26,680 $26,652 $26,706
2 $26,862 $26,857 $26,896
3 $26,625 $26,570 $26,592
4 $26,788 $26,708 $26,725
5 $27,045 $27,058 $27,016
6 $27,250 $27,320 $27,254
7 $27,754 $27,957 $27,747
8 $27,585 $27,713 $27,600
9 $27,835 $28,002 $27,849
10 $27,956 $28,100 $28,019
11 $28,031 $28,212 $28,108
12 $28,338 $28,576 $28,361
98:1 $28,560 $28,819 $28,611
2 $28,580 $28,828 $28,645
3 $28,601 $28,799 $28,694
4 $28,494 $28,609 $28,556
5 $28,839 $29,055 $28,896
6 $28,949 $29,151 $28,986
7 $28,987 $29,183 $29,090
8 $29,344 $29,627 $29,483
9 $29,593 $29,979 $29,783
10 $29,669 $29,970 $29,846
11 $29,730 $30,009 $29,888
12 $29,814 $30,126 $30,019
99:1 $30,147 $30,485 $30,322
2 $30,054 $30,308 $30,286
3 $30,075 $30,274 $30,328
4 $30,134 $30,350 $30,416
5 $30,007 $30,168 $30,313
6 $29,701 $29,728 $29,976
7 $29,822 $29,867 $30,135
8 $29,774 $29,745 $30,135
9 $29,811 $29,772 $30,241
10 $29,664 $29,519 $30,174
11 $29,911 $29,790 $30,334
12 $29,804 $29,641 $30,234
00:1 $29,777 $29,517 $30,220
2 $29,979 $29,753 $30,314
3 $30,360 $30,238 $30,585
4 $30,257 $30,081 $30,525
5 $30,214 $29,960 $30,512
6 $30,762 $30,643 $31,077
7 $31,035 $31,011 $31,415
8 $31,355 $31,433 $31,745
9 $31,281 $31,320 $31,692
10 $31,531 $31,614 $31,917
11 $31,689 $31,778 $32,041
12 $32,247 $32,497 $32,556
01:1 $32,598 $32,887 $33,119
2 $32,645 $32,936 $33,199
3 $32,898 $33,229 $33,464
4 $32,732 $32,933 $33,286
5 $33,036 $33,279 $33,616
6 $33,169 $33,469 $33,764
7 $33,479 $33,854 $34,142
8 $33,883 $34,392 $34,600
9 $33,780 $34,137 $34,686
10 $34,091 $34,455 $34,943
11 $33,865 $34,128 $34,684
12 $33,712 $33,861 $34,504
02:1 $34,171 $34,413 $35,056
2 $34,507 $34,850 $35,445
3 $34,021 $34,157 $34,733
4 $34,529 $34,850 $35,511
5 $34,670 $35,004 $35,745
6 $34,976 $35,347 $36,135
7 $35,288 $35,739 $36,528
8 $35,606 $36,107 $36,870
9 $36,088 $36,758 $37,347
10 $35,666 $36,200 $36,977
11 $35,526 $35,983 $36,929
12 $36,168 $36,735 $37,609
03:1 $36,131 $36,528 $37,699
2 $36,550 $37,056 $38,103
3 $36,471 $36,993 $38,072
4 $36,656 $37,249 $38,228
5 $37,309 $38,052 $38,861
6 $37,150 $37,805 $38,767
7 $36,262 $36,588 $37,912
8 $36,473 $36,889 $38,184
9 $37,334 $37,862 $39,183
10 $37,157 $37,619 $38,898
11 $37,413 $37,949 $39,039
12 $37,597 $38,180 $39,181
04:01 $37,758 $38,258 $39,357
2 $38,205 $38,814 $39,876
3 $38,013 $38,471 $39,720
4 $37,349 $37,661 $38,914
5 $37,206 $37,603 $38,774
6 $37,309 $37,689 $38,920
7 $37,685 $38,074 $39,252
8 $38,243 $38,681 $39,934
9 $38,316 $38,783 $40,002
10 $38,528 $38,983 $40,223
11 $38,250 $38,607 $39,948
12 $38,548 $38,972 $40,324
05:01 $38,682 $39,142 $40,307
2 $38,534 $38,944 $40,118
3 $38,257 $38,599 $39,875
4 $38,753 $39,124 $40,362
5 $38,915 $39,308 $40,492
6 $39,105 $39,482 $40,654
7 $38,910 $39,252 $40,447
8 $39,188 $39,565 $40,701
9 $39,043 $39,343 $40,606
Sanford C. Bernstein Fund II, Inc. Taxable Bond Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Growth of $25,000
[GRAPHIC OMITTED]
[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)
-------- --------------------- ------------------- --------------------
95:5 $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
4 $29,148 $28,804 $29,348
5 $29,456 $29,068 $29,666
6 $29,622 $29,220 $29,827
7 $29,460 $28,999 $29,556
8 $29,777 $29,325 $29,935
9 $29,555 $29,041 $29,626
Each chart shows the growth of $25,000 for the 10-year period ending
September 30, 2005, or if the Portfolio's inception date is less than 10
years ago, growth is shown from the first full month after its inception
date.
* Portfolio, benchmark and Lipper returns are from the close of business on
September 30, 1995 (except Intermediate Duration Institutional Portfolio
which is from May 31, 2002) through the close of business on September 30,
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--September 30, 2005
Fund Expenses--As a shareholder of the Fund, you incur two types of costs: (1)
in the case of the Emerging Markets Portfolio only, transaction fees (1% of
amounts invested or redeemed at the time of such purchase or redemption) and (2)
ongoing costs, including management fees and other Fund expenses. This example
is intended to help you understand your ongoing costs (in dollars) of investing
in the Fund and to compare these costs with the ongoing costs of investing in
other mutual funds. The example is based on an investment of $1,000 invested at
the beginning of the period and held for the entire period as indicated below.
Actual Expenses--The first line of the table below provides information about
actual account values and actual expenses. You may use the information in this
line, together with the amount you invested, to estimate the expenses that you
paid over the period. Simply divide your account value by $1,000 (for example,
an $8,600 account value divided by $1,000 = 8.6), then multiply the result by
the number in the first line under the heading entitled "Expenses Paid During
Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes--The second line of the table below
provides information about hypothetical account values and hypothetical expenses
based on the Fund's actual expense ratio and an assumed annual rate of return of
5% before expenses, which is not the Fund's actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the Fund and other
funds by comparing this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of other funds. Please note that
the expenses shown in the table are meant to highlight your ongoing costs only
and do not reflect any transactional costs, such as sales charges (loads), or
contingent deferred sales charges on redemptions. Therefore, the second line of
the table is useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSES ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE PAID DURING EXPENSE
APRIL 1, 2005 SEPTEMBER 30, 2005 PERIOD* RATIO*
================================================================================================================================
Tax-Managed International Class Shares
Actual $1,000 $1,098.66 $6.42 1.22%
Hypothetical (5% return before expenses) $1,000 $1,018.95 $6.17 1.22%
================================================================================================================================
International Class Shares
Actual $1,000 $1,100.76 $6.69 1.27%
Hypothetical (5% return before expenses) $1,000 $1,018.70 $6.43 1.27%
================================================================================================================================
Emerging Markets Class Shares
Actual $1,000 $1,212.67 $9.49 1.71%
Hypothetical (5% return before expenses) $1,000 $1,016.50 $8.64 1.71%
================================================================================================================================
Intermediate Duration Class Shares
Actual $1,000 $1,024.50 $3.05 0.60%
Hypothetical (5% return before expenses) $1,000 $1,022.06 $3.04 0.60%
================================================================================================================================
U.S. Government Short Duration Class Shares
Actual $1,000 $1,009.62 $3.93 0.78%
Hypothetical (5% return before expenses) $1,000 $1,021.16 $3.95 0.78%
================================================================================================================================
Intermediate Duration Institutional Class Shares
Actual $1,000 $1,024.48 $2.28 0.45%
Hypothetical (5% return before expenses) $1,000 $1,022.81 $2.28 0.45%
================================================================================================================================
Short Duration Diversified Municipal Class Shares
Actual $1,000 $1,013.06 $3.68 0.73%
Hypothetical (5% return before expenses) $1,000 $1,021.41 $3.70 0.73%
================================================================================================================================
Short Duration California Municipal Class Shares
Actual $1,000 $1,010.95 $4.23 0.84%
Hypothetical (5% return before expenses) $1,000 $1,020.86 $4.26 0.84%
================================================================================================================================
Short Duration New York Municipal Class Shares
Actual $1,000 $1,013.03 $3.78 0.75%
Hypothetical (5% return before expenses) $1,000 $1,021.31 $3.80 0.75%
================================================================================================================================
Diversified Municipal Class Shares
Actual $1,000 $1,017.98 $3.09 0.61%
Hypothetical (5% return before expenses) $1,000 $1,022.01 $3.09 0.61%
================================================================================================================================
California Municipal Class Shares
Actual $1,000 $1,019.27 $3.29 0.65%
Hypothetical (5% return before expenses) $1,000 $1,021.81 $3.29 0.65%
================================================================================================================================
New York Municipal Class Shares
Actual $1,000 $1,020.56 $3.19 0.63%
Hypothetical (5% return before expenses) $1,000 $1,021.91 $3.19 0.63%
================================================================================================================================
Short Duration Plus Class Shares
Actual $1,000 $1,011.61 $3.48 0.69%
Hypothetical (5% return before expenses) $1,000 $1,021.61 $3.50 0.69%
================================================================================================================================
* 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 Annual Report 13
================================================================================
Portfolio Summary--September 30, 2005
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Foreign Stock Portfolios
- --------------------------------------------------------------------------------
Tax-Managed International
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Country Breakdown(1)
Greece 0.4%
France 15.7%
Italy 3%
Spain 4.5%
Japan 21.9%
Singapore 1.1%
Sweden 1.3%
Belgium 0.5%
Netherlands 3.4%
Germany 5%
Hong Kong 1.8%
Switzerland 8.9%
Ireland 2.6%
Canada 4.3%
Australia 3%
United Kingdom 21.4%
Norway 0.8%
Industry Breakdown(2)
Aerospace and Defense 1.4%
Automobiles 6.4
Banking 19.7
Beverage and Tobacco 2.2
Broadcasting and Publishing 0.3
Building Materials 1.6
Construction and Housing 3.0
Data Processing 4.1
Electrical and Electronics 2.0
Electronic Components and
Instruments 1.9
Energy Sources 11.1
Financial Services 2.5
Food and Household Products 5.5
Health and Personal Care 8.2
Industrial Components 0.3
Insurance 7.9
Leisure and Tourism 2.5%
Machinery and Engineering 1.6
Merchandising 2.5
Metal--Nonferrous 2.0
Metal--Steel 3.4
Miscellaneous Materials 0.9
Paper and Forest Products 0.7
Telecommunications 2.1
Textiles and Apparel 1.5
Utilities--Electric and Gas 1.5
Wholesale and
International Trade 2.4
Repurchase Agreement 0.5
Cash and Other Assets,
Less Liabilities 0.3
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Country Breakdown(1)
Greece 0.6%
France 15.6%
Italy 3.8%
Spain 3.8%
Japan 22.8%
Singapore 1.4%
Sweden 1.8%
Belgium 0.5%
Netherlands 3.5%
Germany 4.8%
Hong Kong 1.9%
Switzerland 9.9%
Ireland 2.5%
Canada 1.8%
Australia 2.8%
United Kingdom 21.3%
Norway 0.8%
Industry Breakdown(2)
Aerospace and Defense 1.5%
Automobiles 5.9
Banking 19.6
Beverage and Tobacco 2.6
Broadcasting and
Communications 0.9
Building Materials 1.2
Construction and Housing 2.8
Data Processing 3.0
Electrical and Electronics 2.5
Electronic Components and
Instruments 2.6
Energy Sources 11.9
Financial Services 2.6
Food and Household Products 3.7
Health and Personal Care 9.0
Industrial Components 0.4%
Insurance 6.7
Leisure and Tourism 2.2
Machinery and Engineering 1.5
Merchandising 2.4
Metal--Nonferrous 2.0
Metal--Steel 3.3
Miscellaneous Materials 0.8
Paper and Forest Products 0.9
Telecommunications 3.1
Textiles and Apparel 1.0
Utilities--Electric and Gas 1.9
Wholesale and
International Trade 2.9
Repurchase Agreements 0.4
Cash and Other Assets,
Less Liabilities 0.7
- --------------------------------------------------------------------------------
Emerging Markets Value
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Country Breakdown(1)
Philippines 0.8%
Argentina 0.9%
Malaysia 1.4%
Israel 4.7%
Hungary 3.3%
Indonesia 2.2%
Thailand 3.3%
Turkey 4.0%
China 4.9%
India 5.8%
Mexico 5.4%
South Africa 11.5%
Taiwan 13%
Brazil 16.7%
South Korea 17.6%
Chile 0.7%
Egypt 0.8%
Russia 2.6%
Industry Breakdown(2)
Appliances and Household
Durables 0.2%
Automobiles 6.0
Banking 19.1
Beverages and Tobacco 0.3
Broadcasting and Publishing 2.1
Building Materials 0.9
Business and Public Services 0.1
Chemicals 3.1
Construction and Housing 1.6
Data Processing 0.9
Electrical and Electronics 4.4
Electronic Components and
Instruments 7.8
Energy Sources 16.0
Financial Services 2.5
Food and Household Products 0.6
Health and Personal Care 1.4
Industrial Components 0.2
Insurance 3.5%
Machinery and Engineering 0.1
Merchandising 1.8
Metal--Nonferrous 0.6
Metal--Steel 8.4
Miscellaneous Materials 2.1
Multi-Industry 1.1
Paper and Forest Products 1.4
Real Estate 0.4
Telecommunications 8.7
Transportation--Airlines 0.3
Transportation--Road & Rail 0.1
Transportation--Shipping 0.3
Utilities-Electric, Gas & Water 1.9
Wholesale & International Trade 0.5
Repurchase Agreement 0.5
Cash and Other Assets,
Less Liabilities 1.1
1. The country breakdown is expressed as a percentage of each Portfolio's
total long-term investments and may vary over time.
2. The industry breakdown is expressed as a percentage of each 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--September 30, 2005 (continued from previous page)
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Taxable Bond Portfolios
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Short-Term 20.9%
Collateral Mortgage Obligations 0.6%
Federal Home Loan Mortgage Corporation 0.6%
Soverign Debt 4.5%
Asset-Backed Securities 4.3%
Commercial Mortgage - Backed Securities 7.1%
U.S. Treasury Securities 1.6%
Corporate Bonds 16.9%
Federal National Mortgage Association 29.1%
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
Asset-Backed Securities 6.8%
Short-Term 3.8%
Federal Home Loan Mortgage Corporation 2%
Collateralized Mortgage Obligations 11.3%
Commercial Mortgage-Backed Securities 6.6%
Corporate Bonds 27.2%
U.S. Treasury Securities 26.2%
Federal National Mortgage Association 16.1%
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
Short-Term 3.1%
Asset-Backed Securities 1.8%
Collateralized Mortgage Obligations 6.2%
Federal Home Loan Bank 10%
Federal Farm Credit Bank 10.1%
Federal Home Loan Mortgage Corporation 4.7%
Federal National Mortgage Association 13.7%
U.S. Treasury Securities 50.4%
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
Collateralized Mortgage Obligations 0.7%
Short-Term 19.4%
Asset-Backed Securities 3.5%
Commercial Mortgage-Backed Securities 7.9%
Sovereign Debt 4.7%
U.S. Treasury Securities 16.2%
Corporate Bonds 16.8%
Federal National Mortgage Association 30.1%
Federal Home Loan Mortgage Corporation 0.6%
1. The security type breakdown is expressed as a percentage of each
Portfolio's total investments and may vary over time.
- --------------------------------------------------------------------------------
2005 Annual Report 15
================================================================================
Portfolio Summary--September 30, 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
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 4.9%
Pre-refunded/Escrowed 14.1%
Tax-Exempt Variable Rate
Demand Notes 16%
Revenue 11.9%
Insured 23%
Tax Supported 28.7%
Inflation Adjusted 1.4%
Quality Rating Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BB 0.3%
BBB 3.1%
A 1.7%
AA 26%
AAA 62.4%
Unrated 6.3%
B 0.2%
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 0.6%
Pre-refunded/Escrowed 15.5%
Tax-Exempt Variable Rate
Demand Notes 15.8%
Revenue 12.2%
Insured 34.7%
Tax Supported 21.2%
Quality Rating Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BBB 5.8%
A 24.6%
AA 9.8%
AAA 50.7%
Unrated 9.1%
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 0.1%
Pre-refunded/Escrowed 18.7%
Tax-Exempt Variable Rate
Demand Notes 22%
Revenue 11.3%
Insured 25.8%
Tax Supported 22.1%
Quality Rating Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BB 0.6%
BBB 2.6%
A 11.6%
AA 4.2%
AAA 64.9%
Unrated 16.1%
1. The security type and quality rating breakdowns are expressed as a
percentage of each 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 Service, Inc.
- --------------------------------------------------------------------------------
16 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Portfolio Summary--September 30, 2005 (continued from previous page)
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
- --------------------------------------------------------------------------------
Municipal Bond Portfolios (Intermediate Duration)
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 0.5%
Pre-refunded/Escrowed 6.4%
Tax-Exempt Variable Rate
Demand Notes 1.0%
Revenue 12%
Insured 46.7%
Tax Supported 32.2%
Inflation Adjusted 1.2%
Securities 0.5%
Quality Rating Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
B 0.1%
BB 5.1%
BBB 3.6%
A 8.5%
AA 15.6%
AAA 66.7%
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
Asset-Backed Securities 0.7%
Pre-refunded/Escrowed 2.5%
Tax-Exempt Variable Rate
Demand Notes 3.1%
Revenue 17.5%
Insured 54.8%
Tax Supported 21.4%
Quality Rating Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
BB 4.7%
BBB 3.5%
A 13.9%
AA 13.3%
AAA 64.6%
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
Security Type Breakdown(1)
[GRAPHIC OMITTED]
Asset-Backed Securities 0.6%
Pre-refunded/Escrowed xx.x
Tax-Exempt Variable Rate
Demand Notes 1.1%
Revenue 15.1%
Insured 43.6%
Tax Supported 28.5%
Quality Rating Breakdown(1)
[GRAPHIC OMITTED]
[The following table was depicted as a pie chart in the printed material.]
B 0.4%
BB 5.8%
BBB 1.5%
A 11.1%
AA 14.3%
AAA 66.9%
1. The security type and quality rating breakdowns are expressed as a
percentage of each 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 Service, Inc.
- --------------------------------------------------------------------------------
2005 Annual Report 17
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--September 30, 2005
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, $741,426,000) $ 6,062,048,750 $ 3,549,030,018(a) $ 1,859,835,497
Foreign currency at value (b) 57,662,219(c) 19,730,656(c) 13,818,567
Cash in bank 225 6,807 595
Receivables:
Interest 2,315 2,260 703
Dividends 11,516,237 5,083,010 3,807,946
Investment securities sold 1,042,420 38,789,467 14,023,638
Capital shares sold 8,855,152 5,170,798 3,138,841
Foreign withholding tax reclaims 3,017,603 487,445 0
--------------- --------------- ---------------
Total assets 6,144,144,921 3,618,300,461 1,894,625,787
=============== =============== ===============
LIABILITIES
Payable for collateral on securities lending at value 0 741,426,000 0
Payables:
Investment securities purchased 50,313,693 44,899,965 2,247,480
Capital shares redeemed 5,684,625 1,360,361 2,965,132
Management fee 4,411,536 2,137,336 1,791,777
Shareholder servicing and administration fee 1,224,274 562,436 375,341
Transfer Agent fee 55,633 35,112 52,398
Distribution fee payable 1,346 17,815 0
Accrued expenses 358,247 211,662 319,650
Foreign capital gains taxes 0 0 6,347,690
Margin owed to broker on futures contracts 48,328 44,703 0
--------------- --------------- ---------------
Total liabilities 62,097,682 790,695,390 14,099,468
--------------- --------------- ---------------
NET ASSETS (d) $ 6,082,047,239 $ 2,827,605,071 $ 1,880,526,319
=============== =============== ===============
Cost of investments (including cash collateral on
securities loaned) $ 4,500,029,879 $ 2,916,220,488 $ 1,186,876,553
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 43,505,863
===============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 43.22
===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 246,071 $ 121,521 $ 43,506
Additional paid-in capital 4,108,207,838 2,220,451,668 824,763,972
Undistributed net investment income 61,497,629 28,673,973 23,728,515
Accumulated net realized gain (loss) on investment
and foreign currency transactions 349,355,395 (54,631,096) 365,256,657
Unrealized appreciation/(depreciation) of:
Investments and futures 1,562,304,430 633,073,672 666,682,761*
Foreign currency denominated assets and liabilities 435,876 (84,667) 50,908
--------------- --------------- ---------------
$ 6,082,047,239 $ 2,827,605,071 $ 1,880,526,319
=============== =============== ===============
(a) Includes securities on loan with a value of $703,909,322.
(b) Cost: $57,665,690, $19,751,080 and $13,831,798, respectively (Note 1).
(c) The amounts of U.S. $1,038,398 and $960,508, respectively, have been
segregated to collateralize margin requirements for the open futures
contracts at September 30, 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 $6,276,183.
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 $6,078,513,135
Shares of capital stock outstanding 245,926,680
--------------
Net asset value, offering and redemption price per share $ 24.72
==============
International Class Shares
Net Assets $ 2,785,730,477
Shares of capital stock outstanding 119,708,749
--------------
Net asset value, offering and redemption price per share $ 23.27
==============
Class A Shares
Net Assets $ 2,676,773 $ 28,354,060
Shares of capital stock outstanding 108,762 1,223,176
-------------- --------------
Net asset value and redemption price per share $ 24.61 $ 23.18
Sales charge--4.25% of public offering price 1.09 1.03
-------------- --------------
Maximum offering price $ 25.70 $ 24.21
============== ==============
Class B Shares
Net Assets $ 179,322 $ 2,680,975
Shares of capital stock outstanding 7,353 116,862
-------------- --------------
Net asset value and offering price per share $ 24.39 $ 22.94
============== ==============
Class C Shares
Net Assets $ 678,009 $ 10,839,559
Shares of capital stock outstanding 27,819 472,339
-------------- --------------
Net asset value and offering price per share $ 24.37 $ 22.95
============== ==============
- --------------------------------------------------------------------------------
2005 Annual Report 19
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--September 30, 2005 (continued)
INTERMEDIATE
INTERMEDIATE U.S. GOVERNMENT DURATION
DURATION SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO PORTFOLIO
=============================================================================================================================
ASSETS
Investments in securities at value $ 3,903,388,955 $ 87,422,936 $ 711,652,949
Foreign currency at value (b) 426,136 0 83,245
Cash in bank 9,358,986 60,264 1,659,413
Receivables:
Interest 23,833,744 683,404 4,417,590
Investment securities sold 127,363,471 329 48,303,541
Capital shares sold 6,948,637 516,450 8,457,323
Margin due from broker on futures contracts 552,135 0 103,116
Appreciation of swap agreement 0 0 0
Appreciation of foreign currency contracts 2,290,737 0 423,585
--------------- --------------- ---------------
Total assets 4,074,162,801 88,683,383 775,100,762
--------------- --------------- ---------------
LIABILITIES
Payables:
Dividends to shareholders 4,093,972 70,919 817,851
Investment securities purchased 678,936,443 1,900,988 122,702,583
Swap contracts at value (Cost $784,566, $0, $148,277, $0, $0, $0) 1,336,574 0 277,298
Capital shares redeemed 943,582 245,859 43,773
Deferred income on dollar rolls 138,826 843 26,157
Management fee 1,274,725 35,524 223,576
Shareholder servicing and administration fee 277,585 7,106 0
Transfer Agent fee 9,424 4,638 5,565
Accrued expenses 201,292 23,007 51,061
Depreciation of swap agreement 0 0 0
Depreciation of foreign currency contracts 205,421 0 37,707
--------------- --------------- ---------------
Total liabilities 687,417,844 2,288,884 124,185,571
--------------- --------------- ---------------
NET ASSETS $ 3,386,744,957 $ 86,394,499 $ 650,915,191
=============== =============== ===============
Cost of investments $ 3,906,801,033 $ 88,274,384 $ 712,447,750
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 255,266,942 6,939,375 42,673,898
=============== =============== ===============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 13.27 $ 12.45 $ 15.25
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 255,267 $ 6,939 $ 42,674
Additional paid-in capital 3,392,557,459 88,759,395 652,590,835
Undistributed net investment income/(excess distributions) (673,665) 49,707 (542,396)
Accumulated net realized gain (loss) on investment
on investment, futures and foreign currency transactions (3,523,571) (1,570,094) (574,426)
Unrealized appreciation/(depreciation) of:
Investments, futures and swaps (3,874,748) (851,448) (972,291)
Foreign currency denominated assets and liabilities 2,004,215 0 370,795
--------------- --------------- ---------------
$ 3,386,744,957 $ 86,394,499 $ 650,915,191
=============== =============== ===============
- --------------------------------------------------------------------------------
20 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
SHORT DURATION SHORT DURATION SHORT DURATION
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
=============================================================================================================================
ASSETS
Investments in securities at value $ 257,275,613 $ 61,231,093 $ 121,762,795
Foreign currency at value (b) 0 0 0
Cash in bank 333,746 61,670 27,769
Receivables:
Interest 3,233,504 820,990 1,485,165
Investment securities sold 15,000 5,000 90,000
Capital shares sold 1,183,736 10,750 140,865
Margin due from broker on futures contracts 2,406 1,719 1,375
Appreciation of swap agreement 44,623 9,903 24,337
Appreciation of foreign currency contracts 0 0 0
--------------- --------------- ---------------
Total assets 262,088,628 62,141,125 123,532,306
--------------- --------------- ---------------
LIABILITIES
Payables:
Dividends to shareholders 175,906 36,128 73,844
Investment securities purchased 1,879,842 0 0
Swap contracts at value (Cost $784,566, $0, $148,277, $0, $0, $0) 0 0 0
Capital shares redeemed 1,546,193 20,860 296,564
Deferred income on dollar rolls 0 0 0
Management fee 105,426 25,644 50,867
Shareholder servicing and administration fee 21,245 5,101 10,169
Transfer Agent fee 4,610 4,171 5,359
Accrued expenses 26,146 15,844 21,992
Depreciation of swap agreement 29,292 8,795 15,695
Depreciation of foreign currency contracts 0 0 0
--------------- --------------- ---------------
Total liabilities 3,788,660 116,543 474,490
--------------- --------------- ---------------
NET ASSETS $ 258,299,968 $ 62,024,582 $ 123,057,816
=============== =============== ===============
Cost of investments $ 257,972,128 $ 61,558,748 $ 121,570,792
=============== =============== ===============
SHARES OF CAPITAL STOCK OUTSTANDING 20,655,698 4,973,154 9,934,353
=============== =============== ===============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 12.51 $ 12.47 $ 12.39
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 20,656 $ 4,973 $ 9,934
Additional paid-in capital 260,121,738 62,575,917 124,003,660
Undistributed net investment income/(excess distributions) (16,313) (20,075) 1,107
Accumulated net realized gain (loss) on investment
on investment, futures and foreign currency transactions (1,161,117) (221,249) (1,166,780)
Unrealized appreciation/(depreciation) of:
Investments, futures and swaps (664,996) (314,984) 209,895
Foreign currency denominated assets and liabilities 0 0 0
--------------- --------------- ---------------
$ 258,299,968 $ 62,024,582 $ 123,057,816
=============== =============== ===============
(b) Cost: $426,669 and $83,361, for the Intermediate Duration Portfolio and
Intermediate Duration Institutional Portfolio, respectively. (Note 1)
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.
- --------------------------------------------------------------------------------
2005 Annual Report 21
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--September 30, 2005 (continued)
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
====================================================================================================================
ASSETS
Investments in securities at value $ 3,172,134,706 $ 1,063,810,756 $ 1,396,242,245
Cash in bank 10,329 13,172 78,642
Receivables:
Interest 41,319,191 12,923,654 19,614,339
Investment securities sold 22,047,719 1,130,000 1,335,147
Capital shares sold 10,408,209 5,150,747 2,868,694
Margin due from broker on futures contracts 7,563 14,438 23,031
Appreciation of swap agreement 1,026,402 111,751 199,774
--------------- --------------- ---------------
Total assets 3,246,954,119 1,083,154,518 1,420,361,872
--------------- --------------- ---------------
LIABILITIES
Payables:
Dividends to shareholders 2,806,967 890,999 1,256,308
Investment securities purchased 45,840,909 5,334,916 12,864,893
Capital shares redeemed 3,192,140 630,068 941,824
Management fee 1,218,017 437,219 560,577
Shareholder servicing and administration fee 243,975 80,180 104,589
Transfer Agent fee 40,831 9,634 21,465
Distribution fee payable 132,726 54,890 82,339
Accrued expenses 222,683 93,826 102,288
Depreciation of swap agreement 358,022 238,377 163,186
--------------- --------------- ---------------
Total liabilities 54,056,270 7,770,109 16,097,469
--------------- --------------- ---------------
NET ASSETS (e) $ 3,192,897,849 $ 1,075,384,409 $ 1,404,264,403
=============== =============== ===============
Cost of investments $ 3,128,737,061 $ 1,047,248,628 $ 1,372,880,852
=============== =============== ===============
NET ASSETS CONSIST OF:
Capital stock, at par $ 227,030 $ 75,548 $ 100,988
Additional paid-in capital 3,154,774,963 1,061,180,311 1,381,800,465
Undistributed net investment income/(excess distributions) (7,993) (169,884) 6,063
Accumulated net realized loss on investment
and futures transactions (6,213,051) (2,234,193) (1,196,032)
Unrealized appreciation of investments,
futures and swaps 44,116,900 16,532,627 23,552,919
--------------- --------------- ---------------
$ 3,192,897,849 $ 1,075,384,409 $ 1,404,264,403
=============== =============== ===============
(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 $2,976,420,639 $ 983,388,201 $1,274,466,147
Shares of capital stock outstanding 211,642,663 69,085,237 91,649,286
-------------- -------------- --------------
Net asset value and offering price per share $ 14.06 $ 14.23 $ 13.91
============== ============== ==============
Class A Shares
Net Assets $ 83,352,620 $ 37,420,332 $ 44,730,382
Shares of capital stock outstanding 5,925,090 2,628,962 3,217,902
-------------- -------------- --------------
Net asset value and redemption price per share $ 14.07 $ 14.23 $ 13.90
Sales charge--4.25% of public offering price .62 .63 .62
-------------- -------------- --------------
Maximum offering price $ 14.69 $ 14.86 $ 14.52
============== ============== ==============
Class B Shares
Net Assets $ 66,067,475 $ 26,081,347 $ 48,851,122
Shares of capital stock outstanding 4,695,737 1,832,025 3,515,762
-------------- -------------- --------------
Net asset value and offering price per share $ 14.07 $ 14.24 $ 13.89
============== ============== ==============
Class C Shares
Net Assets $ 67,057,115 $ 28,494,529 $ 36,216,752
Shares of capital stock outstanding 4,766,497 2,001,884 2,605,267
-------------- -------------- --------------
Net asset value and offering price per share $ 14.07 $ 14.23 $ 13.90
============== ============== ==============
- --------------------------------------------------------------------------------
2005 Annual Report 23
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Assets and Liabilities--September 30, 2005 (continued)
SHORT
DURATION PLUS
PORTFOLIO
================================================================================
ASSETS
Investments in securities at value $ 505,860,466
Cash in bank 113,632
Receivables:
Interest 4,523,601
Capital shares sold 1,015,985
-------------
Total assets 511,513,684
-------------
LIABILITIES
Payables:
Dividends to shareholders 491,963
Investment securities purchased 14,870,381
Capital shares redeemed 2,316,645
Deferred income on dollar rolls 5,644
Management fee 196,476
Shareholder servicing and administration fee 33,416
Transfer Agent fee 14,799
Distribution fee payable 54,587
Accrued expenses 80,852
-------------
Total liabilities 18,064,763
-------------
NET ASSETS $ 493,448,921
=============
Cost of investments $ 510,609,627
=============
NET ASSETS CONSIST OF:
Capital stock, at par $ 39,830
Additional paid-in capital 508,058,893
Undistributed net investment income/
(excess distributions) (429,220)
Accumulated net realized loss on
investment transactions (9,471,421)
Unrealized appreciation/(depreciation) of
investments (4,749,161)
-------------
$ 493,448,921
=============
SHORT
DURATION PLUS
PORTFOLIO
================================================================================
CALCULATION OF MAXIMUM OFFERING PRICE
Short Duration Plus Class Shares
Net Assets $ 398,786,597
Shares of capital stock outstanding 32,188,431
--------------
Net asset value and offering price per share $ 12.39
==============
Short Duration Class A Shares
Net Assets $ 42,601,612
Shares of capital stock outstanding 3,438,262
--------------
Net asset value and redemption price per share $ 12.39
Sales charge--4.25% of public offering price 0.55
--------------
Maximum offering price $ 12.94
==============
Short Duration Class B Shares
Net Assets $ 27,964,221
Shares of capital stock outstanding 2,257,289
--------------
Net asset value and offering price per share $ 12.39
==============
Short Duration Class C Shares
Net Assets $ 24,096,491
Shares of capital stock outstanding 1,945,794
--------------
Net asset value and offering price per share $ 12.38
==============
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 Annual Report 25
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Operations for the Year Ended September 30, 2005
TAX-MANAGED EMERGING INTERMEDIATE
INTERNATIONAL INTERNATIONAL MARKETS DURATION
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
==================================================================================================================================
INVESTMENT INCOME
Income:
Interest $ 1,460,293 $ 2,490,717 $ 417,475 $ 119,894,459
Dividends (net of foreign withholding taxes
of $13,907,951, $6,140,641, $7,206,419 and
$0, respectively) 125,540,404 58,087,438 56,110,963 3,113
Income from dollar rolls 0 0 0 22,060,341
-------------- -------------- -------------- --------------
Total income 127,000,697 60,578,155 56,528,438 141,957,913
-------------- -------------- -------------- --------------
Expenses
Management fee 48,104,766 23,369,761 19,260,256 14,419,619
Shareholder servicing and administration fee 13,258,263 6,157,047 4,002,279 3,104,905
Custodian fee 2,224,586 1,220,931 3,075,502 408,744
Transfer Agent fee 303,289 220,134 264,817 187,374
Distribution fees - Class A 3,407 34,709 0 0
Distribution fees - Class B 1,284 19,182 0 0
Distribution fees - Class C 4,457 92,176 0 0
Distribution fees - Class R 0 22 0 0
Auditing and tax fees 197,510 97,962 56,793 108,751
Directors' fees and expenses 84,942 39,787 26,819 46,180
Legal fees 131,276 54,096 52,193 96,082
Registration fees 239,376 121,842 69,033 164,106
Printing fees 47,361 51,814 14,531 68,787
Miscellaneous 178,700 97,731 93,795 99,046
-------------- -------------- -------------- --------------
Total expenses 64,779,217 31,577,194 26,916,018 18,703,594
Less: expenses waived and reimbursed by the
Adviser or Transfer Agent (17,818) (4,831) 0 0
Less: expense offset arrangement (13) (183) 0 0
-------------- -------------- -------------- --------------
Net expenses 64,761,386 31,572,180 26,916,018 18,703,594
-------------- -------------- -------------- --------------
Net investment income 62,239,311 29,005,975 29,612,420 123,254,319
-------------- -------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 346,006,192 208,991,554 380,874,200*(a) (1,493,835)
Futures transactions 4,178,296 1,491,084 943,067 2,878,294
Foreign currency transactions 578,922 837,777 (1,958,458) 1,370,227
Swap transactions 0 0 0 (111,245)
-------------- -------------- -------------- --------------
Net realized gain (loss) on investment
and foreign currency transactions 350,763,410 211,320,415 379,858,809 2,643,441
-------------- -------------- -------------- --------------
Net increase (decrease) in unrealized appreciation/
(depreciation) of:
Investments, futures and swaps 714,383,430 294,640,503 263,504,358+ (29,924,326)
Foreign currency denominated assets and liabilities (91,816) (439,823) 18,072 3,501,096
-------------- -------------- -------------- --------------
Net increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign currency
denominated assets and liabilities 714,291,614 294,200,680 263,522,430 (26,423,230)
-------------- -------------- -------------- --------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 1,065,055,024 505,521,095 643,381,239 (23,779,789)
-------------- -------------- -------------- --------------
Net increase in net assets resulting from operations $1,127,294,335 $ 534,527,070 $ 672,993,659 $ 99,474,530
============== ============== ============== ==============
- --------------------------------------------------------------------------------
26 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
INTERMEDIATE SHORT DURATION
U.S. GOVERNMENT DURATION DIVERSIFIED
SHORT DURATION INSTITUTIONAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
============================================================================================================
INVESTMENT INCOME
Income:
Interest $ 2,856,616 $ 23,662,653 $ 7,007,606
Dividends (net of foreign withholding taxes
of $13,907,951, $6,140,641, $7,206,419 and
$0, respectively) 0 647 0
Income from dollar rolls 67,434 4,530,127 0
-------------- -------------- --------------
Total income 2,924,050 28,193,427 7,007,606
-------------- -------------- --------------
Expenses
Management fee 459,208 3,057,004 1,263,931
Shareholder servicing and administration fee 91,842 0 253,042
Custodian fee 100,510 208,768 143,549
Transfer Agent fee 25,695 21,493 27,103
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 3,879 51,008 5,760
Directors' fees and expenses 1,627 22,061 3,655
Legal fees 4,861 63,170 7,128
Registration fees 17,823 30,646 65,560
Printing fees 2,269 9,580 4,434
Miscellaneous 6,962 32,105 15,518
-------------- -------------- --------------
Total expenses 714,676 3,495,835 1,789,680
Less: expenses waived and reimbursed by the
Adviser or Transfer Agent 0 (744,532) 0
Less: expense offset arrangement 0 0 0
-------------- -------------- --------------
Net expenses 714,676 2,751,303 1,789,680
-------------- -------------- --------------
Net investment income 2,209,374 25,442,124 5,217,926
-------------- -------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (547,164) (156,999) (875,842)
Futures transactions 0 566,440 7,819
Foreign currency transactions 0 277,710 0
Swap transactions 0 (149,377) (89,628)
-------------- -------------- --------------
Net realized gain (loss) on investment
and foreign currency transactions (547,164) 537,774 (957,651)
-------------- -------------- --------------
Net increase (decrease) in unrealized appreciation/
(depreciation) of:
Investments, futures and swaps (874,120) (6,225,328) (1,112,181)
Foreign currency denominated assets and liabilities 0 685,107 0
-------------- -------------- --------------
Net increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign currency
denominated assets and liabilities (874,120) (5,540,221) (1,112,181)
-------------- -------------- --------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (1,421,284) (5,002,447) (2,069,832)
-------------- -------------- --------------
Net increase in net assets resulting from operations $ 788,090 $ 20,439,677 $ 3,148,094
============== ============== ==============
SHORT DURATION SHORT DURATION
CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO
==========================================================================================
INVESTMENT INCOME
Income:
Interest $ 1,840,562 $ 3,369,263
Dividends (net of foreign withholding taxes
of $13,907,951, $6,140,641, $7,206,419 and
$0, respectively) 0 0
Income from dollar rolls 0 0
-------------- --------------
Total income 1,840,562 3,369,263
-------------- --------------
Expenses
Management fee 341,328 614,623
Shareholder servicing and administration fee 68,266 122,925
Custodian fee 102,592 118,307
Transfer Agent fee 23,327 24,996
Distribution fees - Class A 0 0
Distribution fees - Class B 0 0
Distribution fees - Class C 0 0
Distribution fees - Class R 0 0
Auditing and tax fees 798 4,075
Directors' fees and expenses 1,018 1,967
Legal fees 1,500 3,974
Registration fees 8,733 10,176
Printing fees 893 1,823
Miscellaneous 5,676 12,874
-------------- --------------
Total expenses 554,131 915,740
Less: expenses waived and reimbursed by the
Adviser or Transfer Agent 0 0
Less: expense offset arrangement 0 0
-------------- --------------
Net expenses 554,131 915,740
-------------- --------------
Net investment income 1,286,431 2,453,523
-------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions (163,338) (534,103)
Futures transactions 5,585 4,468
Foreign currency transactions 0 0
Swap transactions (10,369) (103,095)
-------------- --------------
Net realized gain (loss) on investment
and foreign currency transactions (168,122) (632,730)
-------------- --------------
Net increase (decrease) in unrealized appreciation/
(depreciation) of:
Investments, futures and swaps (392,395) (173,740)
Foreign currency denominated assets and liabilities 0 0
-------------- --------------
Net increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign currency
denominated assets and liabilities (392,395) (173,740)
-------------- --------------
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (560,517) (806,470)
-------------- --------------
Net increase in net assets resulting from operations $ 725,914 $ 1,647,053
============== ==============
*Net of foreign capital gains taxes of $1,582,519.
+Net of change in foreign capital gains taxes of $(414,646).
(a) On May 2, 2005, the Portfolio had a redemption-in-kind with total proceeds
of $29,256,121. The net realized gain of the transactions of $16,678,544 will
not be realized for tax purposes. See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual Report 27
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Operations for the Year Ended September 30, 2005(continued)
DIVERSIFIED CALIFORNIA NEW YORK
MUNICIPAL MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
========================================================================================================
INVESTMENT INCOME
Income:
Interest $ 111,062,797 $ 36,945,095 $ 52,658,890
------------- ------------- -------------
Total income 111,062,797 36,945,095 52,658,890
------------- ------------- -------------
Expenses
Management fee 14,019,811 5,009,406 6,528,882
Shareholder servicing fee 2,752,982 898,450 1,190,723
Custodian fee 452,850 238,276 289,343
Transfer Agent fee 243,314 75,487 123,694
Distribution fees--Class A 273,848 119,537 150,757
Distribution fees--Class B 828,947 319,331 540,881
Distribution fees--Class C 777,935 318,610 446,883
Auditing and tax fees 126,162 48,023 64,530
Printing fees 91,993 18,699 51,741
Registration fees 247,004 42,993 66,463
Legal fees 96,103 39,130 35,064
Directors' fees and expenses 44,926 12,653 18,450
Miscellaneous 102,958 42,026 51,481
------------- ------------- -------------
Total expenses 20,058,833 7,182,621 9,558,892
Less: expense offset arrangement (552) (248) (307)
------------- ------------- -------------
Net expenses 20,058,281 7,182,373 9,558,585
------------- ------------- -------------
Net investment income 91,004,516 29,762,722 43,100,305
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENT TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 924,900 376,153 2,077,214
Futures transactions 24,574 46,914 74,839
Swap transactions (855,573) (68,999) (434,196)
------------- ------------- -------------
Net realized gain (loss) on investment transactions 93,901 354,068 1,717,857
------------- ------------- -------------
Net decrease in unrealized appreciation/
(depreciation) of investments, futures and swaps (43,831,499) (10,356,391) (21,490,657)
------------- ------------- -------------
Net realized and unrealized loss on
investment transactions (43,737,598) (10,002,323) (19,772,800)
------------- ------------- -------------
Net increase in net assets resulting from operations $ 47,266,918 $ 19,760,399 $ 23,327,505
============= ============= =============
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 $ 18,781,093
Income from dollar rolls 448,688
------------
Total income 19,229,781
------------
Expenses
Management fee 2,515,435
Shareholder servicing fee 410,072
Custodian fees 211,928
Transfer Agent fees 169,078
Distribution fees--Short Duration Class A 152,615
Distribution fees--Short Duration Class B 362,451
Distribution fees--Short Duration Class C 314,284
Distribution fees--Short Duration Class R 20
Auditing and tax fees 28,351
Directors' fees and expenses 7,476
Legal fees 13,741
Registration fees 164,767
Printing fees 76,612
Miscellaneous 28,457
------------
Total expenses 4,455,287
Less: expense offset arrangement (636)
------------
Net expenses 4,454,651
------------
Net investment income 14,775,130
------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENT TRANSACTIONS
Net realized loss on investment transactions (4,683,066)
------------
Net decrease in unrealized appreciation/
(depreciation) of investments (5,122,328)
------------
Net realized and unrealized loss on
investment transactions (9,805,394)
------------
Net increase in net assets resulting from operations $ 4,969,736
============
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual 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
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
===============================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 62,239,311 $ 33,189,444 $ 29,005,975 $ 15,459,065
Net realized gain (loss) on investment
and foreign currency transactions 350,763,410 239,680,030 211,320,415 158,890,388
Increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign
currency denominated assets and liabilities 714,291,614 396,395,071 294,200,680 170,461,959
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 1,127,294,335 669,264,545 534,527,070 344,811,412
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (38,554,498) (61,238,586) (19,679,950) (18,338,621)
--------------- --------------- --------------- ---------------
Dividends from net realized gain on
investment transactions(a) (64,402,318) 0 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (102,956,816) (61,238,586) (19,679,950) (18,338,621)
--------------- --------------- --------------- ---------------
Capital-share transactions
Net proceeds from sales of shares 1,054,997,614 1,020,243,092 443,734,535 383,372,088
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 1,152,860,342 1,074,777,954 462,830,970 401,159,662
Cost of shares redeemed (707,054,456) (632,148,009) (349,463,822) (354,908,912)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 445,805,886 442,629,945 113,367,148 46,250,750
--------------- --------------- --------------- ---------------
Net increase in net assets 1,470,143,405 1,050,655,904 628,214,268 372,723,541
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) $ 6,082,047,239 $ 4,611,903,834 $ 2,827,605,071 $ 2,199,390,803
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 61,497,629 $ 37,233,894 $ 28,673,973 $ 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 $13,012,499 and
$9,217,750 for the years ended September 30, 2005 and 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 DURATION
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
====================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 29,612,420 $ 16,252,022 $ 123,254,319 $ 97,226,406
Net realized gain (loss) on investment
and foreign currency transactions 379,858,809 134,577,282 2,643,441 28,542,196
Increase (decrease) in unrealized appreciation/
(depreciation) of investments and foreign
currency denominated assets and liabilities 263,522,430 216,028,280 (26,243,230) (29,008,182)
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 672,993,659 366,857,584 99,474,530 96,760,420
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,635,948) (9,586,370) (126,024,077) (99,678,637)
--------------- --------------- --------------- ---------------
Dividends from net realized gain on
investment transactions(a) (36,713,975) (64,402,318) (8,277,788) 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (39,349,923) (9,586,370) (134,301,865) (99,678,637)
--------------- --------------- --------------- ---------------
Capital-share transactions
Net proceeds from sales of shares 373,695,958 285,871,489 923,619,555 815,660,806
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 38,639,865 9,082,473 30,945,279 19,340,469
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 412,335,823 294,953,962 954,564,834 835,001,275
Cost of shares redeemed (526,820,800) (189,259,509) (385,795,947) (381,541,966)
--------------- --------------- --------------- ---------------
Increase in net assets from
capital-share transactions (114,484,977)* 105,694,453* 568,768,887 453,459,309
--------------- --------------- --------------- ---------------
Net increase in net assets 519,158,759 462,965,667 533,941,552 450,541,092
NET ASSETS:
Beginning of period 1,361,367,560 898,401,893 2,852,803,405 2,402,262,313
--------------- --------------- --------------- ---------------
End of period (b) $ 1,880,526,319 $ 1,361,367,560 $ 3,386,744,957 $ 2,852,803,405
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 23,728,515 $ (474,305) $ (673,655) $ (3,026,265)
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2005 Annual Report 32
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Statements of Changes in Net Assets (continued)
---------------------------------- ----------------------------------
U.S. GOVERNMENT INTERMEDIATE DURATION
SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
=================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 2,209,374 $ 2,099,165 $ 25,442,124 $ 20,658,605
Net realized gain (loss) on investment
and foreign currency transactions (547,164) (499,571) 537,774 4,547,440
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures, and swaps (874,120) (663,686) (5,540,221) (4,929,922)
--------------- --------------- --------------- ---------------
Net increase in net assets resulting
from operations 788,090 935,908 20,439,677 20,276,123
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,490,757) (2,366,550) (25,875,590) (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 (2,498,232) (3,537,784) (29,706,338) (27,806,695)
--------------- --------------- --------------- ---------------
Capital-share transactions
Net proceeds from sales of shares 16,832,340 26,280,515 197,365,725 246,095,145
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 1,339,188 2,415,624 13,042,331 15,841,958
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 18,171,528 28,696,139 210,408,056 261,937,103
Cost of shares redeemed (23,661,657) (45,060,481) (159,474,673) (109,675,335)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions (5,490,129) (16,364,342) 50,933,383 152,261,768
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (7,200,271) (18,966,218) 41,666,722 144,731,196
NET ASSETS:
Beginning of period 93,594,770 112,560,988 609,248,469 464,517,273
--------------- --------------- --------------- ---------------
End of period (b) $ 86,394,499 $ 93,594,770 $ 650,915,191 $ 609,248,469
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 49,707 $ 55,955 $ (542,396) $ (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
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 5,217,926 $ 4,344,201 $ 1,286,431 $ 1,228,920
Net realized gain (loss) on investment
and foreign currency transactions (957,651) (263,292) (168,122) (50,446)
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures and swaps (1,112,181) (1,181,343) (392,395) (532,415)
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 3,148,094 2,899,566 725,914 646,059
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (5,214,254) (4,265,828) (1,288,933) (1,227,532)
Distributions from net realized gain on
investment transactions (a) 0 (315,786) 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (5,214,254) (4,581,614) (1,288,933) (1,227,532)
--------------- --------------- --------------- ---------------
Capital-share transactions
Net proceeds from sales of shares 171,799,003 151,818,429 45,457,089 59,632,686
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 2,175,270 2,062,452 806,718 762,968
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 173,974,273 153,880,881 46,263,807 60,395,654
Cost of shares redeemed (167,336,591) (132,119,645) (55,312,984) (67,995,139)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 6,637,682 21,761,236 (9,049,177) (7,599,485)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets 4,571,522 20,079,188 (9,612,196) (8,180,958)
NET ASSETS:
Beginning of period 253,728,446 233,649,258 71,636,778 79,817,736
--------------- --------------- --------------- ---------------
End of period (b) $ 258,299,968 $ 253,728,446 $ 62,024,582 $ 71,636,778
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (16,313) $ (1,914) $ (20,075) $ (17,095)
=============== =============== =============== ===============
---------------------------------- ----------------------------------
SHORT DURATION
NEW YORK MUNICIPAL DIVERSIFIED MUNICIPAL
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
===================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 2,453,523 $ 2,222,556 $ 91,004,516 $ 80,344,194
Net realized gain (loss) on investment
and foreign currency transactions (632,730) 175,041 93,901 (2,676,633)
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures and swaps (173,740) (1,049,893) (43,831,499) (10,548,395)
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 1,647,053 1,347,704 47,266,918 67,119,166
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (2,457,605) (2,204,693) (90,960,777) (80,061,703)
Distributions from net realized gain on
investment transactions (a) 0 0 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions
to shareholders (2,457,605) (2,204,693) (90,960,777) (80,061,703)
--------------- --------------- --------------- ---------------
Capital-share transactions
Net proceeds from sales of shares 72,030,243 95,152,474 985,636,697 876,220,074
Net proceeds from sales of shares issued
to shareholders on reinvestment of
dividends and distributions 1,121,675 1,018,598 18,173,262 18,981,822
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 73,151,918 96,171,072 1,003,809,959 895,201,896
Cost of shares redeemed (72,459,303) (93,079,427) (564,369,617) (499,857,512)
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets from
capital-share transactions 692,615 3,091,645 439,440,342 395,344,384
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets (117,937) 2,234,656 395,746,483 382,401,847
NET ASSETS:
Beginning of period 123,175,753 120,941,097 2,797,151,366 2,414,749,519
--------------- --------------- --------------- ---------------
End of period (b) $ 123,057,816 $ 123,175,753 $ 3,192,897,849 $ 2,797,151,366
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ 1,107 $ 8,526 $ (7,993) $ 57,103
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2005 Annual 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
---------------------------------- ----------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
==================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 29,762,722 $ 25,545,068 $ 43,100,305 $ 39,925,958
Net realized gain (loss) on investment transactions 354,068 (1,686,444) 1,717,857 56,382
Increase (decrease) in unrealized appreciation/
(depreciation) of investments, futures, and swaps (10,356,391) (2,041,584) (21,490,657) (9,511,265)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets resulting
from operations 19,760,399 21,817,040 23,327,505 30,471,075
--------------- --------------- --------------- ---------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (29,792,395) (25,501,477) (43,178,963) (39,773,105)
Distributions from net realized gain on investment
transactions (a) (675,420) (584,016) 0 0
--------------- --------------- --------------- ---------------
Total dividends and distributions to shareholders (30,467,815) (26,085,493) (43,178,963) (39,773,105)
--------------- --------------- --------------- ---------------
Capital-share transactions (Note 6):
Net proceeds from sales of shares 324,048,982 314,353,362 388,609,059 351,775,089
Net proceeds from sales of shares issued to
shareholders on reinvestment of dividends
and distributions 7,794,812 7,597,543 12,522,489 12,764,315
--------------- --------------- --------------- ---------------
Total proceeds from shares sold 331,843,794 321,950,905 401,131,548 364,539,404
Cost of shares redeemed (197,962,811) (194,387,540) (263,675,915) (277,559,965)
--------------- --------------- --------------- ---------------
Increase in net assets from
capital-share transactions 133,880,983 127,563,365 137,455,633 86,979,439
--------------- --------------- --------------- ---------------
Net increase in net assets 123,173,567 123,294,912 117,604,175 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) $ 1,075,384,409 $ 952,210,842 $ 1,404,264,403 $ 1,286,660,228
=============== =============== =============== ===============
(b) Includes undistributed net investment income/
(excess distributions) of: $ (169,884) $ (32,569) $ 6,063 $ 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
-------------------------------
YEAR YEAR
ENDED ENDED
9/30/04 9/30/03
=====================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM
Operations:
Net investment income $ 14,775,130 $ 12,474,360
Net realized loss on investment transactions (4,683,066) (2,924,390)
Decrease in unrealized appreciation/
(depreciation) of investments and futures (5,122,328) (3,115,801)
------------- -------------
Net increase in net assets resulting
from operations 4,969,736 6,434,169
------------- -------------
Dividends and distributions to shareholders:
Dividends from net investment income (a) (16,141,481) (13,515,809)
Distributions from net realized gain on
investment transactions (a) (520,245) (664,559)
------------- -------------
Total dividends and distributions to shareholders (16,661,726) (14,180,368)
------------- -------------
Capital-share transactions:
Net proceeds from sales of shares 178,626,953 278,798,276
Net proceeds from sales of shares issued to
shareholders on reinvestment of dividends
and distributions 7,646,420 6,885,041
------------- -------------
Total proceeds from shares sold 186,273,373 285,683,317
Cost of shares redeemed (245,678,393) (285,806,515)
------------- -------------
Decrease in net assets from
capital-share transactions (59,405,020) (123,198)
------------- -------------
Net decrease in net assets (71,097,010) (7,869,397)
NET ASSETS:
Beginning of period 564,545,931 572,415,328
------------- -------------
End of period (b) $ 493,448,921 $ 564,545,931
============= =============
(b) Includes excess distributions of: $ (429,220) $ (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 Annual 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
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 (a) 9/30/03 9/30/04 (a)(b)
- -------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Tax-Managed International and International
Class Shares, respectively $(38,551,625) $(61,238,586) $(19,606,874) $(18,338,621)
Class A (1,635) 0 (32,241) 0
Class B (374) 0 (6,949) 0
Class C (864) 0 (33,811) 0
Class R 0 0 (75) 0
------------ ------------ ------------ ------------
$(38,554,498) $(61,238,586) $(19,679,950) $(18,338,621)
============ ============ ============ ============
Distributions from net realized gain on
investment transactions
Tax-Managed International Class Shares $(64,395,815) $ 0
Class A (2,979) 0
Class B (1,067) 0
Class C (2,457) 0
------------ ------------
$(64,402,318) $ 0
============ ============
-------------------------------- --------------------------------
DIVERSIFIED CALIFORNIA
MUNICIPAL MUNICIPAL
PORTFOLIO PORTFOLIO
-------------------------------- --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
9/30/05 9/30/04 9/30/05 9/30/04
- -------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Municipal Class $(84,945,388) $(71,778,247) $(27,333,546) $(22,579,474)
Class A (2,586,427) (3,592,307) (1,117,535) (1,260,900)
Class B (1,768,647) (2,382,683) (671,269) (789,230)
Class C (1,660,315) (2,308,466) (670,045) (871,873)
------------ ------------ ------------ ------------
$(90,960,777) $(80,061,703) $(29,792,395) $(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
-------------------------------
YEAR YEAR
ENDED ENDED
9/30/05 9/30/04
- --------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Municipal Class $(39,335,597) $(34,837,419)
Class A (1,528,070) (2,076,117)
Class B (1,267,103) (1,448,511)
Class C (1,048,193) (1,411,058)
------------ ------------
$(43,178,963) $(39,773,105)
============ ============
-------------------------------
SHORT
DURATION PLUS
PORTFOLIO
-------------------------------
YEAR YEAR
ENDED ENDED
9/30/05 9/30/04 (b)
- --------------------------------------------------------------------------------
Dividends to shareholders:
Dividends from net investment income
Short Duration Plus Class $(13,219,192) $(10,557,602)
Class A (1,460,769) (1,788,909)
Class B (783,292) (602,808)
Class C (678,131) (566,368)
Class R (97) (122)
------------ ------------
$(16,141,481) $(13,515,809)
============ ============
Distributions from net realized gain on
investment transactions
Short Duration Plus Class $ (395,649) $ (476,390)
Class A (50,066) (103,659)
Class B (39,845) (42,750)
Class C (34,676) (41,760)
Class R (9) 0
------------ ------------
$ (520,245) $ (664,559)
============ ============
- --------------------------------------------------------------------------------
2005 Annual 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
------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/03 9/30/02 9/30/01 (a)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 20.42 $ 17.53 $ 13.10 $ 15.22 $ 20.44
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Investment income, net+ 0.26 0.15 0.24 0.17 0.21
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 4.49 3.04 4.39 (2.00) (3.48)
---------- ---------- ---------- ---------- ----------
Total from investment operations 4.75 3.19 4.63 (1.83) (3.27)
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from taxable net investment income (0.17) (0.30) (0.20) (0.29) (0.16)
Distributions from net realized gain on
investment transactions (0.28) 0 0 0 (1.79)
---------- ---------- ---------- ---------- ----------
Total distributions (0.45) (0.30) (0.20) (0.29) (1.95)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 24.72 $ 20.42 $ 17.53 $ 13.10 $ 15.22
========== ========== ========== ========== ==========
Total return (b) 23.62% 18.34% 35.65% (12.39)% (17.49)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $6,078,513 $4,611,550 $3,561,248 $2,365,421 $2,420,323
Average net assets (000 omitted) $5,303,305 $4,206,956 $2,890,486 $2,708,477 $2,828,736
Ratio of expenses to average net assets 1.22% 1.24% 1.25% 1.25% 1.25%
Ratio of net investment income to average
net assets 1.17% 0.79% 1.59% 1.04% 1.14%
Portfolio turnover rate 53% 71% 28% 64% 46%
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
------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/03 9/30/02 9/30/01 (a)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 18.94 $ 16.06 $ 11.95 $ 14.16 $ 20.44
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Investment income, net+ 0.25 0.14 0.23 0.14 0.18
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 4.25 2.91 4.04 (1.90) (3.11)
---------- ---------- ---------- ---------- ----------
Total from investment operations 4.50 3.05 4.27 (1.76) (2.93)
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from taxable net investment income (0.17) (0.17) (0.16) (0.45) (0.79)
Distributions from net realized gain on
investment transactions 0 0 0 0 (2.56)
---------- ---------- ---------- ---------- ----------
Total distributions (0.17) (0.17) (0.16) (0.45) (3.35)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 23.27 $ 18.94 $ 16.06 $ 11.95 $ 14.16
========== ========== ========== ========== ==========
Total return (b) 23.90% 19.05% 36.00% (13.01)% (16.95)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $2,785,730 $2,190,687 $1,826,667 $1,299,449 $1,426,683
Average net assets (000 omitted) $2,462,819 $2,045,596 $1,572,731 $1,539,788 $1,718,245
Ratio of expenses to average net assets 1.26% 1.28% 1.29% 1.29% 1.28%
Ratio of net investment income to average
net assets 1.17% 0.76% 1.63% 0.97% 1.06%
Portfolio turnover rate 61% 92% 28% 67% 45%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual Report 39
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
---------------------------------------------------------------------------
EMERGING MARKETS
PORTFOLIO
---------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/03 9/30/02 9/30/01 (a)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 28.91 $ 20.81 $ 13.65 $ 12.48 $ 16.91
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Investment income, net+ 0.66 0.36 0.26 0.13 0.17
Net realized and unrealized gain (loss) on
investment and foreign currency transactions 14.20 7.76 6.87 1.04 (4.34)
---------- ---------- ---------- ---------- ----------
Total from investment operations 14.86 8.12 7.13 1.17 (4.17)
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from taxable net investment income (0.06) (0.22) (0.08) (0.13) (0.09)
Distributions from net realized gain on
investment transactions (0.78) 0 0 0 (0.28)
---------- ---------- ---------- ---------- ----------
Total distributions (0.84) (0.22) (0.08) (0.13) (0.37)
---------- ---------- ---------- ---------- ----------
Portfolio transaction fee 0.29 0.20 0.11 0.13 0.11
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 43.22 $ 28.91 $ 20.81 $ 13.65 $ 12.48
========== ========== ========== ========== ==========
Total return (b) 48.78%(c) 34.66%(c) 47.21%(c) 5.98%(c) (27.36)%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $1,880,526 $1,361,368 $ 898,402 $ 518,984 $ 499,414
Average net assets (000 omitted) $1,600,912 $1,150,902 $ 653,705 $ 588,195 $ 578,168
Ratio of expenses to average net assets 1.68% 1.72% 1.72% 1.73% 1.75%
Ratio of net investment income to average
net assets 1.85% 1.41% 1.57% 0.89% 1.10%
Portfolio turnover rate 54% 44% 38% 34% 34%
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
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/03 9/30/02 9/30/01 (a)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.41 $ 13.43 $ 13.08 $ 12.98 $ 12.51
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.53 0.50 0.47 0.59 0.72
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (0.09) (0.01) 0.35 0.10 0.47
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.44 0.49 0.82 0.69 1.19
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.54) (0.51) (0.47) (0.59) (0.68)
Distributions from net realized gain on
investment transactions (0.04) 0 0 0 (0.04)
----------- ----------- ----------- ----------- -----------
Total distributions (0.58) (0.51) (0.47) (0.59) (0.72)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 13.27 $ 13.41 $ 13.43 $ 13.08 $ 12.98
=========== =========== =========== =========== ===========
Total return (b) 3.35% 3.74% 6.39% 5.48% 9.80%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 3,386,745 $ 2,852,803 $ 2,402,262 $ 2,151,988 $ 2,130,691
Average net assets (000 omitted) $ 3,104,905 $ 2,612,933 $ 2,249,030 $ 2,135,339 $ 2,060,159
Ratio of expenses to average net assets 0.60% 0.61% 0.61% 0.61% 0.61%
Ratio of net investment income to average
net assets 3.97% 3.72% 3.55% 4.57% 5.66%
Portfolio turnover rate 586% 660% 796% 727% 532%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual Report 41
================================================================================
Sanford C. Bernstein Fund, Inc.
Financial Highlights (continued)
Selected per-share data and ratios for a share of capital stock outstanding for
each respective Portfolio for each of the periods presented:
---------------------------------------------------------------------------
U.S. GOVERNMENT
SHORT DURATION PORTFOLIO
---------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/03 9/30/02 9/30/01 (a)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.68 $ 13.00 $ 13.23 $ 13.07 $ 12.49
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.30 0.26 0.31 0.40 0.59
Net realized and unrealized gain (loss) on
investment transactions (0.19) (0.14) (0.04) 0.16 0.58
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.11 0.12 0.27 0.56 1.17
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.34) (0.30) (0.31) (0.40) (0.59)
Dividends from net realized gain on
investment transactions 0(d) (0.14) (0.19) 0 0
----------- ----------- ----------- ----------- -----------
Total distributions (0.34) (0.44) (0.50) (0.40) (0.59)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 12.45 $ 12.68 $ 13.00 $ 13.23 $ 13.07
=========== =========== =========== =========== ===========
Total return (b) 0.90% 0.93% 2.10% 5.42% 9.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 86,394 $ 93,595 $ 112,561 $ 115,400 $ 101,664
Average net assets (000 omitted) $ 91,842 $ 101,777 $ 120,631 $ 106,080 $ 101,326
Ratio of expenses to average net assets 0.78% 0.80% 0.76% 0.74% 0.72%
Ratio of expenses to average net assets
excluding interest expense 0.78% 0.78% 0.76% 0.74% 0.72%
Ratio of net investment income to average
net assets 2.41% 2.06% 2.39% 3.04% 4.65%
Portfolio turnover rate 167% 358% 323% 230% 344%
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
-----------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 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+ 0.64 0.60 0.56 0.25
Net realized and unrealized gain (loss) on
investment and foreign currency transactions (0.13) (0.03) 0.41 0.44
----------- ----------- ----------- -----------
Total from investment operations 0.51 0.57 0.97 0.69
----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net investment income (0.65) (0.61) (0.57) (0.25)
Dividends from net realized gain on
investment transactions (0.09) (0.22) (0.10) 0
----------- ----------- ----------- -----------
Total distributions (0.74) (0.83) (0.67) (0.25)
----------- ----------- ----------- -----------
Net asset value, end of period $ 15.25 $ 15.48 $ 15.74 $ 15.44
=========== =========== =========== ===========
Total return (b) 3.41% 3.76% 6.44% 4.62%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 650,915 $ 609,248 $ 464,517 $ 328,393
Average net assets (000 omitted) $ 611,401 $ 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 4.16% 3.86% 3.64% 4.37%*
Portfolio turnover rate 619% 682% 791% 324%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual 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
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 (g) 9/30/03 9/30/02 9/30/01 (a)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.60 $ 12.69 $ 12.79 $ 12.70 $ 12.44
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.26 0.22 0.29 0.37 0.47
Net realized and unrealized gain (loss) on
investment transactions (0.09) (0.07) (0.05) 0.10 0.26
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.17 0.15 0.24 0.47 0.73
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net
investment income 0 (0.01) 0 0 (0.01)
Dividends from tax-exempt net
investment income (0.26) (0.21) (0.29) (0.37) (0.46)
Dividends from net realized gain on
investment transactions 0 (0.02) (0.05) (0.01) 0
----------- ----------- ----------- ----------- -----------
Total distributions (0.26) (0.24) (0.34) (0.38) (0.47)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 12.51 $ 12.60 $ 12.69 $ 12.79 $ 12.70
=========== =========== =========== =========== ===========
Total return (b) 1.36% 1.21% 1.97% 3.81% 5.98%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 258,300 $ 253,728 $ 233,649 $ 200,696 $ 156,920
Average net assets (000 omitted) $ 253,042 $ 240,126 $ 220,768 $ 182,317 $ 144,315
Ratio of expenses to average net assets 0.71% 0.69% 0.71% 0.71% 0.71%
Ratio of net investment income to average
net assets 2.06% 1.81% 2.30% 2.92% 3.73%
Portfolio turnover rate 100% 84% 57% 56% 77%
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
---------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 (g) 9/30/03 9/30/02 9/30/01 (a)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.57 $ 12.67 $ 12.69 $ 12.68 $ 12.51
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Investment income, net+ 0.24 0.20 0.22 0.35 0.46
Net realized and unrealized gain
(loss) on investment transactions (0.10) (0.10) (0.02) 0.01 0.17
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.14 0.10 0.20 0.36 0.63
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from taxable net
investment income 0 (0.01) (0.01) 0 (0.03)
Dividends from tax-exempt net
investment income (0.24) (0.19) (0.21) (0.35) (0.43)
---------- ---------- ---------- ---------- ----------
Total distributions (0.24) (0.20) (0.22) (0.35) (0.46)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 12.47 $ 12.57 $ 12.67 $ 12.69 $ 12.68
========== ========== ========== ========== ==========
Total return (b) 1.11% 0.81% 1.63% 2.87% 5.13%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 62,025 $ 71,637 $ 79,818 $ 74,648 $ 54,073
Average net assets (000 omitted) $ 68,266 $ 77,177 $ 80,862 $ 61,944 $ 55,681
Ratio of expenses to average net assets 0.81% 0.78% 0.80% 0.79% 0.79%
Ratio of net investment income to average
net assets 1.88% 1.59% 1.77% 2.70% 3.66%
Portfolio turnover rate 91% 90% 72% 28% 60%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual 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
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 (g) 9/30/03 9/30/02 9/30/01 (a)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.47 $ 12.55 $ 12.57 $ 12.54 $ 12.31
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.25 0.22 0.26 0.36 0.44
Net realized and unrealized gain (loss)
on investment transactions (0.08) (0.08) (0.02) 0.03 0.23
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.17 0.14 0.24 0.39 0.67
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net
investment income 0 (0.01) 0 0 (0.03)
Dividends from tax-exempt net
investment income (0.25) (0.21) (0.26) (0.36) (0.41)
----------- ----------- ----------- ----------- -----------
Total distributions (0.25) (0.22) (0.26) (0.36) (0.44)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 12.39 $ 12.47 $ 12.55 $ 12.57 $ 12.54
=========== =========== =========== =========== ===========
Total return (b) 1.37% 1.16% 1.92% 3.14% 5.55%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 123,058 $ 123,176 $ 120,941 $ 116,307 $ 87,919
Average net assets (000 omitted) $ 122,925 $ 123,457 $ 119,346 $ 102,743 $ 94,322
Ratio of expenses to average net assets 0.74% 0.74% 0.76% 0.77% 0.73%
Ratio of net investment income to average
net assets 2.00% 1.80% 2.06% 2.83% 3.56%
Portfolio turnover rate 98% 68% 47% 38% 93%
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
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 (g) 9/30/03 9/30/02 9/30/01 (a)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.27 $ 14.34 $ 14.37 $ 14.05 $ 13.50
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.44 0.45 0.51 0.56 0.59
Net realized and unrealized gain (loss)
on investment transactions (0.21) (0.07) (0.03) 0.32 0.55
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.23 0.38 0.48 0.88 1.14
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net
investment income 0 (0.02) (0.01) 0 (0.01)
Dividends from tax-exempt net
investment income (0.44) (0.43) (0.50) (0.56) (0.58)
----------- ----------- ----------- ----------- -----------
Total distributions (0.44) (0.45) (0.51) (0.56) (0.59)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 14.06 $ 14.27 $ 14.34 $ 14.37 $ 14.05
=========== =========== =========== =========== ===========
Total return (b) 1.62% 2.73% 3.44% 6.42% 8.63%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,976,421 $ 2,509,749 $ 2,045,981 $ 1,731,818 $ 1,388,653
Average net assets (000 omitted) $ 2,752,982 $ 2,261,248 $ 1,844,104 $ 1,532,681 $ 1,277,970
Ratio of expenses to average net assets 0.61% 0.61% 0.63% 0.64% 0.63%
Ratio of net investment income to average
net assets 3.09% 3.19% 3.58% 3.96% 4.30%
Portfolio turnover rate 28% 41% 38% 22% 26%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual 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
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 (g) 9/30/03 9/30/02 9/30/01 (a)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.38 $ 14.46 $ 14.59 $ 14.23 $ 13.81
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.43 0.43 0.47 0.51 0.57
Net realized and unrealized gain (loss)
on investment transactions (0.13) (0.07) (0.13) 0.36 0.42
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.30 0.36 0.34 0.87 0.99
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net
investment income 0 (0.02) (0.03) 0 (0.04)
Dividends from tax-exempt net
investment income (0.44) (0.41) (0.44) (0.51) (0.53)
Distributions from net realized gain
on investment transactions (0.01) (0.01) 0 0 0
----------- ----------- ----------- ----------- -----------
Total distributions (0.45) (0.44) (0.47) (0.51) (0.57)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 14.23 $ 14.38 $ 14.46 $ 14.59 $ 14.23
=========== =========== =========== =========== ===========
Total return (b) 2.09% 2.55% 2.40% 6.27% 7.33%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 983,388 $ 843,206 $ 685,360 $ 597,222 $ 491,194
Average net assets (000 omitted) $ 898,450 $ 752,372 $ 625,249 $ 541,454 $ 460,729
Ratio of expenses to average net assets 0.65% 0.64% 0.66% 0.66% 0.65%
Ratio of net investment income to average
net assets 3.04% 3.01% 3.26% 3.57% 4.07%
Portfolio turnover rate 30% 52% 44% 31% 46%
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
---------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 (g) 9/30/03 9/30/02 9/30/01 (a)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 14.11 $ 14.21 $ 14.23 $ 13.85 $ 13.37
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.46 0.47 0.50 0.54 0.57
Net realized and unrealized gain (loss)
on investment transactions (0.20) (0.10) (0.02) 0.38 0.48
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.26 0.37 0.48 0.92 1.05
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net
investment income 0 (0.01) (0.01) (0.01) (0.02)
Dividends from tax-exempt net
investment income (0.46) (0.46) (0.49) (0.53) (0.55)
----------- ----------- ----------- ----------- -----------
Total distributions (0.46) (0.47) (0.50) (0.54) (0.57)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 13.91 $ 14.11 $ 14.21 $ 14.23 $ 13.85
=========== =========== =========== =========== ===========
Total return (b) 1.90% 2.63% 3.45% 6.83% 7.99%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,274,466 $ 1,121,213 $ 1,006,023 $ 940,302 $ 763,728
Average net assets (000 omitted) $ 1,190,723 $ 1,055,386 $ 954,250 $ 835,184 $ 713,704
Ratio of expenses to average net assets 0.63% 0.63% 0.65% 0.66% 0.64%
Ratio of net investment income to average
net assets 3.30% 3.31% 3.53% 3.89% 4.17%
Portfolio turnover rate 32% 39% 29% 37% 29%
See Footnote Summary on page 51.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual 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
----------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/03 9/30/02 9/30/01 (a)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.67 $ 12.84 $ 12.78 $ 12.69 $ 12.25
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Investment income, net+ 0.37 0.30 0.37 0.50 0.68
Net realized and unrealized gain (loss)
on investment transactions (0.24) (0.12) 0.06 0.09 0.44
----------- ----------- ----------- ----------- -----------
Total from investment operations 0.13 0.18 0.43 0.59 1.12
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends from taxable net
investment income (0.40) (0.33) (0.37) (0.50) (0.66)
Distributions from net realized gain
on investment transactions (0.01) (0.02) 0 0 0
Distributions in excess of net investment
income due to timing differences 0 0 0 0 (0.01)
Distributions in excess of net realized
gain on investment transactions due to
timing differences 0 0 0 0 (0.01)
----------- ----------- ----------- ----------- -----------
Total distributions (0.41) (0.35) (0.37) (0.50) (0.68)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 12.39 $ 12.67 $ 12.84 $ 12.78 $ 12.69
=========== =========== =========== =========== ===========
Total return (b) 1.10% 1.37% 3.42% 4.78% 9.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 398,787 $ 421,881 $ 413,100 $ 397,719 $ 367,738
Average net assets (000 omitted) $ 410,072 $ 411,043 $ 408,848 $ 377,656 $ 377,112
Ratio of expenses to average net assets 0.68% 0.70% 0.67% 0.67% 0.67%
Ratio of expenses to average net assets
excluding interest expense 0.68% 0.68% 0.66% 0.67% 0.67%
Ratio of net investment income to average
net assets 2.97% 2.39% 2.89% 3.95% 5.48%
Portfolio turnover rate 220% 359% 286% 226% 377%
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.
+ Based on average shares outstanding.
(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 applicable portfolio transaction fee.
Effective May 2, 2005 the portfolio transaction fee payable when shares of the
Portfolio are purchased or sold was reduced from 2.00% to 1.00%. Total return to
a shareholder for the years ending September 30, 2005, September 30, 2004,
September 30, 2003, September 30, 2002 and September 30, 2001, without taking
into account these transaction fees would have been 53.35%, 40.22%, 53.28%,
10.35% and (24.37)%, 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%
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
2005 Annual 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, (formerly 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 Municipal 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 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 Annual 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
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 Portfolio will be paid to
shareholders at least once a year.
- --------------------------------------------------------------------------------
54 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Distributions of net realized gains, less any available loss
carryforwards, if any, for all Portfolios will be paid to shareholders
at least once a year, and recorded on the ex-dividend date.
Elements of realized gains and net investment income may be recorded in
different accounting periods for financial reporting (book) and federal
income tax (tax) purposes (temporary differences). To the extent that
such distributions required for tax purposes exceed income and gains
recorded for book purposes as a result of such temporary differences,
"excess distributions" are reflected in the accompanying financial
statements. Certain other differences--permanent differences--arise
because treatment of elements of income and gains is different between
book and tax accounting. Permanent differences are reclassified in the
year they arise.
Permanent differences have no effect on net assets. The effect of such
permanent differences on each Portfolio, due to redemption-in-kind, sale
of passive foreign investment companies, reclassification of
distributions, foreign currency gain (loss), paydown gain (loss), swap
income (loss) and capital gain withholding tax is reflected as an
adjustment to the components of capital as of September 30, 2005, as
shown below:
INCREASE (DECREASE)
INCREASE INCREASE TO ACCUMULATED
(DECREASE) (DECREASE) NET REALIZED GAIN (LOSS)
TO ADDITIONAL TO UNDISTRIBUTED NET ON INVESTMENT AND FOREIGN
PAID-IN CAPITAL INVESTMENT INCOME (LOSS) CURRENCY TRANSACTIONS
====================================================================================================================
Tax-Managed International $0 $ 578,922 $ (578,922)
International 0 837,777 (837,777)
Emerging Markets 16,637,601 (2,773,652) (13,863,949)
Intermediate Duration 0 5,122,358 (5,122,358)
U.S. Government Short Duration 0 275,135 (275,135)
Intermediate Duration Institutional 0 (75,133) 75,133
Short Duration Diversified Municipal 0 (18,071) 18,071
Short Duration California Municipal 0 (478) 478
Short Duration New York Municipal 0 (3,337) 3,337
Diversified Municipal 0 (108,835) 108,835
California Municipal 0 (107,642) 107,642
New York Municipal 0 12,226 (12,226)
Short Duration Plus 0 1,249,135 (1,249,135)
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 Portfolio imposed a 2.00% fee on purchases and
redemptions through May 1, 2005. Effective May 2, 2005 this fee was
reduced from 2% to 1%. 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
- --------------------------------------------------------------------------------
2005 Annual Report 55
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
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 September 30,
2005, the International Portfolio had securities on loan with a value of
$703,909,322 and had received collateral of $742,717,808 of which
$741,426,000 was cash collateral and $1,291,808 was collateral in the
form of U.S. Government securities. The International Portfolio earned
$1,675,662 from securities lending transactions for the year ended
September 30, 2005. The amount is reflected in the statements of
operations as a component of interest income.
M. Swap Agreements
Each of the Portfolios may enter into swaps to hedge its exposure to
interest rates and credit risk or for investment purposes. A swap is an
agreement that obligates two parties to exchange a series of cash flows
at specified intervals based upon or calculated by reference to changes
in specified prices or rates for a specified amount of an underlying
asset. The payment flows are usually netted against each other, with the
difference being paid by one party to the other.
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 Portfolio, and/or the
termination value at the end of the contract. Therefore, the Portfolios
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 Portfolios have adopted the method of
accounting for interim payments on swap contracts in accordance with
Financial Accounting Standards Board Statement No. 133. The Portfolios
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 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.
Each of the Portfolios may enter into credit default swaps. The
Portfolios 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
Portfolio 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 Portfolio 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 Portfolio is a seller and a
credit event occurs, the value of the referenced obligation received by
the Portfolio coupled with periodic payments previously received, may be
less than the Maximum Payout Amount it pays to the buyer, resulting in a
loss to the Portfolio.
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. At
September 30, 2005, the Fund had not entered into any reverse repurchase
agreement.
- --------------------------------------------------------------------------------
56 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
O. Mortgage-Backed Dollar Rolls
The Intermediate Duration Portfolio, Intermediate Duration Institutional
Portfolio, U.S. Government Short Duration Portfolio and Short Duration
Plus Portfolio may enter into dollar rolls. Dollar rolls involve sales
by a Portfolio of securities for delivery in the current month and such
Portfolio's simultaneously contracting to repurchase similar securities
on a specified future date. During the roll period, the Portfolios forgo
principal and interest paid on the securities. In consideration for
entering into the commitment to repurchase the Portfolios are
compensated by "fee income", which is received when the Portfolios enter
into the commitment. Such fee income is recorded as deferred income and
accrued by each Portfolio over the roll period. Dollar rolls involve the
risk that the market value of the securities the Portfolios are
obligated to repurchase under the agreement may decline below the
repurchase price. Dollar rolls are speculative techniques and may be
considered to be borrowings by the Portfolios.
NOTE 2. Investment Management and Transactions with Affiliated Persons
A. Management Fee
Under the Investment Management Agreement between the Funds and the
Adviser, the Adviser manages the investment of each Portfolio's assets,
places purchase and sale orders, and bears various expenses, including
the salaries and expenses of 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.
Each of the Portfolios of Sanford C. Bernstein Fund, Inc. pays the
Adviser an investment management fee, based on the annual rate, for such
services as follows:
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 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.
- --------------------------------------------------------------------------------
2005 Annual Report 57
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
Prior to October 27, 2004, each of the Portfolios paid the Adviser an
investment management fee, based on the annual rate 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
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 Portfolio 1.25% 1.125%
The Intermediate Duration Institutional Portfolio and the Adviser have
entered into an Expense Limitation Agreement (the "Agreement"), dated
March 22, 2002, under which the Adviser has agreed to waive its fees
and, if necessary, reimburse expenses in respect of the Portfolio for
the current fiscal year, so that total operational expenses do not
exceed the annual rate of 0.45% of average daily net assets of the
Portfolio. Under the Agreement, any waivers or reimbursements made by
the Adviser are subject to repayment by the Portfolio by March 31, 2005
provided that repayment does not result in the Portfolio's aggregate
expenses exceeding the foregoing expense limitations. Further, the
aggregate repayment to the Adviser will not exceed the sum of the
Portfolio's organization costs and initial offering expenses. For the
year ended September 30, 2005, the aggregate amount of such fee waiver
was $744,532 which none was reimbursed.
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 to the Adviser except the Tax-Managed International Portfolio,
International Portfolio, and Emerging Markets 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
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. AGIS may make payments to
intermediaries that provide omnibus account services, sub-accounting
services and /or networking services. For the year ended September 30,
2005, the compensation retained by AGIS amounted to: Tax-Managed
International, $182; International, $13,169; Diversified Municipal
Portfolio, $50,868; California Municipal Portfolio, $18,000; New York
- --------------------------------------------------------------------------------
58 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Municipal Portfolio, $44,364; and Short Duration Plus Portfolio,
$51,926. 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 $17,818 and $4,831,
respectively, for the year ended September 30, 2005.
For the year ended September 30, 2005, the expenses for the Retail
Classes of the Tax-Managed International Portfolio, International
Portfolio, 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
$13, $183, $552, $248, $307 and $636, respectively.
C. Distribution Arrangements--the Funds Except the Retail Classes
Under the Distribution Agreement between the Funds, on behalf of each
Portfolio, and Sanford C. Bernstein & Co., LLC (the "Distributor"), the
Distributor agrees to act as agent to sell shares other than the Retail
Classes 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 $119,574 $150,337 $1,161,605 $674,070 $1,255,712 $393,839
Class C 377,232 376,924 1,142,499 699,630 781,974 540,308
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
Shares. The Agreement also provides that the Adviser may use its own
resources to finance the distribution of each Portfolio's Shares.
E. Other Transactions with Affiliates
Class A Shares of the Retail Classes are sold with a front-end sales
charge of up to 4.25% for purchases not exceeding $1,000,000. With
respect to purchases of $1,000,000 or more, Class A Shares redeemed
within one year of purchase may be subject to a contingent deferred
sales charge of 1%. Class B Shares of the Intermediate Municipal
Portfolios and the Short Duration Plus Portfolio are currently sold with
a contingent deferred sales charge that declines from 3% to zero
depending on the period of time the shares are held. Class B Shares of
the Tax-Managed International Portfolio and the International Portfolio
are currently sold with a contingent deferred sales charge that declines
from 4% to zero depending on the period of time the shares are held.
Class B Shares will automatically convert to Class A Shares six years
after the end of the calendar month of purchase for the Intermediate
Municipal Portfolios and the Short Duration Plus Portfolio, and eight
years after the end of the calendar month of purchase for the
Tax-Managed International Portfolio and the
- --------------------------------------------------------------------------------
2005 Annual Report 59
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
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 year ended ended September 30, 2005, as
follows:
FRONT-END CONTINGENT DEFERRED SALES CHARGES
SALES CHARGES ---------------------------------
CLASS A CLASS A CLASS B CLASS C
================================================================================
Tax-Managed International $ 1,599 $ 0 $ 320 $ 40
International 2,741 610 880 5,288
Diversified Municipal 8,599 2,742 183,806 8,507
California Municipal 4,227 5,989 58,364 3,988
New York Municipal 4,844 3,556 78,738 8,284
Short Duration Plus 5,331 5,149 92,771 13,555
For the year ended September 30, 2005, the International and Emerging
Markets Portfolios paid brokerage commissions to Sanford C. Bernstein &
Co., LLC, in the amount of $765 and $13,923, and the Tax-Managed
International and International Portfolios paid commissions to Sanford
C. Bernstein & Co., Ltd., in the amount of $311,067 and $46,998,
respectively.
NOTE 3. Investment Security Transactions
A. Purchases and Sales
For the period from October 1, 2004 through September 30, 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 $3,207,983,613 $ 0 $ 2,783,748,534 $ 0
International 1,636,677,899 0 1,476,770,148 0
Emerging Markets 831,322,130 0 971,253,370* 0
Intermediate Duration 1,581,977,091 15,475,527,009 1,247,425,611 15,292,788,904
U.S. Government Short Duration 3,800,313 148,612,822 1,180,619 144,219,536
Intermediate Duration Institutional 308,982,245 3,177,976,310 277,538,987 3,183,730,044
Short Duration Diversified Municipal 250,198,223 0 242,383,405 0
Short Duration California Municipal 59,141,648 0 67,860,803 0
Short Duration New York Municipal 116,317,144 0 108,301,878 0
Diversified Municipal 1,379,653,545 0 820,659,516 0
California Municipal 464,425,639 0 292,008,149 0
New York Municipal 567,995,063 0 415,918,271 0
Short Duration Plus 228,523,114 912,946,076 144,292,857 979,734,391
*Includes proceeds of $29,256,121 from redemption-in-kind.
- --------------------------------------------------------------------------------
60 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
B. Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended
September 30, 2005 and September 30, 2004, were as follows:
TAX-MANAGED INTERNATIONAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 38,554,498 $ 61,238,586
Net long-term capital gains 64,402,318 0
------------ ------------
Total distributions paid $102,956,816 $ 61,238,586
------------ ------------
INTERNATIONAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 19,679,950 $ 18,338,621
------------ ------------
Total distributions paid $ 19,679,950 $ 18,338,621
------------ ------------
EMERGING MARKETS 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 2,635,948 $ 9,586,370
Net long-term capital gains 36,713,975 0
------------ ------------
Total distributions paid $ 39,349,923 $ 9,586,370
------------ ------------
INTERMEDIATE DURATION 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $126,024,077 $ 99,678,637
Net long-term capital gains 8,277,788 0
------------ ------------
Total distributions paid $134,301,865 $ 99,678,637
------------ ------------
U.S. GOVERNMENT SHORT DURATION 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 2,498,232 $ 3,537,784
------------ ------------
Total distributions paid $ 2,498,232 $ 3,537,784
------------ ------------
INTERMEDIATE DURATION INSTITUTIONAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 27,390,220 $ 26,771,666
Net long-term capital gains 2,316,118 1,035,029
------------ ------------
Total distributions paid $ 29,706,338 $ 27,806,695
------------ ------------
SHORT DURATION DIVERSIFIED MUNICIPAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 60,040 $ 469,395
------------ ------------
Total taxable distributions paid 60,040 469,395
Tax exempt distributions 5,154,214 4,112,219
------------ ------------
Total distributions paid $ 5,214,254 $ 4,581,614
------------ ------------
- --------------------------------------------------------------------------------
2005 Annual Report 61
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
SHORT DURATION CALIFORNIA MUNICIPAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 19,368 $ 44,614
----------- -----------
Total taxable distributions paid 19,368 44,614
Tax exempt distributions 1,269,565 1,182,918
----------- -----------
Total distributions paid $ 1,288,933 $ 1,227,532
----------- -----------
SHORT DURATION NEW YORK MUNICIPAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 26,833 $ 68,586
----------- -----------
Total taxable distributions paid 26,833 68,586
Tax exempt distributions 2,430,772 2,136,107
----------- -----------
Total distributions paid $ 2,457,605 $ 2,204,693
----------- -----------
DIVERSIFIED MUNICIPAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 983,998 $ 2,700,837
----------- -----------
Total taxable distributions paid 983,998 2,700,837
Tax exempt distributions 89,976,779 77,360,866
----------- -----------
Total distributions paid $90,960,777 $80,061,703
----------- -----------
CALIFORNIA MUNICIPAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 608,022 $ 1,078,849
Net long-term capital gains 257,140 584,016
Total taxable distributions paid 865,162 1,662,865
Tax exempt distributions 29,602,653 24,422,628
----------- -----------
Total distributions paid $30,467,815 $26,085,493
----------- -----------
NEW YORK MUNICIPAL 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $ 394,308 $ 1,067,657
----------- -----------
Total taxable distributions paid 394,308 1,067,657
Tax exempt distributions 42,784,655 38,705,448
----------- -----------
Total distributions paid $43,178,963 $39,773,105
----------- -----------
SHORT DURATION PLUS 2005 2004
- --------------------------------------------------------------------------------
Distributions paid from:
Ordinary income $16,260,569 $14,180,368
Net long-term capital gains 401,157 0
----------- -----------
Total distributions paid $16,661,726 $14,180,368
----------- -----------
- --------------------------------------------------------------------------------
62 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
As of September 30, 2005, the components of accumulated
earnings/(deficits) on a tax basis were as follows:
ACCUMULATED TOTAL
LONG TERM CAPITAL AND UNREALIZED ACCUMULATED
ORDINARY CAPITAL OTHER GAINS APPRECIATION/ EARNINGS/
INCOME (a) GAIN (LOSSES) (b) (DEPRECIATION) (c) (DEFICIT) (d)
===========================================================================================================================
Tax-Managed International $107,662,808 $320,454,973 $ 0 $1,545,804,490 $1,973,922,271
International 36,957,866 0 (54,114,121) 624,188,137 607,031,882
Emerging Markets 41,825,953 350,419,065 0 665,442,114 1,057,687,132
Intermediate Duration 4,986,387 927,234 0 (7,887,417) (1,973,796)
U.S. Government Short Duration 120,626 0 (772,540) (873,118) (1,525,032)
Intermediate Duration Institutional 553,516 0 (81,091) (1,322,441) (850,016)
Short Duration Diversified Municipal 157,229 (a) 0 (235,136) (678,819) (756,726)
Short Duration California Municipal 18,652 (a) 0 (53,282) (329,146) (363,776)
Short Duration New York Municipal 74,805 (a) 0 (536,888) 200,791 (261,292)
Diversified Municipal 2,831,820 (a) 0 (5,593,133) 43,464,135 40,702,822
California Municipal 756,170 (a) 0 (2,122,815) 16,386,194 15,019,549
New York Municipal 1,262,158 (a) 0 (1,041,094) 23,398,194 23,619,258
Short Duration Plus 62,743 0 (3,594,854) (4,914,253) (8,446,364)
(a) Includes tax exempt income as shown below:
========================================================================
Short Duration Diversified Municipal $ 153,764
Short Duration California Municipal 17,279
Short Duration New York Municipal 74,049
Diversified Municipal 2,781,491
California Municipal 756,170
New York Municipal 1,247,841
- --------------------------------------------------------------------------------
2005 Annual Report 63
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
(b) At September 30, 2005, the following Portfolios had capital loss
carryforwards as shown below:
CAPITAL LOSS
CARRYFORWARD AMOUNT EXPIRATION
========================================================================
International $ 54,114,121 9/30/11
U.S. Government Short Duration 772,540 9/30/13
Intermediate Duration Institutional 81,091 9/30/13
Short Duration Diversified Municipal 235,136 9/30/13
Short Duration California Municipal 53,282 9/30/13
Short Duration New York Municipal 467,595 9/30/09
Short Duration New York Municipal 69,293 9/30/11
Diversified Municipal 1,541,518 9/30/09
Diversified Municipal 4,051,615 9/30/13
California Municipal 2,122,815 9/30/13
New York Municipal 1,041,094 9/30/09
Short Duration Plus 3,594,854 9/30/13
(c) The difference between book-basis and tax-basis unrealized
appreciation (depreciation) is attributable primarily to 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 post-October
loss deferrals.
At September 30, 2005, the following Portfolios had post-October capital
and/or currency loss deferrals as shown below. For tax purposes, these
losses are deemed to arise on October 1, 2005:
POST-OCTOBER CAPITAL POST-OCTOBER FOREIGN
LOSS DEFERRAL CURRENCY LOSS DEFERRAL
================================================================================
Tax-Managed International $ 0 $328,941
Emerging Markets 0 1,968,291
U.S. Government Short Duration 775,884 0
Intermediate Duration Institutional 36,043 0
Short Duration Diversified Municipal 909,794 0
Short Duration California Municipal 156,405 0
Short Duration New York Municipal 620,642 0
Short Duration Plus 5,711,473 0
- --------------------------------------------------------------------------------
64 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
During the year ended September 30, 2005, capital loss carryforwards
were utilized by the Portfolios as shown below:
CAPITAL LOSS
CARRYFORWARD
UTILIZED
================================================================================
International $210,700,325
Short Duration New York Municipal 499
New York Municipal 1,172,858
- --------------------------------------------------------------------------------
NOTE 4. Risks Involved in Investing in the Portfolios
Emerging Markets 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.
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.
- --------------------------------------------------------------------------------
2005 Annual Report 65
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
The Short Duration Plus Portfolio, Intermediate Duration Portfolio,
Intermediate Duration Institutional Portfolio, Tax-Managed International
Portfolio, International Portfolio, and Emerging Markets Portfolio may
enter into forward exchange currency contracts in order to hedge
exposure to changes in foreign currency exchange rates on foreign
portfolio holdings. Foreign currency contracts involve elements of
market risk in excess of the amount reflected in the statements of
assets and liabilities. A Portfolio bears the risk of an unfavorable
change in the foreign exchange rate underlying the foreign currency
contract. In addition, a Portfolio could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their
contracts.
NOTE 6. Capital-Share Transactions
As of September 30, 2005, the Sanford C. Bernstein Fund, Inc., has
authorized 7.8 billion shares of common stock, par value $0.001 per
share, of which 7.5 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; 1.2 billion to the
International Portfolio of which 600 million is allocated to the
International Class Shares and 200 million to each of the three retail
classes of shares; 1.6 billion to the Diversified Municipal Portfolio,
divided evenly into four classes; 200 million each to the Emerging
Markets 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; 800 million 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 300 million shares of common stock with
par value $0.001 per share. Share transactions for each Portfolio for
the year ended September 30, 2005 and the year ended September 30, 2004,
were as follows:
- --------------------------------------------------------------------------------
66 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
-------------------------------------------------------------------
TAX-MANAGED INTERNATIONAL PORTFOLIO
-------------------------------------------------------------------
----------------------------- ----------------------------------
SHARES AMOUNT
----------------------------- ----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
========================================================================================================================
Tax-Managed International Class Shares
Shares sold 47,072,434 52,134,283 $ 1,052,136,545 $ 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 (31,558,920) (32,330,589) (706,984,300) (632,135,649)
------------ ------------ --------------- ---------------
Net increase 20,069,165 22,693,724 443,007,650 442,282,967
Beginning of period 225,857,515 203,163,791 3,662,301,045 3,220,018,078
------------ ------------ --------------- ---------------
End of period 245,926,680 225,857,515 $ 4,105,308,695 $ 3,662,301,045
============ ============ =============== ===============
========================================================================================================================
Tax-Managed International Class A Shares (a)
Shares sold 102,026 6,981 $ 2,254,583 $ 138,270
Shares issued to shareholders on
reinvestment of dividends 205 0 4,390 0
Shares converted from Class B 540 0 12,028 0
Shares redeemed (516) (474) (12,442) (9,360)
------------ ------------ --------------- ---------------
Net increase 102,255 6,507 2,258,559 128,910
Beginning of period 6,507 0 128,910 0
------------ ------------ --------------- ---------------
End of period 108,762 6,507 $ 2,387,469 $ 128,910
============ ============ =============== ===============
========================================================================================================================
Tax-Managed International Class B Shares (a)
Shares sold 6,403 2,794 $ 141,983 $ 55,653
Shares issued to shareholders on
reinvestment of dividends 51 0 1,059 0
Shares converted to Class A (544) 0 (12,028) 0
Shares redeemed (1,294) (57) (29,294) (1,123)
------------ ------------ --------------- ---------------
Net increase 4,616 2,737 101,720 54,530
Beginning of period 2,737 0 54,530 0
------------ ------------ --------------- ---------------
End of period 7,353 2,737 $ 156,250 $ 54,530
============ ============ =============== ===============
========================================================================================================================
Tax-Managed International Class C Shares (a)
Shares sold 20,255 8,280 $ 452,475 $ 165,415
Shares issued to shareholders on
reinvestment of dividends 87 0 1,874 0
Shares redeemed (706) (97) (16,392) (1,877)
------------ ------------ --------------- ---------------
Net increase 19,636 8,183 437,957 163,538
Beginning of period 8,183 0 163,538 0
------------ ------------ --------------- ---------------
End of period 27,819 8,183 $ 601,495 $ 163,538
============ ============ =============== ===============
(a) Class A, B and C Shares commenced distribution on January 30, 2004.
- --------------------------------------------------------------------------------
2005 Annual Report 67
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
---------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
===================================================================================================================
International Class Shares
Shares sold 19,431,940 20,830,061 $ 410,168,394 $ 374,436,163
Shares issued to shareholders on
reinvestment of dividends 945,230 1,022,862 19,065,301 17,787,574
Shares redeemed (16,342,116) (19,917,739) (343,893,907) (354,463,245)
----------- ----------- --------------- ---------------
Net increase 4,035,054 1,935,184 85,339,788 37,760,492
Beginning of period 115,673,695 113,738,511 2,098,715,783 2,060,955,291
----------- ----------- --------------- ---------------
End of period 119,708,749 115,673,695 $ 2,184,055,571 $ 2,098,715,783
=========== =========== =============== ===============
==================================================================================================================
International Class A Shares (a)
Shares sold 1,175,024 181,016 $ 24,657,035 $ 3,336,881
Shares issued to shareholders on
reinvestment of dividends 1,066 0 21,461 0
Shares converted from Class B 3,514 0 75,664 0
Shares redeemed (121,631) (15,813) (2,656,916) (290,505)
----------- ----------- --------------- ---------------
Net increase 1,057,973 165,203 22,097,244 3,046,376
Beginning of period 165,203 0 3,046,376 0
----------- ----------- --------------- ---------------
End of period 1,223,176 165,203 $ 25,143,620 $ 3,046,376
=========== =========== =============== ===============
==================================================================================================================
International Class B Shares (a)
Shares sold 91,339 53,641 $ 1,892,028 $ 984,733
Shares issued to shareholders on
reinvestment of dividends 216 0 4,324 0
Shares converted to Class A (3,545) 0 (75,664) 0
Shares redeemed (19,485) (5,304) (413,136) (96,448)
----------- ----------- --------------- ---------------
Net increase 68,525 48,337 1,407,552 888,285
Beginning of period 48,337 0 888,285 0
----------- ----------- --------------- ---------------
End of period 116,862 48,337 $ 2,295,837 $ 888,285
=========== =========== =============== ===============
==================================================================================================================
International Class C Shares (a)
Shares sold 337,112 250,874 $ 6,941,414 $ 4,604,211
Shares issued to shareholders
on reinvestment of dividends 267 0 5,349 0
Shares redeemed (112,716) (3,198) (2,412,856) (58,714)
----------- ----------- --------------- ---------------
Net increase 224,663 247,676 4,533,907 4,545,497
Beginning of period 247,676 0 4,545,497 0
----------- ----------- --------------- ---------------
End of period 472,339 247,676 $ 9,079,404 $ 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
=========== =========== =============== ===============
(b) Class R Shares commenced distribution on February 17, 2004. These shares are
no longer being offered to shareholders as of February 23, 2005.
- --------------------------------------------------------------------------------
68 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
----------------------------- -----------------------------
EMERGING INTERMEDIATE
MARKETS VALUE DURATION
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
================================================================================================
Shares sold 10,080,394 10,871,494 69,094,301 61,026,683
Shares issued to shareholders
on reinvestment of dividends
and distributions 1,190,384 384,525 2,311,887 1,446,809
Shares redeemed (14,857,739) (7,328,884) (28,853,086) (28,567,549)
----------- ---------- ----------- -----------
Net increase (decrease)
in shares outstanding (3,586,961) 3,927,135 42,553,102 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 43,505,863 47,092,824 255,266,942 212,713,840
=========== ========== =========== ===========
----------------------------- -----------------------------
U.S. GOVERNMENT INTERMEDIATE DURATION
SHORT DURATION INSTITUTIONAL
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
===============================================================================================
Shares sold 1,335,866 2,054,195 12,843,724 15,914,321
Shares issued to shareholders
on reinvestment of dividends
and distributions 106,625 188,809 846,398 1,023,015
Shares redeemed (1,882,568) (3,521,347) (10,364,588) (7,094,674)
----------- ---------- ----------- -----------
Net increase (decrease)
in shares outstanding (440,077) (1,278,343) 3,325,534 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 6,939,375 7,379,452 42,673,898 39,348,364
=========== ========== =========== ===========
- --------------------------------------------------------------------------------
2005 Annual Report 69
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
--------------------------- ---------------------------- --------------------------
SHORT DURATION SHORT DURATION SHORT DURATION
DIVERSIFIED MUNICIPAL CALIFORNIA MUNICIPAL NEW YORK MUNICIPAL
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------- ---------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04 9/30/05 9/30/04
==========================================================================================================================
Shares sold 13,703,501 12,018,742 3,635,973 4,724,131 5,800,480 7,611,430
Shares issued to shareholders
on reinvestment of dividends
and distributions 173,534 163,224 64,525 60,450 90,356 81,453
Shares redeemed (13,353,227) (10,456,901) (4,425,411) (5,386,518) (5,836,199) (7,446,664)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in shares outstanding 523,808 1,725,065 (724,913) (601,937) 54,637 246,219
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 20,655,698 20,131,890 4,973,154 5,698,067 9,934,353 9,879,716
=========== =========== =========== =========== =========== ===========
- --------------------------------------------------------------------------------
70 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
---------------------------------------------------------------------
DIVERSIFIED MUNICIPAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
================================================================================================================
Municipal Class Shares sold 67,306,052 56,402,771 $ 954,163,543 $ 803,722,850
Shares issued to shareholders
on reinvestment of dividends 1,025,694 996,289 14,537,618 14,194,124
Shares redeemed (32,601,964) (24,148,120) (461,940,395) (343,673,316)
--------------- --------------- --------------- ---------------
Net increase 35,729,782 33,250,940 506,760,766 474,243,658
Beginning of period 175,912,881 142,661,941 2,429,726,990 1,955,483,332
--------------- --------------- --------------- ---------------
End of period 211,642,663 175,912,881 $ 2,936,487,756 $ 2,429,726,990
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 1,418,380 2,791,398 $ 20,132,758 $ 39,770,226
Shares issued to shareholders on
reinvestment of dividends 115,543 156,489 1,638,421 2,232,359
Shares converted from Class B 157,152 40,949 2,222,023 585,547
Shares redeemed (2,905,957) (5,661,852) (41,230,449) (80,491,325)
--------------- --------------- --------------- ---------------
Net decrease (1,214,882) (2,673,016) (17,237,247) (37,903,193)
Beginning of period 7,139,972 9,812,988 101,452,919 139,356,112
--------------- --------------- --------------- ---------------
End of period 5,925,090 7,139,972 $ 84,215,672 $ 101,452,919
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 201,550 869,273 $ 2,864,835 $ 12,394,497
Shares issued to shareholders on
reinvestment of dividends 81,542 97,407 1,156,539 1,388,562
Shares converted to Class A (157,197) (40,951) (2,222,023) (585,547)
Shares redeemed (2,160,430) (2,258,595) (30,611,828) (32,100,577)
--------------- --------------- --------------- ---------------
Net decrease (2,034,535) (1,332,866) (28,812,477) (18,903,065)
Beginning of period 6,730,272 8,063,138 95,318,319 114,221,384
--------------- --------------- --------------- ---------------
End of period 4,695,737 6,730,272 $ 66,505,842 $ 95,318,319
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 440,590 1,383,803 $ 6,253,538 $ 19,746,954
Shares issued to shareholders on
reinvestment of dividends 59,271 81,839 840,684 1,166,777
Shares redeemed (2,000,134) (3,026,407) (28,364,922) (43,006,747)
--------------- --------------- --------------- ---------------
Net decrease (1,500,273) (1,560,765) (21,270,700) (22,093,016)
Beginning of period 6,266,770 7,827,535 89,063,423 111,156,439
--------------- --------------- --------------- ---------------
End of period 4,766,497 6,266,770 $ 67,792,723 $ 89,063,423
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2005 Annual Report 71
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
---------------------------------------------------------------------
CALIFORNIA MUNICIPAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
================================================================================================================
Municipal Class
Shares sold 21,434,750 19,362,604 $ 307,063,523 $ 278,229,856
Shares issued to shareholders
on reinvestment of dividends 414,093 380,194 5,934,834 5,464,063
Shares redeemed (11,381,962) (8,521,055) (163,180,906) (122,550,941)
--------------- --------------- --------------- ---------------
Net increase 10,466,881 11,221,743 149,817,451 161,142,978
Beginning of period 58,618,356 47,396,613 818,413,383 657,270,405
--------------- --------------- --------------- ---------------
End of period 69,085,237 58,618,356 $ 968,230,834 $ 818,413,383
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 956,855 1,601,314 $ 13,703,260 $ 22,992,722
Shares issued to shareholders on
reinvestment of dividends 58,866 62,048 843,393 892,517
Shares converted from Class B 50,349 42,663 722,083 616,038
Shares redeemed (1,108,320) (2,739,651) (15,850,412) (39,262,227)
--------------- --------------- --------------- ---------------
Net decrease (42,250) (1,033,626) (581,676) (14,760,950)
Beginning of period 2,671,212 3,704,838 38,438,279 53,199,229
--------------- --------------- --------------- ---------------
End of period 2,628,962 2,671,212 $ 37,856,603 $ 38,438,279
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 31,283 413,439 $ 449,100 $ 5,912,975
Shares issued to shareholders on
reinvestment of dividends 36,862 42,707 528,386 613,905
Shares converted to Class A (50,375) (42,664) (722,083) (616,038)
Shares redeemed (668,920) (690,338) (9,570,894) (9,878,652)
--------------- --------------- --------------- ---------------
Net decrease (651,150) (276,856) (9,315,491) (3,967,810)
Beginning of period 2,483,175 2,760,031 35,650,128 39,617,938
--------------- --------------- --------------- ---------------
End of period 1,832,025 2,483,175 $ 26,334,637 $ 35,650,128
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 147,263 458,392 $ 2,111,016 $ 6,601,771
Shares issued to shareholders on
reinvestment of dividends 34,066 43,617 488,199 627,058
Shares redeemed (602,915) (1,541,591) (8,638,516) (22,079,682)
--------------- --------------- --------------- ---------------
Net decrease (421,586) (1,039,582) (6,039,301) (14,850,853)
Beginning of period 2,423,470 3,463,052 34,873,086 49,723,939
--------------- --------------- --------------- ---------------
End of period 2,001,884 2,423,470 $ 28,833,785 $ 34,873,086
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
72 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
---------------------------------------------------------------------
NEW YORK MUNICIPAL PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
================================================================================================================
Municipal Class
Shares sold 26,547,744 21,638,209 $ 372,003,374 $ 305,291,848
Shares issued to shareholders on
reinvestment of dividends 701,028 689,237 9,824,232 9,719,528
Shares redeemed (15,053,132) (13,656,099) (210,928,598) (192,281,514)
--------------- --------------- --------------- ---------------
Net increase 12,195,640 8,671,347 170,899,008 122,729,862
Beginning of period 79,453,646 70,782,299 1,079,419,281 956,689,419
--------------- --------------- --------------- ---------------
End of period 91,649,286 79,453,646 $ 1,250,318,289 $ 1,079,419,281
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class A Shares
Shares sold 698,228 1,615,750 $ 9,785,713 $ 22,800,191
Shares issued to shareholders on
reinvestment of dividends 87,840 94,136 1,230,549 1,327,825
Shares converted from Class B 78,587 37,929 1,099,352 535,934
Shares redeemed (1,492,557) (3,428,933) (20,880,330) (48,289,760)
--------------- --------------- --------------- ---------------
Net decrease (627,902) (1,681,118) (8,764,716) (23,625,810)
Beginning of period 3,845,804 5,526,922 53,961,341 77,587,151
--------------- --------------- --------------- ---------------
End of period 3,217,902 3,845,804 $ 45,196,625 $ 53,961,341
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class B Shares
Shares sold 187,179 671,588 $ 2,625,061 $ 9,478,863
Shares issued to shareholders on
reinvestment of dividends 68,721 74,192 962,490 1,045,533
Shares converted to Class A (78,669) (37,911) (1,099,352) (535,934)
Shares redeemed (786,711) (1,012,852) (11,010,516) (14,209,122)
--------------- --------------- --------------- ---------------
Net decrease (609,480) (304,983) (8,522,317) (4,220,660)
Beginning of period 4,125,242 4,430,225 57,967,103 62,187,763
--------------- --------------- --------------- ---------------
End of period 3,515,762 4,125,242 $ 49,444,786 $ 57,967,103
=============== =============== =============== ===============
================================================================================================================
Intermediate Municipal Class C Shares
Shares sold 220,479 966,957 $ 3,095,559 $ 13,668,253
Shares issued to shareholders on
reinvestment of dividends 36,044 47,599 505,218 671,429
Shares redeemed (1,410,557) (1,585,393) (19,757,119) (22,243,635)
--------------- --------------- --------------- ---------------
Net decrease (1,154,034) (570,837) (16,156,342) (7,903,953)
Beginning of period 3,759,301 4,330,138 53,098,095 61,002,048
--------------- --------------- --------------- ---------------
End of period 2,605,267 3,759,301 $ 36,941,753 $ 53,098,095
=============== =============== =============== ===============
- --------------------------------------------------------------------------------
2005 Annual Report 73
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
---------------------------------------------------------------------
SHORT DURATION PLUS PORTFOLIO
---------------------------------------------------------------------
----------------------------- ------------------------------------
SHARES AMOUNT
----------------------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
9/30/05 9/30/04 9/30/05 9/30/04
================================================================================================================
Short Duration Plus Class
Shares sold 11,221,512 13,779,853 $ 140,436,628 $ 175,398,530
Shares issued to shareholders
on reinvestment of dividends
and distributions 426,621 354,625 5,342,279 4,518,277
Shares redeemed (12,766,090) (12,999,054) (159,809,492) (165,694,224)
--------------- --------------- --------------- ---------------
Net increase (decrease) (1,117,957) 1,135,424 (14,030,585) 14,222,583
Beginning of period 33,306,388 32,170,964 422,597,621 408,375,038
--------------- --------------- --------------- ---------------
End of period 32,188,431 33,306,388 $ 408,567,036 $ 422,597,621
=============== =============== =============== ===============
================================================================================================================
Short Duration Class A Shares (a)
Shares sold 1,940,658 4,016,683 $ 24,341,652 $ 51,202,933
Shares issued to shareholders on
reinvestment of dividends
and distributions 96,914 117,905 1,213,366 1,502,975
Shares converted from Class B 106,805 30,110 1,334,579 381,919
Shares redeemed (3,347,092) (6,692,833) (41,955,853) (85,093,395)
--------------- --------------- --------------- ---------------
Net decrease (1,202,715) (2,528,135) (15,066,256) (32,005,568)
Beginning of period 4,640,977 7,169,112 60,079,836 92,085,404
--------------- --------------- --------------- ---------------
End of period 3,438,262 4,640,977 $ 45,013,580 $ 60,079,836
=============== =============== =============== ===============
================================================================================================================
Short Duration Class B Shares (a)
Shares sold 489,329 2,184,212 $ 6,137,972 $ 27,779,246
Shares issued to shareholders on
reinvestment of dividends
and distributions 50,309 36,545 630,063 465,440
Shares converted to Class A (106,847) (30,122) (1,334,579) (381,919)
Shares redeemed (1,671,609) (1,366,618) (20,944,554) (17,378,283)
--------------- --------------- --------------- ---------------
Net increase (decrease) (1,238,818) 824,017 (15,511,098) 10,484,484
Beginning of period 3,496,107 2,672,090 44,744,023 34,259,539
--------------- --------------- --------------- ---------------
End of period 2,257,289 3,496,107 $ 29,232,925 $ 44,744,023
=============== =============== =============== ===============
================================================================================================================
Short Duration Class C Shares (a)
Shares sold 508,402 1,887,697 $ 6,376,122 $ 24,025,648
Shares issued to shareholders on
reinvestment of dividends
and distributions 36,795 31,272 460,712 398,349
Shares redeemed (1,725,576) (1,358,186) (21,624,133) (17,258,694)
--------------- --------------- --------------- ---------------
Net increase (decrease) (1,180,379) 560,783 (14,787,299) 7,165,303
Beginning of period 3,126,173 2,565,390 40,072,263 32,906,960
--------------- --------------- --------------- ---------------
End of period 1,945,794 3,126,173 $ 25,284,964 $ 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 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 25, 2005.
- --------------------------------------------------------------------------------
74 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
NOTE 7. Line of Credit
The Emerging Markets Portfolio maintains a $35,000,000 line of credit
intended to provide short-term financing, if necessary, subject to
certain restrictions in connection with abnormal redemption activity.
Commitment fees related to the line of credit are paid by the Portfolio
and are included in the miscellaneous expenses in the statement of
operations. The Portfolio did not utilize the line of credit during the
year ended September 30, 2005.
A number of open-end mutual funds managed by the Adviser, including the
Sanford C. Bernstein Fund II, Inc., participate in a $250 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 September 30, 2005.
NOTE 8. Legal Proceedings
As has been previously reported, the staff of the U.S. Securities and
Exchange Commission ("SEC") and the Office of New York Attorney General
("NYAG") have been investigating practices in the mutual fund industry
identified as "market timing" and "late trading" of mutual fund shares.
Certain other regulatory authorities have also been conducting
investigations into these practices within the industry and have
requested that the Adviser provide information to them. The Adviser has
been cooperating and will continue to cooperate with all of these
authorities.
On December 18, 2003, the Adviser confirmed that it had reached terms
with the SEC and the NYAG for the resolution of regulatory claims
relating to the practice of "market timing" mutual fund shares in some
of the AllianceBernstein Mutual Funds. The agreement with the SEC is
reflected in an Order of the Commission ("SEC Order"). The agreement
with the NYAG is memorialized in an Assurance of Discontinuance dated
September 1, 2004 ("NYAG Order"). Among the key provisions of these
agreements are the following:
(i) The Adviser agreed to establish a $250 million fund (the
"Reimbursement Fund") to compensate mutual fund shareholders for
the adverse effects of market timing attributable to market
timing 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 Funds, will introduce governance
and compliance changes.
A special committee of the Alliance Capital's Board of Directors,
comprised of the members of the Alliance Capital's Audit Committee and
the other independent member of the Alliance Capital's Board, is
continuing to direct and oversee an internal investigation and a
comprehensive review of the facts and circumstances relevant to the
SEC's and the NYAG's investigations.
In addition, the independent directors of the Bernstein Fund, Inc. have
designated an independent economic consultant and independent counsel to
investigate the above-mentioned matters.
On October 2, 2003, a purported class action complaint entitled Hindo,
et al. v. AllianceBernstein Growth & Income Fund, et al. ("Hindo
Complaint") was filed against the Adviser, Alliance Capital Management
Holding L.P. ("Alliance Holding"), Alliance Capital Management
Corporation, AXA Financial, Inc., the AllianceBernstein Funds, certain
officers of the Adviser ("Alliance defendants"), and certain other
defendants not affiliated with the Adviser, as well as unnamed Doe
defendants. 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 Funds. The Hindo Complaint alleges that
certain of the Alliance defendants failed to disclose that they
improperly allowed certain hedge funds and other unidentified parties to
engage in "late trading" and "market timing" of AllianceBernstein Fund
securities, violating Sections 11 and 15 of the Securities Act,
- --------------------------------------------------------------------------------
2005 Annual Report 75
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Notes to Financial Statements (continued)
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 generally similar to those in the Hindo Complaint were filed
in various federal and state courts against the Adviser and certain
other defendants, and others may be filed. The plaintiffs in such
lawsuits have asserted a variety of theories for recovery including, but
not limited to, violations of the Securities Act, the Exchange Act, the
Advisers Act, the Investment Company Act, the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), certain state securities
laws, and common law. On February 20, 2004, the Judicial Panel on
Multidistrict Litigation transferred all federal actions, and removed
all state court actions, to the United States District Court for the
District of Maryland (the "Mutual Fund MDL"). The plaintiffs in the
removed actions have since moved for remand, and that motion is pending.
On September 29, 2004, plaintiffs filed consolidated amended complaints
with respect to four claim types: mutual fund shareholder claims; mutual
fund derivative claims; derivative claims brought on behalf of Alliance
Holding; and claims brought under ERISA by participants in the Profit
Sharing Plan for Employees of the Adviser. All four complaints include
substantially identical factual allegations, which appear to be based in
large part on the SEC Order and the NYAG Order. The claims in the mutual
fund derivative consolidated amended complaint are generally based on
the theory that all fund advisory agreements, distribution agreements
and 12b-1 plans between the Adviser and the AllianceBernstein Funds
should be invalidated, regardless of whether market timing occurred in
each individual fund, because each was approved by fund trustees on the
basis of materially misleading information with respect to the level of
market timing permitted in funds managed by the Adviser. The claims
asserted in the other three consolidated amended complaints are similar
to those that the respective plaintiffs asserted in their previous
federal lawsuits. All of these lawsuits seek an unspecified amount of
damages. The Alliance defendants have moved to dismiss the complaints,
and those motions are pending.
On February 10, 2004, the Adviser received (i) a subpoena duces tecum
from the Office of the Attorney General of the State of West Virginia
and (ii) a request for information from West Virginia's Office of the
State Auditor, Securities Commission (the "West Virginia Securities
Commission") (together, the "Information Requests"). Both Information
Requests require the Adviser to produce documents concerning, among
other things, any market timing or late trading in the Adviser's
sponsored mutual funds. The Adviser responded to the Information
Requests and has been cooperating fully with the investigation.
On April 11, 2005, a complaint entitled The Attorney General of the
State of West Virginia v. AIM Advisors, Inc., et al. ("WVAG Complaint")
was filed against the Adviser, Alliance Holding, and various other
defendants not affiliated with the Adviser. The WVAG Complaint was filed
in the Circuit Court of Marshall County, West Virginia by the Attorney
General of the State of West Virginia. The WVAG Complaint makes factual
allegations generally similar to those in the Hindo Complaint. On May
31, 2005, defendants removed the WVAG Complaint to the United States
District Court for the Northern District of West Virginia. On July 12,
2005, plaintiff moved to remand. On October 19, 2005, the WVAG Complaint
was transferred to the Mutual Fund MDL.
On August 30, 2005, the deputy commissioner of securities of the West
Virginia Securities Commission signed a "Summary Order to Cease and
Desist, and Notice of Right to Hearing" addressed to the Adviser and
Alliance Holding. The Summary Order claims that the Adviser and Alliance
Holding violated the West Virginia Uniform Securities Act, and makes
factual allegations generally similar to those in the Commission Order
and the NYAG Order. The Adviser intends to vigorously defend against the
allegations in the WVAG Complaint.
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.
- --------------------------------------------------------------------------------
76 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
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. On October 19, 2005, the District Court granted in part, and
denied in part, defendants' motion to dismiss the Aucoin complaint and
as a result the only claim remaining is plaintiffs' section 36(b) claim.
It is possible that these matters and/or other developments resulting
from these matters could result in increased redemptions of the
AllianceBernstein Mutual Funds' shares or other adverse consequences to
the AllianceBernstein Mutual Funds. However, the Adviser believes that
these matters are not likely to have a material adverse effect on its
ability to perform advisory services relating to the AllianceBernstein
Mutual Funds.
NOTE 9. Subsequent Events
On October 26, 2005, the Board of Directors of the Fund approved and
authorized the continuation of the Investment Management Agreement
between the Fund and the Adviser, without change, for an additional
period ending December 1, 2005. On November 28, 2005, the Board of
Directors of the Fund approved an amended Investment Management
Agreement for an additional annual term, which revised the fees payable
by the Fund to the Adviser, on behalf of the Portfolios as set forth
below:
ANNUAL PERCENTAGE OF AVERAGE DAILY NET ASSETS OF EACH PORTFOLIO
PORTFOLIO FIRST NEXT NEXT NEXT
$1 BILLION $3 BILLION $2 BILLION $2 BILLION THEREAFTER
======================================================================================================================
<c> <c>
Tax-Managed International; International 0.925% 0.85% 0.80% 0.75% 0.65%
FIRST NEXT NEXT
$1 BILLION $1 BILLION $1 BILLION THEREAFTER
=======================================================================================================
<c>
Emerging Markets 1.175% 1.05% 1.00% 0.90%
FIRST NEXT NEXT
$1 BILLION $2 BILLION $2 BILLION THEREAFTER
=======================================================================================================
<c>
New York Municipal, California
Municipal, Diversified Municipal, and
Intermediate Duration Portfolios 0.50% 0.45% 0.40% 0.35%
- --------------------------------------------------------------------------------
2005 Annual Report 77
================================================================================
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Tax Information (Unaudited)
In order to meet certain requirements of the Internal Revenue Code we
are advising you that the following long-term capital gains distributed
during the fiscal year ended September 30, 2005, are subject to the
maximum tax rate of 15%.
LONG-TERM CAPITAL
GAIN DISTRIBUTION
================================================================================
Tax-Managed International $64,402,318
Emerging Markets 36,713,975
Intermediate Duration 8,277,788
Intermediate Duration Institutional 2,316,118
California Municipal 257,140
Short Duration Plus 401,157
- --------------------------------------------------------------------------------
For the fiscal year ended September 30, 2005, certain dividends paid by
the Portfolios may be subject to a maximum tax rate of 15%, as provided
for by the JGTRR Act of 2003. We designate the following percentages or
the maximum amount allowable of the total ordinary income distributed by
the Portfolios, as qualified dividend income.
PERCENTAGE OF TAXABLE
ORDINARY DIVIDENDS PAID
================================================================================
Tax-Managed International 99.25%
International 99.21%
Emerging Markets 96.80%
- --------------------------------------------------------------------------------
In addition, the Funds intend to make an election under Internal Revenue
Code Section 853 to pass through foreign taxes paid by the Funds to
their shareholders. For the fiscal year ended September 30, 2005, the
total amounts of foreign taxes that may be passed through to the
shareholders and the foreign sources of income for information reporting
purposes, were as follows:
FOREIGN TAXES FOREIGN SOURCES
TO BE PASSED THROUGH OF INCOME
================================================================================
Tax-Managed International $10,810,701 $139,788,835
International 1,376,306 35,992,078
Emerging Markets 6,941,735 63,301,714
- --------------------------------------------------------------------------------
In accordance with Federal tax law, the following table represents each
Portfolio's designation of "exempt-interest dividends" as a percentage
of total dividends paid during the fiscal year ended September 30, 2005.
EXEMPT-INTEREST DIVIDENDS
AS A PERCENTAGE OF TOTAL DIVIDENDS
================================================================================
Short Duration Diversified Municipal 98.80%
Short Duration California Municipal 98.50%
Short Duration New York Municipal 98.90%
Diversified Municipal 98.90%
California Municipal 99.00%
New York Municipal 99.10%
- --------------------------------------------------------------------------------
As required by Federal tax law rules, shareholders will receive
notification of their portion of each Portfolio's taxable ordinary
dividends (if any) and capital gain distributions (if any) paid for the
2005 calendar year on Form 1099-DIV, which will be mailed by January 31,
2006.
- --------------------------------------------------------------------------------
78 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
Bart Friedman*+
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
Emilie D. Wrapp
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 and the Independent Directors Committee.
+ Member of the Governance, Nominating and Compensation Committee.
- --------------------------------------------------------------------------------
2005 Annual Report 79
================================================================================
Sanford C. Bernstein Fund, Inc. (continued)
================================================================================
DIRECTORS' INFORMATION
- --------------------------------------------------------------------------------
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTORS*
Roger Hertog,+, Vice Chairman and Director -- Alliance Capital 12 None
1345 Avenue Management Corporation ("ACMC"), the
of the Americas, General Partner of Alliance Capital Management
New York, NY L.P. ("Alliance") since 2000; prior thereto,
10105 11/4/41 (1988) President, Chief Operating Officer and Director --
Sanford C. Bernstein & Co., Inc. ("Bernstein")
since prior to 2000.
DISINTERESTED DIRECTORS*
Rosalie J. Wolf,++ Managing Partner, Botanica Capital Partners LLC. 12 TIAA-CREF;
c/o Philip L. Kirstein Formerly, she was a Managing Director at North European Oil
Alliance Capital Offit Hall Capital Management LLC from Royalty Trust
Management, L. P. January 2001 through 2003. From 1994-2000 she
1345 Avenue was Treasurer and Chief Investment Officer of The
of the Americas, Rockefeller Foundation. Earlier she held financial
New York, NY 10105 executive positions with International Paper
5/8/41 (2000) Company, Bankers Trust, and Mobil Oil Corporation.
Chairman of the Board
Irwin Engelman, ++ Business Consultant. Formerly 12 WellGen Inc.; Baruch
c/o Philip L. Kirstein he was Executive Vice President and Chief College Fund; Long
Alliance Capital Financial Officer--YouthStream Media Wharf Theater;
Management, L. P. Networks; Vice Chairman and Chief Administrative National
1345 Avenue Officer of Revlon, Inc. and Executive Vice Corporate Theater
of the Americas, President and Chief Financial Officer of Fund; Temple
New York, NY 10105 MacAndrews & Forbes Holdings, Inc. since Sharay Tefila;
5/19/34 (2000) prior to 2000 New Plan Excel
Chairman of the Board Realty Trust
Bart Friedman,++** Senior Partner at Cahill Gordon 12 The Brookings
c/o Philip L. Kirstein & Reindel LLP (law firm) since Institution; Lincoln
Alliance Capital prior to 2000. Center for the
Management, L. P. Performing Arts; The
1345 Avenue Mountain School of
of the Americas, Milton Academy
New York, NY 10105
12/5/44 (2005)
- --------------------------------------------------------------------------------
80 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS* (continued)
William Kristol,++** Editor, The Weekly 12 Manhattan Insitute;
c/o Philip L. Kirstein Standard since prior to 2000. John M Ashbrook
Alliance Capital Center for Public
Management, L. P. Affairs at Ashland
1345 Avenue University; The
of the Americas, Salvatori Center at
New York, NY 10105 Claremont McKenna
12/23/52 (1994) College; The Shalem
Foundation
Thomas B. Stiles II,++** President--Cedar Lawn Corporation (cemetery). 12 Laguna Beach
c/o Philip L. Kirstein Formerly Managing Director, Senior Portfolio Art Museum;
Alliance Capital Manager and Director of Investment Strategy Cedar Lawn
Management, L. P. of Smith Barney Asset Management from Corporation
1345 Avenue 1997 until his retirement in 1999. Prior
of the Americas, thereto, Chairman and Chief Executive Officer
New York, NY 10105 of Greenwich Street Advisors from 1988-1997
10/4/40 (2003) and Executive Vice President and Director of
E.F. Hutton Group from 1982-1987.
* There is no stated term of office for the Directors.
+ Mr. Hertog is an "interested person" as defined in the 1940 Act, because
of his affiliation with Alliance.
++ Member of the Audit Committee and the Independent Directors Committee.
** Member of the Governance, Nominating and Compensation Committee.
===========================================================================================================
OFFICERS' INFORMATION
- -----------------------------------------------------------------------------------------------------------
Principal Position(s) Principal Occupation
Name, Address* and Date of Birth Held with Fund During Past 5 Years
- -----------------------------------------------------------------------------------------------------------
Roger Hertog, 11/4/41 President See biography under Directors'
Information.
Philip L. Kirstein, 5/29/45 Senior Vice President Senior Vice President and Independent
and Independent Compliance Compliance Officer of the
Officer AllianceBernstein Funds, with which
he has been associated since October
2004. Prior thereto, he was Of Counsel
to Kirkpatrick and Lockhart, LLP from
2003 to October 2004, and General
Counsel of Merrill Lynch Investment
Managers since prior to 2000 until
March 2003.
- --------------------------------------------------------------------------------
2005 Annual Report 81
================================================================================
Sanford C. Bernstein Fund, Inc. (continued)
- -----------------------------------------------------------------------------------------------------------
Principal Position(s) Principal Occupation
Name, Address* and Date of Birth Held with Fund During Past 5 Years
- -----------------------------------------------------------------------------------------------------------
Emilie D. Wrapp, 11/13/55 Secretary Senior Vice President, Assistant
General Counsel and Assistant
Secretary of AllianceBernstein
Investment Research and Management,
Inc. ("ABIRM")+, with which she has
been associated since prior to 2000.
Mark D. Gersten, 10/4/50 Treasurer and Chief Senior Vice President of Alliance
Financial Officer Global Investors Services, Inc.
("AGIS")+ and a Vice President of
ABIRM+, with which he has been
associated since prior to 2000.
* The address for each of the Fund's officers is 1345 Avenue of the
Americas, New York, NY 10105.
+ ABIRM and AGIS are affiliates of the Fund.
- --------------------------------------------------------------------------------
82 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
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
Shawn Keegan
Vice President
Joran Laird
Vice President
Alison M. Martier
Vice President
Jeffrey Phlegar
Vice President
Greg Wilensky
Vice President
Mark D. Gersten
Treasurer and Chief Financial Officer
Vincent S. Noto
Controller
Emilie D. Wrapp
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.
- --------------------------------------------------------------------------------
2005 Annual Report 83
================================================================================
Sanford C. Bernstein Fund II, Inc. (continued)
===========================================================================================================
DIRECTORS INFORMATION
- -----------------------------------------------------------------------------------------------------------
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election*) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
Marc O. Mayer,++ Executive Vice President of Alliance Capital 81 SCB Partners, Inc.;
1345 Avenue Management Corporation ("ACMC") since 2001; SCB, Inc.
of the Americas, prior thereto, Chief Executive Officer of
New York, NY 10105 Sanford C. Bernstein & Co., LLC and its
10/2/57 (2003) predecessor since prior to 2000.
DISINTERESTED DIRECTORS
William H. Foulk, Jr.,+ Investment Adviser and Independent Consultant. 108 None
2 Soundview Drive, Formerly Senior Manager of Barrett Associates,
Suite 100, Inc., a registered investment adviser, with which
Greenwich, CT 06830 he had been associated since prior to 2000.
9/7/32 (2002) Formerly Deputy Comptroller and Chief
Chairman of the Board Investment Officer of the State of New York
and, prior thereto, Chief Investment Officer of
the New York Bank for Savings.
Ruth Block,+,** Formerly an Executive Vice President and 105 None
500 SE Mizner Blvd., Chief Insurance Officer of the Equitable
Boca Raton, FL 33432 Life Assurance Society of the United States;
11/7/30 (2002) Chairman and Chief Executive Officer of Evlico;
Director of Avon, BP (oil and gas), Ecolab
Incorporated (specialty chemicals), Tandem
Financial Group and Donaldson, Lufkin & Jenrette
Securities Corporation; former Governor at
Large, National Association of Securities
Dealers, Inc.
David H. Dievler,+ Independent Consultant. Until December 107 None
P.O. Box 167, 1994, Senior Vice President of Alliance
Spring Lake, NJ 07762 Capital Management Corporation ("ACMC")
10/23/29 (2002) responsible for mutual fund administration.
Prior to joining ACMC in 1984, Chief Financial
Officer of Eberstadt Asset Management since
1968. Prior to that Senior Manager at Price
Waterhouse & Co.; member of the American
Institute of Certified Public Accountants since
1953.
- --------------------------------------------------------------------------------
84 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
Name, Address, Date of Birth Principal Occupation Portfolios in Complex Other Directorships
(Year of Election*) During Past 5 Years By Director Held by Director
- ------------------------------------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS (continued)
John H. Dobkin,+ Consultant. Formerly President of Save Venice, 96 Municipal Art
P.O. Box 12, Inc. (preservation organization) from 2001 -- 2002; Society (New
Annandale, NY 12504 Senior Adviser from June 1999 to June 2000 and York City)
2/19/42 (2002) President of Historic Hudson Valley (historic
preservation) from December 1989 --May 1999.
Previously, Director of the National Academy of
Design and during 1988 -- 1992, Director and
Chairman of the Audit Committee of ACMC.
Michael J. Downey,+ Consultant since 2004. Formerly managing partner of 80 Asia Pacific Fund,
c/o Alliance Capital Lexington Capital, LLC (investment advisory firm) Inc. and The
Management L.P. from 1997 until December 2003. Prior thereto, MergerFund
1345 Avenue of the Chairman and CEO of Prudential Mutual Fund
Americas Management (1987-1993).
Attn: Philip L. Kirstein
New York, NY 10105
1/26/44 (2005)
* There is no stated term of office for the Fund's Directors.
** Ms. Block was an "interested person", as defined in the 1940 Act, until
October 21, 2004 by reason of her ownership of equity securities of a
controlling person of the Adviser. Such securities were sold for
approximately $2,400 on October 21, 2004. Ms. Block received shares of The
Equitable Companies Incorporated as part of the demutualization of The
Equitable Life Assurance Society of the United States. Her Equitable
shares were subsequently converted through a corporate action into 116
American Depositary Shares of AXA.
+ Member of the Audit Committee, the Independent Director Committee and
Governance and Nominating Committee.
++ Mr. Mayer is an "interested person," as defined in the 1940 Act, due to
his position as Executive Vice President of ACMC.
- --------------------------------------------------------------------------------
2005 Annual Report 85
================================================================================
Sanford C. Bernstein Fund II, Inc. (continued)
OFFICERS' INFORMATION
Principal Position(s) Principal Occupation
Name, Address* and Date of Birth Held with Fund During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------
Marc O. Mayer, 10/2/57 President and Chief See biography above.
Executive Officer
Philip L. Kirstein, 5/29/45 Senior Vice President Senior Vice President and Independent
and Independent Compliance Compliance Officer of the AllianceBernstein
Officer Funds with which he has been associated since
October 2004. Prior thereto, he was
Counsel of Kirkpatrick & Lockhart, LLP
from 2003 to October 2004, and General
Counsel of Merrill Lynch Investment Manager
since prior to 2003.
Matthew D.W. Bloom, 7/15/56 Vice President Senior Vice President of ACMC,+ with
which he has been associated since
prior to 2000.
Shawn Keegan, 7/10/71 Vice President Vice President of ACMC+ with which he has
been associated since prior to 2000.
Joran Laird, 3/1/75 Vice President Vice President of ACMC+ with which he has
been associated since June 2000.
Alison Martier, 1/29/57 Vice President Senior Vice President of ACMC+ with which
she has been associated since prior to 2000.
Jeffrey S. Phlegar, 6/28/66 Vice President Executive Vice President of ACMC,+ with
which he has been associated since prior
to 2000.
Greg Wilensky, 4/27/67 Vice President Vice President of ACMC+ and Director of
Stable Value Investments, with which he
has been associated since prior to 2000.
Emilie D. Wrapp, 11/13/55 Secretary Senior Vice President, Assistant General
Counsel and Assistant Secretary of
AllianceBernstein Investment Research and
Management, Inc. ("ABIRM")+, with which she
has been associated since prior to 2000.
- --------------------------------------------------------------------------------
86 Sanford C. Bernstein Fund, Inc., and Sanford C. Bernstein Fund II, Inc.
================================================================================
OFFICERS' INFORMATION (continued)
Principal Position(s) Principal Occupation
Name, Address* and Date of Birth Held with Fund During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------
Mark D. Gersten, 10/4/50 Treasurer and Chief Senior Vice President of Alliance Global
Financial Officer Investor Services, Inc. ("AGIS")+ and Vice
President of ABIRM,+ with which he has been
associated since prior to 2000.
Vincent S. Noto, 12/14/64 Controller Vice President of AGIS,+ with which he has
been associated since prior to 2000.
* The address for each of the Fund's officers is 1345 Avenue of the
Americas, New York, NY 10105.
+ ACMC, ABIRM and AGIS are affiliates of the Fund
- --------------------------------------------------------------------------------
2005 Annual Report 87
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
SCBMFANN0905
Sanford C. Bernstein Fund, Inc.
SEPTEMBER 30, 2005
Schedule of Investments
To the Annual Report
For the Stock Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Tax-Managed International
- --------------------------------------------------------------------------------
International
- --------------------------------------------------------------------------------
Emerging Markets
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of Sanford C. Bernstein Fund, Inc.
In our opinion, the statements of assets and liabilities included in the
accompanying Annual Report, including the schedules of investments contained
herein, and the related statements of operations and of changes in net assets
and the financial highlights, present fairly, in all material respects, the
financial position of Tax-Managed International Portfolio, International
Portfolio, and Emerging Markets Portfolio, formerly Emerging Markets Value
(three of the twelve portfolios constituting Sanford C. Bernstein Fund, Inc.,
hereafter referred to as the "Fund") at September 30, 2005, the results of each
of their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods presented, except for the financial
highlights of the International Retail Classes of the Tax-Managed International
Portfolio and the International Portfolio, which are presented in a separate
financial report, in conformity with accounting principles generally accepted in
the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 2005, by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
November 22, 2005
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Tax-Managed International Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Shares Description Market Value
================================================================================
EQUITIES: 99.19%
================================================================================
AUSTRALIA: 3.00%
- --------------------------------------------------------------------------------
Banking
982,639 Westpac Banking Corp., $ 15,818,580
6.50% cv. preferred stock
Building Materials
5,305,782 Rinker Group, Ltd. 67,400,073
Insurance
3,745,600 Promina Group, Ltd. 14,290,090
1,647,165 QBE Insurance Group, Ltd. 23,480,412
Leisure & Tourism
2,720,548 Aristocrat Leisure, Ltd. 24,648,046
Merchandising
1,365,658 Coles Myer, Ltd. 10,700,419
Metal--Steel
3,590,900 BlueScope Steel, Ltd. 26,226,717
--------------
Total Australian Stocks (Cost $137,215,837) 182,564,337
--------------
================================================================================
BELGIUM: 0.84%
- --------------------------------------------------------------------------------
Food & Household Products
862,500 Delhaize Group 51,110,244
--------------
Total Belgian Stocks (Cost $42,333,862) 51,110,244
--------------
================================================================================
CANADA: 4.28%
- --------------------------------------------------------------------------------
Banking
2,089,160 Bank of Nova Scotia 78,013,277
Energy Sources
962,900 Canadian Natural Resources, 43,485,807
Ltd.
860,000 Nexen, Inc. 41,021,075
Insurance
1,427,200 Manulife Financial Corp. 76,117,333
Metal--Nonferrous
485,000 Teck Cominco, Ltd. (Class B) 21,757,204
--------------
Total Canadian Stocks (Cost $152,812,540) 260,394,696
--------------
================================================================================
FRANCE: 15.57%
- --------------------------------------------------------------------------------
Aerospace & Defense
1,289,090 European Aeronautic Defence & 45,763,395
Space Co.
Automobiles
919,900 Renault S.A. 87,453,298
Banking
1,407,192 BNP Paribas S.A. 107,074,669
165,000 Credit Agricole S.A. 4,843,620
638,060 Societe Generale 72,899,102
Beverage & Tobacco
41,984 Pernod Ricard S.A. 7,403,977
Construction & Housing
605,482 Vinci S.A. 52,163,402
Data Processing
1,272,654 CapGemini S.A. (a) 49,719,064
Energy Sources
557,397 Total S.A. 151,732,473
Food & Household Products
469,370 Groupe Danone 50,830,162
Health & Personal Care
255,298 Essilor International S.A. 21,134,819
1,502,733 Sanofi-Aventis 124,451,130
Insurance
889,400 Assurances Generales de France 85,221,451
AGF
Metal--Steel
3,704,296 Arcelor 86,567,332
--------------
Total French Stocks (Cost $673,011,556) 947,257,894
--------------
================================================================================
GERMANY: 4.92%
- --------------------------------------------------------------------------------
Automobiles
979,000 Continental AG 80,607,286
14,177 Porsche AG (PFD) 10,908,730
Banking
1,890,000 Depfa Bank plc 30,357,184
Data Processing
297,081 SAP AG 51,413,748
Insurance
440,500 Muenchener 50,333,321
Rueckversicherungs-Gesellschaft
AG
Machinery & Engineering
924,600 MAN AG 47,485,299
Utilities--Electric & Gas
308,800 E.ON AG 28,397,461
--------------
Total German Stocks (Cost $223,666,267) 299,503,029
--------------
Schedule of Investments -- Tax-Managed International Portfolio 1
================================================================================
Shares Description Market Value
================================================================================
GREECE: 0.44%
- --------------------------------------------------------------------------------
Banking
417,571 EFG Eurobank Ergasias $ 12,894,120
Leisure & Tourism
444,652 OPAP S.A. 13,815,038
--------------
Total Greek Stocks (Cost $27,289,264) 26,709,158
--------------
================================================================================
HONG KONG: 1.75%
- --------------------------------------------------------------------------------
Merchandising
9,619,500 Esprit Holdings, Ltd. 71,940,291
Wholesale & International Trade
14,900,000 Li & Fung, Ltd. 34,512,344
--------------
Total Hong Kong Stocks (Cost $73,830,490) 106,452,635
--------------
================================================================================
IRELAND: 2.54%
- --------------------------------------------------------------------------------
Banking
2,007,444 Allied Irish Banks plc 42,776,121
3,275,976 Anglo Irish Bank Corp. plc 44,597,384
Construction & Housing
2,467,891 CRH plc 66,966,786
--------------
Total Irish Stocks (Cost $124,696,279) 154,340,291
--------------
================================================================================
ITALY: 2.95%
- --------------------------------------------------------------------------------
Energy Sources
5,790,207 ENI S.p.A. 171,756,011
Health & Personal Care
309,018 Luxottica Group S.p.A. 7,693,750
--------------
Total Italian Stocks (Cost $76,454,856) 179,449,761
--------------
================================================================================
JAPAN: 21.71%
- --------------------------------------------------------------------------------
Automobiles
1,562,900 Denso Corp. 45,514,104
1,636,000 Honda Motor Co., Ltd. 93,007,385
1,553,100 Toyota Motor Corp. 71,664,396
Banking
4,469 Mitsubishi UFJ Financial 58,512,123
Group, Inc.
15,973 Sumitomo Mitsui Financial 151,222,147
Group, Inc.
Beverage & Tobacco
3,932 Japan Tobacco, Inc. 62,086,843
Data Processing
2,691,700 Canon, Inc. 146,075,344
Electrical & Electronics
747,200 Hoya Corp. 24,923,552
2,241,600 Hoya Corp. (a)(b) 76,220,719
Electronic Components & Instruments
229,700 Keyence Corp. 58,022,420
Energy Sources
3,496,000 Nippon Mining Holdings, Inc. 27,563,179
Financial Services
436,600 Aeon Credit Service Co., Ltd. 31,838,833
322,250 Aiful Corp. 27,112,104
298,400 ORIX Corp. 54,082,256
430,250 Promise Co., Ltd. 32,032,679
Health & Personal Care
101,300 Takeda Pharmaceutical Co., 6,064,524
Ltd.
Industrial Components
1,147,700 Sumitomo Electric Industries, 15,539,736
Ltd.
Machinery & Engineering
5,848,000 Sumitomo Heavy Industries, 41,677,419
Ltd.
Merchandising
486,000 Takashimaya Co., Ltd. 6,207,084
398,000 Yamada Denki Co., Ltd. 30,306,316
Metal--Steel
2,212,900 JFE Holdings, Inc. 72,175,655
7,500,000 Kobe Steel, Ltd. 22,863,476
Miscellaneous Materials
987,000 Nitto Denko Corp. 55,763,162
Wholesale & International Trade
4,860,300 Mitsubishi Corp. 96,173,835
1,085,000 Mitsui & Co., Ltd. 13,623,040
--------------
Total Japanese Stocks (Cost $899,211,162) 1,320,272,331
--------------
================================================================================
NETHERLANDS: 3.34%
- --------------------------------------------------------------------------------
Banking
1,200,000 ABN AMRO Holding N.V. 28,753,203
Electrical & Electronics
885,000 Philips Elec (KON) 23,607,454
Insurance
5,052,067 ING Groep N.V. 150,593,251
--------------
Total Netherlands Stocks (Cost $184,411,573) 202,953,908
--------------
================================================================================
NORWAY: 0.94%
- --------------------------------------------------------------------------------
Energy Sources
511,799 Norsk Hydro ASA 56,992,959
--------------
Total Norwegian Stocks (Cost $45,632,940) 56,992,959
--------------
================================================================================
SINGAPORE: 1.09%
- --------------------------------------------------------------------------------
Electronic Components & Instruments
1,097,800 Flextronics International, Ltd. (a) 14,106,730
Telecommunications
35,911,720 Singapore Telecommunications, 52,076,292
Ltd.
--------------
Total Singapore Stocks (Cost $64,293,806) 66,183,022
--------------
2 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Shares Description Market Value
================================================================================
SPAIN: 4.44%
- --------------------------------------------------------------------------------
Banking
4,195,243 Banco Bilbao Vizcaya $ 73,628,985
Argentaria S.A.
Broadcasting & Publishing
806,289 Gestevision Telecinco S.A. 16,900,598
Electronic Components & Instruments
413,755 Indra Sistemas S.A. 9,085,935
Energy Sources
2,368,400 Repsol YPF S.A. 76,511,801
Textiles & Apparel
1,010,109 Inditex S.A. 29,670,815
Utilities--Electric & Gas
2,410,000 Endesa S.A. 64,517,194
--------------
Total Spanish Stocks (Cost $212,311,821) 270,315,328
--------------
================================================================================
SWEDEN: 1.30%
- --------------------------------------------------------------------------------
Electronic Components & Instruments
9,604,558 Telefonaktiebolaget LM 35,319,378
Ericsson
Paper & Forest Products
1,247,000 Svenska Cellulosa AB 43,719,173
--------------
Total Swedish Stocks (Cost $73,274,269) 79,038,551
--------------
================================================================================
SWITZERLAND: 8.81%
- --------------------------------------------------------------------------------
Banking
2,849,514 Credit Suisse Group 126,431,293
769,952 UBS AG 65,627,335
Health & Personal Care
519,000 Alcon, Inc. 66,369,720
196,710 Nobel Biocare Holding AG 46,373,665
1,423,043 Novartis AG 72,374,919
623,992 Roche Holding AG 86,691,532
79,778 Synthes, Inc. 9,347,118
Textiles & Apparel
1,577,802 Compagnie Financiere Richemont 62,684,610
AG
--------------
Total Swiss Stocks (Cost $425,783,941) 535,900,192
--------------
================================================================================
UNITED KINGDOM: 21.27%
- --------------------------------------------------------------------------------
Aerospace & Defense
6,488,784 BAE Systems plc 39,372,395
Banking
8,550,000 Barclays plc 86,361,050
3,440,000 HBOS plc 51,870,209
3,550,181 Royal Bank of Scotland Group 100,847,168
plc
2,104,215 Standard Chartered plc 45,457,933
Beverage & Tobacco
3,207,700 SABMiller plc 62,415,258
================================================================================
Shares/Quantity Description Market Value
================================================================================
Building Materials
1,430,720 Wolseley plc 30,339,640
Construction & Housing
4,850,000 George Wimpey plc 36,651,419
1,920,000 Persimmon plc 29,134,542
Energy Sources
8,070,921 BP plc 95,303,029
387,899 Royal Dutch Shell plc (Class B) 13,396,164
Financial Services
151,954 Man Group plc 4,440,494
Food & Household Products
8,740,000 J Sainsbury plc 43,220,313
2,487,679 Reckitt Benckiser plc 75,876,517
2,804,100 Tate & Lyle plc 22,502,487
16,398,032 Tesco plc 89,628,970
Health & Personal Care
1,760,000 GlaxoSmithKline plc 44,896,043
1,527,663 Smith & Nephew plc 12,835,368
Insurance
4,827,668 Aviva plc 53,054,339
8,905,370 Friends Provident plc 29,392,773
Leisure & Tourism
684,565 Carnival plc 35,566,590
2,236,073 Enterprise Inns plc 33,268,933
2,640,000 Whitbread plc 44,265,016
Machinery & Engineering
392,467 Smiths Group plc 6,642,909
Merchandising
2,027,032 GUS plc 30,578,788
Metal--Nonferrous
1,575,933 BHP Billiton plc 25,466,342
2,931,530 Xstrata plc 76,088,110
Telecommunications
5,062,431 O2 plc 14,089,137
23,217,721 Vodafone Group plc 60,405,478
--------------
Total United Kingdom Stocks (Cost $1,034,556,416) 1,293,367,414
--------------
Total Equities (Cost $4,470,786,879) 6,032,805,750
--------------
================================================================================
REPURCHASE AGREEMENT: 0.48%
- --------------------------------------------------------------------------------
Repurchase Agreement
$ 29,243,000 State Street Bank & Trust Co., 29,243,000
2.85%, dated 9/30/05, due
10/3/05 in the amount of
$29,249,945 (collateralized by
$22,580,000 U.S. Treasury
Bond, 7.25%, due 8/15/22,
value $29,833,825)
--------------
Total Repurchase Agreement (Cost $29,243,000) 29,243,000
--------------
Schedule of Investments -- Tax-Managed International Portfolio 3
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost $4,500,029,879) (c) 99.67% $6,062,048,750
Cash and Other Assets, Less Liabilities .33 19,998,489
------- --------------
Net Assets 100.00% $6,082,047,239
======= ==============
=================================================================================================================
FINANCIAL FUTURES CONTRACTS PURCHASED
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
DJ Euro Stoxx 50 360 December 2005 $14,580,837 $14,866,396 $285,559
- -----------------------------------------------------------------------------------------------------------------
(a) Non-income-producing security.
(b) When-issued security.
(c) At September 30, 2005, the cost basis of investment securities for tax
purposes was $4,516,965,695. Gross unrealized appreciation of investments
was $1,558,578,152 and gross unrealized depreciation of investments was
$13,495,097, resulting in net unrealized appreciation of $1,545,083,055
(excluding foreign currency transactions and futures contracts).
Explanation of abbreviation:
PFD--Preference Shares
See Notes to Financial Statements.
4 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
International Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Shares Description Market Value
================================================================================
EQUITIES: 98.85%
================================================================================
AUSTRALIA: 2.73%
- --------------------------------------------------------------------------------
Banking
449,059 Westpac Banking Corp., $ 7,228,978
6.50% cv. preferred stock (a)
Building Materials
1,816,252 Rinker Group, Ltd. 23,072,097
Insurance
946,388 QBE Insurance Group, Ltd. (a) 13,490,804
Leisure & Tourism
1,599,922 Aristocrat Leisure, Ltd. (a) 14,495,224
Merchandising
775,823 Coles Myer, Ltd. (a) 6,078,851
Metal--Steel
1,741,484 BlueScope Steel, Ltd. (a) 12,719,209
---------------
Total Australian Stocks (Cost $57,493,026) 77,085,163
---------------
================================================================================
BELGIUM: 0.92%
- --------------------------------------------------------------------------------
Food & Household Products
438,700 Delhaize Group (a) 25,996,596
---------------
Total Belgian Stocks (Cost $20,928,902) 25,996,596
---------------
================================================================================
CANADA: 1.85%
- --------------------------------------------------------------------------------
Energy Sources
482,600 Canadian Natural Resources, 21,794,839
Ltd.
422,000 Nexen, Inc. 20,128,946
Metal--Nonferrous
230,000 Teck Cominco, Ltd. (Class B)(a) 10,317,849
---------------
Total Canadian Stocks (Cost $31,976,050) 52,241,634
---------------
================================================================================
FRANCE: 15.43%
- --------------------------------------------------------------------------------
Aerospace & Defense
575,740 European Aeronautic Defence & 20,439,082
Space Co. (a)
Automobiles
428,900 Renault S.A. (a) 40,774,779
Banking
743,791 BNP Paribas S.A. (a) 56,595,813
98,000 Credit Agricole S.A. (a) 2,876,817
283,100 Societe Generale (a) 32,344,506
Beverage & Tobacco
39,164 Pernod Ricard S.A. (a) 6,906,664
Construction & Housing
279,558 Vinci S.A. (a) 24,084,443
Data Processing
593,729 CapGemini S.A. (a)(b) 23,195,346
Electrical & Electronics
400,000 Thomson (a) 8,336,110
Energy Sources
269,931 Total S.A. (a) 73,479,581
Food & Household Products
60,610 Groupe Danone (a) 6,563,726
Health & Personal Care
735,304 Sanofi-Aventis (a) 60,895,324
Insurance
413,000 Assurances Generales de France 39,573,262
AGF (a)
Metal--Steel
1,724,806 Arcelor (a) 40,307,755
---------------
Total French Stocks (Cost $311,607,668) 436,373,208
---------------
================================================================================
GERMANY: 4.75%
- --------------------------------------------------------------------------------
Automobiles
460,700 Continental AG (a) 37,932,356
Banking
940,000 Depfa Bank plc 15,098,282
Data Processing
88,245 SAP AG (a) 15,271,950
Insurance
225,600 Muenchener 25,777,973
Rueckversicherungs-Gesellschaft
AG (a)
Machinery & Engineering
315,000 MAN AG (a) 16,177,665
Utilities--Electric & Gas
260,800 E.ON AG (a) 23,983,348
---------------
Total German Stocks (Cost $104,899,902) 134,241,574
---------------
================================================================================
GREECE: 0.63%
- --------------------------------------------------------------------------------
Banking
247,772 EFG Eurobank Ergasias 7,650,919
Leisure & Tourism
329,105 OPAP S.A. 10,225,071
---------------
Total Greek Stocks (Cost $18,071,177) 17,875,990
---------------
================================================================================
HONG KONG: 1.90%
- --------------------------------------------------------------------------------
Merchandising
4,500,500 Esprit Holdings, Ltd. 33,657,392
Wholesale & International Trade
8,624,000 Li & Fung, Ltd. (a) 19,975,467
---------------
Total Hong Kong Stocks (Cost $39,915,436) 53,632,859
---------------
Schedule of Investments -- International Portfolio 5
================================================================================
Shares Description Market Value
================================================================================
IRELAND: 2.42%
- --------------------------------------------------------------------------------
Banking
1,002,739 Allied Irish Banks plc $ 21,367,114
1,528,570 Anglo Irish Bank Corp. plc 20,809,134
Construction & Housing
971,028 CRH plc 26,349,066
---------------
Total Irish Stocks (Cost $55,726,590) 68,525,314
---------------
================================================================================
ITALY: 3.79%
- --------------------------------------------------------------------------------
Energy Sources
3,114,693 ENI S.p.A. (a) 92,391,730
Health & Personal Care
592,813 Luxottica Group S.p.A. (a) 14,759,513
---------------
Total Italian Stocks (Cost $70,215,629) 107,151,243
---------------
================================================================================
JAPAN: 22.50%
- --------------------------------------------------------------------------------
Automobiles
896,100 Denso Corp. (a) 26,095,841
753,100 Honda Motor Co., Ltd. (a) 42,814,096
401,000 Toyota Motor Corp. (a) 18,503,266
Banking
4,515 Mitsubishi UFJ Financial 59,114,396
Group, Inc. (a)
7,948 Sumitomo Mitsui Financial 75,246,580
Group, Inc. (a)
Beverage & Tobacco
1,787 Japan Tobacco, Inc. (a) 28,216,986
Data Processing
649,200 Canon, Inc. 35,231,309
Electrical & Electronics
1,765,000 Hitachi, Ltd. (a) 11,228,109
288,100 Hoya Corp. (a) 9,609,844
864,300 Hoya Corp. (b)(c) 29,388,636
Electronic Components & Instruments
117,900 Keyence Corp. (a) 29,781,643
Energy Sources
1,680,000 Nippon Mining Holdings, Inc. (a) 13,245,463
Financial Services
191,800 Aeon Credit Service Co., Ltd. 13,986,918
191,700 ORIX Corp. (a) 34,743,862
201,300 Promise Co., Ltd. (a) 14,987,050
Health & Personal Care
154,200 Takeda Pharmaceutical Co., Ltd. 9,231,487
Industrial Components
772,100 Sumitomo Electric Industries, 10,454,152
Ltd. (a)
Machinery & Engineering
2,750,000 Sumitomo Heavy Industries, 19,598,649
Ltd. (a)
Merchandising
49,200 Shimamura Co., Ltd. 5,474,045
456,000 Takashimaya Co., Ltd. 5,823,930
235,300 Yamada Denki Co., Ltd. (a) 17,917,277
Metal--Steel
965,000 JFE Holdings, Inc. (a) 31,474,313
3,030,000 Kobe Steel, Ltd. (a) 9,236,844
Miscellaneous Materials
423,200 Nitto Denko Corp. (a) 23,909,797
Wholesale & International Trade
2,492,200 Mitsubishi Corp. (a) 49,314,740
933,000 Mitsui & Co., Ltd. 11,714,559
---------------
Total Japanese Stocks (Cost $456,444,623) 636,343,792
---------------
================================================================================
NETHERLANDS: 3.50%
- --------------------------------------------------------------------------------
Banking
565,000 ABN AMRO Holding N.V. 13,537,966
Electrical & Electronics
465,000 Philips Elec (KON) 12,403,917
Insurance
2,452,378 ING Groep N.V. (a) 73,101,084
---------------
Total Netherlands Stocks (Cost $87,780,129) 99,042,967
---------------
================================================================================
NORWAY: 0.81%
- --------------------------------------------------------------------------------
Energy Sources
206,000 Norsk Hydro ASA (a) 22,939,767
---------------
Total Norwegian Stocks (Cost $17,278,556) 22,939,767
---------------
================================================================================
SINGAPORE: 1.33%
- --------------------------------------------------------------------------------
Electronic Components & Instruments
820,800 Flextronics International, Ltd. (b) 10,547,280
Telecommunications
18,670,650 Singapore Telecommunications, 27,074,677
Ltd. (a)
---------------
Total Singapore Stocks (Cost $37,654,685) 37,621,957
---------------
================================================================================
SPAIN: 3.78%
- --------------------------------------------------------------------------------
Banking
1,957,979 Banco Bilbao Vizcaya 34,363,684
Argentaria S.A. (a)
Electronic Components & Instruments
336,576 Indra Sistemas S.A. (a) 7,391,108
Energy Sources
1,091,500 Repsol YPF S.A. (a) 35,261,202
Textiles & Apparel
606 Inditex S.A. 17,801
Utilities--Electric & Gas
1,115,000 Endesa S.A. (a) 29,849,241
---------------
Total Spanish Stocks (Cost $83,740,997) 106,883,036
---------------
6 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Shares Description Market Value
================================================================================
SWEDEN: 1.75%
- --------------------------------------------------------------------------------
Electronic Components & Instruments
6,803,638 Telefonaktiebolaget LM Ericsson $ 25,019,398
Paper & Forest Products
698,600 Svenska Cellulosa AB (a) 24,492,554
---------------
Total Swedish Stocks (Cost $45,973,760) 49,511,952
---------------
================================================================================
SWITZERLAND: 9.75%
- --------------------------------------------------------------------------------
Banking
1,347,273 Credit Suisse Group (a) 59,777,726
358,836 UBS AG 30,585,608
Food & Household Products
27,416 Nestle S.A. 8,052,233
Health & Personal Care
240,800 Alcon, Inc. 30,793,504
119,269 Nobel Biocare Holding AG 28,117,232
689,947 Novartis AG 35,090,196
316,637 Roche Holding AG 43,990,542
85,639 Synthes, Inc. 10,033,817
Textiles & Apparel
734,441 Compagnie Financiere Richemont AG 29,178,660
---------------
Total Swiss Stocks (Cost $225,569,439) 275,619,518
---------------
================================================================================
UNITED KINGDOM: 21.01%
- --------------------------------------------------------------------------------
Aerospace & Defense
3,475,121 BAE Systems plc 21,086,206
Banking
2,650,000 Barclays plc 26,766,875
1,831,090 HBOS plc 27,610,181
1,096,800 Royal Bank of Scotland Group plc 31,155,925
1,423,444 Standard Chartered plc 30,751,051
Beverage & Tobacco
1,931,614 SABMiller plc 37,585,244
Broadcasting & Communications
2,497,054 WPP Group plc 25,465,830
Building Materials
514,072 Wolseley plc 10,901,336
Construction & Housing
1,946,800 George Wimpey plc 14,711,955
898,000 Persimmon plc 13,626,468
Data Processing
1,848,904 Capita Group plc 12,302,234
Energy Sources
3,743,002 BP plc 44,198,107
372,096 Royal Dutch Shell plc (Class B) 12,850,404
Financial Services
294,451 Man Group plc 8,604,630
Food & Household Products
3,950,000 J Sainsbury plc 19,533,208
365,468 Reckitt Benckiser plc 11,147,113
1,297,800 Tate & Lyle plc (a) 10,414,653
4,141,739 Tesco plc (a) 22,638,070
================================================================================
Shares/Quantity Description Market Value
================================================================================
Health & Personal Care
811,400 GlaxoSmithKline plc 20,698,096
Insurance
2,264,529 Aviva plc 24,886,361
3,980,000 Friends Provident plc 13,136,258
Leisure & Tourism
1,095,422 Enterprise Inns plc 16,298,001
1,259,913 Whitbread plc 21,125,026
Machinery & Engineering
471,306 Smiths Group plc 7,977,340
Metal--Nonferrous
1,324,760 BHP Billiton plc 21,407,504
967,850 Xstrata plc (a) 25,120,629
Telecommunications
7,597,508 O2 plc 21,144,453
15,703,323 Vodafone Group plc 40,855,290
---------------
Total United Kingdom Stocks(Cost $496,998,919) 593,998,448
---------------
Total Equities (Cost $2,162,275,488) 2,795,085,018
---------------
================================================================================
REPURCHASE AGREEMENT: 0.44%
- --------------------------------------------------------------------------------
$12,519,000 State Street Bank & Trust Co., 12,519,000
2.85%, dated 9/30/05, due 10/3/05
in the amount of $12,521,973
(collateralized by $9,970,000 U.S.
Treasury Bond, 6.50%, due
11/26/05, value $12,769,387)
---------------
Total Repurchase Agreement(Cost $12,519,000) 12,519,000
---------------
================================================================================
Total Investments Before Security Lending Collateral
---------------
(Cost $2,174,794,488) 99.29% 2,807,604,018
---------------
================================================================================
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED: 26.22%
- --------------------------------------------------------------------------------
Repurchase Agreements
126,000,000 ABN Amro Bank, 3.25%, dated 126,000,000
9/30/05, due 10/3/05 in the
amount of $126,034,125
(collateralized by
$130,275,000 U.S. Treasury
Note, 3.125%, due 10/15/08,
value $128,439,425)
126,000,000 Deutsche Bank, 3.35%, dated 126,000,000
9/30/05, due 10/3/05 in the
amount of $126,035,175
(collateralized by $91,311,000
U.S. Treasury Bond, 8.125%,
due 8/15/21, value $128,762,777)
Schedule of Investments -- International Portfolio 7
================================================================================
Quantity Description Market Value
================================================================================
$126,000,000 Greenwich Funding, 3.25%, $ 126,000,000
dated 9/30/05, due 10/3/05 in
the amount of $126,034,125
(collateralized by $130,200,000
U.S. Treasury Note, 3.625%,
due 1/15/10, value $128,388,256)
126,000,000 Morgan Stanley, 3.29%, dated 126,000,000
9/30/05, due 10/3/05 in the
amount of $126,034,545
(collateralized by
$103,040,000 U.S. Treasury
Note, 3.50%, due 1/15/11,
value $128,525,584)
126,000,000 The Bear Stearns Cos., Inc., 126,000,000
3.30%, dated 9/30/05, due
10/3/05 in the amount of
$126,034,650 (collateralized
by $107,920,000 U.S. Treasury
Note, 3.00%, due 7/15/12,
value $128,428,038)
---------------
Total Repurchase Agreements (Cost $630,000,000) 630,000,000
---------------
================================================================================
Time Deposit
$111,426,000 Royal Bank of Canada, 4.00%, 10/1/05 $ 111,426,000
---------------
Total Time Deposit (Cost $111,426,000) 111,426,000
---------------
Total Investment of Cash Collateral for
Securities Loaned (Cost $741,426,000) 741,426,000
---------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $2,916,220,488)(d) 125.51% $3,549,030,018
Cash and Other Assets,
Less Liabilities (25.51) (721,424,947)
------- ---------------
Net Assets 100.00% $2,827,605,071
======= ===============
=================================================================================================================
FINANCIAL FUTURES CONTRACTS PURCHASED
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
DJ Euro Stoxx 50 333 December 2005 $13,487,274 $13,751,416 $264,142
- -----------------------------------------------------------------------------------------------------------------
(a) Represents entire or partial security position out on loan or securities
contractually obligated to be loaned at a future date.
(b) Non-income-producing security.
(c) When-issued security.
(d) At September 30, 2005, the cost basis of investment securities for tax
purposes was $2,925,021,356. Gross unrealized appreciation of investments
was $639,765,521 and gross unrealized depreciation of investments was
$15,756,859, resulting in net unrealized appreciation of $624,008,662
(excluding foreign currency transactions and futures contracts).
See Notes to Financial Statements.
8 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Emerging Markets Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
Shares Description Market Value
================================================================================
EQUITIES: 98.43%
================================================================================
ARGENTINA: 0.88%
- --------------------------------------------------------------------------------
Metal--Steel
6 Tenaris S.A. $ 82
78,502 Tenaris S.A. (ADR) 10,820,716
Real Estate
7 IRSA Inversiones y 9
Representaciones S.A. (a)
220,402 IRSA Inversiones y 2,655,844
Representaciones S.A. (GDR)(a)
Utilities--Electric, Gas & Water
2,296,872 Central Costanera S.A. (Class B)(a) 3,119,087
--------------
Total Argentine Stocks (Cost $10,053,506) 16,595,738
--------------
================================================================================
BRAZIL: 16.39%
- --------------------------------------------------------------------------------
Automobiles
185,100 Localiza Rent a Car S.A. 1,535,445
Chemicals
1,640,300 Braskem S.A. (PFD) 16,909,020
Energy Sources
4,500 Petroleo Brasileiro S.A. (ADR) 286,875
6,044,800 Petroleo Brasileiro S.A. (PFD) 96,626,811
Financial Services
5,459,000 Itausa--Investimentos Itau S.A. 15,714,636
(PFD)
407,500 Unibanco--Uniao de Bancos 21,434,500
Brasileiros S.A. (ADR)
Health & Personal Care
58,500 Natura Cosmeticos S.A. 2,334,544
Merchandising
95,600 Companhia Brasileira de 2,759,972
Distribuicao Grupo Pao de
Acucar (ADR)
259,300 Lojas Renner S.A. (a) 6,394,718
Metal--Steel
5,720,690 Companhia Siderurgica Belgo 3,770,700
Mineira (PFD)
234,800,000 Companhia Siderurgica de 17,055,690
Tubarao (PFD)
1,411,540 Gerdau S.A. (ADR) 21,074,292
904,400 Usinas Siderurgicas de Minas 21,046,704
Gerais S.A. (PFD)
Miscellaneous Materials
2,150,000 Caemi Mineracao e Metalurgia 3,412,698
S.A. (PFD)
720,300 Companhia Vale do Rio Doce 28,026,873
(ADR)
Paper & Forest Products
80,700 Aracruz Celulose S.A. (ADR) 3,274,806
3,085,000 Klabin S.A. (PFD) 6,363,107
1,114,200 Suzano Bahia Sul Papel e 6,269,935
Celulose S.A. (PFD)
444,515 Votorantim Celulose e Papel 5,929,657
S.A. (PFD)
Real Estate
11,600 Cyrela Brazil Realty S.A. (GDR) 955,506
Telecommunications
6,279 Tele Centro Oeste Celular 56,252
Participacoes S.A.
192,700 Tele Centro Oeste Celular 1,745,862
Participacoes S.A. (ADR)
260,433 Tele Centro Oeste Celular 2,430,101
Participacoes S.A. (PFD)
240,300 Tim Participacoes S.A. (ADR) 4,464,774
Transportation--Airlines
43,100 Gol--Linhas Aereas 1,398,595
Inteligentes S.A. (ADR)
Transportation--Road & Rail
62,400 All America Latina Logistica 2,476,191
7,000 All America Latina Logistica 272,370
(GDR)(b)
Utilities--Electric, Gas & Water
42,672,400 Centrais Eletricas Brasileiras 822,757
S.A. (Eletrobras) (PFD)(Class B)
150,700,000 Companhia de Saneamento Basico 10,635,223
do Estado de Sao Paulo
89,400 CPFL Energia S.A. (ADR) 2,847,390
--------------
Total Brazilian Stocks (Cost $159,361,109) 308,326,004
--------------
================================================================================
CHILE: 0.64%
- --------------------------------------------------------------------------------
Banking
152,500 Banco Santander Chile S.A. (ADR) 6,690,175
Beverage & Tobacco
24,200 Compania Cervecerias Unidas 627,748
S.A. (ADR)
Forest & Paper
42,100 Empresas CMPC S.A. 1,200,019
Utilities--Electric, Gas & Water
312,800 Enersis S.A. (ADR) 3,578,432
--------------
Total Chilean Stocks (Cost $10,001,412) 12,096,374
--------------
Schedule of Investments -- Emerging Markets Portfolio 9
================================================================================
Shares Description Market Value
================================================================================
CHINA: 4.86%
- --------------------------------------------------------------------------------
Chemicals
13,608,000 Sinopec Shanghai Petrochemical $ 4,811,157
Co., Ltd.
Energy Sources
58,984,000 China Petroleum & Chemical Corp. 26,906,554
9,935,500 China Shenhua Energy Co., Ltd. 11,655,146
(Class H)(a)
8,002,000 CNOOC, Ltd. 5,757,993
3,298,000 PetroChina Co., Ltd. 2,757,016
6,471,200 Yanzhou Coal Mining Co., Ltd. 5,101,056
Food & Household Products
8,553,000 China Mengniu Dairy Co., Ltd. 7,053,537
Insurance
5,519,000 Ping An Insurance (Group) Co., 9,629,682
Ltd., of China (Class H)
Telecommunications
2,954,700 China Netcom Group Corp., Ltd. 5,099,760
25,838,000 China Telecom Corp., Ltd. 9,732,263
(Class H)
Utilities--Electric, Gas & Water
10,444,000 Huadian Power Development Co., 2,937,886
Ltd.
--------------
Total Chinese Stocks (Cost $65,582,462) 91,442,050
--------------
================================================================================
EGYPT: 0.81%
- --------------------------------------------------------------------------------
Construction & Housing
69,300 Orascom Construction Industries 5,121,270
(GDR)(b)
Telecommunications
142,600 MobiNil 4,982,582
52,000 Orascom Telecom Holding SAE 5,091,667
--------------
Total Egyptian Stocks (Cost $13,504,655) 15,195,519
--------------
================================================================================
HUNGARY: 3.23%
- --------------------------------------------------------------------------------
Banking
256,300 OTP Bank Rt. 10,076,974
Energy Sources
458,500 MOL Magyar Olaj-es Gazipari Rt. 50,717,546
--------------
Total Hungarian Stocks (Cost $21,519,069) 60,794,520
--------------
================================================================================
INDIA: 5.66%
- --------------------------------------------------------------------------------
Automobiles
346,205 Tata Motors, Ltd. 4,220,498
Banking
2,222,000 Andhra Bank 5,256,056
1,313,100 Bank of India 3,657,138
4,031,000 Canara Bank, Ltd. 21,339,351
269,086 HDFC Bank, Ltd. 4,221,328
1,399,725 Industrial Development Bank of 3,937,465
India, Ltd.
765,000 Oriental Bank of Commerce 4,750,295
2,012,000 Punjab National Bank, Ltd. 20,687,448
Business & Public Services
54,090 Tata Consultancy Services, Ltd. 1,824,525
Data Processing
173,898 Infosys Technologies, Ltd. 9,991,110
Energy Sources
671,769 Chennai Petroleum Corp., Ltd. 4,048,695
242,765 Hindustan Petroleum Corp., Ltd. 1,749,911
77,109 Oil & Natural Gas Corp., Ltd. 1,861,107
Industrial Components
117,529 Bharat Heavy Electricals, Ltd. 3,270,813
Machinery & Engineering
65,486 Larsen & Toubro, Ltd. 2,253,609
Metal--Steel
1,144,141 Steel Authority of India, Ltd. 1,694,542
257,836 Tata Steel, Ltd. 2,489,598
Telecommunications
510,849 Bharti Tele-Ventures, Ltd. 4,058,327
Transportation--Airlines
198,321 Jet Airways, Ltd. 5,038,224
--------------
Total Indian Stocks (Cost $77,994,822) 106,350,040
--------------
================================================================================
INDONESIA: 2.17%
- --------------------------------------------------------------------------------
Automobiles
9,211,000 PT Astra International Tbk 8,745,631
Banking
8,813,800 PT Bank Central Asia Tbk 2,958,994
50,645,500 PT Bank Mandiri 7,143,410
37,800,200 PT Bank Rakyat Indonesia 9,931,917
Multi-Industry
72,437,500 PT Bumi Resources Tbk 6,329,490
Telecommunications
10,792,500 PT Telekomunikasi Indonesia 5,619,665
--------------
Total Indonesian Stocks (Cost $33,283,639) 40,729,107
--------------
================================================================================
ISRAEL: 4.66%
- --------------------------------------------------------------------------------
Banking
9,064,100 Bank Hapoalim, Ltd. 35,260,508
10,840,200 Bank Leumi Le-Israel 36,439,187
Electronic Components & Instruments
115,600 Lipman 2,428,756
10 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Shares Description Market Value
================================================================================
Health & Personal Care
401,800 Teva Pharmaceutical Industries, $ 13,428,156
Ltd. (ADR)
--------------
Total Israeli Stocks (Cost $55,000,743) 87,556,607
--------------
================================================================================
MALAYSIA: 1.39%
- --------------------------------------------------------------------------------
Automobiles
6,000 Proton Holdings Berhad 13,133
7,480,300 Tan Chong Motor Holdings Berhad 3,314,434
Broadcasting & Publishing
2,142,000 Astro All Asia Networks plc 3,239,427
Chemicals
4,490,300 Titan Chemicals Corp. 1,834,720
Telecommunications
2,317,500 Telekom Malaysia Berhad 6,402,007
Utilities--Electric, Gas & Water
5,523,000 Malakoff Berhad 11,369,221
--------------
Total Malaysian Stocks (Cost $19,467,665) 26,172,942
--------------
================================================================================
MEXICO: 5.32%
- --------------------------------------------------------------------------------
Banking
1,671,700 Grupo Financiero Banorte S.A. 14,937,604
de C.V.
Beverage & Tobacco
19,900 Coca Cola Femsa, S.A. de C.V. 531,529
(ADR)
63,209 Fomento Economico Mexicano, 4,419,573
S.A. de C.V. (ADR)
Broadcasting & Publishing
122,700 Grupo Televisa S.A. (ADR) 8,798,817
Building Materials
3,173,540 Cemex S.A. de C.V. 16,591,976
Food & Household Products
3,930,700 Grupo Minsa S.A. de C.V. (a)(c) 1,092,572
Merchandising
1,544,100 Wal-Mart de Mexico S.A. de C.V. 7,859,020
Miscellaneous Materials
664,100 Grupo Mexico S.A. de C.V. 1,308,197
Multi-Industry
2,418,200 Alfa, S.A. (Class A) 14,841,458
Paper & Forest Products
569,800 Kimberly-Clark de Mexico, S.A. 2,150,589
de C.V.
Real Estate
606,900 Urbi, Desarrollos Urbanos, 4,514,090
S.A. de C.V. (a)
Telecommunications
779,400 America Movil S.A. de C.V. (ADR) 20,513,808
119,400 Telefonos de Mexico S.A. de 2,539,638
C.V. (ADR)
--------------
Total Mexican Stocks (Cost $64,886,742) 100,098,871
--------------
================================================================================
PERU: 0.04%
- --------------------------------------------------------------------------------
Metal--Nonferrous
22,000 Compania de Minas Buenaventura 683,100
S.A.u. (ADR)
--------------
Total Peruvian Stocks (Cost $476,304) 683,100
--------------
================================================================================
PHILIPPINES: 0.79%
- --------------------------------------------------------------------------------
Telecommunications
494,200 Philippine Long Distance 14,924,185
Telephone Co.
--------------
Total Philippine Stocks (Cost $9,263,826) 14,924,185
--------------
================================================================================
POLAND: 0.03%
- --------------------------------------------------------------------------------
Energy Sources
416,600 Polish Oil & Gas (a) 510,844
--------------
Total Polish Stocks (Cost $387,620) 510,844
--------------
================================================================================
PORTUGAL: 0.00%
- --------------------------------------------------------------------------------
Banking
1 Banco Comercial Portugues, S.A. 3
--------------
Total Portuguese Stocks (Cost $0) 3
--------------
================================================================================
RUSSIA: 2.54%
- --------------------------------------------------------------------------------
Electronic Components & Instruments
285,500 Uralsvyazinform (ADR) 2,269,725
Energy Sources
388,500 LUKOIL (ADR) 22,463,070
Metal--Nonferrous
58,800 Mining and Metallurgical Co. 4,880,400
Norilsk Nickel (ADR)
Metal --Steel
125,800 Mechel Steel Group OAO (ADR) 4,589,184
Telecommunications
159,000 AO VimpelCom (ADR)(a) 7,065,960
157,800 Mobile TeleSystems (ADR) 6,419,304
--------------
Total Russian Stocks (Cost $35,284,682) 47,687,643
--------------
================================================================================
SOUTH AFRICA: 11.30%
- --------------------------------------------------------------------------------
Banking
1,493,855 ABSA Group, Ltd. 22,009,613
Broadcasting & Publishing
1,449,456 Naspers, Ltd. 23,649,576
Chemicals
832,888 AECI, Ltd. 6,457,333
Construction & Housing
387,620 Aveng, Ltd. 1,020,067
4,195,914 Murray & Roberts Holdings, Ltd. 12,893,851
Data Processing
2,304,600 Dimension Data Holding plc (a) 1,538,755
Schedule of Investments -- Emerging Markets Portfolio 11
================================================================================
Shares Description Market Value
================================================================================
Energy Sources
400,891 Sasol $ 15,507,735
Financial Services
3,462,710 FirstRand, Ltd. 9,236,787
Food & Household Products
113,000 Tiger Brands, Ltd. 2,488,032
Health & Personal Care
575,000 Medi-Clinic Corp., Ltd. 1,715,768
8,081,581 Network Healthcare Holdings, 8,324,152
Ltd.
Insurance
277,404 Liberty Group, Ltd. (a) 2,803,806
18,338,600 Sanlam, Ltd. 36,914,808
Merchandising
641,221 Edgars Consolidated Stores, Ltd. 3,201,406
179,647 JD Group, Ltd. 2,190,336
737,935 Massmart Holdings, Ltd. 6,260,964
Metal--Nonferrous
362,031 BHP Billiton plc 5,888,325
Metal--Steel
723,358 Mittal Steel South Africa, Ltd. 6,443,120
Miscellaneous Materials
2,522,010 Consol, Ltd. (a) 4,762,333
Telecommunications
1,505,867 MTN Group, Ltd. 12,479,632
1,350,510 Telkom S.A., Ltd. 26,768,432
--------------
Total South African Stocks (Cost $122,363,766) 212,554,831
--------------
================================================================================
SOUTH KOREA: 17.36%
- --------------------------------------------------------------------------------
Automobiles
228,650 Hyundai Mobis 18,802,911
754,550 Hyundai Motor Co., Ltd. 59,125,275
224,920 Kumho Tire Co., Inc. 3,935,824
Banking
1,048,000 Industrial Bank of Korea 13,300,407
256,140 Industrial Bank of Korea (GDR) 3,334,943
609,320 Kookmin Bank 36,089,491
1,029,000 Shinhan Financial 35,885,295
Chemicals
1,300,000 Hanwha Chemical Corp. 16,267,226
Construction & Housing
84,310 Daelim Industrial Co., Ltd. 5,946,048
173,000 Hyundai Development Co. 5,469,632
Electronic Components & Instruments
15,700 LG. Philips LCD Co., Ltd. 322,792
(ADR)(a)
95,668 Samsung Electronic Co., Ltd. 54,184,612
Energy Sources
106,800 GS Holdings Corp. 2,721,620
64,400 S-Oil Corp. 5,265,890
Merchandising
13,130 Shinsegae Co., Ltd. 4,872,706
Metal--Steel
361,080 INI Steel Co. 9,361,987
147,500 POSCO 33,344,004
Telecommunications
199,330 KT Freetel Co., Ltd. 5,003,985
Transportation--Shipping
4,659,000 STX Pan Ocean Co., Ltd. 2,725,930
Wholesale & International Trade
251,020 LG. Philips LCD Co., Ltd. (a) 10,418,521
--------------
Total South Korean Stocks (Cost $192,665,280) 326,379,099
--------------
================================================================================
TAIWAN: 12.75%
- --------------------------------------------------------------------------------
Banking
5,136,982 Chinatrust Financial Holding 4,444,728
Co., Ltd.
Chemicals
1,114,300 Formosa Chemicals & Fibre 1,682,254
Corp.
Data Processing
831,600 Foxconn Technology Co., Ltd. 3,496,056
1,777,750 Quanta Computer, Inc. 2,922,494
Electrical & Electronics
33,645,720 Compal Electronics, Inc. 33,327,767
4,045,898 Gigabyte Technology Co., Ltd. 3,797,225
9,785,464 Hon Hai Precision Industry Co., 45,757,991
Ltd.
Electronic Components & Instruments
4,784,202 Advanced Semiconductor 3,250,680
Engineering, Inc.
970,824 Chi Mei Optoelectronics Corp. 1,078,097
36,100,000 CMC Magnetics Corp. (a) 15,014,800
236,500 MediaTek, Inc. 2,239,218
12,760,000 Ritek Corp. 4,596,752
26,261,981 Taiwan Semiconductor 42,303,141
Manufacturing Co., Ltd.
775,200 Taiwan Semiconductor 6,372,144
Manufacturing Co., Ltd. (ADR)
18,055,384 United Microelectronics Corp. 11,640,809
Insurance
8,547,000 Cathay Financial Holding Co., 15,974,815
Ltd.
Metal--Steel
16,867,830 China Steel Corp. 15,080,024
617,379 China Steel Corp. (GDR) 11,081,953
Telecommunications
2,129,000 Chungwha Telecom Co., Ltd. 3,724,099
10,470,000 Far EasTone Telecommunications 11,894,517
Co., Ltd.
--------------
Total Taiwanese Stocks (Cost $216,625,597) 239,679,564
--------------
================================================================================
12 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Shares Description Market Value
================================================================================
THAILAND: 3.67%
- --------------------------------------------------------------------------------
Banking
31,746,100 Bank of Ayudhya Public Co., $ 10,394,992
Ltd. (Foreign)
9,112,600 Siam City Bank Public Co., 5,954,606
Ltd. (Foreign)
1,084,300 Siam Commercial Bank Public 1,370,131
Co., Ltd. (Foreign)
Chemicals
3,596,500 National Petrochemical Public 11,128,164
Co., Ltd. (Foreign)
Energy Sources
4,911,700 Glow Energy PcL (Foreign) 2,668,557
5,052,300 PTT Public Co., Ltd. 30,034,382
(Foreign)(PFD)
1,070,300 Thai Oil Public Co., Ltd. 1,955,719
(Foreign)
Telecommunications
1,199,200 Advanced Info Service Public 3,155,405
Co., Ltd. (Foreign)
Transportation--Shipping
2,703,700 Regional Container Line Public 2,317,363
Co., Ltd. (Foreign)
--------------
Total Thaiwanese Stocks (Cost $32,576,957) 68,979,319
--------------
================================================================================
TURKEY: 3.94%
- --------------------------------------------------------------------------------
Appliances & Household Durables
535,300 Arcelik A.S. 3,083,252
Automobiles
1,883,705 Ford Otomotiv Sanayi A.S. 13,092,910
Banking
3,106,702 Akbank T.A.S. 20,625,700
2,712,351 Turkiye Garanti Bankasi A.S. 8,058,750
1,426,700 Turkiye Is Bankasi 9,894,500
Broadcasting & Publishing
1,632,306 Dogan Yayin Holdings A.S. 4,248,645
Energy Sources
751,550 Tupras-Turkiye Petrol 13,276,800
Rafinerileri A.S.
Miscellaneous Materials
601,609 Turk Sise ve Cam Fabrikalari 1,913,580
A.S.
--------------
Total Turkish Stocks (Cost $37,691,697) 74,194,137
--------------
Total Equities (Cost $1,177,991,553) 1,850,950,497
--------------
================================================================================
Quantity Description Market Value
================================================================================
REPURCHASE AGREEMENT: 0.47%
- --------------------------------------------------------------------------------
$ 8,885,000 State Street Bank & Trust Co., $ 8,885,000
2.85%, dated 9/30/05, due
10/3/05 in the amount of
$8,887,110 (collateralized by
$7,080,000 U.S. Treasury Bond,
6.50%, due 11/15/26, value
$9,067,929)
--------------
Total Repurchase Agreement (Cost $8,885,000) 8,885,000
--------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments ($1,186,876,553) (d) 98.90% $1,859,835,497
Cash and Other Assets, Less Liabilities 1.10 20,690,822
------- --------------
Net Assets (Equivalent to $43.22 per
share based on 43,505,863 shares of
capital stock outstanding) 100.00% $1,880,526,319
======= ==============
- --------------------------------------------------------------------------------
(a) Non-income-producing security.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities are considered liquid and may by resold in
transactions exempt from registration, normally to qualified institutional
buyers. At September 30, 2005, the aggregate market value of these
securities amounted to $5,393,640 or 0.29% of net assets.
(c) Illiquid security, valued at fair value (see Note 1A).
(d) At September 30, 2005, the cost basis of investment securities for tax
purposes was $1,188,168,108. Gross unrealized appreciation of investments
was $693,931,359 and gross unrealized depreciation of investments was
$22,263,970, resulting in net unrealized appreciation of $671,667,389
(excluding foreign currency transactions).
Explanation of abbreviations:
ADR--American Depository Receipts
GDR--Global Depository Receipts
PFD--Preference Shares
See Notes to Financial Statements.
Schedule of Investments -- Emerging Markets Portfolio 13
SCBMFSEMIANNSTOCK0905
Sanford C. Bernstein Fund, Inc.
SEPTEMBER 30, 2005
Schedule of Investments
To the Annual Report
For the Municipal Bond
Portfolios
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Short Duration Diversified Municipal
- --------------------------------------------------------------------------------
Short Duration California Municipal
- --------------------------------------------------------------------------------
Short Duration New York Municipal
- --------------------------------------------------------------------------------
Diversified Municipal
- --------------------------------------------------------------------------------
California Municipal
- --------------------------------------------------------------------------------
New York Municipal
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Board of Directors and the Municipal Class Shareholders of
Sanford C. Bernstein Fund, Inc.
In our opinion, the statements of assets and liabilities included in the
accompanying Annual Report, including the schedules of investments contained
herein, and the related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material respects, the
financial position of Short Duration Diversified Municipal Portfolio, Short
Duration California Municipal Portfolio, Short Duration New York Municipal
Portfolio, Diversified Municipal Portfolio, California Municipal Portfolio, and
New York Municipal Portfolio (six of the twelve portfolios constituting Sanford
C. Bernstein Fund, Inc., hereafter referred to as the "Fund") at September 30,
2005, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods presented, except for
the financial highlights of the Intermediate Municipal Retail Classes of the
Intermediate Municipal Portfolios, which are presented in a separate financial
report, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 2005, by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
November 22, 2005
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Short Duration Diversified Municipal Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Principal Amount Description Market Value
================================================================================
PREREFUNDED/ESCROWED: 14.07%
- --------------------------------------------------------------------------------
$1,000,000 Saint Louis, Missouri, $ 1,031,130
Municipal Finance Corp.,
Leasehold Revenue,
Improvement, City Justice
Center, Series A, AMBAC,
5.95%, 02/15/2016
Prerefunded 02/15/2006 @ 102
1,620,000 Greenville, South Carolina 1,671,370
Memorial Auditorium District,
Public Facilities Corp.,
Certificates of Participation,
Local Center Project,
Series B, AMBAC,
5.75%, 03/01/2022
Prerefunded 03/01/2006 @ 102
4,870,000 Ohio State Building Authority, 4,982,400
State Facilities, Adult
Correctional, Series A, AMBAC,
5.50%, 04/01/2010
Prerefunded 04/01/2006 @ 101
2,955,000 Ohio State Building Authority, 3,024,620
State Facilities, Adult
Correctional, Series A, AMBAC,
5.60%, 04/01/2011 (a)
Prerefunded 04/01/2006 @ 101
2,300,000 Michigan Municipal Bond 2,377,165
Authority Revenue, Pooled
Project, Series B,
5.625%, 10/01/2019
Prerefunded 04/01/2006 @ 102
7,050,000 Huron Valley School District, 2,545,755
Michigan, Capital
Appreciation, FGIC, Q-SBLF,
0.00%, 05/01/2020
Prerefunded 05/01/2006 @ 36.74
3,680,000 Metropolitan Government, 3,796,950
Nashville & Davidson County,
Tennessee, Sports Authority,
Revenue, Public Improvement
Stadium Project, AMBAC,
5.875%, 07/01/2021
Prerefunded 07/01/2006 @ 101
2,285,000 Phoenix Civic Improvement 2,335,658
Corporation, Arizona, Water
System Revenue, Junior Lien,
5.90%, 07/01/2013
Prerefunded 07/01/2006 @ 100
1,400,000 Clark County, Nevada, Las 1,445,766
Vegas Convention & Visitors
Authority, FSA,
6.00%, 07/01/2026
Prerefunded 07/01/2006 @ 101
2,250,000 Austin Independent School 2,300,468
District, Texas,
PSF-Guaranteed,
5.625%, 08/01/2010
Prerefunded 08/01/2006 @ 100
1,000,000 Menomonee Falls, Wisconsin, 1,034,220
Water System Mortgage Revenue,
FSA,
5.875%, 12/01/2016
Prerefunded 12/01/2006 @ 100
1,000,000 JEA, Florida Electric System 1,047,100
Revenue, Series 3-Series A,
XLCA-ICR,
5.375%, 10/01/2032
Prerefunded 10/01/2007 @ 100
1,120,000 Daytona Beach, Florida, Water 1,207,158
& Sewer Revenue,
6.75%, 11/15/2007
Escrowed to Maturity
3,210,000 Hudsonville, Michigan Public 3,377,915
Schools, FGIC, Q-SBLF,
5.15%, 05/01/2022
Prerefunded 05/01/2008 @ 100
2,630,000 New Jersey State, Highway 2,899,391
Authority, Garden Street
Parkway General Revenue,
Refunding, Series Parkway,
5.625%, 01/01/2030
Prerefunded 01/01/2010 @ 101
1,115,000 New Jersey State, 1,253,026
Transportation Trust Fund
Authority, Transportation
System, Series C,
5.50%, 06/15/2021
Prerefunded 06/15/2013 @ 100 ------------
Total Prerefunded/Escrowed
(Cost $36,476,492) 36,330,092
------------
================================================================================
INFLATION ADJUSTED: 1.39%
- --------------------------------------------------------------------------------
3,500,000 Delaware Valley Regional 3,588,200
Finance Authority,
Pennsylvania, Series A, AMBAC,
5.44%, 07/01/2027 (a) ------------
Total Inflation Adjusted (Cost $3,595,394) 3,588,200
------------
Schedule of Investments -- Short Duration Diversified Municipal Portfolios 1
================================================================================
Principal Amount Description Market Value
================================================================================
INSURED: 22.86%
- --------------------------------------------------------------------------------
$ 2,000,000 Greater Texoma Utility $ 2,000,000
Authority, Texas Contract
Revenue, City of Sherman
Project, FSA,
4.50%, 10/01/2005
5,945,000 Nebraska Public Power 5,979,006
District, Revenue, Series A,
MBIA,
5.25%, 01/01/2006
1,000,000 New Jersey State, Turnpike 1,006,380
Authority Revenue, Unrefunded
Balance, Series A, MBIA,
5.50%, 01/01/2006
1,000,000 Goose Creek Consolidated 1,007,720
Independent School District,
Texas, Series A, PSF
Guaranteed,
5.00%, 02/15/2006
4,285,000 Tulsa County, Industrial 4,341,605
Authority, Oklahoma, Capital
Improvements Revenue,
Series B, FSA,
5.00%, 05/15/2006
2,535,000 Chicago, Illinois, Transit 2,553,404
Authority Capital Grant
Receipts, Federal Transit
Administration, Section 5307,
Series A, AMBAC,
4.00%, 06/01/2006
3,880,000 Tempe Unified High School 3,940,101
District No. 213, Arizona,
Refunding, FSA,
5.00%, 07/01/2006
1,145,000 Wisconsin State, Refunding, 1,178,457
Series 1, FSA,
5.00%, 05/01/2007
1,000,000 Palm Beach County School 1,034,990
Board, Florida, Certificates
of Participation, Series E,
AMBAC,
5.00%, 08/01/2007
1,000,000 Massachusetts State 1,037,530
Development Finance Agency,
Resource Recovery Revenue,
Semass Systems, Series B, AMT,
MBIA,
5.25%, 01/01/2008
1,300,000 Richardson Independent School 1,324,323
District, Texas, PSF
Guaranteed,
4.00%, 02/15/2008
1,010,000 Chicago, Illinois, 1,012,868
Transportation Authority
Revenue, Series B, AMBAC,
4.25%, 06/01/2008
5,035,000 Florida State Department of 5,286,801
Environmental Protection
Preservation Revenue, Florida,
Series A, MBIA,
5.00%, 07/01/2008
4,830,000 Pennsylvania State, Second 5,070,244
Series, FGIC,
5.00%, 07/01/2008
2,345,000 New Jersey Economic 2,471,607
Development Authority Revenue,
Cigarette Tax, FGIC,
5.00%, 06/15/2009
5,950,000 Colorado State Department of 6,365,131
Transportation, Revenue
Anticipation Notes, Series A,
MBIA,
5.25%, 06/15/2009
5,000,000 Massachusetts State, 5,437,350
Refunding, Series A, MBIA,
5.50%, 02/01/2010
1,400,000 Alabama State Federal Highway 1,495,032
Financial Authority, Grant
Anticipation, Series A, MBIA,
5.00%, 03/01/2010
1,170,000 Essex County Improvement 1,177,371
Authority, New Jersey Revenue,
Property & Equipment Program,
MBIA,
6.50%, 12/01/2012
5,350,000 Burlington, Kansas, Pollution 5,334,378
Control Revenue, Refunding,
Kansas Gas & Electric Co.
Project, Series B, MBIA,
2.65%, 06/01/2031 (b)
------------
Total Insured (Cost $59,281,060) 59,054,298
------------
================================================================================
TAX SUPPORTED: 28.57%
- --------------------------------------------------------------------------------
State General Obligations: 7.53%
4,000,000 Hawaii State, Refunding, 4,054,280
Series DH,
5.00%, 06/01/2006
250,000 California State, 254,278
5.50%, 06/01/2006
3,900,000 Maryland State, Refunding, 3,965,091
State & Local Facilities Loan,
First Series B,
5.00%, 07/15/2006
2,200,000 California State, 2,295,084
5.00%, 03/01/2008
4,165,000 Maryland State, State & Local 4,385,162
Facilities Loan, First Series,
5.00%, 08/01/2008
3,500,000 Maryland State, State & Local 3,685,010
Facilities Loan, Second
Series,
5.00%, 08/01/2008
2 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 760,000 California State, $ 810,350
5.00%, 02/01/2010
------------
Total State General Obligations
(Cost $19,457,308) 19,449,255
------------
Local General Obligations: 5.09%
3,260,000 Metropolitan Government, 3,268,965
Nashville & Davidson County,
Tennessee, Refunding, Series B,
4.00%, 01/01/2006
3,500,000 Detroit City School District, 3,540,915
Michigan, Refunding, Q-SBLF,
5.05%, 05/01/2006
2,870,000 Maricopa County, Community 2,914,255
College District, Arizona,
Refunding,
5.00%, 07/01/2006
1,000,000 New York City, New York, 1,039,930
Series F,
5.25%, 08/01/2007
1,250,000 Dallas County, Texas, 1,302,750
Community College District,
Maintenance Tax Notes,
5.00%, 02/15/2008
1,000,000 Broward County, Florida, 1,068,730
Refunding, Series B,
5.00%, 01/01/2010
------------
Total Local General Obligations
(Cost $13,194,854) 13,135,545
------------
Tax Lease: 1.32%
1,125,000 Virginia State Public Building 1,182,915
Authority, Public Facilities
Revenue, Series B,
5.00%, 08/01/2008
410,000 Tobacco Settlement Financing 411,956
Corp., New York, Series C-1,
5.50%, 06/01/2010
1,800,000 Tobacco Settlement Financing 1,826,028
Corp., New York, Tobacco
Asset-Backed Bonds,
Series A-1,
5.25%, 06/01/2012
------------
Total Tax Lease (Cost $3,500,416) 3,420,899
------------
Special Tax: 14.63%
765,000 The Quarry Community 765,757
Development District, Florida,
Special Assessment Bond
Anticipation Notes,
5.00%, 11/01/2005
480,000 North Las Vegas, Special 480,451
Improvement District No. 60,
Aliante, Nevada,
3.50%, 12/01/2005
2,000,000 Chicago, Illinois, Tax 2,004,600
Increment, Allocation
Subordinated Central Loop
Redevelopment, Series A,
6.50%, 12/01/2005
650,000 West Villages Improvement 649,922
District, Florida, Revenue,
Bond Anticipation Notes, Unit
of Development No. 2,
5.00%, 02/01/2006
95,000 Capital Region Community 95,472
Development District, Florida,
Capital Improvement, Series B,
5.95%, 05/01/2006
3,275,000 Tulsa County, Industrial 3,294,814
Authority, Oklahoma, Capital
Improvements Revenue,
Series B,
4.00%, 05/15/2006
750,000 Las Vegas Special Improvement 754,567
District No. 607, Nevada,
Local Improvement Bonds,
4.00%, 06/01/2006
425,000 Monterra Community Development 425,914
District, Florida, Revenue,
Bond Anticipation Notes,
5.00%, 06/01/2006
4,230,000 Massachusetts Bay 4,324,329
Transportation Authority,
Sales Tax Revenue, Senior
Series C,
6.00%, 07/01/2006
170,000 Dove Mountain Resort Community 170,925
Facilities District, Arizona,
Assessment Lien,
6.00%, 12/01/2006
65,000 Double Branch Community 65,336
Development District, Florida,
Special Assessment,
Series B-1,
5.60%, 05/01/2007
40,000 Vizcaya Community Development 40,332
District, Florida, Special
Assessment,
5.90%, 05/01/2007
1,000,000 New Jersey Economic 1,024,090
Development Authority,
Revenue, Cigarette Tax,
5.00%, 06/15/2007
6,520,000 California Economic Recovery, 6,749,113
Series A,
5.00%, 07/01/2007
225,000 Henderson Local Improvement 224,831
District, No. T-17, Nevada,
3.60%, 09/01/2007
Schedule of Investments -- Short Duration Diversified Municipal Portfolios 3
================================================================================
Principal Amount Description Market Value
================================================================================
$ 185,000 Reunion East Community $ 187,577
Development District, Florida,
Special Assessment, Series B,
5.90%, 11/01/2007
260,000 Villasol Community Development 262,366
District, Florida, Special
Assessment Revenue, Series B,
5.375%, 05/01/2008
15,000 Stoneybrook Community 15,135
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.70%, 05/01/2008
20,000 Narcoossee Community 20,246
Development District, Florida,
Special Assessment, Series B,
5.75%, 05/01/2008
40,000 Waterchase Community 40,313
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.90%, 05/01/2008
1,120,000 New Jersey Economic 1,158,405
Development Authority,
Cigarette Tax, Revenue,
5.00%, 06/15/2008
500,000 Clark County, Nevada, 499,715
Improvement District,
Summerlin, No. 151,
3.75%, 08/01/2008 (c)
100,000 Murrieta Community Facilities 99,258
District, California, Special
Tax, No. 2003-1-Murrieta
Springs,
3.20%, 09/01/2008
295,000 Heritage Harbour South 295,401
Community Development
District, Florida, Special
Assessment Revenue, Capital
Improvement, Series B,
5.40%, 11/01/2008
765,000 Huntington Community 764,472
Development District, Florida,
Special Assessment, Series B,
5.00%, 05/01/2009
445,000 Meadow Pointe III Community 445,890
Development District, Florida,
Capital Improvements Revenue,
Series B,
5.00%, 05/01/2009
405,000 Seven Oaks Community 406,219
Development District II,
Florida, Special Assessment
Revenue, Series B,
5.00%, 05/01/2009
390,000 Overoaks Community Development 391,424
District, Florida, Capital
Improvement Revenue, Series B,
5.125%, 05/01/2009
205,000 Bonita Springs, Florida, 207,913
Vasari Community Development
District, Capital Improvement
Revenue, Series B,
6.20%, 05/01/2009
15,000 Saddlebrook Community 15,418
Development District,
Florida, Special Assessment,
Series B,
6.25%, 05/01/2009
2,745,000 California Economic Recovery 2,924,660
Bonds, Series A,
5.00%, 07/01/2009
640,000 Henderson Local Improvement 639,520
District, No. T-17, Nevada,
4.00%, 09/01/2009
665,000 Meadow Pointe III Community 659,195
Development District, Florida,
Capital Improvements Revenue,
Series 2004-1,
4.80%, 11/01/2009
675,000 Heritage Isle Community 674,028
Development District, Florida,
Special Assessment, Series B,
5.00%, 11/01/2009
300,000 Paseo Community Development 298,086
District, Florida, Capital
Improvement Revenue, Series B,
4.875%, 05/01/2010
150,000 Gateway Services Community 152,350
Development District, Florida,
Special Assessment, Sun City
Center, Fort Myers Project,
Series B,
5.50%, 05/01/2010
235,000 Harbor Bay Community 241,813
Development District, Florida,
Capital Improvement Revenue,
Series B,
6.35%, 05/01/2010
195,000 Dupree Lakes Community 195,355
Development District, Florida,
Capital Improvement Revenue,
5.00%, 11/01/2010
635,000 Hammock Bay Community 635,959
Development District, Florida,
Special Assessment Revenue,
Series B,
5.375%, 05/01/2011
85,000 Henderson Local Improvement 85,100
Districts, No. T-16, Nevada,
4.75%, 03/01/2013
4 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 245,000 Parkway Center Community $ 254,599
Development District, Florida,
Special Assessment, Refunding,
Series B,
5.625%, 05/01/2014
425,000 Pingree Grove, Illinois, 428,226
Special Service Area No. 1,
Special Tax, Cambridge Lakes
Project, Series 05-1,
5.25%, 03/01/2015
2,000,000 New York City Transitional 2,195,260
Finance Authority, New York,
Revenue, Future Tax Secured,
Series A,
5.50%, 11/01/2026 (b)
1,050,000 New York City Transitional 1,133,706
Finance Authority, New York,
Tax Secured Refunding,
Series B,
5.25%, 02/01/2029 (b)
1,400,000 Bridgeville, Delaware, Special 1,405,628
Obligation, Heritage Shores,
Special Development District,
Series B,
5.125%, 07/01/2035 ------------
Total Special Tax (Cost $37,808,880) 37,803,690
------------
Total Tax Supported (Cost $73,961,458) 73,809,389
------------
================================================================================
REVENUE: 11.88%
- --------------------------------------------------------------------------------
Education--Other: 0.13%
325,000 Philadelphia, Pennsylvania, 322,403
Authority for Industrial
Development, Leadership
Learning Partners Charter
School, Series A,
4.60%, 07/01/2015 ------------
Total Education--Other (Cost $325,000) 322,403
------------
Electric Revenue: 5.29%
1,665,000 South Carolina State, Public 1,673,708
Service Authority Revenue,
Series D,
5.00%, 01/01/2006
3,745,000 California Department of Water 3,800,426
Resources, Power Supply
Revenue, Series A,
5.50%, 05/01/2006
7,950,000 San Antonio, Texas, Electric & 8,177,768
Gas, Refunding,
5.25%, 02/01/2007 ------------
Total Electric Revenue
(Cost $13,739,874) 13,651,902
------------
Health Care Revenue: 4.43%
4,960,000 Indiana Health Facility 5,100,318
Financing Authority Revenue,
Ascension Health Subordinated
Credit, Series A,
5.00%, 05/01/2007
385,000 Connecticut State Health & 388,954
Educational Facilities
Authority Revenue, Hospital
for Special Care, Series B,
5.125%, 07/01/2007
430,000 Allegheny County Hospital 514,289
Development Authority,
Pennsylvania, Revenue, West
Pennsylvania Health System,
Series B,
9.25%, 11/15/2022
5,400,000 Jacksonville, Florida, 5,445,954
Economic Development
Commission, Healthcare
Facilities Revenue, Series B,
4.00%, 09/01/2023 (b) ------------
Total Health Care Revenue (Cost $11,552,498) 11,449,515
------------
Higher Education Revenue: 0.46%
1,175,000 Texas A & M University, 1,187,408
Revenue, Financing System,
4.65%, 05/15/2006 ------------
Total Higher Education Revenue (Cost $1,188,652) 1,187,408
------------
Water/Sewer Revenue: 0.29%
125,000 Todd Creek Farms, Metropolitan 122,968
District No. 1, Colorado,
Water Revenue, Refunding &
Improvement,
4.75%, 12/01/2009
630,000 Guam Government, Waterworks 626,944
Authority, Certificates of
Participation,
5.18%, 07/01/2015 ------------
Total Water/Sewer Revenue(Cost $753,757) 49,912
------------
Miscellaneous Revenue: 0.55%
1,000,000 Kansas State, Department of 1,018,250
Transportation, Highway
Revenue, Refunding, Series A,
5.00%, 09/01/2006
370,000 Broad Street Community 409,361
Development Authority,
Virginia, Revenue,
7.125%, 06/01/2015 ------------
Total Miscellaneous Revenue(Cost $1,390,625) 1,427,611
------------
Schedule of Investments -- Short Duration Diversified Municipal Portfolios 5
================================================================================
Principal Amount Description Market Value
================================================================================
Industrial Development/Pollution Control Revenue: 0.73%
$ 1,005,000 Richland County, South $ 1,015,311
Carolina, Environmental
Improvement Revenue,
International Paper Co.
Projects, Series A,
4.25%, 10/01/2007
300,000 Midland County Economic 313,572
Development Corp., Michigan,
Pollution Control Revenue,
Series A, AMT,
6.875%, 07/23/2009
570,000 New York State Environmental 568,136
Facilities Corp., Solid Waste
Disposal Revenue, Waste
Management Project, Series A,
2.90%, 05/01/2012
------------
Total Industrial Development/Pollution
Control Revenue (Cost $1,893,443) 1,897,019
------------
Total Revenue (Cost $30,843,849) 30,685,770
------------
================================================================================
ASSET-BACKED SECURITIES: 4.86%
- --------------------------------------------------------------------------------
Housing: 4.86%
1,520,000 Rhode Island Housing & 1,492,473
Mortgage Finance Corp.,
Homeownership Opportunity
Notes, Series 46-B,
2.25%, 03/15/2007
2,525,000 Maine Housing Authority, 2,525,000
General Housing Revenue, Draw
Down Series A,
3.45%, 01/01/2010 (b)
375,000 Georgia State Housing & 379,987
Finance Authority Revenue,
Single-Family Mortgage,
Subseries C3,
4.875%, 12/01/2015
1,405,000 Munimae Trust, Series 2001-6, 1,415,341
Class A,
4.80%, 01/14/2026
645,000 Colorado Housing & Finance 653,707
Authority, Single-Family,
Series A-2, AMT,
7.25%, 05/01/2027
4,875,000 Minnesota State Housing 4,802,704
Finance Agency, Residential
Housing, Series L-2,
2.35%, 01/01/2031
1,215,000 District of Columbia Housing 1,279,322
Finance Agency, Mortgage
Revenue, Single-Family,
Series A, AMT,
6.85%, 06/01/2031
------------
Total Housing (Cost $12,603,066) 12,548,534
------------
Total Asset-Backed Securities
(Cost $12,603,066) 12,548,534
------------
================================================================================
TAX EXEMPT VARIABLE-RATE DEMAND NOTES/SHORT-TERM NOTES: 15.97%
- --------------------------------------------------------------------------------
6,745,000 Temple University of The 6,787,291
Commonwealth System of Higher
Education, Pennsylvania,
University Funding Obligation,
4.00%, 04/28/2006 (d)
4,780,000 New Jersey State, Tax Revenue, 4,815,515
Anticipation Notes, Series A,
4.00%, 06/23/2006
1,365,000 New Orleans, Louisiana, 1,351,473
Sewerage Service, Bond
Anticipation Notes,
3.00%, 07/26/2006
17,620,000 Texas State, Tax & Revenue 17,855,051
Anticipation Notes,
4.50%, 08/31/2006
3,000,000 Jackson County, Mississippi, 3,000,000
Port Facility, Revenue
Refunding, Chevron USA Inc.
Project,
2.80%, 06/01/2023 (e)
2,900,000 Berkeley County, South 2,900,000
Carolina, Exempt Facility
Industrial Revenue, Amoco
Chemical Co. Project,
2.93%, 04/01/2028 (e)
1,000,000 Connecticut State Health & 1,000,000
Educational Facilities
Authority, Yale University,
Series T-1,
2.80%, 07/01/2029 (e)
3,000,000 Valdez, Alaska, Marine 3,000,000
Terminal, BP Pipelines
Project, Series B,
2.83%, 07/01/2037 (e)
550,000 Loudoun County, Virginia, 550,000
Industrial Development
Authority, Howard Hughes
Medical, Series A,
2.82%, 02/15/2038 (e)
------------
Total Tax Exempt Variable-Rate Demand
Notes/Short-Term Notes (Cost $41,210,809) 41,259,330
------------
6 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost $257,972,128) (f) 99.60% $257,275,613
Cash and Other Assets, Less Liabilities .40 1,024,355
-------- ------------
Net Assets (Equivalent to $12.51 per
share based on 20,655,698 shares
of capital stock outstanding) 100.00% $258,299,968
====== ============
================================================================================
INTEREST RATE SWAP CONTRACTS
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Unrealized
Notional Rate Appreciation/
Amount Description Received Rate Paid Termination Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------
$ 11,900,000 Merrill Lynch Interest 85.10% of Variable* 02/03/2006 $ 26,903
Rate Swap 1 month LIBOR+
11,900,000 Goldman Sachs Interest Variable* 76.48% of 02/03/2006 (10,096)
Rate Swap 1 month LIBOR+
2,500,000 JP Morgan Interest 2.988% Variable* 04/05/2007 (6,860)
Rate Swap
2,300,000 Citigroup Interest 2.962% Variable* 06/22/2007 (12,336)
Rate Swap
1,500,000 Citibank Interest 3 month LIBOR+ 4.350% 11/01/2011 16,280
Rate Swap
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
=============================================================================================
CREDIT DEFAULT SWAP CONTRACT
- ---------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized
Referenced Obligation Amount Rate Termination Date Appreciation
- ---------------------------------------------------------------------------------------------
Buy Contract:
Merrill Lynch $500,000 0.150% 06/20/2010 $1,440
Commonwealth of Puerto Rico, ======
5.00%, 07/01/2018
=================================================================================================================
FINANCIAL FUTURES CONTRACT SOLD
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
Interest Rate Swap 7 December 2005 $781,813 $765,625 $16,188
10 Yr Futures =======
- --------------------------------------------------------------------------------
(a) Represents entire or partial position segregated as collateral for open
future contracts.
(b) Variable rate coupon, rate shown as of September 30, 2005.
(c) When-issued security.
(d) Represents entire or partial position segregated as collateral for
interest rate swaps.
(e) Represents entire or partial position segregated as collateral for when
issued and delayed delivery securities.
(f) At September 30, 2005, the cost basis of investment securities for tax
purposes was $257,972,128. Gross unrealized appreciation of investments
was $491,541 and gross unrealized depreciation of investments was
$1,188,056, resulting in net unrealized depreciation of $696,515
(excluding swap and futures transactions).
- --------------------------------------------------------------------------------
Explanation of abbreviations:
AMBAC--American Municipal Bond Assurance Corporation
AMT--Subject to Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Company
FSA--Financial Security Assurance, Inc.
ICR--Issuer Credit Rating
MBIA--Municipal Bond Investors Assurance Corporation
PSF Guaranteed--(Texas) Permanent Schools Funds
Q-SBLF--Qualified School Bond Loan Fund
XLCA--XL Capital Assurance, Inc.
Schedule of Investments -- Short Duration Diversified Municipal Portfolios 7
================================================================================
Allocation of Portfolio Net Assets at September 30, 2005:
Alabama 0.58%
Alaska 1.16
Arizona 3.62
California 6.56
Colorado 2.76
Connecticut 0.54
Delaware 0.54
Florida 9.02
Georgia 0.15
Hawaii 1.57
Illinois 2.32
Indiana 1.97
Kansas 3.01
Louisiana 0.52
Maine 0.98
Maryland 4.66
Massachusetts 4.18
Michigan 4.71
Minnesota 1.86
Mississippi 1.16
Missouri 0.40
Nebraska 2.31
Nevada 1.60
New Jersey 6.12
New York 2.78
Ohio 3.10
Oklahoma 2.96
Pennsylvania 6.30
Rhode Island 0.58
South Carolina 2.81
Tennessee 2.74
Texas 13.61
Virginia 0.83
Wisconsin 0.86
Guam 0.24
District of Columbia 0.49
Cash and Other Assets, Less Liabilities 0.40
-------
Total 100.00%
=======
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Short Duration California Municipal Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
PREREFUNDED/ESCROWED: 15.28%
- --------------------------------------------------------------------------------
$ 2,000,000 California State Public Works $ 2,054,220
Board, Lease Revenue,
Department of Corrections,
Series A, AMBAC,
5.75%, 01/01/2012
Prerefunded 01/01/2006 @ 102 (a)
5,000,000 Golden State Tobacco 5,339,000
Securitization Corp.,
California, Tobbaco Settlement
Revenue, Series B,
5.75%, 06/01/2021
Prerefunded 06/01/2008 @ 100
1,000,000 Foothill/Eastern Corridor 1,175,450
Agency, California, Toll Road
Revenue, Convertible Capital
Appreciation, Sr. Lien, Series A,
7.15%, 01/01/2013
Prerefunded 01/01/2010 @ 102
810,000 New Jersey State, 910,270
Transportation Trust Fund
Authority, Transportation
Systems, Series C,
5.50%, 06/15/2021
Prerefunded 06/15/2013 @ 100 ------------
Total Prerefunded/Escrowed
(Cost $9,620,048) 9,478,940
------------
================================================================================
INSURED: 34.30%
- --------------------------------------------------------------------------------
1,070,000 San Francisco City & County 1,082,776
Airport Commission,
California, International
Airport, Refunding, 2nd
Series-27A, MBIA,
5.50%, 05/01/2006
1,725,000 California Statewide 1,747,632
Communities Development
Authority Revenue, Vehicle
License Fee Program, Series
B-1, FSA,
4.00%, 11/15/2006 (a)
2,315,000 Los Angeles, California, 2,346,576
Certificates of Participation,
MBIA,
4.00%, 12/01/2006
1,295,000 California Department of Water 1,344,249
Resources, Power Supply
Revenue, Series A, MBIA,
5.25%, 05/01/2007
8 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,155,000 Long Beach, California, Harbor $ 1,186,254
Revenue, Refunding, Series A,
MBIA, AMT,
5.00%, 05/15/2007 (b)
2,630,000 East Bay Municipal Utility 2,680,207
District, California, Water
System Revenue, Refunding,
FSA,
4.00%, 06/01/2007
1,000,000 Orange County Public Financing 1,018,150
Authority, California, Lease
Revenue, Refunding, MBIA,
4.00%, 07/01/2007
1,015,000 Sacramento Area Flood Control 1,057,305
Agency, California, Capital
Assessment District No.
2-North Area, AMBAC,
5.00%, 10/01/2007
2,930,000 Los Angeles Unified School 2,958,421
District, California,
Certificates of Participation,
Multiple Properties Project,
Series C, FSA,
4.00%, 10/01/2025
1,500,000 Puerto Rico Commonwealth, 1,575,825
Refunding, Public Improvement,
Series C, MBIA,
5.00%, 07/01/2028
1,450,000 Burlington, Kansas, Pollution 1,445,766
Control Revenue, Refunding,
Kansas Gas & Electric Co.
Project, Series B, MBIA,
2.65%, 06/01/2031(c)
1,280,000 Fullerton Redevelopment 1,313,421
Agency, California,
Certificates of Participation,
Southern California Optometry,
RADIAN,
5.00%, 04/01/2034
1,500,000 Santa Clara Valley 1,517,190
Transportation Authority,
California, Sales Tax Revenue,
Measure A, AMBAC,
4.00%, 04/01/2036
------------
Total Insured (Cost $21,393,932) 21,273,772
------------
================================================================================
TAX SUPPORTED: 20.93%
- --------------------------------------------------------------------------------
State General Obligations: 7.88%
2,055,000 California State, 2,070,885
4.75%, 03/01/2006
1,020,000 California State, 1,037,452
5.50%, 06/01/2006
150,000 California State, 156,483
5.00%, 03/01/2008
320,000 California State, Veterans 363,485
Bonds, Series AN &,
9.00%, 04/01/2008
1,065,000 California State, 1,124,949
5.00%, 03/01/2009
125,000 California State, 130,511
5.00%, 11/01/2022
------------
Total State General Obligations
(Cost $4,895,197) 4,883,765
------------
================================================================================
Special Tax: 13.05%
215,000 The Quarry Community 215,213
Development District, Florida,
Special Assessment, Bond
Anticipation Notes,
5.00%, 11/01/2005
190,000 North Las Vegas, Special 190,179
Improvement District No. 60,
Aliante, Nevada,
3.50%, 12/01/2005
255,000 Las Vegas Special Improvement 256,553
District No. 607, Nevada,
Local Improvement Bonds,
4.00%, 06/01/2006
1,000,000 Santa Clara County Financing 1,009,170
Authority Special Obligation,
California, Measure B
Transportation Improvement
Program,
4.00%, 08/01/2006
1,800,000 California Economic Recovery 1,863,252
Bonds, Series A,
5.00%, 07/01/2007
100,000 Fishhawk Community Development 100,371
District No. 2, Florida,
Special Assessment Revenue,
Series B,
5.00%, 11/01/2007
95,000 Meadow Pointe III Community 95,737
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.25%, 11/01/2007
125,000 Vizcaya Community Development 125,933
District, Florida, Special
Assessment, Series B,
5.40%, 11/01/2007
1,000,000 California Economic Recovery 1,043,830
Bonds, Series A,
5.00%, 01/01/2008
90,000 Village Community Development 90,518
District No. 5, Florida,
Special Assessment Revenue,
Series B,
5.00%, 05/01/2008
Schedule of Investments -- Short Duration California Municipal Portfolios 9
================================================================================
Principal Amount Description Market Value
================================================================================
$ 100,000 Villasol Community Development $ 100,910
District, Florida, Special
Assessment Revenue, Series B,
5.375%, 05/01/2008
1,000,000 California Economic Recovery 1,051,900
Bonds, Series A,
5.00%, 07/01/2008
200,000 Murrieta Community Facilities 198,516
District No. 2003-1-Murrieta
Springs, California, Special Tax,
3.20%, 09/01/2008
220,000 Huntington Community 219,848
Development District, Florida,
Special Assessment, Series B,
5.00%, 05/01/2009
170,000 Seven Oaks Community 170,512
Development District II,
Florida, Special Assessment
Revenue, Series B,
5.00%, 05/01/2009
180,000 Upland Community Redevelopment 180,410
Agency, California, Tax
Allocation Notes, Magnolia
Redevelopment Project,
3.90%, 11/01/2009
195,000 Heritage Isles Community 194,719
Development District, Florida,
Special Assessment, Series B,
5.00%, 11/01/2009
110,000 Live Oak Community Development 110,236
District No. 002, Florida,
Special Assessment, Series B,
5.00%, 11/01/2009
100,000 Gateway Services Community 101,567
Development District, Florida,
Special Assessment, Sun City
Center, Fort Myers Project,
Series B,
5.50%, 05/01/2010
200,000 Meadow Woods Community 200,354
Development District, Florida,
Special Assessment, Series B,
5.25%, 05/01/2011
175,000 Hammock Bay Community 175,264
Development District, Florida,
Special Assessment Revenue,
Series B,
5.375%, 05/01/2011
400,000 Bridgeville, Delaware, Special 401,608
Obligation, Heritage Shores
Special Development District,
Series B,
5.125%, 07/01/2035 ------------
Total Special Tax (Cost $8,141,995) 8,096,600
------------
Total Tax Supported (Cost $13,037,192) 12,980,365
------------
================================================================================
REVENUE: 11.99%
- --------------------------------------------------------------------------------
Electric Revenue: 2.08%
1,270,000 California Department of Water 1,288,796
Resources, Power Supply
Revenue, Series A,
5.50%, 05/01/2006
------------
Total Electric Revenue (Cost $1,288,618) 1,288,796
------------
Health Care Revenue: 1.95%
510,000 California Statewide 523,030
Communities Development
Authority Revenue, Daughters
of Charity Health, Series F,
5.00%, 07/01/2007
695,000 California Statewide 689,503
Communities Development
Authority Revenue, Kaiser
Permanente, Series A,
2.55%, 08/01/2031 (c) ------------
Total Health Care Revenue
(Cost $1,221,410) 1,212,533
------------
Water/Sewer Revenue: 0.27%
170,000 Guam Waterworks Authority, 169,176
Certificates of Participation,
5.18%, 07/01/2015
------------
Total Water/Sewer Revenue(Cost $170,000) 169,176
------------
Miscellaneous Revenue: 4.88%
2,845,000 Los Angeles County Public 2,882,810
Works Financing Authority,
California, Revenue, Capital
Loan Receivable Notes,
Series A,
4.00%, 12/01/2006
130,000 Broad Street Community 143,829
Development Authority,
Virginia, Revenue,
7.125%, 06/01/2015 ------------
Total Miscellaneous Revenue
(Cost $3,031,647) 3,026,639
------------
Industrial Development/Pollution Control
Revenue: 2.81%
785,000 California Pollution Control 780,455
Financing Authority, Pollution
Control Revenue, Southern
California Edison, Series C,
2.00%, 03/01/2008 (c)
380,000 Louisa Industrial Development 392,160
Authority, Virginia, Pollution
Control Revenue, Virginia
Electric & Power Co.,
5.25%, 12/01/2008 (c)
10 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 320,000 Franklin, Wisconsin Solid $ 320,256
Waste Disposal Revenue,
Waste Management,
3.625%, 04/01/2016
250,000 California Pollution Control 249,722
Financing Authority, Solid
Waste Disposal Revenue,
Republic Services Inc., Project,
2.85%, 12/01/2033 (c) ------------
Total Industrial Development/Pollution Control Revenue
(Cost $1,739,007) 1,742,593
------------
Total Revenue (Cost $7,450,682) 7,439,737
================================================================================
ASSET-BACKED SECURITIES: 0.63%
- --------------------------------------------------------------------------------
Housing: 0.63%
380,000 California Rural Home Mortgage 390,074
Finance Authority,
Single-Family Mortgage
Revenue, Mortgage-Backed
Securities Program, Series A,
GNMA/FNMA,
6.55%, 06/01/2030 (c) ------------
Total Housing (Cost $398,429) 390,074
------------
Total Asset-Backed Securities
(Cost $398,429) 390,074
------------
================================================================================
TAX EXEMPT VARIABLE-RATE DEMAND NOTES/SHORT-TERM NOTES: 15.59%
- --------------------------------------------------------------------------------
2,100,000 JP Morgan Chase Bank, National 2,100,000
Association, Enhancement
Custodian, Commercial Paper
Notes,
2.85%, 01/30/2006 (d)
2,800,000 San Diego Unified School 2,826,376
District, California, Tax &
Revenue Anticipation Notes,
Series A,
4.00%, 07/24/2006
320,000 New Orleans, Louisiana, Sewage 316,829
Service Revenue, Bond
Anticipation Notes,
3.00%, 07/26/2006
700,000 California State Department of 700,000
Water Resources, Power Supply
Revenue, Series B-1,
2.76%, 05/01/2022 (d)
600,000 California Statewide 600,000
Communities Development
Authority Certificates of
Participation, Tax Exempt,
ACA,
4.10%, 05/15/2029
300,000 Los Angeles Department of 300,000
Water & Power, California,
Revenue, Series B-3,
2.81%, 07/01/2034 (d)
2,825,000 Sacramento County Sanitation 2,825,000
District Financing Authority,
California, Revenue, Regional
County, Series B-4,
2.95%, 12/01/2039 ------------
Total Tax Exempt Variable-Rate Demand
Notes/Short-Term Notes (Cost $9,658,465) 9,668,205
------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments(Cost $61,558,748) (e) 98.72% $ 61,231,093
Cash and Other Assets, Less Liabilities 1.28 793,489
------- ------------
Net Assets (Equivalent to $12.47 per
share based on 4,973,154 shares of
capital stock outstanding) 100.00% $ 62,024,582
======= ============
Schedule of Investments -- Short Duration California Municipal Portfolios 11
INTEREST RATE SWAP CONTRACTS
- ------------------------------------------------------------------------------------------------------------------
Unrealized
Notional Rate Appreciation/
Amount Description Received Rate Paid Termination Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------
$ 4,000,000 Goldman Sachs Interest Variable* 76.48% of 02/03/2006 $ (3,394)
Rate Swap 1 month LIBOR+
4,000,000 Merrill Lynch Interest 85.10% of Variable* 02/03/2006 9,039
Rate Swap 1 Month LIBOR+
600,000 JP Morgan Interest 2.988% Variable* 04/05/2007 (1,647)
Rate Swap
700,000 Citigroup Interest 2.962% Variable* 06/22/2007 (3,754)
Rate Swap
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
===========================================================================================================
CREDIT DEFAULT SWAP CONTRACT
- -----------------------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized
Referenced Obligation Amount Rate Termination Date Appreciation
- -----------------------------------------------------------------------------------------------------------
Buy Contract:
Merrill Lynch $300,000 0.15% 06/20/2010 $864
Commonwealth of Puerto Rico, ====
5.00%, 07/01/2018
=================================================================================================================
FINANCIAL FUTURES CONTRACT SOLD
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
Interest Rate Swap 5 December 2005 $558,438 $546,875 $11,563
10 Yr Futures =======
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
- --------------------------------------------------------------------------------
(a) Represents entire or partial position segregated as collateral for
interest rate swaps.
(b) Represents entire or partial position segregated as collateral for open
futures contracts.
(c) Variable rate coupon, rate shown as of September 30, 2005.
(d) Represents entire or partial position segregated as collateral for when
issued and delayed delivery securities.
(e) At September 30, 2005, the cost basis of investment securities for tax
purposes was $61,558,748. Gross unrealized appreciation of investments was
$65,381 and gross unrealized depreciation of investments was $393,036,
resulting in net unrealized depreciation of $327,655 (excluding swap and
futures transactions).
Explanation of abbreviations:
ACA--American Capital Access
AMT--Subject to Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance, Inc.
GNMA --Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corporation
RADIAN--Radian Group, Inc.
- --------------------------------------------------------------------------------
Allocation of Portfolio Net Assets at September 30, 2005:
California 82.39%
Delaware 0.65
Florida 3.07
Kansas 2.33
Louisiana 0.51
Nevada 0.72
New Jersey 1.47
Virginia 0.86
Wisconsin 0.52
Guam 0.27
Puerto Rico 2.54
Commercial Paper 3.39
Cash and Other Assets, Less Liabilities 1.28
-------
Total 100.00%
=======
See Notes to Financial Statements.
12 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Short Duration New York Municipal Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
PREREFUNDED/ESCROWED: 18.45%
- --------------------------------------------------------------------------------
$ 1,670,000 New York City, New York, $ 1,710,631
Series F, FSA,
5.75%, 02/01/2015
Prerefunded 02/01/2006 @ 101.5
1,610,000 New York City, New York, 1,649,171
Series F, XLCA,
5.75%, 02/01/2019
Prerefunded 02/01/2006 @ 101.5
6,665,000 New York City Municipal Water 6,862,484
Finance Authority, Water &
Sewer System Revenue,
Series B, MBIA,
5.75%, 06/15/2026
Prerefunded 06/15/2006 @ 101
1,265,000 Municipal Assistance Corp., 1,287,074
New York City, Series O,
5.25%, 07/01/2006
Economically Defeased to Maturity
1,800,000 Municipal Assistance Corp., 1,841,202
New York City, Series E,
6.00%, 07/01/2006
Economically Defeased to Maturity
1,000,000 Municipal Assistance Corp., 1,022,890
New York City, Series G,
6.00%, 07/01/2006
Economically Defeased to Maturity
1,000,000 Municipal Assistance Corp., 1,024,710
New York City, Series I,
6.25%, 07/01/2006
Economically Defeased to Maturity
1,000,000 New York City Transitional 1,017,390
Finance Authority, Fiscal
2003, Series C,
5.00%, 08/01/2006
Economically Defeased to Maturity (a)
2,000,000 Municipal Assistance Corp., 2,078,360
New York City, Series O,
5.25%, 07/01/2007
Economically Defeased to Maturity
1,200,000 Municipal Assistance Corp., 1,262,604
New York City, Series P,
5.00%, 07/01/2008
Economically Defeased to Maturity
1,390,000 New York State Urban 1,553,242
Development Corp.,
Correctional Facilities
Service Contract, Series D, FSA,
5.75%, 01/01/2015
Prerefunded 01/01/2011 @ 100
585,000 New York State Environmental 657,850
Facilities Corp., State Water
Revolving Fund, New York City
Municipal Water Refunding,
Series A,
5.75%, 06/15/2011
Escrowed to Maturity
655,000 New Jersey State, 736,083
Transportation Trust Fund
Authority, Transportation
Systems, Series C,
5.50%, 06/15/2021
Prerefunded 06/15/2013 @ 100 ------------
Total Prerefunded/Escrowed
(Cost $22,634,788) 22,703,691
------------
================================================================================
INSURED: 25.53%
- --------------------------------------------------------------------------------
1,000,000 New York State Urban 1,006,250
Development Corp.,
Correctional Facilities,
Series A, AMBAC-TCRS,
5.40%, 01/01/2006
1,080,000 Suffolk County, Industry 1,083,726
Development Agency, New York,
Southwest Sewer System,
Revenue, XLCA,
4.00%, 02/01/2006
2,860,000 New York City, New York, 2,909,049
Series D, MBIA,
5.00%, 08/01/2006
4,065,000 Port Authority of New York & 4,128,333
New Jersey, Consolidated
139th, FGIC,
4.50%, 10/01/2006
1,000,000 Long Island Power Authority, 1,023,080
New York, Electric Systems
Revenue, Series B, XLCA,
5.00%, 12/01/2006
1,220,000 New York City, New York, 1,311,732
Series B, AMBAC,
7.25%, 08/15/2007
1,000,000 New York State Thruway 1,062,360
Authority, Service Contract
Revenue, Series A-2, MBIA,
5.375%, 04/01/2009
1,810,000 New York City Industrial 1,781,800
Development Agency, Civic
Facility Revenue, Series A-1,
ACA,
3.05%, 07/01/2009
3,030,000 Nassau County, New York, 3,470,017
Series F, FSA,
7.00%, 03/01/2010
Schedule of Investments -- Short Duration New York Municipal Portfolios 13
================================================================================
Principal Amount Description Market Value
================================================================================
$ 500,000 New York State Thruway $ 541,020
Authority, Highway & Bridge
Trust Fund, Series 2002C, MBIA,
5.25%, 04/01/2010
1,260,000 MTA, New York Transit 1,370,237
Authority, Certificates of
Participation, Series A,
AMBAC,
5.625%, 01/01/2013
1,830,000 MTA, New York, Series A, FGIC, 2,016,386
5.25%, 11/15/2022
4,350,000 Puerto Rico Commonwealth, 4,569,892
Refunding, Public Improvement,
Series C, MBIA,
5.00%, 07/01/2028
2,850,000 Burlington, Kansas, Pollution 2,841,678
Control Revenue, Refunding,
Kansas Gas & Electric Co.
Project, Series B, MBIA,
2.65%, 06/01/2031
2,325,000 New York State Energy Research 2,308,818
& Development Authority,
Pollution Control Revenue, ARS
Electric & Gas Project,
Series C, MBIA,
3.245%, 04/01/2034 ------------
Total Insured (Cost $31,337,937) 31,424,378
------------
================================================================================
TAX SUPPORTED: 21.90%
- --------------------------------------------------------------------------------
Local General Obligation: 4.63%
500,000 Schenectady, New York, Bond 499,735
Anticipation Notes, Renewal,
5.25%, 05/26/2006
1,000,000 New York City, New York, 1,008,840
Series C,
4.00%, 08/01/2006
1,610,000 New York City, New York, 1,637,209
Series G,
5.00%, 08/01/2006
2,400,000 New York City, New York, 2,556,168
Series I,
5.00%, 08/01/2010 ------------
Total Local General Obligation
(Cost $5,739,407) 5,701,952
------------
Tax Lease: 4.73%
3,600,000 New York State Housing Finance 3,658,860
Agency Revenue, Health
Facilities, New York City,
Series A,
6.00%, 05/01/2006
1,060,000 New York State Dormitory 1,087,740
Authority, Mental Health,
Series F-1,
5.00%, 02/15/2007
1,000,000 New York State Dormitory 1,069,800
Authority, Westchester County,
Court Facilities, AMBAC
Surety,
5.25%, 08/01/2013 ------------
Total Tax Lease (Cost $5,789,927) 5,816,400
------------
Special Tax: 12.54%
3,355,000 New York City Transitional 3,358,120
Finance Authority, Future Tax
Secured, Subseries D-1,
4.00%, 11/01/2005 (b)
350,000 The Quarry Community 350,347
Development District, Florida,
Special Assessment, Bond
Anticipation Notes,
5.00%, 11/01/2005
285,000 North Las Vegas, Local 285,268
Improvement, Special District
No. 60, Nevada,
3.50%, 12/01/2005
300,000 West Villages Improvement 299,964
District, Florida, Bond
Anticipation Notes, Unit of
Development, Series 2,
5.00%, 02/01/2006
420,000 Las Vegas Special Improvement 422,558
District No. 607, Nevada,
Local Improvement Bonds,
4.00%, 06/01/2006
175,000 Monterra Community Development 175,376
District, Florida, Bond
Anticipation Notes,
5.00%, 06/01/2006
100,000 Fishhawk Community Development 100,371
District No. 2, Florida,
Special Assessment Revenue,
Series B,
5.00%, 11/01/2007
4,600,000 New York City Transitional 4,784,322
Finance Authority, Future Tax
Secured, Series A-1,
5.00%, 11/01/2007
145,000 Meadow Pointe III Community 146,125
Development District, Florida,
Capital Improvement, Series B,
5.25%, 11/01/2007
185,000 Vizcaya Community Development 186,380
District, Florida, Special
Assessment, Series B,
5.40%, 11/01/2007
135,000 Village Community Development 135,778
District No. 5, Florida,
Special Assessment Revenue,
Series B,
5.00%, 05/01/2008
14 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 155,000 Villasol Community Development $ 156,410
District, Florida, Special
Assessment Revenue, Series B,
5.375%, 05/01/2008
285,000 Huntington Community 284,803
Development District, Florida,
Special Assessment, Series B,
5.00%, 05/01/2009
150,000 Seven Oaks Community 150,452
Development District II,
Florida, Special Assessment
Revenue, Series B,
5.00%, 05/01/2009
305,000 Overoaks Community Development 306,113
District, Florida, Capital
Improvement Revenue, Series B,
5.125%, 05/01/2009
340,000 Heritage Isles Community 339,510
Development District, Florida,
Special Assessment, Series B,
5.00%, 11/01/2009
375,000 Fishhawk Community Development 376,620
District No. 2, Florida,
Special Assessment Revenue,
Series B,
5.125%, 11/01/2009
615,000 Paseo Community Development 611,077
District, Florida, Series B,
4.875%, 05/01/2010
145,000 Gateway Services Community 147,272
Development District, Florida,
Special, Sun City Center Fort
Meyers, Project B,
5.50%, 05/01/2010
110,000 Dupree Lakes Community 110,200
Development District, Florida,
5.00%, 11/01/2010
290,000 Hammock Bay Community 290,438
Development District, Florida,
Special Assessment Revenue,
Series B,
5.375%, 05/01/2011
40,000 Henderson Local Improvement 40,047
Districts No. T-16, Nevada,
4.75%, 03/01/2013
305,000 Parkway Center Community 316,950
Development District, Florida
Special Assessment, Refunding,
Series B,
5.625%, 05/01/2014
250,000 Pingree Grove, Illinois, 251,898
Special Service Area No. 1,
Special Tax, Cambridge Lakes
Project, Series 05-1,
5.25%, 03/01/2015
1,000,000 New York City Transitional 1,097,630
Finance Authority, Future Tax
Secured, Refunding, Series A,
5.50%, 11/01/2026
700,000 Bridgeville, Delaware, 702,814
Heritage Shores Special
Development District,
Series B,
5.125%, 07/01/2035 ------------
Total Special Tax (Cost $15,386,333) 15,426,843
------------
Total Tax Supported (Cost $26,915,667) 26,945,195
------------
================================================================================
REVENUE: 11.17%
- --------------------------------------------------------------------------------
Electric Revenue: 3.50%
1,325,000 California Department of Water 1,344,610
Resources, Power Supply
Revenue, Series A,
5.50%, 05/01/2006
2,885,000 New York State Power 2,963,241
Authority, Revenue & General
Purpose, Series A,
5.00%, 02/15/2007 ------------
Total Electric Revenue (Cost $4,313,371) 4,307,851
------------
Health Care Revenue: 0.58%
700,000 New York State Dormitory 710,500
Authority Revenue, Mt. Sinai,
New York University Health,
Series C,
5.00%, 07/01/2011 ------------
Total Health Care Revenue (Cost $710,703) 710,500
------------
Toll/Transit Revenue: 4.53%
2,100,000 New York State Thruway 2,099,958
Authority, General Revenue,
Bond Anticipation Notes,
Series A,
2.25%, 10/06/2005
3,475,000 MTA, New York, Revenue, 3,475,973
Series B,
3.00%, 11/15/2005 ------------
Total Toll/Transit Revenue
(Cost $5,579,586) 5,575,931
------------
Water/Sewer Revenue: 0.39%
55,000 New York State Environmental 55,210
Facilities Corp., Pollution
Control Revenue, Series 1990C,
7.20%, 03/15/2011
90,000 New York State Environmental 101,010
Facilities Corp., New York
City Municipal Water Finance
Authority, Refunding, Series A,
5.75%, 06/15/2011
Schedule of Investments -- Short Duration New York Municipal Portfolios 15
================================================================================
Principal Amount Description Market Value
================================================================================
$ 325,000 Guam Government, Waterworks $ 323,424
Authority, Certificates of
Participation,
5.18%, 07/01/2015 ------------
Total Water/Sewer Revenue (Cost $480,953) 479,644
------------
Miscellaneous Revenue: 0.67%
600,000 Dutchess County, New York, 599,850
Resource Recovery Agency,
Solid Waste Systems, Bond
Anticipation Notes,
3.65%, 12/28/2007
200,000 Broad Street Community 221,276
Development Authority,
Virginia,
7.125%, 06/01/2015 ------------
Total Miscellaneous Revenue (Cost $800,000) 821,126
------------
Industrial Development/Pollution Control
Revenue: 1.50%
295,000 Louisa Industrial Development 304,440
Authority, Virginia, Pollution
Control Revenue, Virginia
Electric & Power Co.,
5.25%, 12/01/2008
935,000 New York State Environmental 931,942
Facilities Corp., Solid Waste
Disposal Revenue, Waste
Management Project, Series A,
2.90%, 05/01/2012
620,000 Farmington, New Mexico, 615,586
Pollution Control Revenue,
Public Service, San Juan
Project, Series B,
2.10%, 04/01/2033 ------------
Total Industrial Development/Pollution
Control Revenue (Cost $1,852,941) 1,851,968
------------
Total Revenue (Cost $13,737,554) 13,747,020
------------
================================================================================
ASSET-BACKED SECURITIES: 0.11%
- --------------------------------------------------------------------------------
Housing: 0.11%
135,000 East Rochester Housing 135,106
Authority, New York, Revenue,
Refunding, GNMA, North Park
Nursing Home,
3.70%, 10/20/2006 ------------
Total Housing (Cost $135,000) 135,106
------------
Total Asset-Backed Securities (Cost $135,000) 135,106
------------
================================================================================
TAX EXEMPT VARIABLE-RATE DEMAND
NOTES/SHORT-TERM NOTES: 21.78%
- --------------------------------------------------------------------------------
$ 3,900,000 JP Morgan Chase Bank, National $ 3,900,000
Association Enhancement
Custodian, Commercial Paper
Notes,
2.85%, 01/30/2006 (c)
3,415,000 Oceanside, Union Free School 3,439,246
District, New York, Tax
Anticipation Notes,
4.00%, 06/22/2006
5,000,000 Northport-East Northport, 5,038,500
Union Free School District,
New York, Tax Anticipation
Notes,
4.00%, 06/30/2006
5,000,000 Erie County, New York, Revenue 5,024,500
Anticipation Notes,
3.75%, 07/13/2006
645,000 New Orleans, Louisiana, Sewage 638,608
Service Revenue, Bond
Aniticipation Notes,
3.00%, 07/26/2006
4,425,000 Binghamton, New York, Bond 4,466,551
Anticipation Notes,
4.00%, 09/22/2006
2,100,000 New York City Municipal Water 2,100,000
Finance Authority, Water &
Sewer System Revenue, Series
C, FGIC,
2.80%, 06/15/2022 (c)
2,200,000 New York City Transitional 2,200,000
Finance Authority, New York
City Recovery, Series 3,
Subseries 3B,
2.95%, 11/01/2022 (c) ------------
Total Tax Exempt Variable-Rate Demand
Notes/Short-Term Notes (Cost $26,809,846) 26,807,405
------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $121,570,792) (d) 98.94% $121,762,795
Cash and Other Assets, Less Liabilities 1.06 1,295,021
------- ------------
Net Assets (Equivalent to $12.39 per
share based on 9,934,353 shares of
capital stock outstanding) 100.00% $123,057,816
======= ============
16 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
INTEREST RATE SWAP CONTRACTS
- ------------------------------------------------------------------------------------------------------------------
Unrealized
Notional Rate Appreciation/
Amount Description Received Rate Paid Termination Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------
$ 6,400,000 Goldman Sachs Interest Variable* 76.48% of 02/03/2006 $ (5,430)
Rate Swap 1 month LIBOR+
6,400,000 Merrill Lynch Interest 85.10% of Variable* 02/03/2006 14,469
Rate Swap 1 Month LIBOR+
1,200,000 JP Morgan Interest 2.988% Variable* 04/05/2007 (3,293)
Rate Swap
1,300,000 Citigroup Interest 2.962% Variable* 06/22/2007 (6,972)
Rate Swap
750,000 Citibank Interest 3 month LIBOR+ 4.35% 11/01/2011 8,140
Rate Swap
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
=============================================================================================
CREDIT DEFAULT SWAP CONTRACT
- ---------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized
Referenced Obligation Amount Rate Termination Date Appreciation
- ---------------------------------------------------------------------------------------------
Buy Contract:
Merrill Lynch $600,000 0.15% 06/20/2010 $1,728
Commonwealth of Puerto Rico, ======
5.00%, 07/01/2018
=================================================================================================================
FINANCIAL FUTURES CONTRACT SOLD
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
Interest Rate Swap 4 December 2005 $446,750 $437,500 $9,250
10 Yr Futures ======
- --------------------------------------------------------------------------------
(a) Represents entire or partial position segregated as collateral for open
futures contracts.
(b) Represents entire or partial position segregated as collateral for
interest rate swap
(c) Represents entire or partial position segregated as collateral for when
issued and delayed delivery securities.
(d) At September 30, 2005, the cost basis of investment securities for tax
purposes was $121,570,792. Gross unrealized appreciation of investments
was $496,971 and gross unrealized depreciation of investments was
$304,968, resulting in net unrealized appreciation of $192,003 (excluding
swap and futures transactions).
- --------------------------------------------------------------------------------
Explanation of abbreviations:
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Corporation
AMBAC--TCRS-AMBAC Transferable Custody Receipts
FGIC--Financial Guaranty Insurance Company
FSA--Financial Security Assurance, Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corporation
MTA--Metropolitan Transportation Authority
XLCA--XL Capital Assurance, Inc.
- --------------------------------------------------------------------------------
Allocation of Portfolio Net Assets at September 30, 2005:
California 1.09%
Delaware 0.57
Florida 3.64
Illinois 0.21
Kansas 2.31
Louisiana 0.52
Nevada 0.61
New Jersey 0.60
New Mexico 0.50
New York 81.32
Virginia 0.43
Guam 0.26
Puerto Rico 3.71
Commercial Paper 3.17
Cash and Other Assets, Less Liabilities 1.06
------
Total 100.00%
======
See Notes to Financial Statements.
Schedule of Investments -- Short Duration New York Municipal Portfolios 17
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Diversified Municipal Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
PREREFUNDED/ESCROWED: 6.37%
- --------------------------------------------------------------------------------
$ 1,205,000 Chicago, Illinois, Series A, $ 1,209,880
AMBAC,
4.50%, 01/01/2006
Escrowed to Maturity
1,190,000 Roanoke, Virginia, 1,222,011
5.00%, 02/01/2011
Prerefunded 02/01/2006 @ 102 (a)
1,400,000 Travis County, Texas, 1,412,502
5.00%, 03/01/2015
Prerefunded 03/01/2006 @ 100
1,340,000 Virginia Polytechnic 1,387,088
Institute, State University,
Revenue, Series A,
5.25%, 06/01/2008
Prerefunded 06/01/2006 @ 102
1,875,000 Metropolitan Government, 1,934,588
Nashville & Davidson County,
Tennessee, Sports Authority,
Revenue, Public Improvement,
Stadium Project, AMBAC,
5.875%, 07/01/2021
Prerefunded 07/01/2006 @ 101
3,495,000 Connecticut State Resource 3,658,881
Recovery Authority,
Mid-Connecticut System,
Series A, MBIA,
5.375%, 11/15/2009
Prerefunded 11/15/2006 @ 102
4,775,000 Chicago, Illinois, Emergency 4,925,938
Telephone System, FGIC,
5.50%, 01/01/2007
Escrowed to Maturity
4,250,000 Chicago, Illinois, O'Hare 4,402,107
International Airport,
Revenue, General Airport,
Second Lien, Series A, AMBAC,
6.00%, 01/01/2007
Escrowed to Maturity
1,780,000 Jefferson County, Alabama, 1,834,788
Sewer Revenue, Refunding
Warrants, Series A, FGIC,
5.375%, 02/01/2027
Prerefunded 02/01/2007 @ 100
2,030,000 MTA, New York, Commuter 2,135,154
Facilities Revenue,
Series C-2, FGIC,
6.00%, 07/01/2007
Escrowed to Maturity
1,000,000 Illinois Educational 1,043,750
Facilities Authority, Revenue,
Loyola University, Chicago,
Series A,
7.00%, 07/01/2007
Escrowed to Maturity
1,000,000 Cook County, Illinois, MBIA, 1,017,740
7.25%, 11/01/2007
Escrowed to Maturity
10,000 Connecticut State, 10,503
5.50%, 12/01/2007
Escrowed to Maturity
1,435,000 Cypress-Fairbanks Independent 1,523,568
School District, Texas,
Refunding & School House, PSF
Guaranteed,
5.75%, 02/15/2008
Escrowed to Maturity
1,265,000 Intermountain Power Agency, 1,378,761
Utah, Power Supply Revenue,
Series A, AMBAC,
6.50%, 07/01/2008
Escrowed to Maturity
2,785,000 Massachusetts State, 2,967,111
Consolidated Loan, Series C,
5.25%, 08/01/2011
Prerefunded 08/01/2008 @ 101
1,555,000 Washoe County School District, 1,655,671
Nevada, FGIC,
5.25%, 06/01/2014
Prerefunded 12/01/2008 @ 100
8,625,000 Jefferson County, Alabama, 9,168,202
Sewer Revenue, Capital
Improvement Warrants,
Series A, FGIC,
5.00%, 02/01/2033
Prerefunded 02/01/2009 @ 101 (b)
1,060,000 Jefferson County, Alabama, 1,130,893
Sewer Revenue, Capital
Improvement Warrants,
Series A, FGIC,
5.125%, 02/01/2039
Prerefunded 02/01/2009 @ 101
3,165,000 Jefferson County, Alabama, 3,416,997
Sewer Revenue, Capital
Improvement Warrants,
Series A, FGIC,
5.375%, 02/01/2036
Prerefunded 02/01/2009 @ 101
4,290,000 Jefferson County, Alabama, 4,681,934
Sewer Revenue, Series A,
5.75%, 02/01/2038
Prerefunded 02/01/2009 @ 101
105,000 Hawaii State, Series CN, FGIC, 114,695
6.00%, 03/01/2009
Escrowed to Maturity
18 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 175,000 District of Columbia, $ 189,277
Series B, FSA,
5.50%, 06/01/2009
Escrowed to Maturity
245,000 New Jersey Economic 260,680
Development Authority,
Revenue, Prerefunded, School
Facilities Construction,
Series C, MBIA,
5.00%, 06/15/2009
Escrowed to Maturity
1,185,000 New Mexico State Highway 1,256,586
Commission Revenue,
Subordinated Lien-Tax,
Series B, AMBAC,
5.00%, 06/15/2009
Escrowed to Maturity
1,000,000 Oklahoma Development Finance 1,061,12
Authority, Revenue, Hillcrest
Healthcare System, Series A,
5.00%, 08/15/2009
Escrowed to Maturity
2,240,000 Oklahoma Development Finance 2,457,056
Authority, Revenue, Hillcrest
Healthcare System, Series A,
5.75%, 08/15/2013
Prerefunded 08/15/2009 @ 101
1,270,000 Michigan Municipal Bond 1,398,168
Authority, Revenue, Clean
Water Revolving Fund,
5.625%, 10/01/2011
Prerefunded 10/01/2009 @ 101
3,745,000 Michigan Municipal Bond 4,140,360
Authority, Revenue, Clean
Water Revolving Fund,
5.75%, 10/01/2014
Prerefunded 10/01/2009 @ 101
235,000 Palm Beach County Solid Waste 259,919
Authority, Florida, Revenue,
Series A, AMBAC,
6.00%, 10/01/2009
Escrowed to Maturity
1,145,000 Montgomery County, Ohio, 1,240,379
Hospital Revenue, Grandview
Hospital & Medical Center,
5.40%, 12/01/2009
Escrowed to Maturity
2,100,000 Montgomery County, Ohio, 2,283,036
Hospital Revenue, Grandview
Hospital & Medical Center,
5.50%, 12/01/2010
Prerefunded 12/01/2009 @ 100
1,000,000 Montgomery County, Ohio, 1,091,020
Hospital Revenue, Grandview
Hospital & Medical Center,
5.60%, 12/01/2011
Prerefunded 12/01/2009 @ 100
2,000,000 Mesa, Arizona, Industrial 2,196,500
Development Authority,
Revenue, Discovery Health
System, Series A, MBIA,
5.625%, 01/01/2029
Prerefunded 01/01/2010 @ 101
3,475,000 Detroit, Michigan, Water 3,857,771
Supply System Revenue, Senior
Lien, Series A, FGIC,
5.875%, 07/01/2022
Prerefunded 01/01/2010 @ 101
3,055,000 Detroit, Michigan, Sewage 3,393,677
Disposal Revenue, Series A,
6.00%, 07/01/2029
Prerefunded 01/01/2010 @ 101
1,145,000 Route 3 North Transport 1,248,519
Improvement Associates,
Massachusetts, Lease Revenue,
MBIA,
5.375%, 06/15/2022
Prerefunded 06/15/2010 @ 100
3,000,000 Colorado Department of 3,365,070
Transportation, Transportation
Revenue, AMBAC,
6.00%, 06/15/2015
Prerefunded 06/15/2010 @ 100.5
4,145,000 Florida State Board of 4,671,374
Education, Lottery Revenue,
Series B, FGIC,
6.00%, 07/01/2014
Prerefunded 07/01/2010 @ 101
2,210,000 Chicago, Illinois, Series A, 2,562,849
FGIC,
6.75%, 01/01/2035
Prerefunded 07/01/2010 @ 101
1,585,000 Virginia College Building 1,761,014
Authority, Educational
Facilities Revenue, Public
Higher Education, Series A,
5.75%, 09/01/2013
Prerefunded 09/01/2010 @ 100
3,210,000 Massachusetts State, 3,548,815
Consolidated Loan, Series C,
5.75%, 10/01/2014
Prerefunded 10/01/2010 @ 100
2,390,000 Illinois State, First Series, 2,664,205
MBIA,
5.75%, 12/01/2013
Prerefunded 12/01/2010 @ 100
1,425,000 Snohomish County, Washington, 1,638,750
School District No. 016
Arlington, FGIC,
6.50%, 12/01/2015
Prerefunded 12/01/2010 @ 100
Schedule of Investments -- Diversified Municipal Portfolios 19
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,780,000 Chicago, Illinois, Park $ 1,990,592
District, Harbor Facilities
Revenue,
5.875%, 01/01/2013
Prerefunded 01/01/2011 @ 100
1,920,000 Chicago, Illinois, Park 2,147,155
District, Harbor Facilities
Revenue,
5.875%, 01/01/2014
Prerefunded 01/01/2011 @ 100
2,035,000 Chicago, Illinois, Park 2,275,761
District, Harbor Facilities
Revenue,
5.875%, 01/01/2015
Prerefunded 01/01/2011 @ 100
3,550,000 Saint Louis, Missouri, Airport 3,962,403
Revenue, Airport Development
Program, Series A, MBIA,
5.625%, 07/01/2018
Prerefunded 07/01/2011 @ 100
1,345,000 Saint Louis, Missouri, Airport 1,501,249
Revenue, Airport Development
Program, Series A, MBIA,
5.625%, 07/01/2019
Prerefunded 07/01/2011 @ 100
1,230,000 University of Texas, 1,359,433
University Revenue, Financing
Systems, Series B,
5.375%, 08/15/2019
Prerefunded 08/15/2011 @ 100
2,310,000 University of Illinois, 2,568,304
Certificates of Participation,
Utilities Infrastructure
Projects, Series A, AMBAC,
5.50%, 08/15/2018
Prerefunded 08/15/2011 @ 100
1,455,000 Harris County, Texas, 1,611,180
5.375%, 10/01/2018
Prerefunded 10/01/2011 @ 100
1,110,000 Michigan State Trunk Line, 1,224,719
Series A, FSA,
5.50%, 11/01/2018
Prerefunded 11/01/2011 @ 100
11,870,000 Massachusetts State, 13,030,292
Consolidated Loan, Series C,
5.375%, 12/01/2018
Prerefunded 12/01/2011 @ 100
4,555,000 New Jersey State Highway 5,003,394
Authority, Garden State
Parkway, General Revenue,
Refunding, Senior Parkway,
FGIC,
5.25%, 01/01/2019
Prerefunded 01/01/2012 @ 100
2,940,000 Hawaii State, Series CX, FSA, 3,274,278
5.50%, 02/01/2017
Prerefunded 02/01/2012 @ 100
3,600,000 Massachusetts Bay 3,959,208
Transportation Authority,
Massachusetts, Sales Tax
Revenue, Series A,
5.25%, 07/01/2020
Prerefunded 07/01/2012 @ 100
7,725,000 Jefferson County, Alabama, 8,339,755
Sewer Revenue, Capital
Improvement Warrants, FGIC,
5.00%, 02/01/2041
Prerefunded 08/01/2012 @ 100
2,465,000 Massachusetts State, 2,716,479
Consolidated Loan, Series D,
MBIA,
5.375%, 08/01/2022
Prerefunded 08/01/2012 @ 100
110,000 Massachusetts State, 121,222
Consolidated Loan, Series D,
5.375%, 08/01/2022
Prerefunded 08/01/2012 @ 100
2,755,000 Tarrant County Health 2,928,455
Facilities Development Corp.,
Texas, Harris Methodist Health
System, Series A,
5.125%, 09/01/2012
Escrowed to Maturity
3,000,000 Houston, Texas, Water & Sewer 3,385,380
Systems Revenue, Refunding,
Junior Lien Forward, Series B,
AMBAC,
5.75%, 12/01/2016
Prerefunded 12/01/2012 @ 100
2,000,000 Houston, Texas, Water & Sewer 2,256,920
System Revenue, Refunding,
Junior Lien Forward, Series B,
AMBAC,
5.75%, 12/01/2017
Prerefunded 12/01/2012 @ 100
1,075,000 Anchorage, Alaska, School 1,204,656
Improvement, Series B, FGIC,
5.875%, 12/01/2012
Escrowed to Maturity
4,100,000 North Carolina Municipal Power 4,538,044
Agency No. 1, Catawba Electric
Revenue,
5.50%, 01/01/2013
Escrowed to Maturity
3,275,000 New Jersey State 3,680,412
Transportation Trust Fund
Authority, Transportation
System, Series C,
5.50%, 06/15/2021
Prerefunded 06/15/2013 @ 100
20 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,045,000 Retama Development Corp., $ 2,619,420
Texas, Special Facilities
Revenue, Retama Racetrack,
8.75%, 12/15/2013
Escrowed to Maturity
150,000 Florida State Board of 198,143
Education, Capital Outlay,
9.125%, 06/01/2014
Escrowed to Maturity
950,000 Massachusetts State, Water 1,057,654
Pollution Abatement, Series B,
5.25%, 08/01/2014
Escrowed to Maturity
3,860,000 Retama Development Corp., 4,997,542
Texas, Special Facilities
Revenue, Retama Racetrack,
8.75%, 12/15/2014
Escrowed to Maturity
2,815,000 MTA, New York, Dedicated Tax 3,088,674
Fund, Series A, FGIC,
5.00%, 04/01/2023
Prerefunded 10/01/2015 @ 100
1,125,000 Retama Development Corp., 1,478,408
Texas, Special Facilities
Revenue, Retama Racetrack,
8.75%, 12/15/2015
Escrowed to Maturity
1,000,000 Bell County Health Facilities 1,235,530
Development Corp., Texas,
Lutheran General Healthcare
System,
6.50%, 07/01/2019
Escrowed to Maturity
4,940,000 Rhode Island Depositors 5,769,722
Economic Protection Corp.,
Series A, FSA,
5.75%, 08/01/2019
Escrowed to Maturity
1,500,000 Rhode Island Depositors 1,697,655
Economic Protection Corp.,
Series A, FSA,
5.50%, 08/01/2020
Escrowed to Maturity
1,720,000 North Carolina Eastern 2,079,532
Municipal Power Agency, Power
System Revenue, Series A,
6.00%, 01/01/2026
Prerefunded 01/01/2022 @ 100
5,780,000 Rhode Island Depositors 7,253,091
Economic Protection Corp.,
Series A,
6.375%, 08/01/2022
Escrowed to Maturity ------------
Total Prerefunded/Escrowed
(Cost $191,736,440) 203,333,569
------------
================================================================================
INFLATION ADJUSTED: 1.24%
- --------------------------------------------------------------------------------
2,050,000 Orlando, Florida, Waste Water 2,050,000
System Revenue, Series A, CPI
Bond,
6.139%, 10/01/2005 (c)
2,165,000 Orlando, Florida, Waste Water 2,180,133
System Revenue, Series A,
CPI Bond,
6.159%, 10/01/2006 (c)
1,790,000 Orlando, Florida, Waste Water 1,812,250
System Revenue, Series A,
CPI Bond,
6.179%, 10/01/2007 (c)
6,030,000 Orlando, Florida, Waste Water 6,104,953
System Revenue, Series A,
CPI Bond, Mandatory Put
10/01/2007,
6.179%, 10/01/2015 (c)
5,705,000 Illinois Development Finance 6,331,751
Authority, Adventist Health
System, Series B, CPI Bond,
MBIA,
3.95%, 01/01/2019 (c)
20,660,000 Delaware Valley Regional 21,180,632
Finance Authority,
Pennsylvania, Local Government
Revenue, Series A, CPI Bond,
AMBAC, Mandatory Put
07/01/2007,
5.44%, 07/01/2027 (c) ------------
Total Inflation Adjusted (Cost $38,514,518) 39,659,719
------------
================================================================================
INSURED: 46.43%
- --------------------------------------------------------------------------------
795,000 Chicago, Illinois, Unrefunded 798,148
Balance, Series A, AMBAC,
4.50%, 01/01/2006
1,000,000 Allegheny County, 1,005,620
Pennsylvania, Airport Revenue,
Pittsburgh International
Airport, Series A-1, MBIA,
AMT,
5.75%, 01/01/2006
1,200,000 Williamson County, Texas, FSA, 1,209,264
5.00%, 02/15/2006
1,000,000 Utah State Board of Regents, 1,014,410
Student Loan Revenue,
Series J, AMBAC, AMT,
6.00%, 05/01/2006 (b)
1,895,000 Minneapolis, Minnesota, 1,910,084
Healthcare System Revenue,
Fairview Health Services,
Series B, MBIA,
4.50%, 05/15/2006
Schedule of Investments -- Diversified Municipal Portfolios 21
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,340,000 Arlington, Texas, Waterworks & $ 1,366,894
Sewer Revenue, AMBAC,
6.00%, 06/01/2006
2,095,000 Virginia Port Authority, 2,142,494
Facilities Revenue, MBIA, AMT,
6.00%, 07/01/2006
1,860,000 Chicago, Illinois, O'Hare 1,924,951
International Airport,
Revenue, Unrefunded General
Airport, Second Lien,
Series A, AMBAC,
6.00%, 01/01/2007
2,725,000 Garland Independent School 2,757,346
District, Texas, Refunding,
Series A, PSF-Guaranteed,
4.00%, 02/15/2007
3,100,000 Katy Independent School 3,177,779
District, Series A, PSF
Guaranteed,
5.00%, 02/15/2007 (b)
1,000,000 Williamson County, Texas, 1,026,310
Limited Tax Notes, Series B,
FSA,
5.00%, 02/15/2007
1,965,000 Waco Independent School 2,020,806
District, Texas, Refunding,
PSF Guaranteed,
5.25%, 02/15/2007
1,000,000 Prince George's County, 1,043,380
Maryland, Consolidated Public
Improvement, Series A, MBIA,
6.00%, 03/15/2007
2,000,000 Walled Lake Consolidated 2,091,420
School District, Michigan,
MBIA,
6.00%, 05/01/2007
1,000,000 Massachusetts State Health & 1,029,130
Educational Facilities
Authority, Revenue, New
England Medical Center
Hospital, Series H, FGIC,
5.00%, 05/15/2007
1,000,000 Michigan State Comprehensive 1,031,200
Transportation Revenue,
Series B, FSA,
5.00%, 05/15/2007
1,715,000 Northeast Hospital Authority, 1,784,989
Texas, Northeast Medical
Center Hospital, Revenue, FSA,
5.75%, 05/15/2007
2,500,000 New Jersey State Certificates 2,587,525
of Participation, Refunding,
Series A, FSA,
5.25%, 06/15/2007
2,525,000 Philadelphia, Pennsylvania, 2,646,958
Airport Revenue, Series A,
FGIC,
6.00%, 06/15/2007
1,200,000 Philadelphia, Pennsylvania, 1,250,472
Airport Revenue, Series B,
FGIC, AMT,
6.00%, 06/15/2007
1,065,000 Oklahoma City, Oklahoma, 1,101,114
Airport Trust, Junior
Lien-27th Series-Series B,
FSA,
5.50%, 07/01/2007
1,105,000 Delaware Transportation 1,161,466
Authority, System Revenue,
AMBAC,
6.00%, 07/01/2007
2,775,000 Washington State Public Power 2,890,162
Supply System Revenue, Nuclear
Project No.1, Series A, AMBAC,
6.00%, 07/01/2007
5,775,000 Washoe County School District, 5,977,067
Nevada, Refunding, FSA,
5.00%, 08/01/2007
2,635,000 Orangeburg, South Carolina, 2,725,960
Projects Corporation, Capital
Projects Sales & Use Tax
Revenue, MBIA,
4.75%, 10/01/2007
2,115,000 Connecticut State Resource 2,236,613
Recovery Authority,
Mid-Connecticut System,
Series A, MBIA,
5.75%, 11/15/2007
3,650,000 Illinois State Unemployment 3,797,460
Insurance Fund, Building
Receipts Revenue, Series A,
FSA,
5.00%, 12/15/2007
1,000,000 Palm Beach, Florida, Beach 1,041,180
Restoration Project, Series A,
FSA,
5.00%, 01/01/2008
3,125,000 Tacoma, Washington, Electric 3,251,625
System Revenue, Series A,
FGIC,
5.00%, 01/01/2008
1,000,000 District of Columbia, 1,041,480
Certificates of Participation,
AMBAC,
5.25%, 01/01/2008
2,270,000 Clark County Public Utility, 2,386,338
District No. 1, Washington,
Electric Revenue, AMBAC,
5.50%, 01/01/2008
22 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,465,000 Sangamon County School $ 1,507,133
District No. 186, Illinois,
FGIC,
5.55%, 01/01/2008
1,000,000 Berkley City School District, 1,082,310
Michigan, FGIC,
7.00%, 01/01/2008
17,915,000 Massachusetts State, 18,886,889
Refunding, Series A, MBIA,
5.50%, 02/01/2008 (b)
2,000,000 Garland Independent School 2,037,420
District, Texas, Refunding,
Series A, PSF Guaranteed,
4.00%, 02/15/2008
3,885,000 Cypress-Fairbanks Independent 4,111,107
School District, Texas,
Unrefunded Portion-Refunding &
School House, PSF Guaranteed,
5.75%, 02/15/2008
1,000,000 Memphis-Shelby County Airport 1,057,060
Authority, Tennessee, Revenue,
Series A, MBIA, AMT,
6.00%, 02/15/2008
1,000,000 New Jersey Environmental 1,043,450
Infrastructure Trust,
Wastewater Treatment, AMBAC,
5.00%, 03/01/2008
1,875,000 Port of Port Arthur Navigation 1,994,663
District, Texas, AMBAC,
6.00%, 03/01/2008
4,540,000 New York State Thruway 4,759,509
Authority, Highway & Bridge
Trust Fund, Second General
Series B, FSA,
5.00%, 04/01/2008
4,035,000 Ohio State Building Authority, 4,216,293
Workers Compensation
Facilities, Series A, FGIC,
5.00%, 04/01/2008
2,920,000 Lower Colorado River 3,053,561
Authority, Texas, Revenue,
AMBAC,
5.00%, 05/15/2008
1,000,000 Massachusetts State Health & 1,044,970
Educational Facilities
Authority, Revenue, New
England Medical Center
Hospital, Series H, FGIC,
5.00%, 05/15/2008
8,400,000 District of Columbia, 8,892,156
Refunding, Series B-1, AMBAC,
5.50%, 06/01/2008
11,285,000 Texas State Public Finance 11,816,749
Authority, Revenue,
Unemployment Compensation
Assessment, Series A, FSA,
5.00%, 06/15/2008
1,095,000 Haverhill, Massachusetts, 1,159,047
FGIC,
6.00%, 06/15/2008
1,000,000 Ivy Tech State College, 1,047,600
Indiana, Student Fee,
Series G, AMBAC,
5.00%, 07/01/2008
1,925,000 Wayne County Community 2,019,729
College, Michigan, Community
College Improvement, FGIC,
5.00%, 07/01/2008
6,100,000 Anchorage, Alaska, Refunding, 6,428,424
Series B, MBIA,
5.25%, 07/01/2008
735,000 Intermountain Power Agency, 796,865
Utah, Power Supply Revenue,
Series A, AMBAC,
6.50%, 07/01/2008
3,295,000 Trinity River Authority, 3,479,388
Texas, Regional Wastewater
System Revenue, MBIA,
5.25%, 08/01/2008
2,045,000 New York City, New York, 2,199,950
Series D, FGIC,
6.00%, 08/01/2008
8,405,000 Westmoreland County, 8,836,345
Pennsylvania, Municipal
Authority, Municipal Service
Revenue, FGIC,
5.00%, 08/15/2008 (b)
3,885,000 Dallas, Independent School 4,100,928
District, Texas, Refunding,
Delayed Delivery, PSF-
Guaranteed,
5.25%, 08/15/2008
2,275,000 Indianapolis, Indiana, Gas 2,427,812
Utility Revenue, Refunding
Distribution System, Series A,
AMBAC,
5.75%, 08/15/2008
5,430,000 Ohio State Building Authority, 5,759,221
State Facilities
Administration Building Fund,
Refunding Project B, FSA,
5.25%, 10/01/2008
3,820,000 New York State Dormitory 4,077,506
Authority, School Districts
Revenue Financing, Series E,
MBIA,
5.50%, 10/01/2008
1,265,000 Emerald Peoples Utility 1,417,015
District, Oregon, FGIC,
7.35%, 11/01/2008
Schedule of Investments -- Diversified Municipal Portfolios 23
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,750,000 Indianapolis, Indiana, $ 2,972,778
Resource Recovery Revenue,
Ogden Martin System, Inc.,
Project, AMBAC,
6.75%, 12/01/2008
11,960,000 New Jersey State 12,694,583
Transportation Trust Fund
Authority, Series C, AMBAC,
5.25%, 12/15/2008
3,215,000 Washington State Motor Vehicle 3,340,481
Fuel Tax, Refunding MBIA,
4.50%, 01/01/2009
6,655,000 Washington State, Refunding, 6,914,745
FGIC,
4.50%, 01/01/2009
19,700,000 Pennsylvania State, 20,819,157
First Series, MBIA,
5.00%, 01/01/2009 (b)
5,000,000 Clark County Public Utility, 5,311,150
District No. 1, Washington,
Electric Revenue, AMBAC,
5.25%, 01/01/2009
1,210,000 New Jersey State Turnpike 1,296,454
Authority, Revenue, Series A,
MBIA,
5.50%, 01/01/2009
4,310,000 Allegheny County, 4,573,039
Pennsylvania, Airport Revenue,
Pittsburgh International
Airport, Series A-1, MBIA,
AMT,
5.75%, 01/01/2009
1,675,000 Chicago, Illinois, O'Hare 1,801,061
International Airport,
Revenue, Second Lien-Series C,
MBIA,
5.75%, 01/01/2009
2,105,000 North Carolina Eastern 2,255,992
Municipal Power Agency, Power
System Revenue, Series B, ACA,
6.125%, 01/01/2009
1,940,000 Hoover, Alabama, Board of 2,018,434
Education, Capital Outlay
Warrants, Refunding, Tax
Anticipation Notes, MBIA,
4.50%, 02/15/2009
1,180,000 Chicago, Illinois, Public 1,245,643
Building Commission, Building
Revenue, Chicago Transit
Authority, AMBAC,
5.00%, 03/01/2009
13,100,000 Houston, Texas, Refunding 13,820,107
Public Improvement, Series A,
MBIA,
5.00%, 03/01/2009
6,615,000 Houston, Texas, Refunding 7,084,334
Public Improvement, Series B,
FSA,
5.50%, 03/01/2009
1,920,000 Massachusetts Bay 2,062,003
Transportation Authority,
Series C, FGIC,
5.50%, 03/01/2009
5,835,000 Seattle, Washington, Municipal 6,252,903
Light & Power Revenue, FSA,
5.50%, 03/01/2009
2,560,000 Hawaii State, Unrefunded 2,787,738
Balance, Series CN, FGIC,
6.00%, 03/01/2009
11,585,000 Connecticut State, Series C, 12,295,740
FGIC,
5.00%, 04/01/2009
6,650,000 New York State Thruway 7,071,543
Authority, Highway & Bridge
Trust Fund, Second General
Series B, FSA,
5.00%, 04/01/2009
14,045,000 New York State Thruway 14,935,313
Authority, Highway & Bridge
Trust Fund, Series A, MBIA,
5.00%, 04/01/2009
1,045,000 Illinois State, Refunding, 1,114,116
First Series, FSA,
5.25%, 04/01/2009
32,445,000 California Department of Water 34,751,839
Resources, Power Supply
Revenue, Series A, MBIA,
5.25%, 05/01/2009 (b)
2,000,000 Chicago, Illinois, Transit 2,118,920
Authority Capital Grant
Receipts Revenue, Federal
Transit Administration,
Section 5307, Series B, AMBAC,
5.00%, 06/01/2009
2,100,000 District of Columbia, 2001, 2,256,282
Series B, FSA,
5.50%, 06/01/2009
3,655,000 New Jersey Economic 3,852,334
Development Authority,
Revenue, Cigarette Tax, FGIC,
5.00%, 06/15/2009
2,380,000 New Jersey Economic 2,508,496
Development Authority,
Revenue, Cigarette Tax, FSA,
5.00%, 06/15/2009
3,055,000 New Jersey Economic 3,238,483
Development Authority,
Revenue, School Facilities
Construction, Series C, MBIA,
5.00%, 06/15/2009
24 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 7,000,000 Metropolitan Pier & Exposition $ 7,480,830
Authority, Illinois, Dedicated
State Tax Revenue, McCormick
Place, Series A, MBIA,
5.25%, 06/15/2009
3,790,000 New Jersey Economic 4,027,026
Development Authority, Market
Transition Facilities Revenue,
Senior Lien Series A, MBIA,
5.00%, 07/01/2009
1,780,000 Massachusetts Port Authority, 1,898,495
Revenue, Series B, FSA,
5.50%, 07/01/2009
2,000,000 Missouri State Regional 2,128,960
Convention & Sports Complex
Authority, Refunding,
Convention & Sports Facility
Project, Series A-1, AMBAC,
5.00%, 08/15/2009
4,055,000 Westmoreland County, 4,316,466
Pennsylvania, Municipal
Authority, Municipal Service
Revenue, FGIC,
5.00%, 08/15/2009
1,370,000 Mobile, Alabama, AMBAC, 1,470,161
5.25%, 08/15/2009
1,530,000 Texas Municipal Power Agency, 1,640,757
Revenue, MBIA,
5.25%, 09/01/2009
1,000,000 Anchorage, Alaska, FGIC, 1,101,710
6.00%, 10/01/2009
4,070,000 Palm Beach County Solid Waste 4,461,615
Authority, Florida, Series A,
AMBAC,
6.00%, 10/01/2009
1,370,000 Indiana State Transportation 1,501,630
Finance Authority, Airport
Facilities Lease Revenue,
Series A, AMBAC,
6.00%, 11/01/2009
1,505,000 Connecticut State Resource 1,570,136
Recovery Authority, Unrefunded
Balance Mid-Connecticut
System, Series A, MBIA,
5.375%, 11/15/2009
1,000,000 Providence Public Building 1,043,470
Authority, Rhode Island,
Series A, FSA,
5.10%, 12/15/2009
1,890,000 Chicago, Illinois, O'Hare 2,009,108
International Airport,
Revenue, Second Lien-Series C,
MBIA,
5.00%, 01/01/2010
8,975,000 Michigan Public Power Agency, 9,665,267
Revenue, Refunding, Belle
River Project, Series A, MBIA,
5.25%, 01/01/2010
10,910,000 Tacoma, Washington, Electric 11,833,641
System Revenue, Series B, FSA,
5.50%, 01/01/2010
1,400,000 Allegheny County, 1,503,600
Pennsylvania, Airport Revenue,
Pittsburgh International
Airport, Series A-1, MBIA,
AMT,
5.75%, 01/01/2010
2,300,000 New Jersey State Turnpike 2,525,860
Authority, Revenue, Unrefunded
Balance, Series A, MBIA,
5.75%, 01/01/2010
2,000,000 Jefferson County, Alabama, 2,153,300
Sewer Revenue, Refunding,
Series B8, FSA,
5.25%, 02/01/2010
23,925,000 Pennsylvania State, Refunding 25,828,951
& Projects, First Series,
MBIA,
5.25%, 02/01/2010
1,025,000 Huntsville, Alabama, 1,109,706
Refunding, Warrants, Series A,
FSA,
5.40%, 02/01/2010
30,570,000 Massachusetts State, Series A, 33,243,958
MBIA,
5.50%, 02/01/2010
4,630,000 Dallas County, Texas, Utility 4,931,598
& Reclamation District, MBIA,
5.00%, 02/15/2010
1,700,000 Plano Independent School 1,810,738
District, Texas, PSF
Guaranteed,
5.00%, 02/15/2010
1,000,000 Memphis-Shelby County Airport 1,100,090
Authority, Tennessee, Series
A, MBIA, AMT,
6.25%, 02/15/2010
2,225,000 Richland County, South 2,361,838
Carolina, School District No.
001, FSA, SCSDE,
4.75%, 03/01/2010
5,000,000 Houston, Texas, Refunding, 5,430,350
Public Improvement, Series B,
FSA,
5.50%, 03/01/2010
9,365,000 Massachusetts Bay 10,745,588
Transportation Authority,
Refunding, Series A, MBIA,
7.00%, 03/01/2010
Schedule of Investments -- Diversified Municipal Portfolios 25
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,810,000 Maury County, Tennessee, $ 1,938,184
Refunding, Series A, MBIA,
5.00%, 04/01/2010
7,635,000 New York State Thruway 8,208,694
Authority, Highway & Bridge
Trust Fund, Second General
Series B, FSA,
5.00%, 04/01/2010
1,240,000 Ohio State Building Authority, 1,327,817
State Facilities
Administration Building
Project, Series A, FSA,
5.00%, 04/01/2010
2,030,000 New York State Thruway 2,196,541
Authority, Highway & Bridge
Trust Fund, Refunding,
Series C, MBIA,
5.25%, 04/01/2010
3,570,000 California Department of Water 3,874,164
Resources, Power Supply
Revenue, Series A, MBIA,
5.25%, 05/01/2010
7,100,000 California Department of Water 7,779,825
Resources, Power Supply
Revenue, Series A, MBIA,
5.50%, 05/01/2010
1,065,000 Detroit City School District, 1,204,164
Michigan, Series A, AMBAC,
6.50%, 05/01/2010
12,240,000 Tulsa County, Industrial 13,101,206
Authority, Oklahoma, Capital
Improvements Revenue,
Series B, FSA,
5.00%, 05/15/2010
4,570,000 Chicago, Illinois, Transit 4,937,108
Authority Capital Grant
Receipts Revenue, Federal
Transit Administration,
Section 5307, Series A, AMBAC,
5.25%, 06/01/2010
1,625,000 District of Columbia, 1,769,251
Series A, MBIA,
5.50%, 06/01/2010
12,500,000 New Jersey Economic 13,299,000
Development Authority,
Revenue, Cigarette Tax, FGIC,
5.00%, 06/15/2010
3,560,000 New Jersey Economic 3,787,555
Development Authority,
Revenue, Cigarette Tax, FSA,
5.00%, 06/15/2010
1,000,000 Maricopa County Unified School 1,062,180
District No. 48, Arizona,
Refunding, Series B, FSA,
4.75%, 07/01/2010
1,470,000 Intermountain Power Agency, 1,576,060
Utah, Power Supply Revenue,
Refunding, AMBAC,
5.00%, 07/01/2010
2,410,000 Phoenix, Arizona, Civic 2,586,075
Improvement Corporation,
Transit Excise Tax Revenue,
Light Rail Project, AMBAC,
5.00%, 07/01/2010
3,900,000 Arizona School Facilities 4,227,327
Board, Revenue, State School
Trust, Series A, AMBAC,
5.25%, 07/01/2010
1,670,000 Energy Northwest, Washington, 1,819,165
Electric Revenue, Refunding,
Columbia Generating, Series A,
XLCA,
5.50%, 07/01/2010
2,510,000 Detroit, Michigan, Sewage 2,800,231
Disposal Revenue, Series B,
MBIA,
6.00%, 07/01/2010
5,410,000 Multnomah County, Oregon, 5,819,158
Refunding, AMBAC,
5.00%, 08/01/2010
3,000,000 Houston, Texas, Hotel 3,290,880
Occupancy Tax & Special
Revenue, Refunding, Convention
& Entertainment, Series A,
AMBAC,
5.50%, 09/01/2010
1,500,000 Brownsville, Texas, Utilities 1,700,295
System Revenue, AMBAC,
6.25%, 09/01/2010
2,065,000 Broward County, Florida, 2,182,912
Airport System Revenue,
Series E, MBIA, AMT,
5.25%, 10/01/2010
5,000,000 Connecticut State Resource 5,223,150
Recovery Authority, Series A,
MBIA,
5.375%, 11/15/2010
6,090,000 New Jersey State, 6,678,720
Transportation Trust Fund
Authority, Transportation
System, Series C, FSA,
5.50%, 12/15/2010
10,755,000 Nebraska Public Power 11,557,861
District, Revenue, General
Series B, MBIA,
5.00%, 01/01/2011
4,600,000 Florida State Board of 5,007,284
Education, Series C, MBIA,
5.25%, 01/01/2011
26 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,710,000 Chicago, Illinois, Board of $ 1,934,950
Education, Lease Certificates,
Series A, MBIA,
6.25%, 01/01/2011
1,085,000 Pennsylvania State, Refunding 1,183,019
& Projects, First Series,
MBIA,
5.25%, 02/01/2011
5,555,000 Massachusetts State, 6,106,945
Refunding, Series A, MBIA,
5.50%, 02/01/2011
15,435,000 Bell County, Texas, Ltd. Tax 16,549,407
Notes, FSA,
5.00%, 02/15/2011
2,000,000 Louisiana State Office 2,149,080
Facilities Corp., Lease
Revenue, Capitol Complex
Program, Series A, MBIA,
5.50%, 03/01/2011
1,470,000 Illinois State, AMBAC, 1,582,279
5.00%, 04/01/2011
1,000,000 Ohio State Building Authority, 1,077,940
Workers Compensation
Facilities, Series A, FGIC,
5.00%, 04/01/2011
6,380,000 Illinois State, First Series, 6,946,416
MBIA,
5.25%, 04/01/2011
1,340,000 Wisconsin State, Series A, 1,443,033
MBIA,
5.00%, 05/01/2011
12,720,000 Tulsa County, Industrial 13,697,405
Authority, Oklahoma, Capital
Improvements Revenue,
Series B, FSA,
5.00%, 05/15/2011
4,465,000 New Jersey Economic 4,772,147
Development Authority,
Revenue, Cigarette Tax, FGIC,
5.00%, 06/15/2011
3,680,000 Delaware Transportation 3,984,446
Authority, Transportation
System Revenue, Senior, MBIA,
5.00%, 07/01/2011
4,015,000 Hawaii State, Refunding, 4,338,449
Series DG, AMBAC,
5.00%, 07/01/2011
11,705,000 New Jersey Economic 12,622,672
Development Authority, Market
Transition Facility Revenue,
Senior Lien Series A, MBIA,
5.00%, 07/01/2011
7,755,000 Phoenix, Arizona, Civic 8,384,008
Improvement Corporation,
Transit Excise Tax Revenue,
Light Rail Project, AMBAC,
5.00%, 07/01/2011
1,815,000 Energy Northwest, Washington, 1,975,791
Electric Revenue, Refunding,
Columbia Generating, Series A,
AMBAC,
5.25%, 07/01/2011
6,000,000 New Jersey State, Refunding, 6,518,640
Series N, AMBAC,
5.25%, 07/15/2011
16,500,000 Ohio State, Higher Education 17,855,970
Capital Facilities, Series
II-A, AMBAC,
5.00%, 08/01/2011
5,000,000 New Jersey State, MBIA-IBC, 5,527,900
5.50%, 08/01/2011
5,000,000 Michigan State, Trunk Line 5,402,400
Fund, Refunding, Series B,
FSA,
5.00%, 09/01/2011
1,915,000 Philadelphia Parking 2,082,773
Authority, Pennsylvania,
Revenue, FSA,
5.50%, 09/01/2011
1,275,000 Brownsville, Texas, Utility 1,469,361
System Revenue, AMBAC,
6.25%, 09/01/2011
3,410,000 Deschutes County, Oregon, 3,696,406
Administrative School District
No. 1, Refunding, FSA,
5.00%, 12/15/2011
7,060,000 New Jersey State 7,709,449
Transportation Trust Fund
Authority, Transportation
System, Series A, MBIA,
5.25%, 12/15/2011
5,715,000 Chicago, Illinois, Refunding, 6,158,198
Series A, FSA,
5.00%, 01/01/2012
1,565,000 Chicago, Illinois, Refunding, 1,686,366
Series B, AMBAC
5.00%, 01/01/2012
5,765,000 South Carolina State Public 6,262,404
Service Authority, Revenue,
Refunding, Series B, MBIA,
5.00%, 01/01/2012
2,100,000 Grand Rapids, Michigan, Water 2,324,259
Supply System Revenue, FGIC,
5.75%, 01/01/2012
4,000,000 Richmond, Virginia, FSA, 4,423,720
5.50%, 01/15/2012
3,700,000 Lamar Consolidated Independent 3,987,638
School District, Texas,
Schoolhouse, PSF-Guaranteed,
5.00%, 02/15/2012
7,265,000 Ohio State Building Authority, 7,870,756
Workers Compensation
Facilities, Series A, FGIC,
5.00%, 04/01/2012
Schedule of Investments -- Diversified Municipal Portfolios 27
================================================================================
Principal Amount Description Market Value
================================================================================
$ 26,280,000 Tulsa County, Industrial $ 28,426,550
Authority, Oklahoma, Capital
Improvements Revenue,
Series B, FSA,
5.00%, 05/15/2012
10,000,000 Hawaii State, Refunding, 10,849,300
Series DG, AMBAC,
5.00%, 07/01/2012
8,575,000 Tampa, Florida, Hillsborough 9,313,908
County, Express Parkway,
AMBAC,
5.00%, 07/01/2012
8,060,000 Dade County School District, 8,762,187
Florida, Remarketed, MBIA,
5.00%, 08/01/2012
5,600,000 El Paso, Texas, Refunding, 6,054,944
FGIC,
5.00%, 08/15/2012
3,455,000 Hamilton County, Ohio, Sales 3,828,071
Tax Subordinated, Series B,
AMBAC,
5.75%, 12/01/2012
3,500,000 Municipal Sub-District, 3,712,205
Colorado, Water Conservancy
District Revenue, Series F,
AMBAC,
6.50%, 12/01/2012
5,000,000 New Jersey State, 5,635,250
Transportation Trust Fund
Authority, Transportation
System, Series C, FSA,
5.75%, 12/15/2012
2,475,000 Chicago Public Building 2,648,126
Commission, Illinois, Revenue,
Chicago Park District,
Series A, FGIC,
5.375%, 01/01/2013
2,910,000 Manchester Housing & 3,200,506
Redevelopment Authority, New
Hampshire, Revenue, Series A,
ACA,
6.75%, 01/01/2013
2,085,000 New York State Dormitory 2,200,905
Authority, Mental Health
Facilities Improvement
Project, Series 1, FSA,
5.125%, 01/15/2013
1,195,000 New York State Dormitory 1,266,939
Authority, Unrefunded, Mental
Health Service Facilities,
Series D, MBIA,
5.25%, 02/15/2013
24,060,000 Hawaii State, Refunding, 26,214,332
Series DG, AMBAC,
5.00%, 07/01/2013
5,785,000 Washington State, Motor 6,282,684
Vehicle Fuel Tax, Series B,
FSA,
5.00%, 07/01/2013
3,015,000 Washington State, Various 3,274,380
Purpose, AMBAC,
5.00%, 07/01/2013
4,150,000 Wisconsin State, 4,509,971
Transportation Revenue,
Series B, AMBAC,
5.00%, 07/01/2013
20,000,000 California Economic Recovery, 22,182,000
Series A, MBIA,
5.25%, 07/01/2013
1,035,000 Sacramento Municipal Utility 1,196,170
District, California, Series G, MBIA,
6.50%, 09/01/2013
2,445,000 Sunrise, Florida, Utility 2,729,084
System Revenue, AMBAC,
5.50%, 10/01/2013
3,410,000 St. Clair County, Illinois, 3,739,645
FGIC,
5.625%, 10/01/2013
3,000,000 Hamilton County, Ohio, Sales 3,321,690
Tax Subordinated, Series B,
AMBAC,
5.75%, 12/01/2013
2,235,000 Manchester Housing & 2,456,310
Redevelopment Authority, New
Hampshire, Revenue, Series A,
ACA,
6.75%, 01/01/2014
5,425,000 Washington State Healthcare 5,755,383
Facilities Authority,
Children's Hospital & Regional
Medical Center, FSA,
5.25%, 10/01/2014
1,150,000 Douglas County School District 1,275,442
No. 206 (Eastmont),
Washington, FGIC,
5.75%, 12/01/2014
1,000,000 Manchester Housing & 1,097,390
Redevelopment Authority, New
Hampshire, Revenue, Series A,
ACA,
6.75%, 01/01/2015
3,370,000 Cypress-Fairbanks Independent 3,539,882
School District, Texas, PSF
Guaranteed,
5.25%, 02/15/2016
3,515,000 Lansing Community College, 3,928,821
Michigan, FGIC,
5.50%, 05/01/2016
28 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 10,785,000 Lower Colorado River $ 11,779,916
Authority, Texas, Revenue,
Series A, FSA,
5.875%, 05/15/2016
1,800,000 Magnolia Independent School 1,887,354
District, Texas, PSF
Guaranteed,
5.00%, 08/15/2016
1,555,000 District of Columbia Water & 1,832,381
Sewer Authority, Public
Utility Revenue, FSA,
6.00%, 10/01/2016
4,055,000 Hawaii State, Unrefunded 4,445,821
Balance, Series CX, FSA,
5.50%, 02/01/2017
2,000,000 Wisconsin State, Series B, 2,176,800
FSA,
5.25%, 05/01/2017
1,025,000 Regional Transportation 1,170,140
Authority, Illinois,
Refunding, Series B, FGIC,
5.50%, 06/01/2017
1,760,000 Clark County, Nevada, 2,144,507
Series A, AMBAC,
6.50%, 06/01/2017
7,000,000 Energy Northwest, Washington, 7,777,980
Electric Revenue, Refunding
Project, Series A, MBIA,
5.75%, 07/01/2017
3,415,000 Tampa, Florida, Occupational 3,751,207
License Tax, Refunding,
Series A, FGIC,
5.375%, 10/01/2017
2,325,000 Garden State Preservation 2,685,329
Trust, New Jersey, Open Space
& Farmland, Series 05A, FSA,
5.80%, 11/01/2017 (d)
3,065,000 University of Connecticut, 3,358,964
Refunding, Student Fee
Revenue, Series A, FGIC,
5.25%, 11/15/2017
2,405,000 Weld County School District 2,585,110
No. 6 (Greeley), Colorado,
FSA,
5.25%, 12/01/2017
1,575,000 Allen County, Indiana, 1,732,075
Juvenile Justice Center, First
Mortgage Revenue, AMBAC,
5.50%, 01/01/2018
3,000,000 Memphis-Shelby County Airport 3,296,520
Authority, Tennessee, Revenue,
Series D, AMBAC,
6.25%, 03/01/2018
7,790,000 New York State Thruway 8,378,534
Authority, State Personal
Income Tax Revenue, Series A,
FSA,
5.00%, 03/15/2018
4,000,000 San Antonio, Texas, Water 4,396,520
System Revenue, Refunding,
FSA,
5.50%, 05/15/2018
3,435,000 Florida State, Department of 3,686,030
Environmental Protection
Preservation, Revenue, Florida
Forever, Series A, FGIC,
5.00%, 07/01/2018
2,455,000 Energy Northwest Washington, 2,723,233
Electric Revenue, Refunding,
Columbia Generating, Series A,
MBIA,
5.75%, 07/01/2018
2,865,000 New York State Dormitory 3,422,844
Authority, New York
University, Series A, MBIA,
6.00%, 07/01/2018
4,695,000 Tampa, Florida, Occupational 5,172,341
License Tax, Refunding,
Series A, FGIC,
5.375%, 10/01/2018
18,620,000 University of Massachusetts, 20,102,524
Building Authority, Revenue,
Refunding, Senior Series 2,
AMBAC,
5.00%, 11/01/2018
3,400,000 Allegheny County, 3,787,226
Pennsylvania, Series C-54, MBIA,
5.375%, 11/01/2018
2,725,000 University of Colorado, 2,963,465
Enterprise System Revenue,
Refunding & Improvement,
AMBAC,
5.375%, 06/01/2019
4,745,000 Michigan State, Certificates 5,234,447
of Participation, New Center
Development, Inc., MBIA,
5.375%, 09/01/2019
1,435,000 Cowlitz County, Washington, 1,644,840
Special Sewer Revenue, CSOB
Wastewater Treatment, FGIC,
5.50%, 11/01/2019
6,025,000 South Carolina State Public 6,369,027
Service Authority, Revenue,
Refunding, Series D, FSA,
5.00%, 01/01/2020
9,000,000 South Carolina State Public 9,834,120
Service Authority, Revenue,
Refunding, Series A, FGIC,
5.25%, 01/01/2020
Schedule of Investments -- Diversified Municipal Portfolios 29
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,360,000 New York City Transitional $ 2,542,404
Finance Authority, New York,
Future Tax Secured, Series D,
MBIA,
5.25%, 02/01/2020
3,255,000 Fresno Unified School 3,907,921
District, California,
Refunding, Series A, MBIA,
6.00%, 02/01/2020
2,270,000 Killeen Independent School 2,433,122
District, Texas, Refunding,
PSF Guaranteed,
5.25%, 02/15/2020
1,000,000 Texas State University System 1,048,760
Financing Revenue, Refunding,
FSA,
5.00%, 03/15/2020
1,000,000 Ohio State Building Authority, 1,062,500
State Facilities Adult
Correctional Projects,
Series A, MBIA,
5.00%, 04/01/2020
1,705,000 Lower Colorado River 1,798,690
Authority, Texas, Revenue,
Refunding, MBIA,
5.00%, 05/15/2020
3,000,000 San Antonio, Texas, Water 3,277,230
System Revenue, Refunding,
FSA,
5.50%, 05/15/2020
1,005,000 Regional Transportation 1,366,478
Authority, Illinois, Series C,
FGIC,
7.75%, 06/01/2020
8,140,000 Los Angeles Department of 8,648,831
Water & Power, Power System,
California, Series A,
Subseries A-2, MBIA,
5.00%, 07/01/2020
11,000,000 Metropolitan Atlanta Rapid 11,688,930
Transit Authority, Georgia,
Sales Tax Revenue, Second
Indenture, Series B, MBIA,
5.10%, 07/01/2020
1,785,000 Los Angeles Unified School 1,934,601
District, California,
Series A, FSA,
5.25%, 07/01/2020
7,090,000 New Hampshire Health & 7,767,875
Education Facilities Finance
Authority, University System
of New Hampshire, AMBAC,
5.375%, 07/01/2020
4,000,000 Kentucky State Property & 4,612,360
Buildings Commission, Project
No. 76, AMBAC, Refunding,
5.50%, 08/01/2020
3,090,000 Mobile, Alabama, AMBAC, 3,338,869
5.25%, 08/15/2020
5,300,000 West Virginia University, 5,647,415
Revenue, Refunding, West
Virginia University Projects,
Series B, FGIC,
5.00%, 10/01/2020
4,155,000 Allegheny County, 4,445,559
Pennsylvania, Series C-57, FGIC,
5.00%, 11/01/2020
5,845,000 New Orleans, Louisiana, 6,297,695
Refunding, MBIA,
5.25%, 12/01/2020
3,135,000 Illinois State, Dedicated Tax 3,745,228
Revenue, Civic Center, AMBAC,
6.25%, 12/15/2020
4,970,000 South Carolina State Public 5,241,064
Service Authority, Revenue,
Refunding, Series D, FSA,
5.00%, 01/01/2021
10,985,000 Orange County, Florida, Sales 11,733,078
Tax Revenue, Series A, FGIC,
5.125%, 01/01/2021
12,390,000 South Carolina State Public 13,495,064
Service Authority, Revenue,
Refunding, Series 2005A, FGIC,
5.25%, 01/01/2021
2,760,000 New York City Transitional 2,966,089
Finance Authority, New York,
Future Tax Secured, Series E,
MBIA,
5.25%, 02/01/2021
2,540,000 Hawaii State, Series CX, FSA, 2,768,600
5.50%, 02/01/2021
3,000,000 Arlington Independent School 3,122,070
District, Texas, PSF
Guaranteed,
5.00%, 02/15/2021
4,000,000 Chicago, Illinois, Public 4,304,320
Building Commission, Building
Revenue, Chicago Transit
Authority, AMBAC,
5.25%, 03/01/2021
4,700,000 New York State Thruway 4,998,403
Authority, Highway & Bridge
Trust Fund, Series A, MBIA,
5.00%, 04/01/2021
1,325,000 Ohio State Building Authority, 1,407,813
State Facilities Adult
Correctional Projects,
Series A, MBIA,
5.00%, 04/01/2021
30 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,465,000 Florida State Board of $ 2,611,027
Education, Refunding, Public
Education, Series B, MBIA,
5.00%, 06/01/2021
7,000,000 MTA, New York, Service 7,367,220
Contract, Refunding, Series A,
FGIC,
5.00%, 07/01/2021
14,890,000 Puerto Rico Commonwealth, 15,642,689
Refunding, Public Improvement,
Series C, FSA,
5.00%, 07/01/2021 (c)
730,000 New Jersey Healthcare 745,556
Facilities Financing
Authority, Revenue, Jersey
City Medical Center, AMBAC, FHA,
4.80%, 08/01/2021
2,680,000 Harris County, Texas, 2,895,713
Refunding, Toll Road, Senior
Lien, FSA,
5.375%, 08/15/2021
5,540,000 New Jersey Economic 6,068,793
Development Authority,
Revenue, School Facilities
Construction, Series I, FGIC,
5.00%, 09/01/2021
1,705,000 Illinois State, First Series, MBIA, 1,841,366
5.25%, 10/01/2021
2,000,000 Sarasota County, Florida, 2,159,960
Utility System Revenue,
Refunding, Series C, FGIC,
5.25%, 10/01/2021
5,875,000 Allegheny County, 6,249,179
Pennsylvania, Series C-57, FGIC,
5.00%, 11/01/2021
3,000,000 Municipal Electric Authority, 3,254,040
Georgia, Unrefunded Balance,
Combustion Turbine Project,
Series A, MBIA,
5.25%, 11/01/2021
3,000,000 New Jersey State 3,258,960
Transportation Trust Fund
Authority, Transportation
System, Series B, MBIA,
5.00%, 12/15/2021
1,460,000 Chicago, Illinois, Refunding 1,553,688
Project, Series B, FSA,
5.00%, 01/01/2022
15,620,000 Orange County, Florida, Sales 16,673,569
Tax Revenue, Series A, FGIC,
5.125%, 01/01/2022
3,170,000 King County, Washington, Sewer 3,407,274
Revenue, Refunding, Series A,
FGIC,
5.25%, 01/01/2022
3,180,000 South Carolina State Public 3,452,590
Service Authority Revenue,
Refunding, Series 2004A, FGIC,
5.25%, 01/01/2022
4,685,000 New York City Transitional 5,034,829
Finance Authority, New York,
Future Tax Secured, Series E,
MBIA,
5.25%, 02/01/2022
3,300,000 Fort Worth, Texas, Water & 3,477,210
Sewer Revenue, Refunding &
Improvement, FSA,
5.00%, 02/15/2022
2,060,000 Forest Grove, Oregon, 2,150,722
Refunding, Revenue & Campus
Improvement, Pacific
University, Series A, RADIAN,
5.00%, 05/01/2022
7,875,000 Honolulu City & County, 8,393,254
Hawaii, Series A, MBIA,
5.00%, 07/01/2022
4,220,000 Laredo Independent School 4,482,189
District, Texas, Refunding,
PSF Guaranteed,
5.00%, 08/01/2022
1,000,000 Yosemite, Community College 1,066,280
District, California, Election
2004, Series A, FGIC,
5.00%, 08/01/2022
8,990,000 Allegheny County, 9,513,757
Pennsylvania, Series C-57, FGIC,
5.00%, 11/01/2022
6,060,000 Central Puget Sound, 6,423,964
Washington, Regional
Transportation Authority,
Sales & Use Tax Revenue,
Series A, AMBAC,
5.00%, 11/01/2022
36,775,000 Regional Transportation 36,244,704
District, Colorado,
Certificates of Participation,
Transit Vehicles, Series A,
Remarketed, AMBAC,
2.30%, 12/01/2022 (c)
3,980,000 McGee-Creek Authority, 4,740,419
Oklahoma, Water Revenue, MBIA,
6.00%, 01/01/2023
4,040,000 Irving Independent School 4,265,392
District, Texas, Refunding,
PSF Guaranteed,
5.00%, 02/15/2023
3,455,000 Seguin Independent School 3,617,834
District, Texas, PSF
Guaranteed,
5.00%, 04/01/2023
Schedule of Investments -- Diversified Municipal Portfolios 31
================================================================================
Principal Amount Description Market Value
================================================================================
$ 5,680,000 Seattle, Washington, Municipal $ 5,981,835
Light & Power, Revenue,
Refunding & Improvement, FSA,
5.00%, 08/01/2023
2,770,000 Harris County, Texas, 2,982,653
Refunding, Toll Road Senior
Lien, FSA,
5.375%, 08/15/2023
2,000,000 Terrebonne Parish, Louisiana, 2,152,320
Waterworks District No. 001,
Water Revenue, Series A,
AMBAC,
5.25%, 11/01/2023
3,465,000 Jefferson County, Colorado, 3,671,687
School District No. R-001, FSA,
5.00%, 12/15/2023
6,025,000 Comal Independent School 6,302,572
District, Texas, Refunding,
Series A, PSF-Guaranteed,
5.00%, 02/01/2024
4,935,000 Washoe County School District, 5,201,342
Nevada, Refunding, School
Building, Series A, MBIA,
5.00%, 06/01/2024
2,000,000 Harris County, Texas, Toll 2,045,900
Road Senior Lien, MBIA,
5.00%, 08/15/2024
3,750,000 Jefferson County, Colorado, 3,973,688
School District No. R-001, FSA,
5.00%, 12/15/2024
3,000,000 Orange County, Florida, School 3,159,240
Board Certificates of
Participation, Series B, AMBAC,
5.00%, 08/01/2025
1,000,000 San Jose Unified School 1,058,830
District, California, Election
2002, Series B, FGIC,
5.00%, 08/01/2025
2,810,000 Hilliard School District, 2,984,585
Ohio, Refunding, School
Construction, MBIA,
5.00%, 12/01/2025
3,000,000 Hillsborough County School 3,167,910
Board, Florida, Certificates
of Participation, Series A, MBIA,
5.00%, 07/01/2026
4,905,000 Los Angeles, California, Waste 5,142,991
Water System Revenue,
Refunding, Subordinated
Series A, MBIA,
5.00%, 06/01/2027
1,000,000 Fremont Unified School 1,055,540
District, Alameda County,
California, Election 2002,
Series B, FSA,
5.00%, 08/01/2027
9,645,000 Central Puget Sound, 10,146,733
Washington, Regional
Transportation Authority,
Sales & Use Tax Revenue,
Series A, AMBAC,
5.00%, 11/01/2027
18,445,000 San Antonio, Texas, Hotel 19,262,851
Occupancy Revenue, Refunding,
Subordinated Lien, Series B,
AMBAC,
5.00%, 08/15/2034
14,555,000 New Jersey State Turnpike 14,468,834
Authority, Revenue, Series A,
AMBAC,
3.15%, 01/01/2035 --------------
Total Insured (Cost $1,464,325,122) 1,482,344,284
--------------
================================================================================
TAX SUPPORTED: 31.96%
- --------------------------------------------------------------------------------
State General Obligations: 13.45%
2,680,000 Florida State Board of 2,699,805
Education, Public Education,
Capital Outlay, Series C,
4.00%, 06/01/2006
2,540,000 Florida State Board of 2,575,128
Education, Capital Outlay,
Public Education, Series B,
5.00%, 06/01/2006
2,450,000 Ohio State Highway Capital 2,525,803
Improvement, Series F,
5.00%, 05/01/2007
1,455,000 Florida State Board of 1,501,836
Education, Capital Outlay,
Public Education, Series B,
5.00%, 06/01/2007
4,340,000 California State, 4,527,575
5.00%, 03/01/2008
2,600,000 Georgia State, Series A, 2,798,588
6.25%, 04/01/2008
11,020,000 California State, 11,543,670
5.00%, 06/01/2008
1,770,000 Georgia State, Series D, 1,942,841
6.70%, 08/01/2008
8,765,000 California State, 9,491,794
6.10%, 10/01/2008
6,440,000 Massachusetts State, 6,832,969
Consolidated Loan, Series C,
5.25%, 12/01/2008
4,380,000 Delaware State, Series A, 4,637,150
5.00%, 01/01/2009
4,685,000 Massachusetts State, 4,970,598
Refunding, Series A,
5.25%, 01/01/2009
3,890,000 Massachusetts State, 4,156,815
Consolidated Loan, Series E,
5.50%, 01/01/2009
32 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,110,000 Pennsylvania State, First $ 2,227,865
Series,
5.00%, 01/15/2009
24,770,000 Pennsylvania State, Refunding 26,357,262
& Projects, First Series,
5.25%, 02/01/2009 (b)
14,855,000 Texas State, Series B, 15,750,905
5.125%, 10/01/2009
14,010,000 Massachusetts State, 15,184,598
Refunding, Series A,
5.50%, 01/01/2010
64,710,000 Maryland State, Refunding, 69,374,297
5.00%, 02/01/2010 (b)
1,110,000 New Jersey State, 1,204,772
5.50%, 02/01/2010
6,185,000 Massachusetts State, 6,833,868
Consolidated Loan, Series A,
6.00%, 02/01/2010
30,840,000 North Carolina State, 33,037,658
Refunding,
5.00%, 03/01/2010
3,115,000 California State, 3,356,755
5.25%, 03/01/2010
2,225,000 Massachusetts Bay 2,439,090
Transportation Authority,
Series A,
5.75%, 03/01/2010
2,275,000 Ohio State, Community Schools, 2,433,613
Series A,
5.00%, 03/15/2010
6,565,000 California State, 7,030,984
5.00%, 06/01/2010
4,500,000 Pennsylvania State, 4,915,665
Second Series,
5.50%, 06/01/2010
1,355,000 Minnesota State, 1,458,739
5.00%, 08/01/2010
1,490,000 Georgia State, Series C, 1,685,100
6.25%, 08/01/2010
1,220,000 Massachusetts State, Series A, 1,337,022
5.50%, 01/01/2011
1,040,000 California State, 1,115,629
5.00%, 02/01/2011
1,845,000 Ohio State, Higher Education, 1,987,526
Series B,
5.00%, 02/01/2011
15,760,000 California State, 17,624,723
6.00%, 02/01/2011
24,165,000 North Carolina State, Public 26,700,875
Improvement, Series A,
5.50%, 03/01/2011
2,960,000 Ohio State, Highway Capital 3,193,810
Improvement, Series H,
5.00%, 05/01/2011
2,150,000 California State, Various Purpose, 2,315,228
5.00%, 06/01/2011
11,075,000 Pennsylvania State, 12,086,258
Third Series,
5.25%, 07/01/2011
11,270,000 Maryland State, State & Local 12,233,247
Facilities Loan, First Series,
5.00%, 08/01/2011
3,560,000 Pennsylvania State, 3,842,557
Third Series,
5.00%, 09/01/2011
1,785,000 Ohio State, Common Schools, 1,930,531
Series B,
5.00%, 09/15/2011
9,710,000 Florida State Board of 10,491,170
Education, Series B,
5.00%, 01/01/2012
825,000 California State, 888,294
5.00%, 02/01/2012
3,780,000 Massachusetts Bay 4,112,640
Transportation Authority,
Series A,
5.50%, 03/01/2012
1,000,000 Georgia State, Series B, 1,144,160
6.00%, 03/01/2012
5,305,000 Florida State Board of 5,757,198
Education, Public Education,
Series A,
5.00%, 06/01/2012
9,315,000 Massachusetts State, 10,062,063
Consolidated Loan, Series A,
5.00%, 08/01/2012
17,315,000 Massachusetts State, 18,703,663
Consolidated Loan, Series B,
5.00%, 08/01/2012
15,725,000 Florida State Board of 17,063,984
Education, Series A,
5.00%, 01/01/2013
5,000,000 North Carolina State, Public 5,542,250
Improvement, Series A,
5.25%, 03/01/2013
6,635,000 North Carolina State, Public 7,249,070
Improvement, Series B,
5.00%, 04/01/2013
5,855,000 North Carolina State, 6,396,880
Refunding, Series B,
5.00%, 04/01/2013
990,000 Florida State Board of 1,261,250
Education, Capital Outlay,
Unrefunded Balance,
9.125%, 06/01/2014
2,875,000 Texas State, 3,016,306
5.25%, 08/01/2021 ------------
Total State General Obligations (Cost $431,755,265) 429,552,077
------------
Schedule of Investments -- Diversified Municipal Portfolios 33
================================================================================
Principal Amount Description Market Value
================================================================================
Local General Obligations: 6.04%
$ 3,660,000 New York City, New York, $ 3,723,721
Series I,
6.25%, 04/15/2006
6,235,000 New York City, New York, 6,340,371
Series G,
5.00%, 08/01/2006
3,205,000 Carrollton, Texas, Refunding & 3,316,534
Improvement,
5.00%, 08/15/2007
2,620,000 Jersey City, New Jersey, 2,768,554
Series A,
6.00%, 10/01/2007
2,000,000 McLean County Public Building 2,165,700
Commission, Illinois,
7.25%, 11/01/2007
1,275,000 Phoenix, Arizona, Refunding, 1,337,399
Series A,
5.00%, 07/01/2008
2,585,000 Broward County, Florida, 2,731,027
Refunding, Series B,
5.00%, 01/01/2009
2,000,000 Charlotte, North Carolina, 2,087,660
Series B,
4.50%, 02/01/2009
1,660,000 Charlotte, North Carolina, 1,758,770
Refunding,
5.00%, 02/01/2009
2,665,000 Dallas, Texas, 2,726,375
4.00%, 02/15/2009
3,355,000 Dallas County Community 3,541,471
College District, Texas,
Maintenance Tax Notes,
5.00%, 02/15/2009
3,060,000 Horry County School District, 3,239,346
South Carolina, Series A,
SCSDE,
5.00%, 03/01/2009
6,910,000 Du Page County Water 7,354,244
Commission, Illinois,
Refunding,
5.25%, 03/01/2009
3,750,000 New York City, New York, 3,964,575
Series G,
5.00%, 08/01/2009
3,735,000 New York City, New York, 3,948,717
Series I,
5.00%, 08/01/2009
8,500,000 New York City, New York, 9,061,935
Series B,
5.25%, 08/01/2009
2,255,000 Seattle, Washington, 2,399,861
Refunding,
5.00%, 01/01/2010
1,020,000 Indianapolis Local Public 1,046,591
Improvement Bond Bank,
Indiana, Series B,
5.00%, 02/01/2010
5,000,000 Du Page County Water 5,388,050
Commission, Illinois,
Refunding,
5.25%, 03/01/2010
6,350,000 Fairfax County, Virginia, 6,884,733
Refunding & Public
Improvement, Series A,
5.25%, 04/01/2010
14,095,000 New York City, New York, 15,012,162
Series B,
5.00%, 08/01/2010
4,520,000 New York City, New York, 4,814,116
Series I,
5.00%, 08/01/2010
1,170,000 Austin, Texas, Public 1,280,928
Improvement,
5.75%, 09/01/2010
7,360,000 New York City, New York, 7,872,551
Refunding, Series G,
5.00%, 08/01/2011
3,330,000 New York City, New York, 3,561,901
Series H,
5.00%, 08/01/2011
20,665,000 New York City, New York, 22,167,552
Series G,
5.00%, 08/01/2012
140,000 New York City, New York, 143,800
Series I,
5.875%, 03/15/2013
2,000,000 Walled Lake Consolidated 2,207,220
School District, Michigan,
Q-SBLF,
5.75%, 05/01/2013
2,285,000 Shelby County, Tennessee, 2,505,959
Public Improvement, Series A,
5.625%, 04/01/2014
2,965,000 Montgomery County, Maryland, 3,242,494
Public Improvement, Series A,
5.00%, 02/01/2016
1,000,000 Harris County, Texas, Toll 1,033,010
Road,
5.125%, 08/15/2017
5,285,000 Horry County School District, 5,779,253
South Carolina, Series A,
SCSDE,
5.375%, 03/01/2018
920,000 Harris County, Texas, 1,001,586
Unrefunded Balance,
5.375%, 10/01/2018
1,880,000 Harris County, Texas, Flood 2,047,076
Control District, Refunding,
Series A,
5.25%, 10/01/2020
34 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,000,000 Sacramento City Finance $ 1,107,710
Authority, California, Lease
Revenue, Series B,
5.40%, 11/01/2020
6,735,000 Du Page County, Illinois, Jail 7,670,963
Project,
5.60%, 01/01/2021
1,920,000 Du Page County, Illinois, 2,186,822
Stormwater Project,
5.60%, 01/01/2021
2,160,000 Beachwood City School 2,380,946
District, Ohio, Refunding &
Improvement,
5.50%, 12/01/2021
4,745,000 Harris County, Texas, Flood 5,129,582
Control District, Refunding,
Series A,
5.25%, 10/01/2022
5,000,000 Chester County, Pennsylvania, 5,313,450
5.00%, 11/15/2022
5,255,000 Harris County, Texas, Flood 5,664,575
Control District, Refunding,
Series A,
5.25%, 10/01/2023
14,000,000 Harris County, Texas, 15,080,240
Refunding, Permanent
Improvement, Series A,
5.25%, 10/01/2024 --------------
Total Local General Obligations(Cost $189,799,838) 192,989,530
--------------
Tax Lease: 3.65%
1,000,000 New York State Dormitory 1,021,550
Authority, State University,
Series A,
6.50%, 05/15/2006
9,135,000 New Jersey State Certificates 9,417,454
of Participation, Equipment
Lease Purchase, Series A,
5.00%, 06/15/2007 (d)
1,000,000 New York State Dormitory 1,045,680
Authority, City University,
Series A,
5.75%, 07/01/2007
7,515,000 New York State Thruway 7,832,283
Authority, Service Contract
Revenue, Local Highway &
Bridge, Series A,
5.00%, 03/15/2008
7,185,000 Tobacco Settlement Financing 7,504,014
Corp., New York, Tobacco
Asset-Backed Bonds,
Series A-1,
5.00%, 06/01/2008
5,000,000 Charlotte, North Carolina, 5,281,450
Certificates of Participation,
Equipment Acquisition Project,
Series B,
5.00%, 03/01/2009
4,445,000 Virginia College Building 4,756,106
Authority, Educational
Facilities Revenue, 21st
Century College & Equipment,
5.00%, 02/01/2010
2,160,000 New York State Dormitory 2,288,110
Authority, Revenue, Mental
Health Facilities Improvement,
Series B,
5.00%, 02/15/2010
6,200,000 Virginia Public School 6,788,690
Authority, School Financing
1997, Series B,
5.50%, 08/01/2010
5,215,000 Michigan Municipal Bond 5,659,787
Authority, Revenue, Refunding,
School Loan, Series A,
5.25%, 12/01/2010
6,600,000 Virginia College Building 7,123,182
Authority, Educational
Facilities Revenue,
Refunding-21st Century College
Project, Series B,
5.00%, 02/01/2011
5,545,000 Virginia Commonwealth, Board 6,061,849
of Transportation, Revenue,
Refunding, U.S Route 58
Corridor Development,
Series B,
5.25%, 05/15/2011
11,270,000 Tobacco Settlement Financing 11,415,496
Corp., New York, Tobacco
Asset-Backed Bonds,
Series A-1,
5.00%, 06/01/2011
2,375,000 Virginia State Public Building 2,572,766
Authority, Facilities Revenue,
Refunding, Series D,
5.00%, 08/01/2011
8,650,000 Tobacco Settlement Financing 8,775,079
Corp., New York, Tobacco
Asset-Backed Bonds,
Series A-1,
5.25%, 06/01/2012
4,295,000 North Carolina Infrastructure 4,658,658
Finance Corp., Certificates of
Participation, Capital
Improvement, Series A,
5.00%, 02/01/2013
Schedule of Investments -- Diversified Municipal Portfolios 35
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,280,000 New York State Dormitory $ 1,414,886
Authority, City University,
Series A,
5.75%, 07/01/2013
16,495,000 Tobacco Settlement Financing 17,628,701
Corp., New York, Tobacco
Asset-Backed Settlement,
Series B-1,
5.50%, 06/01/2014
1,955,000 Jackson County, Missouri, 2,036,524
Public Building Corp.,
Leasehold Revenue, Capital
Improvements Project,
5.00%, 12/01/2025
2,975,000 New York State Urban 3,117,800
Development Corp.,
Correctional & Youth
Facilities, Service Contract
Revenue, Series A,
5.00%, 01/01/2027 --------------
Total Tax Lease (Cost $116,676,629) 116,400,065
--------------
Special Tax: 8.63%
8,380,000 Quarry Community Development 8,388,296
District, Florida, Special
Assessment, Bond Anticipation
Notes,
5.00%, 11/01/2005
2,060,000 Chicago, Illinois, Tax 2,064,738
Increment Allocation,
Subordinated Central Loop
Redevelopment, Series A,
6.50%, 12/01/2005
325,000 Capital Region Community 326,615
Development District, Florida,
Revenue, Capital Improvement,
Series B,
5.95%, 05/01/2006
4,085,000 Monterra Community Development 4,093,783
District, Florida, Revenue,
Bond Anticipation Notes,
5.00%, 06/01/2006
375,000 Vistancia Community Facilities 375,806
District, Arizona,
4.25%, 07/15/2006
3,860,000 Shingle Creek, Florida, Bond 3,868,415
Anticipation Notes,
5.125%, 08/01/2006
1,500,000 Connecticut State, Special Tax 1,540,125
Obligation Revenue, Series B,
6.00%, 09/01/2006
1,310,000 Dove Mountain Resort Community 1,317,126
Facilities District, Arizona,
Assessment Lien,
6.00%, 12/01/2006
145,000 Double Branch Community 145,750
Development District, Florida,
Special Assessment,
Series B-1,
5.60%, 05/01/2007
310,000 Vizcaya Community Development 312,570
District, Florida, Special
Assessment,
5.90%, 05/01/2007
1,020,000 Las Vegas Special Improvement 1,050,824
District No. 808, Summerlin
Area, Nevada, Local
Improvement Bonds,
5.50%, 06/01/2007
2,760,000 California Economic Recovery, 2,856,986
Series A,
5.00%, 07/01/2007
300,000 Vistancia Community Facilities 301,605
District, Arizona,
4.75%, 07/15/2007
845,000 Clark County, Nevada, 852,411
Improvement District,
Summerlin, No. 151,
3.50%, 08/01/2007 (e)
1,095,000 Connecticut State Special Tax 1,139,030
Obligation Revenue, Series A,
5.25%, 09/01/2007
2,030,000 Meadow Pointe IV Community 2,040,211
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.125%, 11/01/2007
650,000 Reunion East Community 659,054
Development District, Florida,
Special Assessment, Series B,
5.90%, 11/01/2007
1,650,000 North Las Vegas Local 1,685,063
Improvement District No. 60,
Aliante, Nevada,
4.25%, 12/01/2007
19,085,000 Tax Exempt Municipal 19,084,618
Infrastructure Improvement
Trust, Maryland, Certificates
Series 2004A, Class A,
3.80%, 05/01/2008 (f)
2,790,000 Live Oak Community 2,808,526
Development District No. 001,
Florida, Special Assessment,
Series B,
5.30%, 05/01/2008
110,000 Stoneybrook Community 110,988
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.70%, 05/01/2008
36 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 175,000 Narcoossee Community $ 177,156
Development District, Florida,
Special Assessment, Series B,
5.75%, 05/01/2008
160,000 Waterchase Community 161,253
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.90%, 05/01/2008
1,655,000 Las Vegas Special Improvement 1,664,831
District No. 607, Nevada,
Local Improvement Bonds,
4.30%, 06/01/2008
1,930,000 Gateway Services Community 1,955,881
Development District, Florida,
Special Assessment,
Stoneybrook Project,
5.50%, 07/01/2008
400,000 Vistancia Community Facilities 403,892
District, Arizona,
5.00%, 07/15/2008
5,647,000 Tax Exempt Municipal 5,536,658
Infrastructure Improvement
Trust, Maryland, Certificates
Series 2004C, Class A,
4.05%, 11/01/2008 (f)
20,570,000 New York City Transitional 21,694,150
Finance Authority, New York,
Future Tax Secured,
Subseries D-1,
5.00%, 11/01/2008
2,345,000 Heritage Harbour South 2,348,189
Community Development
District, Florida, Special
Assessment Revenue, Capital
Improvement, Series B,
5.40%, 11/01/2008
1,900,000 North Las Vegas Local 1,960,515
Improvement District No. 60,
Aliante, Nevada,
4.65%, 12/01/2008
2,285,000 Henderson Local Improvement 2,297,865
Districts No. T-14, Nevada,
4.35%, 03/01/2009
1,430,000 Huntington Community 1,429,014
Development District, Florida,
Special Assessment, Series B,
5.00%, 05/01/2009
1,115,000 Meadow Pointe III Community 1,117,230
Development District, Florida
Capital Improvement Revenue,
Series B,
5.00%, 05/01/2009
3,200,000 Seven Oaks Community 3,209,632
Development District II,
Florida, Special Assessment
Revenue, Series B,
5.00%, 05/01/2009
1,140,000 Middle Village Community 1,147,604
Development District, Florida,
Special Assessment, Series C,
5.125%, 05/01/2009
3,365,000 Overoaks Community Development 3,377,282
District, Florida, Capital
Improvement Revenue, Series B,
5.125%, 05/01/2009
1,525,000 Bonita Springs, Florida, 1,546,670
Vasari Community Development
District Revenue, Capital
Improvement, Series B,
6.20%, 05/01/2009
560,000 Greyhawk Landing Community 571,245
Development District, Florida,
Special Assessment Revenue,
Series B,
6.25%, 05/01/2009
40,000 Saddlebrook Community 41,115
Development District, Florida,
Special Assessment, Series B,
6.25%, 05/01/2009
10,900,000 Tulsa County, Oklahoma, 11,521,736
Industrial Authority, Capital
Improvements Revenue, Series B,
5.00%, 05/15/2009
7,635,000 Katy, Texas, Development 7,923,374
Authority Revenue, Metro
Contract, Series A,
5.75%, 06/01/2009
1,150,000 Illinois State, Sales Tax 1,167,193
Revenue, Series U,
5.00%, 06/15/2009
500,000 Vistancia Community Facilities 507,470
District, Arizona,
5.30%, 07/15/2009
470,000 Clark County, Nevada, 469,483
Improvement District,
Summerlin, No. 151,
3.95%, 08/01/2009 (e)
1,000,000 Connecticut State, Special Tax 1,103,210
Obligation Series B,
6.15%, 09/01/2009
480,000 Heritage Isles Community 479,309
Development District, Florida,
Special Assessment, Series B,
5.00%, 11/01/2009
Schedule of Investments -- Diversified Municipal Portfolios 37
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,230,000 Live Oak Community $ 2,234,772
Development District No. 002,
Florida, Special Assessment,
Series B,
5.00%, 11/01/2009
1,175,000 South Bay Community 1,179,818
Development District, Florida,
Capital Improvement Revenue,
Series B-1,
5.125%, 11/01/2009
990,000 North Las Vegas Local 1,021,987
Improvement District No. 60,
Aliante, Nevada,
5.00%, 12/01/2009
11,750,000 California Economic Recovery, 12,706,803
Series A,
5.25%, 01/01/2010
3,775,000 New York City Transitional 4,020,413
Finance Authority, New York,
Future Tax Secured, Series E,
5.00%, 02/01/2010
7,890,000 New York City Transitional 8,407,268
Finance Authority, New York,
Future Tax, Series C,
5.00%, 02/15/2010
5,410,000 Paseo Community Development 5,375,484
District, Florida, Capital
Improvement Revenue, Series B,
4.875%, 05/01/2010
2,090,000 Harbor Bay Community 2,150,589
Development District, Florida,
Capital Improvement Revenue,
Series B,
6.35%, 05/01/2010
1,430,000 Tulsa County Industrial 1,525,581
Authority, Oklahoma, Capital
Improvements Revenue,
Series B,
5.00%, 05/15/2010
500,000 Vistancia Community Facilities 510,910
District, Arizona,
5.55%, 07/15/2010
3,485,000 Clark County Special 3,507,234
Improvement District No. 142,
Nevada,
5.00%, 08/01/2010
2,000,000 Lake Ashton II, Community 2,000,720
Development District, Florida,
Capital Improvement Revenue,
Series B,
4.875%, 11/01/2010
555,000 Dupree Lakes Community 556,010
Development District, Florida,
Capital Improvement Revenue,
5.00%, 11/01/2010
6,760,000 Monterra Community Development 6,763,853
District, Florida, Special
Assessment, Series B,
5.00%, 11/01/2010
9,520,000 California Economic Recovery, 10,391,556
Series A,
5.25%, 01/01/2011
1,700,000 Jefferson County, Alabama, 1,815,991
Limited Obligation, School
Warrants, Series A,
5.25%, 01/01/2011
1,900,000 Meadow Woods Community 1,903,363
Development District, Florida,
Special Assessment, Series B,
5.25%, 05/01/2011
6,850,000 Hammock Bay Community 6,860,344
Development District, Florida,
Special Assessment Revenue,
Series B,
5.375%, 05/01/2011
2,055,000 Las Vegas Special Improvement 2,096,223
District No. 607, Nevada,
Local Improvement Bonds,
5.15%, 06/01/2011
2,355,000 Massachusetts Bay 2,543,447
Transportation Authority,
Massachusetts, Sales Tax
Revenue, Refunding, Senior
Series B,
5.00%, 07/01/2011
4,900,000 New York City Transitional 5,286,561
Finance Authority, New York,
Future Tax Secured, Series B,
5.00%, 08/01/2011
1,605,000 Clark County Special 1,628,176
Improvement District No. 142,
Nevada,
5.30%, 08/01/2011
1,500,000 Venetian Community Development 1,564,065
District, Florida, Capital
Improvement Revenue, Series B,
5.95%, 05/01/2012
2,000,000 Bonnet Creek Resort Community 2,131,700
Development District, Florida,
Special Assessment,
7.125%, 05/01/2012
2,400,000 Miromar Lakes Community 2,538,792
Development District, Florida,
Capital Improvement Revenue,
Series B,
7.25%, 05/01/2012
3,225,000 Illinois State, Sales Tax 3,623,707
Revenue, Series Q,
6.00%, 06/15/2012
38 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 810,000 Hot Springs, Arkansas, Sales & $ 811,693
Use Tax, Refunding &
Improvement,
4.125%, 07/01/2012
180,000 Clark County, Nevada, 179,465
Improvement District,
Summerlin, No. 151,
4.40%, 08/01/2012 (e)
2,000,000 Chicago, Illinois, Kingsbury 2,084,560
Redevelopment Project,
Series A,
6.57%, 02/15/2013
1,000,000 Henderson Local Improvement 1,001,180
Districts No. T-16, Nevada,
4.75%, 03/01/2013
2,900,000 South Bay Community 2,919,720
Development District, Florida,
Capital Improvement Revenue,
Series B-2,
5.375%, 05/01/2013
5,385,000 Parkway Center Community 5,595,984
Development District, Florida,
Special Assessment, Refunding,
Series B,
5.625%, 05/01/2014
625,000 Allegheny County, 645,219
Pennsylvania, Redevelopment
Authority, Revenue, Pittsburgh
Mills Project,
5.10%, 07/01/2014
1,705,000 Dyer Redevelopment Authority, 1,941,313
Indiana, Economic Development
Lease,
6.875%, 07/15/2014
3,525,000 Pingree Grove, Illinois, 3,551,755
Special Service Area No. 1,
Special Tax, Cambridge Lakes
Project, Series 05-1,
5.25%, 03/01/2015
1,000,000 Tern Bay Community Development 999,200
District, Florida, Capital
Improvement Revenue, Series B,
5.00%, 05/01/2015
2,735,000 Villages of Westport Community 2,745,967
Development District, Florida,
Capital Improvement Revenue,
Series A,
5.125%, 05/01/2015
2,315,000 Arizona Tourism & Sports 2,351,947
Authority, Tax Revenue,
Baseball Training Facilities
Project,
5.00%, 07/01/2015
1,500,000 Arizona Tourism & Sports 1,523,940
Authority, Tax Revenue,
Baseball Training Facilities
Project,
5.00%, 07/01/2016
1,565,000 Wyandotte County, Kansas City, 1,588,772
Unified Government, Special
Obligation Revenue, Refunding,
Sales Tax, 2nd Lien Area,
Series B,
4.75%, 12/01/2016
3,561,000 Celebrate North Community 3,684,175
Development Authority,
Virginia, Special Assessment
Revenue Project, Series B,
6.25%, 03/01/2018
2,720,000 Dyer Redevelopment Authority, 3,065,766
Indiana, Economic Development
Lease,
6.55%, 07/15/2020
2,715,000 Beacon Tradeport Community 2,904,154
Development District, Florida,
Industrial Project, Series B,
7.125%, 05/01/2022
5,000,000 Westchester Community 5,219,600
Development District No.1,
Florida, Special Assessment,
6.00%, 05/01/2023
1,000,000 Allegheny County, 1,050,200
Pennsylvania, Redevelopment
Authority, Revenue, Pittsburgh
Mills Project,
5.60%, 07/01/2023
1,315,000 Newberry Investing In Children 1,363,116
Education, South Carolina,
Newberry County, School
District Project,
5.25%, 12/01/2023
4,300,000 Midtown Miami Community 4,485,244
Development District, Florida,
Special Assessment Revenue,
Series A,
6.00%, 05/01/2024
1,000,000 Newberry Investing In Children 1,030,090
Education, South Carolina,
Newberry County, School
District Project,
5.25%, 12/01/2025
500,000 Wheatlands Metropolitan 498,700
District No. 2, Colorado,
Limited Tax,
6.00%, 12/01/2025
Schedule of Investments -- Diversified Municipal Portfolios 39
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,140,000 New York City Transitional $ 1,230,881
Finance Authority, New York,
Future Tax Secured, Series B,
5.25%, 02/01/2029 (c) --------------
Total Special Tax (Cost $273,195,988) 275,652,505
--------------
Miscellaneous Tax: 0.19%
5,325,000 Indianapolis Local Public 5,951,966
Improvement Bond Bank,
Indiana, Series B,
6.00%, 01/10/2013 --------------
Total Miscellaneous Tax (Cost $5,254,490) 5,951,966
--------------
Total Tax Supported (Cost $1,016,682,210) 1,020,546,143
================================================================================
REVENUE: 11.94%
- --------------------------------------------------------------------------------
Education--Other: 0.15%
2,500,000 Pima County, Arizona, 2,493,625
Industrial Development
Authority, Education Revenue,
Refunding, Horizon Community
Learning Center,
4.45%, 06/01/2014
2,245,000 Red River, Texas, Education 2,244,933
Finance Revenue, Parish Day
School Project, Series A,
3.10%, 12/01/2031 --------------
Total Education--Other (Cost $4,735,954) 4,738,558
--------------
Electric Revenue: 4.44%
19,620,000 Long Island Power Authority, 19,880,946
New York, Electric System
Revenue, Series B,
5.00%, 06/01/2006
7,000,000 Long Island Power Authority, 7,219,590
New York, Electric System
Revenue, Series A,
5.00%, 06/01/2007
3,500,000 Washington State, Public Power 3,645,005
Supply System Revenue, Nuclear
Project No. 3, Series B,
5.60%, 07/01/2007
1,000,000 San Antonio, Texas, Electric & 1,047,540
Gas, Power System Revenue,
5.25%, 02/01/2008
24,025,000 California Department of Water 25,393,704
Resources, Power Supply
Revenue, Series A,
5.50%, 05/01/2008
6,115,000 Long Island Power Authority, 6,350,122
New York, Electric System
Revenue, Series A,
5.00%, 06/01/2008
2,370,000 Salt River Agricultural 2,503,881
Improvement & Power District,
Arizona, Power Distribution
Electric System, Revenue,
Refunding, Salt River Project,
Series A,
5.00%, 01/01/2009
3,810,000 North Carolina Eastern 4,073,690
Municipal Power Agency, Power
System Revenue, Series B,
6.125%, 01/01/2009
4,130,000 San Antonio, Texas, Electric & 4,390,603
Gas, Refunding System,
5.25%, 02/01/2009
8,515,000 California Department of Water 9,144,088
Resources, Power Supply
Revenue, Series A,
5.50%, 05/01/2009
4,280,000 Midland County, Michigan, 4,473,627
Economic Development Corp.,
Pollution Control Revenue,
Series A, AMT,
6.875%, 07/23/2009
7,130,000 Salt River Agricultural 7,617,122
Improvement & Power District,
Arizona, Power Distribution
Electric System, Revenue,
Refunding, Salt River Project,
Series A,
5.00%, 01/01/2010
2,875,000 Salt River Agricultural 3,071,420
Improvement & Power District,
Arizona, Power Distribution
Electric System, Revenue,
Refunding, Salt River Project,
Series C,
5.00%, 01/01/2010
1,115,000 San Antonio, Texas, Electric & 1,211,124
Gas, Refunding System,
5.50%, 02/01/2010
2,765,000 North Carolina Eastern 2,918,706
Municipal Power Agency, Power
System Revenue, Refunding,
Series C,
5.25%, 01/01/2011
3,570,000 North Carolina Eastern 3,810,190
Municipal Power Agency, Power
System Revenue, Refunding,
Series A,
5.50%, 01/01/2011
10,000,000 North Carolina Municipal Power 10,895,200
Agency No. 1, Catawba Electric
Revenue, Series A,
5.50%, 01/01/2012
40 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,395,000 Minnesota State, Municipal $ 2,494,057
Power Agency, Electric
Revenue,
4.50%, 10/01/2012
2,395,000 Seattle, Washington, Municipal 2,625,950
Light & Power Revenue,
5.625%, 12/01/2012
3,640,000 North Carolina Municipal Power 3,987,183
Agency No. 1, Catawba Electric
Revenue, Series A,
5.50%, 01/01/2013
630,000 North Carolina Eastern 697,511
Municipal Power Agency, Power
System Revenue, Series D,
6.45%, 01/01/2014
2,345,000 Seattle, Washington, Municipal 2,566,509
Light & Power Revenue,
5.625%, 12/01/2014
1,850,000 Seattle, Washington, Municipal 2,003,920
Light & Power Revenue,
5.625%, 12/01/2016
1,880,000 North Carolina Eastern 1,991,409
Municipal Power Agency, Power
System Revenue, Series B,
5.70%, 01/01/2017
2,500,000 San Antonio, Texas, Electric & 2,736,950
Gas, Power System Revenue,
5.375%, 02/01/2020
4,815,000 Orlando Utilities Commission, 5,197,359
Florida, Water & Electric
Revenue,
5.25%, 10/01/2020 --------------
Total Electric Revenue (Cost $139,364,847) 141,947,406
--------------
Health Care Revenue: 1.79%
3,285,000 Indiana Health Facility 3,377,933
Financing Authority Revenue,
Ascension Health Subordinated
Credit, Series A,
5.00%, 05/01/2007
730,000 Connecticut State Health & 737,497
Educational Facility Authority
Revenue, Hospital for Special
Care, Series B,
5.125%, 07/01/2007
2,090,000 Cuyahoga County, Ohio, 2,222,464
Hospital Facilities Revenue,
Canton Incorporated Project,
6.75%, 01/01/2010
3,215,000 Chattanooga Health, 3,390,732
Educational & Housing Facility
Board, Tennessee, Catholic
Health Initiatives, Series A,
5.375%, 12/01/2011
1,240,000 Kentucky Economic Development 1,307,778
Finance Authority, Revenue,
Catholic Health Initiatives,
Series A,
5.375%, 12/01/2011
2,770,000 Saint Paul, Minnesota, Housing 2,839,887
& Redevelopment Authority,
Hospital Revenue, Healtheast
Project,
5.15%, 11/15/2020
1,320,000 Chester County Health & 1,406,434
Education Facilities
Authority, Pennsylvania,
Hospital Revenue, Chester
County Hospital, Series A,
6.75%, 07/01/2021
1,750,000 Saint Paul, Minnesota, Housing 1,877,470
& Redevelopment Authority,
Hospital Revenue, Healtheast
Project,
5.75%, 11/15/2021
3,020,000 Allegheny County Hospital 3,611,980
Development Authority,
Pennsylvania, Revenue, West
Pennsylvania Health System,
Series B,
9.25%, 11/15/2022
9,230,000 Jacksonville, Florida, 9,308,547
Economic Development
Commission, Healthcare
Facilities Revenue, Series B,
4.00%, 09/01/2023
6,990,000 Miami Beach, Florida, Health 7,825,864
Facilities Authority Hospital
Revenue, Refunding, Mount
Sinai Medical Center,
6.75%, 11/15/2024
6,560,000 California Statewide 6,609,791
Communities Development
Authority, Revenue, Kaiser
Permanente, Series E,
3.875%, 04/01/2032
12,665,000 California Statewide 12,506,688
Communities Development
Authority, Revenue, Kaiser
Permanente, Series F,
2.30%, 04/01/2033 --------------
Total Health Care Revenue (Cost $55,296,231) 57,023,065
--------------
Higher Education Revenue: 0.19%
75,000 Virginia Polytechnic 77,540
Institute, State University,
Revenue, Unrefunded Balance,
Series A,
5.25%, 06/01/2008
Schedule of Investments -- Diversified Municipal Portfolios 41
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,260,000 Texas A & M University, $ 1,361,380
Revenue, Financing System,
Series B,
5.00%, 05/15/2012
1,165,000 Vermont Educational & Health 1,214,419
Buildings Financing Agency,
Revenue, Norwich University
Project,
5.50%, 07/01/2018
2,820,000 Massachusetts Health & 3,512,592
Educational Facilities
Authority, Revenue, Harvard
University, Series N,
6.25%, 04/01/2020 --------------
Total Higher Education Revenue(Cost $5,481,960) 6,165,931
--------------
Toll Revenue: 0.73%
4,000,000 Pocahontas Parkway 2,363,200
Association, Virginia Toll
Road Revenue, Capital
Appreciation, Senior Series B,
0.00%, 08/15/2015
19,835,000 Triborough Bridge & Tunnel 20,963,215
Authority, New York, Toll
Revenue, Series B,
5.00%, 11/15/2020 --------------
Total Toll Revenue (Cost $22,824,379) 23,326,415
--------------
Water/Sewer Revenue: 2.51%
20,085,000 Logan/Todd Regional Water 20,303,725
Commission, Kentucky, Revenue,
Refunding,
4.00%, 02/01/2007
2,000,000 Indiana Bond Bank, Revenue, 2,081,680
Series B,
5.00%, 02/01/2008
5,000,000 Todd Creek Farms, Metropolitan 4,918,700
District No. 1, Colorado,
Water Revenue, Refunding &
Improvement,
4.75%, 12/01/2009
1,940,000 Massachusetts Water Pollution 2,090,311
Abatement Trust, Pool Program
Bonds, Series 7,
5.25%, 02/01/2010
2,230,000 Texas State Water Development 2,272,950
Board, Revenue, Revolving
Senior Lien, Series A,
5.50%, 07/15/2010
5,045,000 Minnesota Public Facilities 5,440,377
Authority, Water Pollution
Control, Revenue, Refunding,
Series D,
5.00%, 03/01/2011
1,525,000 Arizona Water Infrastructure 1,675,746
Finance Authority, Revenue,
Water Quality, Series A,
5.75%, 10/01/2011
3,620,000 Dallas, Texas, Waterworks & 3,831,553
Sewer System, Revenue,
5.00%, 10/01/2013
55,000 Massachusetts Water Pollution 61,628
Abatement Trust, Series B,
5.25%, 08/01/2014
7,765,000 Guam Government, Waterworks 7,727,340
Authority, Certificates of
Participation,
5.18%, 07/01/2015
3,460,000 Massachusetts Water Pollution 3,673,413
Abatement Trust, New Bedford
Program, Series A,
5.125%, 02/01/2016
3,500,000 Ohio State Water Development 3,856,335
Authority, Pollution Control,
Revenue,
5.25%, 06/01/2017
6,850,000 Ohio State Water Development 7,547,398
Authority, Pollution Control,
Revenue,
5.25%, 12/01/2017
3,460,000 Michigan Municipal Bond 3,767,594
Authority, Revenue, Drinking
Water Revolving Fund,
5.25%, 10/01/2018
1,160,000 Tampa, Florida, Water & Sewer, 1,261,187
Revenue, Refunding, Series A,
5.25%, 10/01/2018
4,500,000 Michigan Municipal Bond 4,900,050
Authority, Revenue, Clean
Water State Revolving Fund,
5.25%, 10/01/2019
4,325,000 Michigan Municipal Bond 4,745,217
Authority, Revenue, Clean
Water State Revolving Fund,
5.375%, 10/01/2021 --------------
Total Water/Sewer Revenue (Cost $78,641,972) 80,155,204
--------------
Miscellaneous Revenue: 0.41%
1,540,000 Broward County, Florida, 1,570,954
Resource Recovery, Revenue,
Refunding, Wheelabrator South,
Series A,
5.00%, 12/01/2006
1,700,000 Mashantucket Western Pequot 1,794,469
Tribe, Connecticut, Special
Revenue, Sub Series B,
5.55%, 09/01/2008 (f)
42 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,510,000 Broad Street Community $ 3,883,394
Development Authority,
Virginia, Revenue,
7.125%, 06/01/2015
4,735,000 Port Authority Columbiana 4,776,194
County, Ohio, Solid Waste
Facilities Revenue, Liberty
Waste, Series A,
7.00%, 08/01/2021
900,000 Louisiana Local Government 950,517
Environmental Facilities &
Community Development
Authority, Revenue, Air Cargo,
6.65%, 01/01/2025 --------------
Total Miscellaneous Revenue(Cost $12,423,503) 12,975,528
--------------
Industrial Development/Pollution Control
Revenue: 1.72%
1,115,000 Richland County, South 1,126,440
Carolina, Environmental
Improvement Revenue,
International Paper Co.
Projects, Series A,
4.25%, 10/01/2007
3,000,000 Russell County, Virginia, 2,970,240
Industrial Development
Authority, Pollution Control
Revenue, Appalachian Power Co.
Project, Series I,
2.70%, 11/01/2007 (c)
6,100,000 Springfield Airport Authority, 6,245,851
Illinois, Garrett Aviation
Services Project,
4.40%, 02/01/2008
3,600,000 Chesapeake, Virginia, 3,644,532
Industrial Development
Authority, Revenue, Pollution
Control Project,
5.25%, 02/01/2008 (c)
7,220,000 Gulf Coast Waste Disposal 7,208,520
Authority, Texas, Waste
Management, Series D,
3.20%, 04/01/2012 (c)
670,000 Franklin, Wisconsin, Solid 670,536
Waste Disposal Revenue, Waste
Management,
3.625%, 04/01/2016 (c)
4,465,000 Dickinson County Economic 4,795,901
Development Corp., Michigan,
Environmental Improvement
Revenue, International Paper
Co. Project, Series A,
5.75%, 06/01/2016
2,500,000 Pennsylvania Economic 2,493,425
Development Financing
Authority, Solid Waste
Disposal Revenue, Waste
Management Inc. Project,
Series A, AMT,
3.25%, 11/01/2021 (c)
5,305,000 Oklahoma Development Finance 5,293,859
Authority, Revenue, Solid
Waste Disposal, Series A,
3.30%, 12/01/2021 (c)
13,025,000 Beaver County Industrial 12,992,047
Development Authority,
Pennsylvania, Pollution
Control, Revenue, Refunding,
Cleveland Electric Project,
3.75%, 10/01/2030 (c)
1,125,000 Clark County, Nevada, 1,094,839
Pollution Control Revenue,
Southern California, Series C,
3.25%, 06/01/2031 (c)
1,895,000 Cobb County, Georgia, 1,879,480
Development Authority, Solid
Waste Disposal Revenue,
Georgia Waste Management
Project, Series A,
3.10%, 04/01/2033 (c)
4,500,000 California Pollution Control 4,495,005
Financing Authority, Solid
Waste Disposal Revenue,
Republic Services, Inc., Project,
2.85%, 12/01/2033 (c) --------------
Total Industrial Development/Pollution
Control Revenue (Cost $54,437,107) 54,910,675
--------------
Total Revenue (Cost $373,205,953) 381,242,782
================================================================================
ASSET-BACKED SECURITIES: 0.46%
- --------------------------------------------------------------------------------
Housing: 0.46%
3,020,000 Chicago Housing Authority, 3,107,459
Illinois, Capital Program
Revenue,
5.00%, 07/01/2007
1,438,000 Maine Housing Authority, 1,438,000
General Housing, Revenue, Draw
Down, Series A,
3.45%, 01/01/2010 (c)
2,070,000 Maricopa County Industrial 2,098,980
Development Authority,
Arizona, Multifamily Housing
Revenue, Steeplechase
Apartments Project, Series B,
AMT,
6.25%, 12/01/2020
Schedule of Investments -- Diversified Municipal Portfolios 43
================================================================================
Principal Amount Description Market Value
================================================================================
$ 690,000 Sedgwick & Shawnee Counties, $ 714,026
Kansas, Single-Family Revenue,
GNMA Mortgage-Backed
Securities Program, Series
A-1, AMT,
6.50%, 12/01/2022 (c)
650,000 Jefferson Parish, Louisiana, 666,640
Home Mortgage Revenue, FNMA &
GNMA Mortgage-Backed
Securities, Series C-1, AMT,
5.40%, 12/01/2024
2,175,000 Munimae Trust, Certificate 2,191,508
Class A-5, FHLMC,
4.80%, 07/14/2026
1,120,000 District of Columbia Housing 1,131,379
Finance Agency, Single-Family
FNMA & GNMA Mortgage Revenue,
Series A, AMT,
6.25%, 12/01/2028
295,000 Oklahoma Housing Finance 307,314
Agency, Single-Family
Redevelopment, Mortgage
Homeownership Loan,
Series B-2, AMT,
6.55%, 03/01/2029
570,000 Missouri State Housing 590,822
Development Commission, FNMA &
GNMA Mortgage Revenue,
Single-Family, Series B-2,
AMT,
6.40%, 09/01/2029
165,000 Chicago, Illinois, Single- 172,047
Family Mortgage Revenue,
Series A, FNMA, GNMA,
6.35%, 10/01/2030
2,370,000 Minnesota State Housing 2,334,853
Finance Agency, Residential
Housing, Series L-2,
2.35%, 01/01/2031 --------------
Total Housing (Cost $14,729,881) 14,753,028
--------------
Total Asset-Backed Securities (Cost $14,729,881) 14,753,028
================================================================================
TAX EXEMPT VARIABLE-RATE DEMAND
NOTES/SHORT-TERM NOTES: 0.95%
- --------------------------------------------------------------------------------
16,855,000 New Orleans, Louisiana, 16,687,967
Sewerage Service, Bond
Anticipation Notes,
3.00%, 07/26/2006
2,040,000 Texas State, Tax & Revenue, 2,067,214
Anticipation Notes,
4.50%, 08/31/2006
2,100,000 Berkeley County, South 2,100,000
Carolina, Exempt Facility
Industrial Revenue, Amoco
Chemical Co., Project,
2.93%, 04/01/2028
2,600,000 Connecticut State, Health & 2,600,000
Educational Facilities
Authority, Yale University,
Series T-1,
2.80%, 07/01/2029
3,000,000 Decatur, Alabama, Industrial 3,000,000
Development Board
Environmental Facilities,
Revenue, BP Amoco Chemical Co.
Project,
2.93%, 11/01/2035
3,800,000 Gulf Coast Waste Disposal 3,800,000
Authority, Texas,
Environmental Facilities
Revenue, BP Amoco Chemical
Project, Series B,
2.93%, 09/01/2038 --------------
Total Tax Exempt Variable-Rate Demand
Notes/Short-Term Notes (Cost $29,542,937) 30,255,181
--------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $3,128,737,061) (g) 99.35% $3,172,134,706
------- --------------
Cash and Other Assets, Less Liabilities 0.65 20,763,143
Net Assets 100.00% $3,192,897,849
======= ==============
44 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
INTEREST RATE SWAP CONTRACTS
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Unrealized
Notional Rate Appreciation/
Amount Description Received Rate Paid Termination Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------
$ 129,000,000 Goldman Sachs Interest Variable* 76.48% of 02/03/2006 $(109,439)
Rate Swap 1 Month LIBOR+
129,000,000 Merrill Lynch Interest 85.10% of Variable* 02/03/2006 290,291
Rate Swap 1 Month LIBOR+
30,000,000 JP Morgan Interest 2.988% Variable* 04/05/2007 (82,320)
Rate Swap
31,000,000 Citigroup Interest 2.962% Variable* 06/22/2007 (166,263)
Rate Swap
12,400,000 Goldman Sachs Interest 3 Month LIBOR+ 4.156% 08/01/2011 313,833
Rate Swap
15,000,000 JP Morgan Interest 3 Month LIBOR+ 4.258% 07/01/2013 422,278
Rate Swap
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
=================================================================================================================
FINANCIAL FUTURES CONTRACT SOLD
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
Interest Rate Swap 22 December 2005 $2,457,125 $2,406,250 $50,875
10 Yr Futures =======
- --------------------------------------------------------------------------------
(a) Represents entire or partial position segregated as collateral for open
futures contracts.
(b) Represents entire or partial position segregated as collatoral for when
issued and delayed delivery security.
(c) Variable rate coupon, rate shown as of September 30, 2005.
(d) Represents entire or partial position segregated as collateral for
interest rate swap.
(e) When-issued security.
(f) Securities are exempt from registration under Rule 144A of Securities Act
of 1933. These securities are considered liquid and may be resold in
transactions exempt from registration, normally to qualified institutional
buyers. At September 30, 2005, the aggregate market value of these
securities amounted to $26,415,745 or 0.8% of net assets.
(g) At September 30, 2005, the cost basis of investment securities for tax
purposes was $3,128,737,494. Gross unrealized appreciation of investments
was $60,810,191 and gross unrealized depreciation of investments was
$17,412,979, resulting in net unrealized appreciation of $43,397,212
(excluding swap and future transactions).
- --------------------------------------------------------------------------------
Explanation of abbreviations:
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Corporation
AMT--Subject to Alternative Minimum Tax
CPI--Consumer Price Index
CSOB--Cowlitz Sewer Operation Board
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Authority
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance, Inc.
GNMA--Government National Mortgage Association
IBC--International Bancshares Corporation
MBIA--Municipal Bond Investors Assurance Corporation
MTA--Metropolitan Transportation Authority
PSF Guaranteed--(Texas) Permanent Schools Funds
Q-SBLF--Qualified School Bond Loan Fund
RADIAN--Radian Group, Inc.
SCSDE--South Carolina State Department of Education
XLCA--XL Capital Assurance, Inc.
Schedule of Investments -- Diversified Municipal Portfolios 45
Allocation of Portfolio Net Assets at September 30, 2005:
Alabama 1.36%
Alaska 0.27
Arizona 1.46
Arkansas 0.03
California 7.38
Colorado 1.94
Connecticut 1.17
Delaware 0.31
Florida 8.54
Georgia 0.76
Hawaii 1.98
Illinois 4.61
Indiana 0.85
Kansas 0.14
Kentucky 0.82
Louisiana 0.91
Maine 0.05
Maryland 3.46
Massachusetts 6.62
Michigan 2.55
Minnesota 0.58
Missouri 0.32
Nebraska 0.36
Nevada 1.11
New Hampshire 0.45
New Jersey 4.69
New Mexico 0.04
New York 10.16
North Carolina 4.07
Ohio 2.76
Oklahoma 2.61
Oregon 0.41
Pennsylvania 6.14
Rhode Island 0.49
South Carolina 2.02
Tennessee 0.48
Texas 9.98
Utah 0.15
Vermont 0.04
Virginia 1.93
Washington 3.62
West Virginia 0.18
Wisconsin 0.28
Guam 0.24
Puerto Rico 0.49
District of Columbia 0.54
Cash and Other Assets, Less Liabilities 0.65
-------
Total 100.00%
=======
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
California Municipal Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
PREREFUNDED/ESCROWED: 2.46%
- --------------------------------------------------------------------------------
$ 1,000,000 California State Public Works $ 1,027,110
Board, Lease Revenue,
Department of Corrections,
Series A, AMBAC,
5.75%, 01/01/2012
Prerefunded 01/01/2006 @ 102
1,520,000 Corona, California 1,552,133
Certificates of Participation,
8.00%, 03/01/2015
Prerefunded 03/01/2006 @ 100
1,120,000 University of California 1,155,414
Revenue, Hospital Medical
Center, AMBAC,
5.75%, 07/01/2024
Prerefunded 07/01/2006 @ 101
5,460,000 Golden State Tobacco 5,830,188
Securitization Corp.,
California, Tobacco Settlement
Revenue, Series B,
5.75%, 06/01/2022
Prerefunded 06/01/2008 @ 100
920,000 Northern California Power 1,007,004
Agency, Public Power Revenue,
Series A, AMBAC,
5.80%, 07/01/2009
Escrowed to Maturity
1,960,000 California Infrastructure & 2,172,170
Economic Development Bank
Revenue,
5.50%, 06/01/2022
Prerefunded 06/01/2010 @ 101
1,295,000 Los Angeles Unified School 1,433,203
District, California, Series
D, FGIC,
5.625%, 07/01/2015
Prerefunded 07/01/2010 @ 100
1,000,000 Kern High School District, 1,197,970
California,
7.10%, 08/01/2011
Escrowed to Maturity
260,000 California State Department of 287,412
Water Resources, Water
Revenue, Series W, FSA,
5.25%, 12/01/2022
Prerefunded 12/01/2011 @ 100
46 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 6,290,000 New Jersey State $ 7,068,639
Transportation Trust Fund
Authority, Transportation
Systems, Series C,
5.50%, 06/15/2021
Prerefunded 06/15/2013 @ 100
330,000 San Jose Redevelopment Agency, 391,413
California, Tax Allocation,
Merged Area Redevelopment,
MBIA,
6.00%, 08/01/2015
Escrowed to Maturity
1,000,000 Pittsburg Redevelopment 1,459,960
Agency, California,
Residential Mortgage Revenue,
9.60%, 06/01/2016
Escrowed to Maturity
1,615,000 Metropolitan Water District of 1,878,584
Southern California,
Waterworks Revenue, Series A,
5.75%, 07/01/2021
Escrowed to Maturity --------------
Total Prerefunded/Escrowed(Cost $25,811,158) 26,461,200
--------------
================================================================================
INSURED: 54.18%
- --------------------------------------------------------------------------------
3,015,000 Puerto Rico Electric Power 3,094,717
Authority, Power Revenue,
Refunding, Series Y, MBIA,
6.50%, 07/01/2006
1,000,000 Virgin Islands Public Finance 1,018,790
Authority Revenue, Federal
Highway Reimbursement Loan
Note, FSA,
5.00%, 09/01/2006
545,000 San Jose, California, Airport 557,715
Revenue, FGIC,
5.875%, 03/01/2007
3,960,000 San Francisco City & County, 4,151,149
California, Refunding,
Series 1, FGIC,
5.75%, 06/15/2007
8,800,000 Southern California Public 9,195,472
Power Authority, Power Project
Revenue, Refunding, San Juan,
Unit 3, Series A, FSA,
5.00%, 01/01/2008
3,050,000 San Jose, California, Airport 3,168,157
Revenue, Refunding, Series B,
FSA, AMT,
5.00%, 03/01/2008
2,360,000 San Diego County Regional 2,491,664
Transportation Authority,
California, Sales Tax Revenue,
Series A, FGIC,
5.25%, 04/01/2008
6,940,000 Los Angeles Unified School 7,318,924
District, California,
Series A, MBIA,
5.00%, 07/01/2008
2,500,000 Puerto Rico Public Building 2,664,125
Authority, Revenue Guaranteed,
Series L, FSA,
5.60%, 07/01/2008
1,000,000 Riverside, California, Sewer 1,107,130
Revenue, FGIC,
7.00%, 08/01/2008
1,510,000 Castaic Lake Water Agency, 1,681,898
California, Certificates of
Participation, Water System
Improvement Project, Series A,
MBIA,
7.25%, 08/01/2008
9,300,000 Los Angeles, California, 9,825,171
Certificates of Participation,
Equipment & Real Estate
Property Program, Series AU,
MBIA,
5.00%, 10/01/2008
1,170,000 Sacramento Area Flood Control 1,236,070
Agency, California, Capital
Assessment District No.
2-North Area, AMBAC,
5.00%, 10/01/2008
3,195,000 Los Angeles County Public 3,380,757
Works Financing Authority,
California, Revenue, Regional
Park, Series A, AMBAC,
5.50%, 10/01/2008
4,970,000 Orange County Local 5,390,810
Transportation Authority,
California, Sales Tax Revenue,
Refunding Measure M-2ND Senior
Series A, AMBAC,
5.70%, 02/15/2009
4,730,000 University of California, 5,046,295
Revenue, Series A, AMBAC,
5.00%, 05/15/2009
1,000,000 Redding Joint Powers Financing 1,108,750
Authority, California,
Electric System Revenue,
Series A, MBIA,
6.25%, 06/01/2009
4,960,000 Northern California Power 5,432,738
Agency, Geothermal Project
No. 3, Series A, AMBAC,
5.80%, 07/01/2009
1,100,000 South Orange County Public 1,288,969
Finance Authority, California,
Special Tax Revenue, Foothill
Area, Series C, FGIC,
8.00%, 08/15/2009
Schedule of Investments -- California Municipal Portfolios 47
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,000,000 Sacramento Area Flood Control $ 1,069,610
Agency, California, Capital
Assessment District No.
2-North Area, AMBAC,
5.00%, 10/01/2009
7,985,000 Los Angeles County Public 8,568,703
Works Financing Authority,
California, Lease Revenue,
Master Refunding Project,
Series A, MBIA,
5.00%, 12/01/2009
5,130,000 California State, Refunding, 5,555,431
FSA,
5.25%, 02/01/2010
5,630,000 Orange County Local 6,169,748
Transportation Authority,
California, Sales Tax Revenue,
Measure M-Second
Senior Series A, MBIA,
5.50%, 02/15/2010
2,000,000 Orange County Local 2,207,940
Transportation Authority,
California, Sales Tax Revenue,
Refunding Measure M-2ND Senior
Series A, AMBAC,
5.70%, 02/15/2010
2,000,000 University of California 2,159,360
Revenue, Series F, FSA,
5.00%, 05/15/2010 (a)
600,000 Los Angeles Department of 616,596
Airports, California, Airport
Revenue, FGIC, AMT,
5.80%, 05/15/2010
5,845,000 Los Angeles, California, 6,314,880
Wastewater System Revenue,
Refunding Subordinated
Series B, MBIA,
5.00%, 06/01/2010
11,395,000 California Economic Recovery 12,300,105
Bonds, Series A, MBIA,
5.00%, 07/01/2010 (b)
2,170,000 Los Angeles County 2,347,332
Metropolitan Transportation
Authority, California, Sales
Tax, Revenue, Refunding,
Proposition C, Second Senior,
Series A, MBIA,
5.00%, 07/01/2010
2,000,000 Puerto Rico Commonwealth, 2,174,260
FGIC,
5.25%, 07/01/2010
2,500,000 Puerto Rico Highway & 2,745,075
Transportation Authority,
Transportation Revenue,
Series A, AMBAC,
5.50%, 07/01/2010
3,485,000 Oakland Unified School 3,766,344
District, Alameda County,
California, Election 2000,
MBIA,
5.00%, 08/01/2010
7,050,000 Los Angeles County 7,540,750
Metropolitan Transportation
Authority, California,
Revenue, Capital Grant
Receipts, Gold Line Project,
Series A, FGIC,
5.00%, 10/01/2010
11,375,000 California Economic Recovery 12,416,381
Bonds, Series A, FGIC,
5.25%, 01/01/2011
1,635,000 Pomona Public Financing 1,771,245
Authority, California,
Revenue, Merged Redevelopment
Project, Series AH, AMBAC,
5.00%, 02/01/2011
1,000,000 Kern High School District, 1,145,070
California, Series A, MBIA,
6.30%, 02/01/2011
2,200,000 Los Angeles Unified School 2,396,372
District, California,
Series A, MBIA,
5.00%, 07/01/2011
4,590,000 Orange County Public Financing 4,987,173
Authority, California, Lease
Revenue, Refunding, MBIA,
5.00%, 07/01/2011
4,155,000 Oakland Unified School 4,519,310
District, Alameda County,
California, Election 2000,
MBIA,
5.00%, 08/01/2011
3,475,000 Los Angeles County Public 3,789,383
Works Financing Authority,
California, Lease Revenue,
Master Refunding Project,
Series A, MBIA,
5.00%, 12/01/2011
4,900,000 New Jersey Transportation 5,353,593
Trust Fund Authority,
Transportation System,
Series B, FGIC,
5.25%, 12/15/2011
9,400,000 California Department of 10,204,170
Transportation, Revenue,
Federal Highway Grant
Anticipation Bonds, Series A,
FGIC,
5.00%, 02/01/2012
48 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,190,000 California Statewide $ 2,323,437
Communities Development
Authority Revenue, Redlands
Community Hospital, Series A,
RADIAN,
5.00%, 04/01/2012
2,145,000 San Francisco City & County 2,218,209
Airport Commission,
California, International
Airport Revenue, Second Series
10A, MBIA, AMT,
5.45%, 05/01/2012
2,630,000 University of California, 2,872,302
Revenue, Series B, AMBAC,
5.00%, 05/15/2012
1,405,000 San Francisco City & County, 1,535,876
California, Laguna Honda
Hospital 1999, Series A,
AMBAC,
5.00%, 06/15/2012
6,010,000 California Economic Recovery 6,554,266
Bonds, Series A, MBIA,
5.00%, 07/01/2012
5,930,000 MSR Public Power Agency, 6,217,486
California, San Juan Project,
Refunding, Series G, MBIA,
5.30%, 07/01/2012
1,580,000 Oakland Unified School 1,724,649
District, Alameda County,
California, Election 2000,
MBIA,
5.00%, 08/01/2012
1,075,000 Rancho Water District 1,191,487
Financing Authority,
California, Revenue, Series A,
FSA,
5.50%, 08/01/2012
9,420,000 Los Angeles County 10,137,616
Metropolitan Transportation
Authority, California,
Revenue, Capital Grant
Receipts, Gold Line Project,
Series A, FGIC,
5.00%, 10/01/2012
6,750,000 California Department of 7,366,815
Transportation, Revenue,
Federal Highway Grant
Anticipation Bonds, Series A,
FGIC,
5.00%, 02/01/2013
1,295,000 California Statewide 1,379,978
Communities Development
Authority Revenue, Redlands
Community Hospital, Series A,
RADIAN,
5.00%, 04/01/2013
16,480,000 Orange County Public Financing 18,002,093
Authority, California, Lease
Revenue, Refunding, MBIA,
5.00%, 07/01/2013
1,335,000 Oakland Unified School 1,459,462
District, Alameda County,
California, Election 2000,
MBIA,
5.00%, 08/01/2013
10,140,000 California Department of 11,099,143
Transportation Revenue,
Federal Highway Grant
Anticipation Bonds, Series A,
FGIC,
5.00%, 02/01/2014
2,745,000 Northern Mariana Islands, 2,924,331
Commonwealth, Series A,
ACA,
6.00%, 06/01/2014
1,525,000 Los Angeles County 1,675,380
Metropolitan Transportation
Authority, California, Sales
Tax Revenue, Proposition A,
First Tier Senior, Series A,
AMBAC,
5.00%, 07/01/2014
5,550,000 Mount San Antonio Community 5,991,669
College District, California,
Refunding, 2001 Election,
Series A, MBIA,
5.00%, 08/01/2014
3,280,000 California State University 3,600,686
Revenue, Refunding,
Systemwide, Series B, AMBAC,
5.00%, 11/01/2014
1,195,000 Culver City Redevelopment 1,316,770
Finance Authority, California,
Tax Allocation, AMBAC,
5.50%, 11/01/2014
2,000,000 San Diego County, California, 2,175,340
Certificates of Participation,
Edgemoor Project & Regional
System, AMBAC,
5.00%, 02/01/2015
1,000,000 Santa Clara Redevelopment 1,003,400
Agency, California, Tax
Allocation, Bayshore North
Project, MBIA,
5.00%, 06/01/2015
1,210,000 Los Angeles County 1,330,310
Metropolitan Transportation
Authority, California, Sales
Tax Revenue, Proposition A,
First Tier Senior, Series A,
AMBAC,
5.00%, 07/01/2015
Schedule of Investments -- California Municipal Portfolios 49
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,090,000 Los Angeles Unified School $ 3,397,239
District, California, Series
E, AMBAC,
5.00%, 07/01/2015
8,785,000 Los Angeles Unified School 9,876,009
District, California, Election
of 1997, Series E, MBIA,
5.50%, 07/01/2015
670,000 San Jose Redevelopment Agency, 785,649
California Tax Allocation,
Merged Area Redevelopment
Project, Unrefunded Balance,
MBIA,
6.00%, 08/01/2015
2,380,000 Antioch Public Finance 2,616,667
Authority, California, Lease
Revenue, Municipal Facilities
Project, Series B, MBIA,
5.50%, 01/01/2016
1,430,000 San Mateo County 1,633,217
Transportation District,
California, Series A, MBIA,
5.50%, 06/01/2016
5,225,000 California State Public Works 5,752,568
Board, Lease Revenue,
Department of Health Services,
Series A, MBIA,
5.75%, 11/01/2016
7,400,000 California Department of Water 8,045,058
Resources, Water Revenue,
Central VY Project, Series AC,
MBIA,
5.00%, 12/01/2016
2,685,000 Northern California Power 2,817,183
Agency, Public Power Revenue,
Hydroelectric Project No. 1,
Series A, MBIA,
5.00%, 07/01/2017
1,000,000 California Special Districts 1,111,310
Association Finance Corp.,
Certificates of Participation,
Series Z, FSA,
5.50%, 08/01/2017
1,460,000 Santa Fe Springs Community 1,594,933
Development Commission,
California, Refunding,
Series A, MBIA,
5.375%, 09/01/2017
3,130,000 Long Beach Bond Finance 3,284,059
Authority, California, Lease
Revenue, Civic Center Project,
Series A, MBIA,
5.00%, 10/01/2017
7,495,000 San Bernardino County, 8,219,917
California, Certificates of
Participation, West Valley
Detention Center, Refunding,
Series A, MBIA,
5.25%, 11/01/2017
1,210,000 Culver City Redevelopment 1,335,017
Agency, California, Tax
Allocation Redevelopment
Project A, MBIA,
5.50%, 11/01/2017
6,390,000 Santa Clara County Financing 6,722,088
Authority, California, Lease
Revenue, Series A, AMBAC,
5.00%, 11/15/2017
5,930,000 Sacramento City Financing 6,604,241
Authority, California, Revenue
Capital Improvement, Series A,
AMBAC,
5.50%, 12/01/2017
2,420,000 San Francisco City & County 2,499,061
Airport Commission,
California, International
Airport Revenue,
Second Series 15A, FSA, AMT,
5.00%, 05/01/2018
2,000,000 Los Angeles Department of 2,149,220
Water & Power, California,
Power System, Series A, FSA,
5.25%, 07/01/2018
5,000,000 Los Angeles Department of 5,418,400
Water & Power, California,
Power System, Series A, MBIA,
5.375%, 07/01/2018
2,000,000 Los Altos School District, 2,124,200
California, Series B, MBIA,
5.00%, 08/01/2018
2,075,000 Anaheim Public Financing 2,193,420
Authority, California,
Electric System Revenue,
Distribution Facilities, MBIA,
5.00%, 10/01/2018
3,300,000 Metropolitan Water District of 3,547,104
Southern California,
Waterworks Revenue,
Authorization, Series B-3,
MBIA,
5.00%, 10/01/2018
1,500,000 Imperial Irrigation District, 1,580,220
California, Electric System
Revenue, MBIA,
5.00%, 11/01/2018
1,000,000 Culver City Redevelopment 1,106,530
Agency, California, Tax
Allocation Redevelopment
Project A, MBIA,
5.50%, 11/01/2018
50 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 5,000,000 California Department of Water $ 5,463,550
Resources, Water System,
Series Y, FGIC,
5.25%, 12/01/2018
1,440,000 Sacramento City Financing 1,615,334
Authority, California,
Revenue, City Hall &
Redevelopment Projects,
Series A, FSA,
5.375%, 12/01/2018
3,830,000 Los Angeles, California, 4,100,819
Sanitation Equipment Charge
Revenue, Series A, FSA,
5.25%, 02/01/2019
5,035,000 Anaheim Union High School 5,629,180
District, California,
Series A, FSA,
5.375%, 08/01/2019
1,000,000 Antelope Valley Union High 1,106,630
School District, California,
Series A, MBIA,
5.375%, 08/01/2019
1,185,000 Tahoe-Truckee Unified School 1,365,440
District No. 1, California,
MBIA,
5.50%, 08/01/2019
1,000,000 Long Beach Bond Finance 1,084,640
Authority, California, Lease
Revenue, Public Safety
Facilities Projects, AMBAC,
5.25%, 11/01/2019
2,815,000 Los Angeles County, 3,152,744
California, Certificates of
Participation, Antelope Valley
Courthouse, Series A, AMBAC,
5.75%, 11/01/2019
2,630,000 California State Public Works 2,837,060
Board, Lease Revenue,
Department of Corrections,
State Prison, Series A, AMBAC,
5.00%, 12/01/2019
5,000,000 California Department of Water 5,446,250
Resources, Water System,
Series Y, FGIC,
5.25%, 12/01/2019
4,525,000 Los Angeles, California, 4,838,221
Sanitation Equipment Charge
Revenue, Series A, FSA,
5.25%, 02/01/2020
1,000,000 University of California 1,073,150
Revenue, Series A, AMBAC,
5.125%, 05/15/2020
10,585,000 Golden State Tobacco 11,098,796
Securitization Corp.,
California, Tobacco Settlement
Revenue, Series A, AMBAC,
5.00%, 06/01/2020
5,530,000 Los Angeles Unified School 5,926,003
District, California,
Series A-1, FGIC,
5.00%, 07/01/2020
11,000,000 Los Angeles Unified School 11,787,710
District, California,
Series A-2, MBIA,
5.00%, 07/01/2020
2,050,000 Pasadena Unified School 2,208,465
District, California,
Series B, FGIC,
5.00%, 07/01/2020
1,440,000 Los Angeles Unified School 1,560,686
District, California,
Series A, FSA,
5.25%, 07/01/2020
6,295,000 Los Angeles Department of 6,801,559
Water & Power, California,
Power System, Series A, MBIA,
5.375%, 07/01/2020
1,910,000 Cotati-Rohnert Park Unified 2,047,730
School District, California,
Refunding, Crossover, FGIC,
5.00%, 08/01/2020
1,900,000 Gilroy Unified School 2,067,390
District, California, FGIC,
5.25%, 08/01/2020
1,000,000 San Ramon Valley Unified 1,092,090
School District, California,
Election 2002, FSA,
5.25%, 08/01/2020
6,340,000 University of California, 6,617,375
Multipurpose Projects,
Revenue, Series E, MBIA,
5.125%, 09/01/2020
1,000,000 Fontana Public Financing 1,084,030
Authority, California, Tax
Allocation Revenue, North
Fontana Redevelopment Project,
Series A, FSA,
5.25%, 09/01/2020
1,000,000 San Mateo County Community 1,096,110
College District, California,
Election 2001, Series A, FGIC,
5.375%, 09/01/2020
2,075,000 Walnut Public Financing 2,274,511
Authority, California, Tax
Allocation Revenue, AMBAC,
5.375%, 09/01/2020
2,210,000 Salinas Union High School 2,408,348
District, California,
Series A, FGIC,
5.25%, 10/01/2020
9,750,000 Los Angeles Unified School 10,332,952
District, California, Election
1997, Series F, FGIC,
5.00%, 07/01/2021
Schedule of Investments -- California Municipal Portfolios 51
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,100,000 Mammoth Unified School $ 541,486
District, California, Capital
Appreciation, MBIA,
0.00%, 08/01/2021
1,920,000 San Ramon Valley Unified 2,040,883
School District, California,
Election 2002, FSA,
5.00%, 08/01/2021
2,200,000 San Diego Unified Port 2,331,230
District, California, Revenue,
Series B, MBIA,
5.00%, 09/01/2021
2,420,000 Salinas Union High School 2,626,837
District, California,
Series A, FGIC,
5.25%, 10/01/2021
1,050,000 Long Beach Bond Finance 1,130,798
Authority, California, Lease
Revenue, Public Safety
Facilities Projects, AMBAC,
5.25%, 11/01/2021
4,340,000 Sacramento County Sanitation 4,619,062
District Financing Authority,
California, Revenue,
Sacramento Regional County
Sanitation, Series A, AMBAC,
5.00%, 12/01/2021
1,100,000 Sacramento County Sanitation 1,272,073
District Financing Authority,
California, Revenue, FSA,
5.50%, 12/01/2021
4,835,000 Los Angeles Unified School 5,114,221
District, California,
Series A, FSA,
5.00%, 07/01/2022
1,000,000 Mammoth Unified School 467,610
District, California, Capital
Appreciation, MBIA,
0.00%, 08/01/2022
1,170,000 Riverside Community College 1,247,548
District, California, FSA,
5.00%, 08/01/2022
3,050,000 California State University 3,195,058
Headquarters Building
Authority, Lease Revenue,
Series B, MBIA,
5.25%, 09/01/2022
1,715,000 Long Beach Bond Finance 1,849,147
Authority, California, Lease
Revenue, Public Safety
Facilities Projects, AMBAC,
5.25%, 11/01/2022
1,300,000 California Department of Water 1,393,678
Resources, Water Revenue,
Unrefunded Balance, Series W,
FSA,
5.25%, 12/01/2022
1,315,000 San Diego Community College 1,386,957
District, California, Election
2002, Series A, FSA,
5.00%, 05/01/2023
1,900,000 Ohlone Community College 2,021,201
District, California,
Series B, FSA,
5.00%, 08/01/2023
4,355,000 California Pollution Control 4,369,502
Financing Authority, Pollution
Control Revenue, Refunding,
Pacific Gas & Electric,
Series C, FGIC, AMT,
3.50%, 12/01/2023
3,450,000 San Francisco City & County 3,611,184
Airport Commission,
California, International
Airport Revenue,
Second Series 16B, FSA,
5.00%, 05/01/2024
2,320,000 Azusa Unified School District, 2,438,923
California, FSA,
5.00%, 07/01/2024
1,280,000 California State, MBIA, 1,328,730
5.00%, 08/01/2024
1,230,000 Gateway Unified School 1,297,478
District, California, MBIA,
5.00%, 08/01/2024
1,425,000 San Ramon Valley Unified 1,506,082
School District, California,
Election 2002, FSA,
5.00%, 08/01/2024
1,515,000 California State University 1,595,886
Revenue, Systemwide, Series A,
FGIC,
5.00%, 11/01/2024
1,440,000 Chaffey Community College 1,523,549
District, California, Election
of 2002, Series B, MBIA,
5.00%, 06/01/2025
2,000,000 San Diego Unified School 2,203,960
District, California, Capital
Appreciation, Election 1998,
Series D, FGIC,
5.25%, 07/01/2025
2,075,000 Grossmont-Cuyamaca Community 2,197,072
College District, California,
Election of 2002, Series B,
FGIC,
5.00%, 08/01/2025
2,275,000 Rancho Santiago Community 2,409,794
College District, California,
FSA,
5.00%, 09/01/2025
52 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 9,995,000 Los Angeles Community College $ 10,898,948
District, California,
Series A, MBIA,
5.00%, 06/01/2026
30,120,000 Puerto Rico Highway & 32,306,712
Transportation Authority,
Highway Revenue, Refunding,
Series AA, FSA,
5.00%, 07/01/2026
1,390,000 Sacramento City Unified School 1,466,672
District, California, Election
of 2002, MBIA,
5.00%, 07/01/2027
1,055,000 Grossmont-Cuyamaca Community 1,107,128
College District, California,
Election of 2002, Series A,
MBIA,
5.00%, 08/01/2027
4,130,000 Puerto Rico Public Finance 4,507,152
Corporation, Commonwealth
Appropriation, Series A, MBIA,
5.25%, 08/01/2029
2,905,000 Fullerton Redevelopment 2,980,850
Agency, California,
Certificates of Participation,
Southern California Optometry,
RADIAN,
5.00%, 04/01/2034
5,000,000 Santa Clara Valley 5,057,300
Transportation Authority,
California, Sales Tax Revenue,
Measure A, AMBAC,
4.00%, 04/01/2036
4,620,000 San Jose Financing Authority, 4,679,644
California, Lease Revenue,
Civic Center Project,
Series D, AMBAC,
5.00%, 06/01/2039 --------------
Total Insured (Cost $570,467,750) 582,633,275
--------------
================================================================================
TAX SUPPORTED: 21.23%
- --------------------------------------------------------------------------------
State General Obligations: 7.14%
785,000 California State, 800,331
4.00%, 02/01/2008
1,200,000 California State, 1,251,864
5.00%, 03/01/2008
2,245,000 California State, 2,342,029
5.00%, 03/01/2008
2,065,000 California State, Veterans 2,345,613
Bonds, Series AN &
9.00%, 04/01/2008
2,510,000 California State, 2,629,275
5.00%, 06/01/2008
2,985,000 California State, 3,055,804
4.00%, 02/01/2009
2,900,000 California State, 3,059,413
5.00%, 02/01/2009
5,400,000 California State, 5,696,838
5.00%, 02/01/2009
5,905,000 California State, 6,296,206
5.00%, 02/01/2010
3,400,000 California State, 3,641,332
5.00%, 06/01/2010
2,420,000 California State, 2,685,958
5.75%, 10/01/2010
5,165,000 California State, 5,551,497
5.00%, 04/01/2011
1,515,000 California State, 1,631,428
5.00%, 06/01/2011
2,205,000 California State, 2,374,168
5.00%, 02/01/2012
4,280,000 Puerto Rico Commonwealth, 4,449,445
Refunding, Public Improvement,
Series C,
5.00%, 07/01/2018
1,870,000 California State, 2,008,417
5.25%, 09/01/2018
12,240,000 California State, 12,877,092
5.00%, 02/01/2020
2,045,000 California State, 2,181,217
5.25%, 09/01/2020
10,060,000 California State, 10,851,823
5.25%, 10/01/2020
1,000,000 California State, 1,042,540
5.00%, 10/01/2023 --------------
Total State General Obligations (Cost $75,948,457) 76,772,290
--------------
Local General Obligations: 2.67%
5,040,000 New York City, New York, 5,367,953
Series G,
5.00%, 08/01/2010
2,160,000 New York City, New York, 2,300,551
Series H,
5.00%, 08/01/2010
15,365,000 New York City, New York, 16,435,018
Series G,
5.00%, 08/01/2011
1,700,000 New York City, New York, 1,818,388
Series H,
5.00%, 08/01/2011
1,145,000 Los Gatos-Saratoga Joint Union 1,291,835
High School District,
California, Election of 1998,
Series B,
5.75%, 12/01/2019
Schedule of Investments -- California Municipal Portfolios 53
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,325,000 Los Gatos-Saratoga Joint Union $ 1,494,918
High School District,
California, Election of 1998,
Series B,
5.75%, 12/01/2020 --------------
Total Local General Obligations (Cost $28,843,159) 28,708,663
--------------
Tax Lease: 0.46%
2,590,000 Taft Public Financing 2,707,716
Authority, California, Lease
Revenue, Community
Correctional Facility Project A,
5.95%, 01/01/2011
2,000,000 Sacramento Finance Authority, 2,215,420
California, Lease Revenue,
Series B,
5.40%, 11/01/2020 --------------
Total Tax Lease (Cost $4,400,924) 4,923,136
--------------
Special Tax: 10.96%
1,145,000 Monterra Community Development 1,147,462
District, Florida, Revenue,
Bond Anticipation Notes,
5.00%, 06/01/2006
200,000 Etiwanda School District, 200,072
Community Facilities District
No. 3, California, Refunding,
3.90%, 08/01/2006
4,270,000 Santa Clara County Financing 4,343,572
Authority, California, Special
Obligation Measure B,
Transportation Improvement
Program,
5.00%, 08/01/2006
1,290,000 Shingle Creek, Florida, Bond 1,292,812
Anticipation Notes,
5.125%, 08/01/2006
500,000 Chula Vista Community 502,830
Facilities District No. 06-1,
Special Tax, California,
Eastlake Woods Area, Series A,
3.60%, 09/01/2006
1,075,000 Riverside, California, 1,070,721
Improvement Bond Act of 1915,
Canyon Springs Assessment,
2.40%, 09/02/2006
645,000 Vacaville, California, 643,033
Improvement Bond Act of 1915,
Refunding & Improvement,
Consolidated Reassessment,
Series A,
4.25%, 09/02/2006
275,000 Salinas Public Financing 277,646
Authority, California,
Revenue, Refunding, Assessment
Districts, Refinancing
Subordinated, Series B,
4.75%, 09/02/2006
1,645,000 North Las Vegas Special 1,658,275
Improvement District No. 60,
Aliante, Nevada,
3.90%, 12/01/2006
1,000,000 Los Angeles Community 997,800
Redevelopment Agency,
California, Tax Allocation,
Subordinated Lien Bunker,
Series L,
3.50%, 03/01/2007
1,775,000 Henderson Local Improvement 1,773,509
District No. T-14, Nevada,
3.75%, 03/01/2007
350,000 Etiwanda School District, 350,714
Community Facilities District
No. 3, California, Refunding,
4.25%, 08/01/2007
110,000 Fishhawk Community Development 110,408
District No. 2, Florida,
Special Assessment Revenue,
Series B,
5.00%, 11/01/2007
1,180,000 Reunion East Community 1,187,316
Development District, Florida,
Special Assessment,
5.20%, 11/01/2007
620,000 Vizcaya Community Development 624,625
District, Florida, Special
Assessment, Series B,
5.40%, 11/01/2007
1,225,000 Los Angeles Community 1,210,337
Redevelopment Agency,
California, Tax Allocation,
Subordinated Lien Bunker,
Series L,
3.50%, 03/01/2008
970,000 Village Community Development 975,587
District No. 5, Florida,
Special Assessment Revenue,
Series B,
5.00%, 05/01/2008
515,000 Villasol Community Development 519,687
District, Florida, Special
Assessment Revenue, Series B,
5.375%, 05/01/2008
10,345,000 California Economic Recovery 10,881,905
Bonds, Series A,
5.00%, 07/01/2008
54 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 480,000 Etiwanda School District, $ 481,358
Community Facilities District
No. 3, California, Refunding,
4.50%, 08/01/2008
565,000 Chula Vista Community 559,892
Facilities District No. 06-1,
Special Tax, California,
Eastlake Woods Area, Series A,
4.25%, 09/01/2008
375,000 Salinas Public Financing 377,411
Authority, California,
Revenue, Refunding, Assessment
Districts, Refinancing
Subordinated, Series B,
4.75%, 09/02/2008
515,000 Seven Oaks Community 519,666
Development District No. 2,
Florida, Special Assessment
Revenue, Series B,
5.30%, 11/01/2008
1,165,000 California Economic Recovery 1,233,397
Bonds, Series A,
5.00%, 01/01/2009
1,335,000 Los Angeles Community 1,309,008
Redevelopment Agency,
California, Tax Allocation,
Subordinated Lien Bunker,
Series L,
3.50%, 03/01/2009
930,000 Middle Village Community 936,222
Development District, Florida,
Special Assessment, Series B,
5.00%, 05/01/2009
1,620,000 Las Vegas Special Improvement 1,633,948
District No. 607, Nevada,
Local Improvement Bonds,
4.80%, 06/01/2009
2,795,000 California Economic Recovery 2,977,933
Bonds, Series A,
5.00%, 07/01/2009
495,000 Etiwanda School District, 496,396
Community Facilities District
No. 3, California, Refunding,
4.70%, 08/01/2009
680,000 Chula Vista Community 676,614
Facilities District No. 06-1,
California, Eastlake Woods
Area, Series A,
4.60%, 09/01/2009
295,000 Salinas Public Financing 297,484
Authority, California,
Revenue, Refunding,
Assessment Districts,
Refinancing Subordinated,
Series B,
5.00%, 09/02/2009
2,625,000 Upland Community Redevelopment 2,630,985
Agency, California, Tax
Allocation, Magnolia
Redevelopment Project,
3.90%, 11/01/2009
2,175,000 Meadow Pointe III Community 2,156,012
Development District, Florida,
Capital Improvement Revenue,
Series 2004-1,
4.80%, 11/01/2009
28,170,000 California Economic Recovery 30,463,883
Bonds, Series A,
5.25%, 01/01/2010
875,000 Paseo Community Development 869,417
District, Florida, Capital
Improvement Revenue, Series B,
4.875%, 05/01/2010
925,000 Gateway Services Community 939,495
Development District, Florida,
Special Assessment, Sun City
Center, Fort Myers Project,
Series B,
5.50%, 05/01/2010
470,000 Etiwanda School District, 474,042
Community Facilities District
No. 3, California, Refunding,
4.80%, 08/01/2010
720,000 Lake Ashton II Community 720,259
Development District, Florida,
Capital Improvement Revenue,
Series B,
4.875%, 11/01/2010
700,000 Dupree Lakes Community 701,274
Development District, Florida,
Capital Improvement Revenue,
5.00%, 11/01/2010
2,400,000 Monterra Community Development 2,401,368
District, Florida, Special
Assessment, Series B,
5.00%, 11/01/2010
990,000 Sterling Hill Community 1,002,336
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.50%, 11/01/2010
16,860,000 California Economic Recovery 18,403,533
Bonds, Series A,
5.25%, 01/01/2011
1,000,000 Concorde Estates Community 1,004,180
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.00%, 05/01/2011
2,000,000 Clark County Special 2,028,880
Improvement District No. 142,
Nevada,
5.30%, 08/01/2011
Schedule of Investments -- California Municipal Portfolios 55
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,755,000 Fremont Public Financing $ 1,740,258
Authority, California,
Revenue, Refunding, Series A,
3.75%, 09/02/2011
310,000 Salinas Public Financing 318,373
Authority, California,
Revenue, Refunding, Assessment
Districts, Refinancing
Subordinated, Series B,
5.25%, 09/02/2011
800,000 Venetian Community Development 834,168
District, Florida, Capital
Improvement Revenue, Series B,
5.95%, 05/01/2012
325,000 Henderson Local Improvement 325,384
District No. T-16, Nevada,
4.75%, 03/01/2013
1,600,000 Fiddlers Creek Community 1,651,440
Development District No. 2,
Florida, Special Assessment
Revenue, Series B,
5.75%, 05/01/2013
1,600,000 Pingree Grove, Illinois, 1,612,144
Special Service Area No. 1,
Special Tax, Cambridge Lakes
Project, Series 05-1,
5.25%, 03/01/2015
915,000 Bartram Park Community 917,617
Development District, Florida,
Special Assessment,
4.875%, 05/01/2015
1,050,000 Tern Bay Community Development 1,049,160
District, Florida, Capital
Improvement Revenue, Series B,
5.00%, 05/01/2015
790,000 Lincoln Community Facilities 830,258
District No. 2003-1,
California, Special Tax,
5.35%, 09/01/2016
1,250,000 Celebrate Community 1,293,238
Development Authority,
Virginia, Special Assessment
Revenue, North Virginia
Project, Series B,
6.25%, 03/01/2018
860,000 Beacon Tradeport Community 919,916
Development District, Florida,
Industrial Project, Series B,
7.125%, 05/01/2022
1,235,000 Lincoln Community Facilities 1,318,943
District No. 2003-1,
California, Special Tax,
5.90%, 09/01/2024 --------------
Total Special Tax (Cost $117,133,488) 117,874,203
--------------
Total Tax Supported (Cost $226,326,028) 228,278,292
--------------
================================================================================
REVENUE: 17.30%
- --------------------------------------------------------------------------------
Airport Revenue: 0.06%
500,000 Denver City & County, 587,390
Colorado, Airport Revenue,
Series D, AMT,
7.75%, 11/15/2013 --------------
Total Airport Revenue (Cost $491,180) 587,390
--------------
Electric Revenue: 7.57%
17,400,000 Los Angeles Department of 17,880,066
Water & Power, California,
Revenue, Power Systems,
Series A, Subseries A-1,
4.50%, 07/01/2007
19,000,000 California Department of Water 20,403,720
Resources, Power Supply
Revenue, Series A,
5.50%, 05/01/2009
15,245,000 Los Angeles Department of 16,242,785
Water & Power, California,
Revenue, Power Systems,
Series A, Subseries A-1,
5.00%, 07/01/2009
21,345,000 California Department of Water 23,163,594
Resources, Power Supply
Revenue, Series A,
5.25%, 05/01/2010 (c)
3,580,000 North Carolina Eastern 3,768,559
Municipal Power Agency, Power
Systems Revenue, Refunding,
Series C,
5.30%, 01/01/2015 --------------
Total Electric Revenue (Cost $81,106,615) 81,458,724
--------------
Health Care Revenue: 2.17%
1,300,000 California Statewide 1,315,366
Communities Development
Authority Revenue, Daughters
of Charity Health, Series F,
5.00%, 07/01/2006
1,100,000 California Statewide 1,156,694
Communities Development
Authority Revenue, Daughters
of Charity Health, Series F,
5.00%, 07/01/2010
2,000,000 California Statewide 2,051,040
Communities Development
Authority Revenue, Daughters
of Charity Health, Series G,
5.00%, 07/01/2022
1,190,000 California Statewide 1,235,875
Communities Development
Authority Revenue, Daughters
of Charity Health, Series A,
5.25%, 07/01/2024
56 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,400,000 Miami Beach Health Facilities $ 2,686,992
Authority, Florida, Hospital
Revenue, Refunding, Mount
Sinai Medical Center,
6.75%, 11/15/2024
3,130,000 California Statewide 3,105,242
Communities Development
Authority Revenue, Kaiser
Permanente, Series A,
2.55%, 08/01/2031 (d)
3,465,000 California Statewide 3,487,799
Communities Development
Authority Revenue, Kaiser
Permanente, Series C,
3.85%, 08/01/2031 (d)
3,170,000 California Statewide 3,194,060
Communities Development
Authority Revenue, Kaiser
Permanente, Series E,
3.875%, 04/01/2032
5,145,000 California Statewide 5,080,688
Communities Development
Authority Revenue, Kaiser
Permanente, Series F,
2.30%, 04/01/2033 --------------
Total Health Care Revenue (Cost $23,045,476) 23,313,756
--------------
Higher Education Revenue: 0.33%
1,280,000 University of California, 1,297,293
Revenue, Series A,
5.00%, 05/15/2006
2,105,000 California Educational 2,292,597
Facilities Authority Revenue,
University of the Pacific,
5.50%, 11/01/2018 --------------
Total Higher Education Revenue (Cost $3,466,703) 3,589,890
--------------
Water/Sewer Revenue: 2.20%
8,150,000 Metropolitan Water District of 8,816,018
Southern California,
Waterworks Revenue, Series B,
5.00%, 07/01/2010
2,460,000 San Francisco City & County 2,547,748
Public Utilities Commission,
California, Waterworks
Revenue, Series A,
5.00%, 11/01/2012
2,570,000 Guam Waterworks Authority 2,557,536
Certificates of Participation,
5.18%, 07/01/2015
2,285,000 California Department of Water 2,316,099
Resources, Water System
Revenue, Series O,
5.00%, 12/01/2015
5,000,000 Sacramento County Sanitation 5,072,100
District Financing Authority,
California, Revenue, Series A,
5.60%, 12/01/2016
2,045,000 Metropolitan Water District of 2,356,617
Southern California,
Waterworks Revenue, Series A,
5.75%, 07/01/2021 --------------
Total Water/Sewer Revenue (Cost $23,219,779) 23,666,118
--------------
Miscellaneous Revenue: 2.36%
6,485,000 Los Angeles Harbor Department, 6,687,462
California, Revenue, Series B,
AMT,
5.75%, 08/01/2009
8,975,000 Los Angeles County Public 9,660,421
Works Financing Authority,
California, Refunding Flood
Control District, Series A,
5.00%, 03/01/2010
820,000 Pima County Industrial 817,909
Development Authority,
Arizona, Education Revenue,
Refunding, Horizon Community
Learning Center,
4.45%, 06/01/2014
1,190,000 Broad Street Community 1,316,592
Development Authority,
Virginia, Revenue,
7.125%, 06/01/2015
2,865,000 Columbiana County Port 2,889,925
Authority, Ohio, Solid Waste
Facilities Revenue, Liberty
Waste Transportation LLC
Project, Series A, AMT,
7.00%, 08/01/2021
4,000,000 CSUCI Financing Authority 3,965,400
Revenue, California, For Sale
Housing Construction,
Series A,
2.50%, 08/01/2034 --------------
Total Miscellaneous Revenue(Cost $25,040,034) 25,337,709
--------------
Industrial Development/Pollution Control
Revenue: 2.61%
5,165,000 California Pollution Control 5,135,095
Financing Authority, Pollution
Control Revenue, Southern
California Edison, Series B,
2.00%, 03/01/2008 (d)
3,110,000 California Pollution Control 3,091,993
Financing Authority, Pollution
Control Revenue, Southern
California Edison, Series C,
2.00%, 03/01/2008 (d)
Schedule of Investments -- California Municipal Portfolios 57
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,280,000 Louisa Industrial Development $ 3,384,960
Authority, Virginia, Pollution
Control Revenue, Virginia
Electric & Power Co.,
5.25%, 12/01/2008 (d)
3,000,000 California Statewide 2,966,820
Communities Development
Authority, Solid Waste
Revenue,
2.90%, 04/01/2011 (d)
415,000 Michigan State Strategic Fund, 411,535
Solid Waste Disposal Revenue,
Limited Obligation Waste
Management,
3.00%, 12/01/2013 (d)
2,500,000 Putnam County, West Virginia, 2,466,575
Pollution Control Revenue,
Appalachian Power Co. Project,
Series E,
2.80%, 05/01/2019 (d)
2,500,000 California Pollution Control 2,494,975
Financing Authority, Solid
Waste Disposal Revenue, Waste
Management, Series A,
3.125%, 01/01/2022 (d)
3,415,000 Beaver County Industrial 3,406,360
Development Authority,
Pennsylvania, Pollution
Control Revenue, Cleveland
Electric Project,
3.75%, 10/01/2030 (d)
4,750,000 California Pollution Control 4,744,727
Financing Authority, Solid
Waste Disposal Revenue,
Republic Services, Inc.,
Project,
2.85%, 12/01/2033 (d) --------------
Total Industrial Development/Pollution
Control Revenue (Cost $28,145,203) 28,103,040
--------------
Total Revenue (Cost $184,514,990) 186,056,627
================================================================================
ASSET-BACKED SECURITIES: 0.71%
- --------------------------------------------------------------------------------
Housing: 0.71%
3,325,000 Munimae Trust, 3,336,405
Series 2001-1, Class A,
4.35%, 10/26/2016
3,875,000 Munimae Trust, 3,888,291
Series 2001-2, Class A,
4.35%, 10/26/2016
470,000 California Rural Home Mortgage 482,460
Finance Authority,
Single-Family Mortgage
Revenue, Mortgage-Backed
Securities Program, Series A,
GNMA/FNMA,
6.55%, 06/01/2030 (d) --------------
Total Housing (Cost $7,692,391) 7,707,156
--------------
Total Asset-Backed Securities(Cost $7,692,391) 7,707,156
================================================================================
TAX EXEMPT VARIABLE-RATE DEMAND NOTES/SHORT-TERM NOTES: 3.04%
- --------------------------------------------------------------------------------
5,630,000 New Orleans, Louisiana, Sewage 5,574,206
Service Revenue, Bond
Anticipation Notes,
3.00%, 07/26/2006
6,800,000 California State Department of 6,800,000
Water Resources, Power Supply
Revenue, Series B-4,
2.78%, 05/01/2022 (c)
5,900,000 California State Department of 5,900,000
Water Resources, Power Supply
Revenue, Series B-2,
2.95%, 05/01/2022 (c)
2,000,000 California Statewide 2,000,000
Communities Development
Authority, Solid Waste
Facilities Revenue, Chevron
U.S.A. Inc. Project,
2.75%, 12/15/2024 (c)
1,500,000 California Housing Finance 1,500,000
Agency, Revenue, Home
Mortgage, Series M, AMT,
2.83%, 02/01/2025 (c)
1,400,000 California Statewide Community 1,400,000
Development Authority
Certificates of Participation,
Tax Exempt,
4.10%, 05/15/2029
900,000 Los Angeles Department of 900,000
Water & Power, California.
Revenue, Subseries B-3,
2.81%, 07/01/2034 (c)
8,600,000 Sacramento County Sanitation 8,600,000
District Financing Authority
Revenue, California, Sub-Lien,
Regional County B-4,
2.95%, 12/01/2039 --------------
Total Tax Exempt Variable-Rate Demand
Notes/Short-Term Notes (Cost $32,436,311) 32,674,206
--------------
58 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $1,047,248,628) (e) 98.92% $1,063,810,756
Cash and Other Assets, Less Liabilities 1.08 11,573,653
------- --------------
Net Assets 100.00% $1,075,384,409
======= ==============
================================================================================
INTEREST RATE SWAP CONTRACTS
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Unrealized
Notional Rate Appreciation/
Amount Description Received Rate Paid Termination Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------
$ 43,700,000 Goldman Sachs Interest Variable* 76.48% of 02/03/2006 $(37,074)
Rate Swap 1 Month LIBOR+
43,700,000 Merrill Lynch Interest 85.10% of Variable* 02/03/2006 98,790
Rate Swap 1 Month LIBOR+
9,800,000 JP Morgan Interest 2.988% Variable* 04/05/2007 (26,891)
Rate Swap
10,300,000 Citigroup Interest 2.962% Variable* 06/22/2007 (55,242)
Rate Swap
6,750,000 Merrill Lynch Interest 3.218% Variable* 07/01/2009 (27,203)
Rate Swap
6,750,000 Merrill Lynch Interest Variable* 3.775% 02/01/2013 (91,967)
Rate Swap
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
=============================================================================================
CREDIT DEFAULT SWAP CONTRACT
- ---------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized
Referenced Obligation Amount Rate Termination Date Appreciation
- ---------------------------------------------------------------------------------------------
Buy Contract:
Merrill Lynch $4,500,000 0.15% 06/20/2010 $12,961
Commonwealth of Puerto Rico, =======
5.00%, 07/01/2018
=================================================================================================================
FINANCIAL FUTURES CONTRACT SOLD
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
Interest Rate Swap 42 December 2005 $4,690,875 $4,593,750 $97,125
10 Yr Futures =======
Schedule of Investments -- California Municipal Portfolios 59
================================================================================
Principal Amount Description Market Value
================================================================================
(a) Represents entire or partial position segregated as collateral for open
futures contracts.
(b) Represents entire or partial position segregated as collateral for
interest rate swap.
(c) Represents entire or partial position segregated as collateral for when
issued and delayed delivery securities.
(d) Variable rate coupon, rate shown as of September 30, 2005.
(e) At September 30, 2005, the cost basis of investment securities for tax
purposes was $1,047,248,628. Gross unrealized appreciation of investments
was $20,898,490 and gross unrealized depreciation of investments was
$4,336,362, resulting in net unrealized appreciation of $16,562,128
(excluding swap and future transactions).
- --------------------------------------------------------------------------------
Explanation of abbreviations:
ACA--American Capital Access
AMT--Subject to Alternative Minimum Tax
AMBAC--American Municipal Bond Assurance Corporation
CSUCI--California State University Channel Islands
FGIC--Financial Guaranty Insurance Company
FNMA--Federal National Mortgage Association
FSA--Financial Security Assurance, Inc.
GNMA--Government National Mortgage Association
MBIA--Municipal Bond Investors Assurance Corporation
RADIAN--Radian Group, Inc.
Allocation of Portfolio Net Assets at September 30, 2005:
Arizona 0.08%
California 84.33
Colorado 0.05
Florida 2.34
Ilinois 0.15
Louisiana 0.52
Michigan 0.04
Nevada 0.69
New Jersey 1.15
New York 2.41
North Carolina 0.35
Ohio 0.27
Pennsylvania 0.32
Virginia 0.56
West Virginia 0.23
Guam 0.24
U. S. Virgin Islands 0.09
Commercial Paper 0.27
Puerto Rico 4.83
Cash and Other Assets, Less Liabilities 1.08
-------
Total 100.00%
=======
See Notes to Financial Statements
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
New York Municipal Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
Principal Amount Description Market Value
================================================================================
PREREFUNDED/ESCROWED: 11.04%
- --------------------------------------------------------------------------------
$ 585,000 New York City, New York, $ 590,441
Series G,
5.75%, 02/01/2006
Escrowed to Maturity
2,135,000 New York State Environmental 2,207,547
Facilities Corp., Pollution
Control Revenue, Prerefunded,
State Water Revolving Fund,
Series A,
4.95%, 06/15/2010
Prerefunded 06/15/2006 @ 102
790,000 New York State Environmental 818,187
Facilities Corp., Pollution
Control Revenue, Prerefunded,
State Water Revolving Fund,
Series A,
5.20%, 12/15/2015
Prerefunded 06/15/2006 @ 102
1,645,000 MTA, New York, Transit 1,675,498
Facilities Service Contract,
5.40%, 07/01/2006
Escrowed to Maturity
2,495,000 New York State Dormitory 2,595,524
Authority, Revenue,
Prerefunded, City University,
5.75%, 07/01/2007
Prerefunded 07/01/2006 @ 102
1,040,000 New York State Dormitory 1,098,115
Authority, Mental Health
Services, Series A,
5.70%, 02/15/2009
Prerefunded 02/15/2007 @ 102
5,000 New York State Dormitory 5,279
Authority, Mental Health
Services, Series A,
5.70%, 02/15/2009
Prerefunded 02/15/2007 @ 102
2,435,000 New York City, New York, 2,615,458
Series M, AMBAC,
7.50%, 06/01/2007
Escrowed to Maturity
1,885,000 New York State Environmental 1,980,211
Facilities Corp., Pollution
Control Revenue, State
Revolving Fund, New York City
Municipal Water Finance
Authority Series 97-D,
6.00%, 06/15/2007
Escrowed to Maturity
60 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 5,075,000 Municipal Assistance Corp., $ 5,273,839
New York City, Series O,
5.25%, 07/01/2007
Economically Defeased
1,250,000 MTA, New York, Transit 1,303,175
Facilities, Service Contract,
Series 7,
5.45%, 07/01/2007
Escrowed to Maturity
1,000,000 MTA, New York, Commuter 1,051,800
Facilities, Series A, MBIA,
6.00%, 07/01/2007
Escrowed to Maturity
2,400,000 MTA, New York, Transit 2,536,440
Facilities, Series K, MBIA,
6.30%, 07/01/2007
Escrowed to Maturity
325,000 New York City, New York, 341,413
Series D, MBIA-IBC,
5.25%, 08/01/2021
Prerefunded 08/01/2007 @ 101
1,635,000 New York State Thruway 1,723,797
Authority, Highway & Bridge,
Service Contract Revenue,
Series A2, MBIA,
5.25%, 04/01/2008
Escrowed to Maturity
315,000 New York City Transitional 333,635
Finance Authority, Future Tax
Secured, Series C,
5.00%, 05/01/2026
Prerefunded 05/01/2008 @ 101
10,000 New York City Transitional 10,592
Finance Authority, Future Tax
Secured, 2004, Series C,
5.00%, 05/01/2026
Prerefunded 05/01/2008 @ 101
4,185,000 New York City Transitional 4,458,322
Finance Authority, Future Tax
Secured, Series C,
5.25%, 05/01/2012
Prerefunded 05/01/2008 @ 101
1,910,000 MTA, New York, Transit 2,047,023
Facilities, Service Contract,
Series O, AMBAC,
5.75%, 07/01/2008
Escrowed to Maturity
5,000 New York State Dormitory 5,318
Authority, Mental Health
Revenue, Series D,
5.00%, 08/15/2017
Prerefunded 08/15/2008 @ 101
185,000 New York State Environmental 199,809
Facilities Corp., Clean Water
& Drinking Prerefunded
Revolving Funds, Series D,
5.15%, 10/15/2019
Prerefunded 10/15/2008 @ 102
2,330,000 New York State Urban 2,506,474
Development Corp.,
Correctional Facilities,
Series B, AMBAC,
5.25%, 01/01/2016
Prerefunded 01/01/2009 @ 101 (a)
1,800,000 Onondaga County, New York, 1,955,484
Economically Defeased,
5.70%, 04/01/2009
Escrowed to Maturity
1,865,000 New York City Transitional 2,018,247
Finance Authority, Future Tax
Secured, Series C,
5.25%, 05/01/2014
Prerefunded 05/01/2009 @ 101
500,000 New York City Transitional 541,085
Finance Authority, Future Tax
Secured, Series 1999 C,
5.25%, 05/01/2015
Prerefunded 05/01/2009 @ 101
1,485,000 New York City Municipal Water 1,634,153
Finance Authority, New York,
Series A,
6.00%, 06/15/2009
Escrowed to Maturity
1,495,000 MTA, New York, Commuter 1,652,110
Facilities, Series A, MBIA,
6.10%, 07/01/2009
Escrowed to Maturity
440,000 New York State Environmental 487,106
Facilities Corp., State
Revolving Funds, Series B,
5.875%, 07/15/2020
Prerefunded 07/15/2009 @ 101
1,045,000 New York City Transitional 1,190,098
Finance Authority, New York,
Future Tax, Series B,
6.25%, 11/15/2017
Prerefunded 05/15/2010 @ 101
2,740,000 New York City, New York, 3,149,603
Series A, XLCA,
6.50%, 05/15/2017
Prerefunded 05/15/2010 @ 101
955,000 New York State Dormitory 1,062,418
Authority, Mental Health
Services, Series D, FSA,
5.75%, 08/15/2011
Prerefunded 08/15/2010 @ 100
960,000 New York State Dormitory 1,067,981
Authority, Mental Health
Services, Series D, FSA,
5.75%, 02/15/2012
Prerefunded 08/15/2010 @ 100
2,205,000 New York State Dormitory 2,465,322
Authority, Mental Health
Services, Series D, FSA,
5.875%, 02/15/2013
Prerefunded 08/15/2010 @ 100
Schedule of Investments -- New York Municipal Portfolios 61
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,000,000 New York State Thruway $ 3,293,070
Authority Revenue, Local
Highway & Bridge Service
Contract,
5.25%, 04/01/2016
Prerefunded 04/01/2011 @ 100
5,860,000 New York State Thruway 6,432,463
Authority, Service Contract
Revenue,
5.25%, 04/01/2017
Prerefunded 04/01/2011 @ 100
6,000,000 New York State Thruway 6,586,140
Authority Revenue, Local
Highway & Bridge Service
Contract,
5.25%, 04/01/2018
Prerefunded 04/01/2011 @ 100
1,830,000 Onondaga County, New York, 2,049,820
5.70%, 04/01/2011
Escrowed to Maturity
1,490,000 New York State Environmental 1,675,550
Facilities Corp., Pollution
Control Revenue, State
Revolving Fund, New York City
Municipal Water Finance
Authority,
5.75%, 06/15/2011
Escrowed to Maturity
4,770,000 New York State Environmental 5,364,008
Facilities Corp., State Water
Revolving Fund, New York City
Municipal Water Refunding,
Series A,
5.75%, 06/15/2011
Escrowed to Maturity
2,715,000 MTA, New York, Commuter 2,985,115
Facilities Revenue, Series A,
5.25%, 07/01/2028
Prerefunded 07/01/2011 @ 100
1,640,000 New York State Dormitory 1,824,418
Authority, Lease Revenue,
State University, FGIC,
5.50%, 07/01/2017
Prerefunded 07/01/2011 @ 100
1,000,000 New York State Dormitory 1,112,450
Authority, Lease Revenue,
State University, FGIC,
5.50%, 07/01/2020
Prerefunded 07/01/2011 @ 100
1,845,000 Nassau County Interim Finance 2,045,552
Authority, New York, Sales Tax
Secured, Series A1, AMBAC,
5.375%, 11/15/2015
Prerefunded 11/15/2011 @ 100
825,000 Nassau County Interim Finance 914,678
Authority, New York, Sales Tax
Secured, Series A1, AMBAC,
5.375%, 11/15/2016
Prerefunded 11/15/2011 @ 100
1,000,000 MTA, New York, Transit 1,087,460
Facilities Revenue,
Series B-1, AMBAC,
5.00%, 07/01/2018
Prerefunded 01/01/2012 @ 100
13,995,000 Triborough Bridge & Tunnel 15,156,865
Authority, New York, Toll
Revenue, General Purpose
Senior Series,
5.50%, 01/01/2012
Escrowed to Maturity
1,400,000 New York State Dormitory 1,558,956
Authority, State University
Dormitory Facilities, Lease
Revenue,
5.375%, 07/01/2019
Prerefunded 07/01/2012 @ 100
4,670,000 Niagara Falls Bridge 5,483,934
Commission, New York,
6.30%, 10/01/2012
Escrowed to Maturity
10,240,000 New Jersey State 11,507,610
Transportation Trust Fund
Authority, Series 2003 C,
5.50%, 06/15/2021
Prerefunded 06/15/2013 @ 100
7,860,000 MTA, New York, Dedicated Tax 8,797,148
Fund, Series A, FSA,
5.25%, 04/01/2015
Prerefunded 10/01/2014 @ 100
1,000,000 New York State Dormitory 1,055,960
Authority, North General
Hospital, Secured Hospital
Program, Series G, MBIA,
5.20%, 02/15/2016
Escrowed to Maturity
9,370,000 Triborough Bridge & Tunnel 10,646,756
Authority, New York, Toll
Revenue, Series Y,
5.50%, 01/01/2017
Escrowed to Maturity
2,545,000 New York City Transitional 2,832,229
Finance Authority, Future Tax
Secured, Series B,
5.50%, 02/01/2017
Escrowed to Maturity
8,165,000 Triborough Bridge & Tunnel 8,684,457
Authority, New York, Special
Obligation, Series A, MBIA,
5.125%, 01/01/2018
Escrowed to Maturity
62 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,260,000 MTA, New York, Commuter $ 1,313,966
Facilities, Series B, AMBAC,
5.00%, 07/01/2020
Escrowed to Maturity --------------
Total Prerefunded/Escrowed (Cost $147,849,890) 155,010,109
--------------
================================================================================
INSURED: 43.41%
- --------------------------------------------------------------------------------
1,000,000 Port Authority of New York & 1,015,580
New Jersey, Consolidated
139th, FGIC,
4.50%, 10/01/2006 (b)
1,205,000 Port Authority of New York & 1,244,729
New Jersey, Special Obligation
Revenue, MBIA,
6.00%, 12/01/2006
2,000,000 New York State Dormitory 2,076,020
Authority, State University,
Series B, FGIC,
5.375%, 05/15/2007
2,565,000 New York City, New York, 2,747,756
Unrefunded Balance, Series M,
AMBAC,
7.50%, 06/01/2007
4,000,000 Westchester County Industrial 4,042,920
Development Agency, New York,
Resource Recovery Revenue,
Series A, AMBAC,
5.60%, 07/01/2007
1,265,000 New York City, New York, 1,360,115
Series B, AMBAC,
7.25%, 08/15/2007
3,765,000 MTA, New York, Transportation 3,961,571
Revenue, Refunding, Series E,
MBIA,
5.50%, 11/15/2007
1,560,000 New York City Transportation 1,641,338
Authority, Certificates of
Participation, Series A,
AMBAC,
5.50%, 01/01/2008
1,345,000 Babylon, New York, Series A, 1,521,760
AMBAC,
9.20%, 01/15/2008
1,000,000 New York State Dormitory 1,044,100
Authority, Brookdale Hospital
Revenue, Refunding, Series J,
AMBAC,
5.125%, 02/15/2008
2,060,000 Longwood Central School 2,131,297
District, New York, FGIC,
4.50%, 03/15/2008
2,750,000 New York State Thruway 2,892,588
Authority, Highway & Bridge
Trust Fund, Series A, FSA,
5.25%, 04/01/2008
525,000 New York State Thruway 552,221
Authority, Service Contract
Revenue, Series A-2, MBIA,
5.25%, 04/01/2008
1,000,000 Suffolk County Waterworks 1,051,350
Authority, New York, MBIA,
5.10%, 06/01/2008
4,575,000 New York State, Series B, 4,645,821
AMBAC,
5.625%, 08/15/2008
11,570,000 Port Authority of New York & 12,206,928
New Jersey, Consolidated 126th
Series, FGIC,
5.25%, 11/15/2008
2,090,000 Port Authority of New York & 2,242,716
New Jersey, Special Obligation
Revenue, MBIA,
6.25%, 12/01/2008
7,985,000 MTA, New York, Service 8,441,183
Contract, Series B, FGIC,
5.00%, 01/01/2009
1,900,000 New York State Dormitory 2,003,702
Authority, Lease Revenue,
Municipal Health Facilities
Improvement Program, Series 1,
FSA,
5.00%, 01/15/2009
2,750,000 New York State, Series A, FSA, 2,820,262
4.00%, 03/15/2009
1,290,000 New York State Dormitory 1,366,007
Authority, State Personal
Income Tax Revenue, Series A,
FGIC,
5.00%, 03/15/2009
9,280,000 New York State Thruway 9,833,552
Authority, Highway & Bridge
Trust Fund, Series B, AMBAC,
5.00%, 04/01/2009
4,550,000 Long Island Power Authority, 4,846,296
New York, Electric System
Revenue, Series 8, Subseries
8B-RMK, AMBAC,
5.25%, 04/01/2009 (c)
3,445,000 New York State Thruway 3,659,830
Authority, Service Contract
Revenue, Series A-2, MBIA,
5.375%, 04/01/2009
2,475,000 Erie County Industrial 2,621,619
Development Agency, New York,
School Facility Revenue,
School District of the City of
Buffalo, FSA,
5.00%, 05/01/2009
Schedule of Investments -- New York Municipal Portfolios 63
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,980,000 Suffolk County, New York, $ 2,098,681
Refunding, Series B, FSA,
5.00%, 05/01/2009
1,065,000 New York State Dormitory 1,148,624
Authority, State University
Revenue, Educational
Facilities, Series A, MBIA,
5.50%, 05/15/2009
4,055,000 New York State Dormitory 4,373,398
Authority, State University
Revenue, Series A, FGIC,
5.50%, 05/15/2009
1,005,000 New York State Dormitory 1,068,948
Authority, Jewish Board of
Family & Children, AMBAC,
5.00%, 07/01/2009
8,135,000 New York State Dormitory 8,723,811
Authority, City University
System Revenue, Consolidated
4th General Series A, MBIA,
5.25%, 07/01/2009
3,630,000 New York State Dormitory 3,875,860
Authority, City University
Revenue, Series A, AMBAC,
5.75%, 07/01/2009
2,000,000 New York State Dormitory 2,135,460
Authority, City University
Revenue, Series A, FSA,
5.75%, 07/01/2009
1,550,000 Babylon, New York, Waste 1,857,908
Facilities, FGIC,
9.00%, 08/01/2009
3,345,000 New York City, New York, 3,741,550
Series D, MBIA-IBC,
6.50%, 11/01/2009
2,000,000 MTA, New York, Dedicated Tax 2,135,200
Fund, Series A, FSA,
5.00%, 11/15/2009
6,270,000 Port Authority of New York & 6,751,034
New Jersey, Consolidated 126th
Series, FGIC,
5.50%, 11/15/2009
1,100,000 Long Island Power Authority, 1,194,094
New York, Electric System
Revenue, Series A, AMBAC,
5.50%, 12/01/2009
1,090,000 Nassau County, New York, 1,179,663
Series G, MBIA,
5.40%, 01/15/2010
1,125,000 Hempstead Town, New York, 1,173,386
Series A, MBIA,
4.50%, 02/01/2010
1,285,000 New York City Transitional 1,373,871
Finance Authority, New York,
Future Tax Secured, Series E,
MBIA-IBC,
5.00%, 02/01/2010
9,475,000 New York City Health & 10,096,181
Hospital Corp., Health System
Revenue, Refunding, Series A,
AMBAC,
5.00%, 02/15/2010
3,150,000 New York State Dormitory 3,406,001
Authority, State Personal
Income Tax Revenue, Series A,
FGIC,
5.25%, 03/15/2010
3,290,000 Long Island Power Authority, 3,518,721
New York, Electric System
Revenue, AMBAC,
5.00%, 04/01/2010
1,050,000 New York State Thruway 1,129,611
Authority, Local Highway &
Bridge Service Contract, MBIA,
5.10%, 04/01/2010
2,220,000 Erie County Industrial 2,376,954
Development Agency, New York,
School Facility Revenue,
School District of the City of
Buffalo, FSA,
5.00%, 05/01/2010
1,145,000 New York State Dormitory 1,232,295
Authority, New York,
University Revenue, Series A,
MBIA,
5.00%, 07/01/2010
6,680,000 MTA, New York, Service 7,328,695
Contract, Series B, FGIC,
5.50%, 07/01/2010
1,120,000 Nassau County, New York, 1,223,622
Combined Sewer Districts,
Series A, AMBAC,
5.50%, 07/01/2010
10,150,000 MTA, New York, Transportation 10,945,253
Revenue, Refunding, Series E,
MBIA,
5.00%, 11/15/2010
4,235,000 Nassau County Interim Finance 4,566,812
Authority, New York, Sales Tax
Secured, Series A, AMBAC,
5.00%, 11/15/2010
12,530,000 Port Authority of New York & 13,650,182
New Jersey, Consolidated 126th
Series, FGIC,
5.50%, 11/15/2010
7,950,000 Yonkers, New York, Refunding, 8,519,299
Series A, MBIA,
5.00%, 12/01/2010
8,380,000 New York State Thruway 9,030,540
Authority, General Revenue,
Series F, AMBAC,
5.00%, 01/01/2011
64 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,310,000 New York State Urban $ 2,511,062
Development Corp.,
Correctional Refunding,
Series A, XLCA,
5.25%, 01/01/2011
3,870,000 New York State Thruway 4,171,318
Authority, State Personal
Income Tax Revenue,
Series A, FSA,
5.00%, 03/15/2011
4,405,000 New York State Dormitory 4,856,557
Authority, State Personal
Income Tax, Education,
Series A, MBIA,
5.50%, 03/15/2011
9,360,000 New York State Local 10,084,651
Government Assistance Corp.,
Refunding, Subordinated Lien,
Series A-1, FSA,
5.00%, 04/01/2011
3,000,000 New York State Thruway 3,235,380
Authority, Highway & Bridge
Trust Fund, Series B, FSA,
5.00%, 04/01/2011
4,085,000 Long Island Power Authority, 4,305,386
New York, Electric System
Revenue, MBIA,
5.125%, 04/01/2011
3,675,000 New York State Thruway 4,008,947
Authority, Second General
Highway and Bridge Trust Fund,
Series B, AMBAC,
5.25%, 04/01/2011
4,625,000 New York State Thruway 5,045,274
Authority, Highway & Bridge
Trust Fund, Refunding,
Series C, MBIA-IBC,
5.25%, 04/01/2011
6,485,000 New York State Dormitory 7,291,345
Authority, State University
Educational Facilities,
Series A, MBIA-IBC,
5.875%, 05/15/2011
6,025,000 New York City Municipal Water 6,513,507
Finance Authority, New York,
Water & Sewer System Revenue,
Series D, FSA,
5.00%, 06/15/2011
1,580,000 New York State Dormitory 1,709,007
Authority, New York,
University Revenue,
Series B, MBIA-IBC,
5.00%, 07/01/2011
1,085,000 New York State Dormitory 1,156,903
Authority, New York, Medical
College, MBIA,
5.25%, 07/01/2011
1,000,000 Nassau County, New York, 1,126,690
Series A, AMBAC,
6.00%, 07/01/2011
1,030,000 New York City, New York, 1,148,759
Series F, MBIA-IBC,
5.75%, 08/01/2011
6,395,000 New York City, New York, 7,132,343
Series G, MBIA-IBC,
5.75%, 08/01/2011
45,000 New York State Dormitory 49,424
Authority, Unrefunded Portion,
Mental Health Services,
Series D, FSA,
5.75%, 08/15/2011
1,865,000 MTA, New York, Dedicated Tax 2,020,858
Fund, Series A, MBIA,
5.00%, 11/15/2011
40,000 New York State Dormitory 43,933
Authority, Unrefunded Portion,
Mental Health Services,
Series D, FSA,
5.75%, 02/15/2012
1,000,000 New York State Thruway 1,083,980
Authority, Second General
Highway and Bridge Trust Fund,
Series B, FSA,
5.00%, 04/01/2012
8,120,000 New York City Municipal Water 9,277,181
Finance Authority, Water &
Sewer System Revenue,
Series A, AMBAC,
5.875%, 06/15/2012
1,540,000 New York State Dormitory 1,744,343
Authority, New York,
University Series A, MBIA,
5.75%, 07/01/2012
1,000,000 Nassau County, New York, 1,139,210
Series A, FGIC,
6.00%, 07/01/2012
2,410,000 Yonkers, New York, Series A, 2,604,800
MBIA,
5.00%, 08/01/2012
11,630,000 New York City, New York, 12,744,154
Series B, FSA,
5.25%, 08/01/2012
1,100,000 Albany County, New York, FGIC, 1,190,871
5.00%, 10/01/2012
4,930,000 New York State Thruway 5,349,789
Authority, General Revenue,
Series F, AMBAC,
5.00%, 01/01/2013
3,680,000 MTA, New York, Service 4,109,456
Contract, Series B, MBIA,
5.50%, 01/01/2013
Schedule of Investments -- New York Municipal Portfolios 65
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,880,000 New York State Dormitory $ 1,984,509
Authority, Municipal Health
Facilities, Series 1, FSA,
5.125%, 01/15/2013
1,110,000 New York State Dormitory 1,176,822
Authority, Mental Health,
Series D, MBIA,
5.25%, 02/15/2013
100,000 New York State Dormitory 110,339
Authority, Unrefunded Portion,
Mental Health Services,
Series D, FSA,
5.875%, 02/15/2013
3,895,000 New York State Local 4,236,825
Government Assistance Corp.,
Refunding, Subordinated Lien,
Series A-1, FSA,
5.00%, 04/01/2013
5,935,000 New York State Thruway 6,455,856
Authority, Second General
Highway and Bridge Trust Fund,
Series B, FGIC,
5.00%, 04/01/2013
3,200,000 New York State Thruway 3,532,832
Authority, Second General
Highway and Bridge Trust Fund,
Series A, MBIA,
5.25%, 04/01/2013
7,985,000 New York City Industrial 8,310,309
Development Agency, New York,
Civic Facility Revenue, Magen
David Yeshivah Project, ACA,
4.99%, 06/15/2013
1,535,000 New York City Municipal Water 1,768,903
Finance Authority, New York,
Series A, AMBAC,
5.875%, 06/15/2013
1,135,000 New York State Dormitory 1,250,475
Authority, City University
System, Series 1, FSA,
5.75%, 07/01/2013
1,000,000 Nassau County, New York, 1,149,860
Series A, FGIC,
6.00%, 07/01/2013
17,945,000 New York City Transitional 19,559,691
Finance Authority, New York,
Series D-2, FGIC,
5.00%, 11/01/2013
6,975,000 New York City Transitional 7,795,748
Finance Authority, New York,
Series A, FGIC,
5.50%, 11/01/2013
4,145,000 Nassau County Interim Finance 4,519,460
Authority, New York, Series A,
AMBAC,
5.00%, 11/15/2013
2,660,000 MTA, New York, Dedicated Tax 2,946,535
Fund, Series A, MBIA,
5.25%, 11/15/2013
1,140,000 New York State Dormitory 1,199,519
Authority, Brookdale Hospital,
Secured Hospital Program,
MBIA,
5.20%, 02/15/2014
22,210,000 New York State Thruway 24,229,333
Authority, Second General
Highway and Bridge Trust Fund,
Series B, FSA,
5.00%, 04/01/2014
1,000,000 New York State Urban 1,076,490
Development Corp., Community
Enhancement Facilities, AMBAC,
5.125%, 04/01/2014
1,120,000 Erie County Industrial 1,222,648
Development Agency, New York,
School Facility Revenue, City
School District, Buffalo
Project, FSA,
5.00%, 05/01/2014
6,355,000 New York State Dormitory 6,946,841
Authority, State University
Dormitory Facilities,
Series A, MBIA,
5.00%, 07/01/2014
3,930,000 New York State Dormitory 4,130,627
Authority, Secured Hospital
Program, Series E, MBIA,
5.20%, 02/15/2015
1,355,000 New York State Local 1,433,522
Government Assistance Corp.,
Series A, FGIC,
5.00%, 04/01/2015
4,725,000 New York State Dormitory 5,178,647
Authority, State University
Dormitory Facilities,
Series A, MBIA,
5.00%, 07/01/2015
1,355,000 Port Authority of New York & 1,411,504
New Jersey, Consolidated 117th
Series, FGIC, AMT,
5.125%, 11/15/2015
765,000 Nassau County Interim Finance 842,387
Authority, New York, Sales Tax
Secured, Series A1, AMBAC,
5.375%, 11/15/2015
2,220,000 Long Island Power Authority, 2,338,948
New York, Electric System
Revenue, Series A, FSA,
5.00%, 12/01/2015
5,820,000 New York State Dormitory 6,083,297
Authority, Revenue, Wyckoff
Heights, Series H, MBIA,
5.20%, 02/15/2016
66 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 5,905,000 New York State Dormitory $ 6,575,985
Authority, State University
Educational Facilities,
Series 1989, MBIA,
6.00%, 05/15/2016
2,240,000 New York City, New York, 2,344,138
Series B, FSA,
5.25%, 08/01/2016
335,000 Nassau County Interim Finance 367,924
Authority, New York, Sales Tax
Secured, Series A1, AMBAC,
5.375%, 11/15/2016
1,310,000 New York State Thruway 1,362,741
Authority, Highway & Bridge
Trust Fund, Series B, FSA,
5.00%, 04/01/2017
2,045,000 New York State, Series D, 2,171,954
AMBAC,
5.00%, 07/15/2017
4,855,000 New York State Dormitory 5,107,606
Authority, Mental Health,
Series D, MBIA,
5.00%, 08/15/2017
1,900,000 New York State Thruway 2,043,545
Authority, State Personal
Income Tax Revenue,
Series 2005 A, FSA,
5.00%, 03/15/2018
1,120,000 New York State Thruway 1,224,821
Authority, Highway & Bridge
Trust Fund, Series A, FGIC,
5.00%, 04/01/2018
1,000,000 New York State Dormitory 1,075,170
Authority, Winthrop University
Hospital Associates, Series A,
AMBAC,
5.25%, 07/01/2018
1,000,000 New York State Dormitory 1,194,710
Authority, New York,
University Series A, MBIA,
6.00%, 07/01/2018
2,720,000 New York State Housing Finance 2,888,450
Agency, Service Contract
Obligation Revenue, Series C,
MBIA-IBC,
5.50%, 09/15/2018
5,325,000 MTA, New York, Revenue, 5,915,756
Refunding, Series A, AMBAC,
5.50%, 11/15/2018
2,310,000 New York State Environmental 2,503,370
Facilities Corp., Personal
Income Tax Revenue, Series A,
FGIC,
5.25%, 01/01/2019
1,780,000 New York State Dormitory 1,887,316
Authority, Mental Health
Services, Series C, MBIA,
5.25%, 02/15/2019
2,500,000 New York State Thruway 2,649,625
Authority, State Personal
Income Tax Revenue, Series A,
MBIA,
5.00%, 03/15/2019
1,325,000 New York State Dormitory 1,425,303
Authority, South Nassau
Community Hospital, Series B,
AMBAC,
5.25%, 07/01/2019
1,030,000 New York State Environmental 1,112,184
Facilities Corp., Personal
Income Tax Revenue, Series A,
FGIC,
5.25%, 01/01/2020
3,000,000 New York City Transitional 3,218,100
Finance Authority, Future Tax
Secured, Series C, AMBAC,
5.25%, 08/01/2020
6,265,000 New York State Urban 6,730,615
Development Corp., State
Personal Income Tax Revenue,
Series 2005 A-1, AMBAC,
5.00%, 12/15/2020
2,000,000 New York City Transitional 2,149,340
Finance Authority, Series E,
MBIA,
5.25%, 02/01/2021
5,150,000 New York State Dormitory 5,470,021
Authority, Mental Health
Services, Series D, FGIC,
5.00%, 02/15/2021
1,055,000 New York State Thruway 1,119,376
Authority, General Highway &
Bridge Trust Fund, Series A,
MBIA,
5.00%, 04/01/2021
10,175,000 Puerto Rico Commonwealth, 10,689,346
Refunding, Public Improvement,
Series C, FSA,
5.00%, 07/01/2021
895,000 New York City, New York, 921,787
Series D, MBIA-IBC,
5.25%, 08/01/2021
7,910,000 New York State Thruway 8,398,996
Authority, State Personal
Income Tax Revenue, Series A,
FSA,
5.00%, 03/15/2022
1,000,000 New York City Municipal Water 1,037,900
Finance Authority, New York,
Series A, AMBAC,
5.125%, 06/15/2022
Schedule of Investments -- New York Municipal Portfolios 67
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,500,000 Long Island Power Authority, $ 2,628,750
New York, Electric System
Revenue, Series A, FSA,
5.125%, 12/01/2022
4,910,000 New York State Dormitory 5,183,929
Authority, Mental Health
Services, Series B, AMBAC,
5.00%, 02/15/2023
5,665,000 New York State Thruway 6,012,888
Authority, State Personal
Income Tax Revenue, Series A,
AMBAC,
5.00%, 03/15/2023
1,000,000 New York City Transitional 1,054,860
Finance Authority, New York,
Future Tax Secured, Series B,
AMBAC,
5.00%, 08/01/2023
1,240,000 New York City, New York, 1,285,483
Series J, MBIA,
5.00%, 08/01/2023
7,665,000 New York State Dormitory 8,092,630
Authority, Mental Health
Services, Series D, FGIC,
5.00%, 08/15/2023
5,300,000 Long Island Power Authority, 5,636,921
New York, Electric System
Revenue, Series A, MBIA-IBC,
5.50%, 12/01/2023
1,000,000 New York State Environmental 1,062,010
Facilities Corp., State
Environment, Series A, FGIC,
5.00%, 12/15/2023
1,000,000 New York State Thruway 1,057,260
Authority, Second General
Highway and Bridge Trust Fund,
Series A, MBIA,
5.00%, 04/01/2024
1,520,000 Erie County Industrial 1,719,637
Development Agency, School
Facility Revenue, City School
District, Buffalo Project, FSA,
5.75%, 05/01/2024
4,485,000 New York City Municipal Water 4,752,530
Finance Authority, New York,
Water & Sewer System Revenue,
Series B, AMBAC,
5.00%, 06/15/2024
15,000,000 Sales Tax Asset Receivable 15,905,250
Corp., Refunding, Series A,
MBIA,
5.00%, 10/15/2024
4,135,000 Puerto Rico Public Finance 4,512,608
Corp., Commonwealth
Appropriated, Series A, AMBAC,
5.25%, 08/01/2030
14,640,000 Puerto Rico Public Finance 15,976,925
Corp., Commonwealth
Appropriated, Series A, FGIC,
5.25%, 08/01/2031
17,600,000 Energy Research & Development 17,477,504
Authority, Pollution Control
Revenue, ARS Electric and Gas
Project, Series C, MBIA,
3.245%, 04/01/2034
6,680,000 Puerto Rico Public Buildings 7,226,491
Authority, Guaranteed,
Government Facilities,
Series J, AMBAC,
5.00%, 07/01/2036 (c) --------------
Total Insured (Cost $601,905,710) 609,545,725
--------------
================================================================================
TAX SUPPORTED: 28.32%
- --------------------------------------------------------------------------------
Local General Obligations: 8.02%
725,000 New York City, New York, 731,598
Unrefunded Balance, Series G,
5.75%, 02/01/2006
1,000,000 New York City, New York, 1,017,410
Series I,
6.25%, 04/15/2006
1,700,000 Schenectady, New York, Bond 1,699,099
Anticipation Notes,
5.25%, 05/26/2006
9,175,000 New York City, New York, 9,330,057
Series G,
5.00%, 08/01/2006 (a)
1,300,000 Westchester County, New York, 1,364,909
Series A,
6.75%, 02/01/2007
2,200,000 New York City, New York, 2,278,166
Series A,
5.00%, 08/01/2007
4,320,000 New York City, New York, 4,492,498
Refunding, Series G,
5.25%, 08/01/2007
500,000 New York City, New York, 522,165
Series 98F,
5.50%, 08/01/2007
3,600,000 New York City, New York, 3,767,436
Series 04G,
5.00%, 08/01/2008
1,775,000 New York City, New York, 1,857,555
Series I,
5.00%, 08/01/2008
800,000 Onondaga County, New York, 865,248
Unrefunded Balance,
5.70%, 04/01/2009
15,095,000 New York City, New York, 15,958,736
Series G,
5.00%, 08/01/2009
68 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,000,000 New York City, New York, $ 2,114,440
Series I,
5.00%, 08/01/2009
1,730,000 New York City, New York, 1,844,370
Series A,
5.25%, 08/01/2009
18,135,000 New York City, New York, 19,495,125
Series G,
5.50%, 08/01/2009
5,640,000 New York City, New York, 5,977,723
Series J,
5.00%, 03/01/2010
4,130,000 New York City, New York, 4,398,739
Series A,
5.00%, 08/01/2010
2,615,000 New York City, New York, 2,785,158
Series B,
5.00%, 08/01/2010
1,100,000 New York City, New York, 1,171,577
Series B,
5.00%, 08/01/2010
1,540,000 New York City, New York, 1,640,208
Series G,
5.00%, 08/01/2010
5,265,000 New York City, New York, 5,607,593
Series I,
5.00%, 08/01/2010
770,000 Onondaga County, New York, 856,363
Unrefunded Balance,
5.70%, 04/01/2011
1,000,000 New York City, New York, 1,069,640
Series H,
5.00%, 08/01/2011
3,845,000 New York City, New York, 4,124,570
Series G,
5.00%, 08/01/2012
6,275,000 New York City, New York, 6,862,466
Subseries F-1,
5.25%, 09/01/2014
3,335,000 New York City, New York, 3,561,547
Series F,
5.25%, 08/01/2016
5,705,000 New York City, New York, 6,120,210
Series A,
5.25%, 08/01/2017
1,000,000 New York City, New York, 1,091,960
Series C,
5.50%, 09/15/2019 --------------
Total Local General Obligations (Cost $112,016,873) 112,606,566
--------------
Tax Lease: 8.10%
4,240,000 New York State Dormitory 4,342,184
Authority, City University
System Revenue, Consolidated
5th General, Series A,
5.00%, 01/01/2007
2,000,000 New York State Dormitory 2,049,380
Authority, Mental Health
Services Facilities, Series D-1,
5.00%, 02/15/2007
14,765,000 Tobacco Settlement Financing 15,216,218
Corp., New York, Tobacco
Settlement, Asset-Backed,
Series A-1,
5.00%, 06/01/2007
1,015,000 New York State Dormitory 1,054,595
Authority, City University,
Series 2,
5.75%, 07/01/2007
1,130,000 New York State Housing Finance 1,164,341
Agency, Health Facilities, New
York City, Series A,
6.00%, 11/01/2007
3,770,000 New York State Dormitory 3,923,854
Authority, Mental Health
Services Facilities,
Series C-1,
5.00%, 02/15/2008
3,775,000 New York State Dormitory 3,962,693
Authority, Mental Health
Services Facilities,
Series C-1,
5.00%, 02/15/2009
2,000,000 New York State Dormitory 2,099,440
Authority, Mental Health
Services Facilities, Series D-1,
5.00%, 02/15/2009
460,000 New York State Dormitory 483,290
Authority, Mental Health
Services, Series A,
5.70%, 02/15/2009
1,505,000 New York State Dormitory 1,648,411
Authority, Mental Health
Services Facilities, Series B,
6.50%, 02/15/2009
1,605,000 New York State Housing Finance 1,692,055
Agency, Service Contract
Revenue, Series K,
5.00%, 03/15/2009
4,780,000 New York State Thruway 5,039,267
Authority, Local Highway &
Bridge Service Contract,
Series A,
5.00%, 03/15/2009
5,775,000 New York State Thruway 6,092,105
Authority Revenue, Local
Highway & Bridge Service
Contract,
5.00%, 04/01/2009
Schedule of Investments -- New York Municipal Portfolios 69
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,485,000 Tobacco Settlement Financing $ 3,672,563
Corp., New York, Tobacco
Settlement, Asset-Backed,
Series A-1,
5.00%, 06/01/2009
1,125,000 New York State Dormitory 1,199,453
Authority, City University,
Series A,
5.75%, 07/01/2009
2,825,000 New York State Dormitory 2,992,551
Authority, Mental Health
Services Facilities, Series C-1,
5.00%, 02/15/2010
1,490,000 Triborough Bridge & Tunnel 1,660,009
Authority, New York,
Convention Center, Series E,
6.00%, 01/01/2011
3,440,000 New York State Thruway 3,773,646
Authority, Local Highway &
Bridge Service Contract
Revenue,
5.50%, 04/01/2011
9,700,000 Tobacco Settlement Financing 9,825,227
Corp., New York, Tobacco
Settlement, Asset-Backed,
Series A-1,
5.00%, 06/01/2011
3,660,000 New York State Thruway 4,048,070
Authority, Local Highway &
Bridge Service Contract,
Series 2002 C,
5.50%, 04/01/2012
1,000,000 New York State Dormitory 1,065,900
Authority, Westchester County
Court Facilities, AMBAC
Surety,
5.125%, 08/01/2012
1,115,000 New York State Dormitory 1,192,827
Authority, Westchester County
Court Facilities, AMBAC
Surety,
5.25%, 08/01/2013
16,465,000 Tobacco Settlement Financing 17,596,639
Corp., New York, Tobacco
Settlement, Asset-Backed,
Series C-1,
5.50%, 06/01/2014
2,090,000 New York State Dormitory 2,229,758
Authority, Westchester County
Court Facilities, AMBAC
Surety,
5.25%, 08/01/2017
9,915,000 New York State Urban 10,466,274
Development Corp.,
Correctional & Youth
Facilities Services, Series A,
5.25%, 01/01/2021
4,860,000 New York State Dormitory 5,253,611
Authority, State University,
5.25%, 11/15/2023 (c) --------------
Total Tax Lease (Cost $113,601,195) 113,744,361
--------------
Special Tax: 12.20%
2,645,000 South Tahoe Joint Powers 2,645,000
Financing Authority,
California, Bond Anticipation
Notes, Redevelopment Project 1-B,
3.50%, 10/01/2005
3,945,000 West Villages Improvement 3,944,527
District, Florida, Bond
Anticipation Notes, Unit of
Development Number, Series 2,
5.00%, 02/01/2006
1,550,000 Monterra Community Development 1,553,332
District, Florida, Bond
Anticipation Notes,
5.00%, 06/01/2006
1,600,000 Shingle Creek, Florida, Bond 1,603,488
Anticipation Notes,
5.125%, 08/01/2006
1,365,000 New York State Local 1,404,858
Government Assistance Corp.,
Refunding, Subordinated Lien,
Series A-2,
5.00%, 04/01/2007
220,000 Fishhawk Community Development 220,816
District No. 2, Florida,
Special Assessment Revenue,
Series B,
5.00%, 11/01/2007
2,300,000 Meadow Pointe IV Community 2,311,569
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.125%, 11/01/2007
1,800,000 Reunion East Community 1,811,160
Development District, Florida,
Special Assessment,
5.20%, 11/01/2007
920,000 Meadow Pointe III Community 927,139
Development District, Florida,
Capital Improvement, Series B,
5.25%, 11/01/2007
930,000 Vizcaya Community Development 936,938
District, Florida, Special
Assessment, Series B,
5.40%, 11/01/2007
70 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,035,000 New York State Local $ 3,192,456
Government Assistance Corp.,
Series A,
6.00%, 04/01/2008
1,455,000 Village Community Development 1,463,381
District No. 5, Florida,
Special Assessment Revenue,
Series B,
5.00%, 05/01/2008
6,060,000 New York City Transitional 6,392,876
Finance Authority, Series C,
5.00%, 02/15/2009
930,000 Middle Village Community 936,222
Development District, Florida,
Special Assessment, Series B,
5.00%, 05/01/2009
1,240,000 Overoaks Community Development 1,244,526
District, Florida, Capital
Improvement Revenue, Series B,
5.125%, 05/01/2009
2,945,000 Clark County Special 2,959,107
Improvement District No. 142,
Nevada,
4.75%, 08/01/2009
1,060,000 Live Oak Community Development 1,062,269
District Number 002, Florida,
Special Assessment, Series B,
5.00%, 11/01/2009
10,000,000 New York City Transitional 10,658,300
Finance Authority, Future Tax
Secured, Subseries D-1,
5.00%, 11/01/2009
1,720,000 Fishhawk Community Development 1,727,430
District No. 2, Florida,
Special Assessment Revenue,
Series B,
5.125%, 11/01/2009
1,050,000 North Las Vegas Local 1,083,926
Improvement District No. 60,
Aliante, Nevada,
5.00%, 12/01/2009
1,880,000 New York City Transitional 2,039,725
Finance Authority, Future Tax
Secured, Series B,
5.50%, 02/01/2010
7,925,000 New York State Local 8,441,948
Government Assistance Corp.,
Refunding, Subordinated Lien,
Series A-2,
5.00%, 04/01/2010
1,295,000 Gateway Services Community 1,315,293
Development District, Florida,
Special Sun City Center Fort
Meyers Project B,
5.50%, 05/01/2010
1,905,000 Las Vegas Special Improvement 1,926,145
District No. 607, Nevada,
Local Improvement Bonds,
5.00%, 06/01/2010
940,000 Dupree Lakes Community 941,711
Development District, Florida,
5.00%, 11/01/2010
2,965,000 Monterra Community Development 2,966,690
District, Florida, Special
Assessment, Series B,
5.00%, 11/01/2010
7,800,000 New York City Transitional 8,388,042
Finance Authority, Future Tax
Secured, Subseries D-1,
5.00%, 11/01/2010
990,000 Sterling Hill Community 1,002,335
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.50%, 11/01/2010
990,000 North Las Vegas Local 1,022,185
Improvement District No. 60,
Aliante, Nevada,
5.25%, 12/01/2010
1,300,000 Concorde Estates Community 1,305,434
Development District, Florida,
Capital Improvement Revenue,
Series B,
5.00%, 05/01/2011
2,635,000 Hammock Bay Community 2,638,979
Development District, Florida,
Special Assessment Revenue,
Series B,
5.375%, 05/01/2011
7,215,000 New York City Transitional 7,806,341
Finance Authority, New York,
Future Tax Secured, Series A-1,
5.00%, 11/01/2011
550,000 Henderson Local Improvement 549,054
Districts No. T-16, Nevada,
4.625%, 03/01/2012
1,200,000 Venetian Community Development 1,251,252
District, Florida, Capital
Improvement Revenue, Series B,
5.95%, 05/01/2012
1,220,000 Las Vegas Special Improvement 1,249,817
District No. 607, Nevada,
Local Improvement Bonds,
5.35%, 06/01/2012
4,940,000 New York City Transitional 5,426,936
Finance Authority, Future Tax
Secured, Series C,
5.25%, 02/01/2013
Schedule of Investments -- New York Municipal Portfolios 71
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,400,000 Fiddlers Creek Community $ 2,477,160
Development District No. 2,
Florida, Special Assessment
Revenue, Series B,
5.75%, 05/01/2013
2,510,000 Parkway Center Community 2,608,342
Development District, Florida,
Special Assessment, Refunding,
Series B,
5.625%, 05/01/2014
3,500,000 CFM Community Development 3,606,400
District, Florida, Revenue,
Capital Improvement, Series B,
5.875%, 05/01/2014
2,100,000 Pingree Grove, Illinois, 2,115,939
Special Service Area No. 1,
Cambridge Lakes Project,
Series 05-1,
5.25%, 03/01/2015
1,210,000 Bartram Park Community 1,213,461
Development District, Florida,
Special Assessment,
4.875%, 05/01/2015
1,415,000 New York City Transitional 1,513,880
Finance Authority, Future Tax
Secured, Series 1999 C,
5.25%, 05/01/2015
1,185,000 New York City Transitional 1,277,394
Finance Authority, Future Tax
Secured, Series B,
5.125%, 11/01/2015
8,370,000 New York City Transitional 9,172,934
Finance Authority, Future Tax
Secured, Series B,
5.50%, 02/01/2017
1,000,000 New York City Transitional 1,077,900
Finance Authority, Future Tax
Secured, Series A,
5.25%, 05/01/2017
3,350,000 New York City Transitional 3,626,408
Finance Authority, Future Tax
Secured, Series A,
5.375%, 02/15/2018
1,750,000 Celebrate Community 1,810,532
Development Authority, Special
Assessment Revenue, North
Virginia Project, Series B,
6.25%, 03/01/2018
2,615,000 New York State Housing Finance 2,802,731
Agency, State Personal Income
Tax Revenue, Economic
Development & Housing,
Series A,
5.25%, 03/15/2020
3,630,000 New York City Transitional 3,942,942
Finance Authority, Future Tax
Secured, Series C,
5.25%, 02/01/2021
5,180,000 New York State Dormitory 5,779,222
Authority, State Personal
Income Tax Revenue, Series A,
5.375%, 03/15/2021
2,825,000 New York State Housing Finance 3,020,320
Agency, State Personal Income
Tax Revenue, Series A,
5.25%, 09/15/2021
1,330,000 Beacon Tradeport Community 1,422,661
Development District, Florida,
Special Assesment Industrial
Project, Series B,
7.125%, 05/01/2022
395,000 Allegheny County, 414,829
Pennsylvania, Redevelopment
Authority Revenue, Pittsburgh
Mills Project,
5.60%, 07/01/2023
1,420,000 Midtown Miami Community 1,481,174
Development District, Special
Assessment Revenue, Series A,
6.00%, 05/01/2024
3,635,000 New York City Transitional 3,749,430
Finance Authority, Future Tax
Secured, Series C,
5.00%, 05/01/2026
17,565,000 New York City Transitional 19,279,871
Finance Authority, Series A,
5.50%, 11/01/2026 (c)
2,470,000 New York City Transitional 2,666,908
Finance Authority, Future Tax
Secured, Series B,
5.25%, 02/01/2029 --------------
Total Special Tax (Cost $168,290,937) 171,411,645
--------------
Total Tax Supported (Cost $393,909,005) 397,762,572
================================================================================
REVENUE: 14.98%
- --------------------------------------------------------------------------------
Airport Revenue: 0.09%
1,000,000 Denver City & County, 1,174,780
Colorado, Airport Revenue,
Series D, AMT,
7.75%, 11/15/2013 --------------
Total Airport Revenue (Cost $982,406) 1,174,780
--------------
Electric Revenue: 2.75%
1,270,000 California State Department 1,342,352
Water Resources, Power Supply,
Series A,
5.50%, 05/01/2008
72 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 20,105,000 California State Department $ 21,590,357
Water Resources, Power Supply,
Series A,
5.50%, 05/01/2009
7,500,000 Long Island Power Authority, 7,866,750
New York, Electric System
Revenue, Series A,
5.00%, 06/01/2009
2,430,000 North Carolina Eastern 2,563,771
Municipal Power Agency, Power
System, Refunding, Series D,
5.375%, 01/01/2010
2,270,000 North Carolina Eastern 2,398,573
Municipal Power Agency, Power
System, Refunding, Series C,
5.375%, 01/01/2017
2,680,000 New York State Power 2,858,006
Authority, Revenue, Series A,
5.00%, 11/15/2020 --------------
Total Electric Revenue (Cost $37,830,234) 38,619,809
--------------
Health Care Revenue: 1.78%
1,305,000 New York State Dormitory 1,326,898
Authority, Kateri Residence,
4.00%, 07/01/2007
715,000 Nassau County Industrial 750,014
Development Agency, New York,
North Shore Health System
Project, Series C,
5.625%, 11/01/2010
7,480,000 New York State Dormitory 7,592,200
Authority, Mt. Sinai, New York
University Health, Series C,
5.00%, 07/01/2011
70,000 New York State Medical Care 70,372
Facilities Finance Agency,
Hospital & Nursing Home
Insured Mortgage, Series A,
FHA,
6.125%, 02/15/2014
1,515,000 Montgomery County, 1,591,720
Pennsylvania, Industrial
Development Authority,
Mortgage Revenue, Whitemarsh
Continuing Care,
6.00%, 02/01/2021
3,300,000 Miami Beach, Florida, Health 3,694,614
Facilities Authority, Hospital
Revenue, Refunding, Mount
Sinai Medical Center,
6.75%, 11/15/2024
3,075,000 California Statewide Community 3,098,339
Development Authority, Kaiser
Permanente, Series E,
3.875%, 04/01/2032 (c)
6,925,000 California Statewide Community 6,838,437
Development Authority,
Revenue, Kaiser Permanente,
Series F,
2.30%, 04/01/2033 (c) --------------
Total Health Care Revenue (Cost $24,436,264) 24,962,594
--------------
Higher Education Revenue: 0.73%
1,290,000 New York State Dormitory 1,351,172
Authority, Columbia
University,
5.75%, 07/01/2007
3,655,000 New York State Dormitory 4,049,740
Authority, Columbia
University, Series A,
5.75%, 07/01/2010
2,120,000 New York City Industrial 2,127,526
Development Agency, Civic
Facilities Revenue,
Polytechnic University
Project,
5.75%, 11/01/2011
1,655,000 New York City Industrial 1,654,586
Development Agency, Civic
Facilities Revenue,
Polytechnic University
Project,
5.75%, 11/01/2012
1,045,000 New York City Industrial 1,048,302
Development Agency, Civic
Facilities Revenue,
Polytechnic University
Project,
6.00%, 11/01/2020 --------------
Total Higher Education Revenue(Cost $10,227,236) 10,231,326
--------------
Toll/Transit Revenue: 0.89%
1,045,000 Triborough Bridge & Tunnel 1,157,568
Authority, New York, Series B,
5.25%, 11/15/2013
4,575,000 New York State Bridge 4,879,741
Authority,
5.00%, 01/01/2017
5,025,000 Triborough Bridge & Tunnel 5,428,909
Authority, New York, Series A,
5.25%, 01/01/2017
1,000,000 Triborough Bridge & Tunnel 1,053,540
Authority, New York, Series A,
5.00%, 01/01/2020 --------------
Total Toll/Transit Revenue (Cost $11,971,080) 12,519,758
--------------
Water/Sewer Revenue: 6.21%
1,255,000 New York State Environmental 1,259,317
Facilities Corp., State
Revolving Fund, Series 92-B,
6.35%, 09/15/2006
Schedule of Investments -- New York Municipal Portfolios 73
================================================================================
Principal Amount Description Market Value
================================================================================
$ 15,000 New York State Environmental $ 15,246
Facilities Corp., State Water
Revolving Fund, New York City
Municipal Water, Refunding,
Series A,
5.75%, 06/15/2007
2,185,000 New York State Environmental 2,235,299
Facilities Corp., Pooled Loan,
State Revolving Fund,
Series 95-A,
5.20%, 05/15/2008
2,270,000 New York State Environmental 2,322,505
Facilities Corp., Pooled Loan,
State Revolving Fund,
Series 95-A,
5.30%, 05/15/2009
4,600,000 New York State Environmental 4,897,712
Facilities Corp., State
Revolving Fund, Series K,
5.00%, 06/15/2009
575,000 New York State Environmental 588,363
Facilities Corp., State
Revolving Fund, Series 95-A,
5.40%, 05/15/2010
1,730,000 New York State Environmental 1,789,028
Facilities Corp., State Water
Revolving Fund, Series A,
4.95%, 06/15/2010
4,670,000 New York City Municipal Water 4,997,741
Finance Authority, Series D,
5.00%, 06/15/2010
1,395,000 New York City Municipal Water 1,561,995
Finance Authority, New York,
Series A,
6.00%, 06/15/2010
8,280,000 New York State Environmental 8,973,615
Facilities Corp., State
Revolving Fund, Series K,
5.00%, 06/15/2011
1,000,000 New York City Municipal Water 1,090,130
Finance Authority, Refunding,
Series A,
5.25%, 06/15/2011
745,000 New York State Environmental 836,136
Facilities Corp., New York
City Municipal Water Finance
Authority, Series A,
5.75%, 06/15/2011
1,540,000 New York State Environmental 1,717,208
Facilities Corp., New York
City Municipal Water Finance
Project-2ND Resources,
5.25%, 06/15/2014
2,765,000 Todd Creek Farms Metropolitan 2,740,281
District No. 1, Colorado,
Water Revenue, Refunding &
Improvement,
5.60%, 12/01/2014
3,445,000 Guam Government, Waterworks 3,428,292
Authority, Certificates of
Participation,
5.18%, 07/01/2015
225,000 New York State Environmental 232,918
Facilities Corp., State Water
Revolving Fund, Series A,
5.20%, 12/15/2015
2,460,000 New York City Municipal Water 2,693,355
Finance Authority, Series D,
5.50%, 06/15/2017
1,480,000 New York State Environmental 1,560,009
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Municipal Water Finance,
Series 01-D,
5.00%, 06/15/2018
1,485,000 New York State Environmental 1,607,587
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Pooled Funding Program,
Series B,
5.375%, 11/15/2018
1,250,000 New York State Environmental 1,318,237
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Municipal Water Finance,
Series 01-D,
5.00%, 06/15/2019
2,310,000 New York State Environmental 2,455,530
Facilities Corp., State
Revolving Fund, Municipal
Water Project, Series J,
5.00%, 06/15/2019
5,065,000 New York City Municipal Water 5,440,975
Finance Authority, Series 01-D,
5.125%, 06/15/2019
1,255,000 New York State Environmental 1,341,833
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Series D,
5.15%, 10/15/2019
2,035,000 New York State Environmental 2,202,786
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Pooled Funding Program,
Series F,
5.25%, 11/15/2019
74 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 4,560,000 New York State Environmental $ 4,978,152
Facilities Corp., State
Revolving Fund, Series B,
5.875%, 07/15/2020
5,760,000 New York State Environmental 6,113,952
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Municipal Water Finance
Project,
5.00%, 06/15/2022
4,020,000 New York State Environmental 4,276,074
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Municipal Water Finance
Project,
5.00%, 06/15/2023
13,745,000 New York State Environmental 14,517,744
Facilities Corp., Clean Water
& Drinking Revolving Funds,
Municipal Water Finance
Project,
5.00%, 06/15/2025 --------------
Total Water/Sewer Revenue (Cost $85,336,750) 87,192,020
--------------
Miscellaneous Revenue: 1.11%
6,800,000 Dutchess County, New York, 6,798,300
Resource Recovery Agency,
Solid Waste Systems, Bond
Anticipation Notes,
3.65%, 12/28/2007
3,875,000 New York State Dormitory 4,124,356
Authority, Aids Long-Term
Health Care Facility,
5.00%, 11/01/2011
1,110,000 Pima County, Arizona, 1,107,170
Industrial Development
Authority, Horizon Community
Learning Center,
4.45%, 06/01/2014
1,785,000 Broad Street Community 1,974,888
Development Authority,
Virginia,
7.125%, 06/01/2015
1,600,000 Port Authority, Columbiana 1,613,920
County, Ohio, Solid Waste
Facilities Revenue, Liberty
Waste Transportation LLC
Project, Series A, AMT,
7.00%, 08/01/2021 --------------
Total Miscellaneous Revenue(Cost $15,360,714) 15,618,634
--------------
Industrial Development/Pollution Control Revenue: 1.42%
$1,495,000 New York City Industrial $1,507,722
Development Agency, Special
Facilities Revenue, Terminal
One Group Association, Limited
Partnership Project, AMT,
6.00%, 01/01/2007
4,910,000 Louisa Industrial Development 5,067,120
Authority, Virginia, Pollution
Control Revenue, Virginia
Electric & Power Co.,
5.25%, 12/01/2008 (c)
3,890,000 New York State Environmental 3,877,280
Facilities Corp., Solid Waste
Disposal Revenue, Waste
Management Project, Series A,
2.90%, 05/01/2012 (c)
2,150,000 Putnam County, West Virginia, 2,121,255
Pollution Control Revenue,
Appalachian Power Co. Project,
Series E,
2.80%, 05/01/2019 (c)
1,300,000 Gulf Coast Waste Disposal 1,297,933
Authority, Texas, Waste
Management of Texas, Series C,
3.20%, 05/01/2028 (c)
1,030,000 Beaver County Industrial 1,027,394
Development Authority,
Pennsylvania, Pollution
Control Revenue, Cleveland
Electric Project,
3.75%, 10/01/2030 (c)
5,080,000 Ohio State Air Quality 5,088,534
Development Authority,
Revenue, Cleveland Pollution
Control, Series B,
3.75%, 10/01/2030 (c) --------------
Total Industrial Development/Pollution
Control Revenue (Cost $19,858,027) 19,987,238
--------------
Total Revenue (Cost $206,002,711) 210,306,159
================================================================================
ASSET-BACKED SECURITIES: 0.60%
- --------------------------------------------------------------------------------
Housing: 0.60%
5,155,000 New York State Mortgage 5,217,891
Agency, AMT Homeowner
Mortgage, Revenue, Series 99,
4.50%, 04/01/2023
2,000,000 New York State Dormitory 2,011,180
Authority, Highland Community
Development Corp., Revenue,
Series B,
5.50%, 07/01/2023
Schedule of Investments -- New York Municipal Portfolios 75
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,230,000 New York State Mortgage $ 1,261,943
Agency, AMT Homeowner
Mortgage, Revenue, Series 69,
5.50%, 10/01/2028 --------------
Total Housing (Cost $8,399,557) 8,491,014
--------------
Total Asset-Backed Securities (Cost $8,399,557) 8,491,014
================================================================================
TAX EXEMPT VARIABLE-RATE DEMAND NOTES/SHORT-TERM NOTES: 1.08%
- --------------------------------------------------------------------------------
7,400,000 New Orleans, Louisiana, Sewage 7,326,666
Service Revenue, Bond
Anticipation Notes,
3.00%, 07/26/2006
4,100,000 New York City Municipal Water 4,100,000
Finance Authority, New York,
Series C, FGIC,
2.80%, 06/15/2022 (d)
2,100,000 Port Authority of New York & 2,100,000
New Jersey, Special Obligation
Revenue, Versatile Structure
Obligation, Series 4,
2.86%, 04/01/2024 (d)
1,600,000 New York City Transitional 1,600,000
Finance Authority, New York,
Series C,
2.79%, 05/01/2028 (d) --------------
Total Tax Exempt Variable-Rate Demand
Notes/Short-Term Notes (Cost $14,813,979) 15,126,666
--------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $1,372,880,852) (e) 99.43% $1,396,242,245
Cash and Other Assets, Less Liabilities 0.57 8,022,158
------- --------------
Net Assets 100.00% $1,404,264,403
======= ==============
================================================================================
INTEREST RATE SWAP CONTRACTS
- --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Unrealized
Notional Rate Appreciation/
Amount Description Received Rate Paid Termination Date (Depreciation)
- ------------------------------------------------------------------------------------------------------------------
$ 62,400,000 Goldman Sachs Interest Variable* 76.48% of 02/03/2006 $ (52,938)
Rate Swap 1 Month LIBOR +
62,400,000 Merrill Lynch Interest 85.10% of Variable* 02/03/2006 141,065
Rate Swap 1 Month LIBOR+
13,400,000 JP Morgan Interest 2.988% Variable* 04/05/2007 (36,770)
Rate Swap
13,700,000 Citigroup Interest 2.962% Variable* 06/22/2007 (73,478)
Rate Swap
5,250,000 Citibank Interest 3 Month LIBOR+ 4.350% 11/01/2011 56,981
Rate Swap
* Variable interest based on the BMA (Bond Market Association) Municipal
Swap Index, which fluctuates weekly.
+ Interest based on LIBOR (London Interbank Offered Rate).
76 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
=============================================================================================
CREDIT DEFAULT SWAP CONTRACT
- ---------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized
Referenced Obligation Amount Rate Termination Date Appreciation
- ---------------------------------------------------------------------------------------------
Buy Contract:
Merrill Lynch $600,000 0.15% 06/20/2010 $1,728
Commonwealth of Puerto Rico, ======
5.00%,. 07/01/2018
=================================================================================================================
FINANCIAL FUTURES CONTRACT SOLD
- -----------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized
Type Contracts Month Value September 30, 2005 Appreciation
- -----------------------------------------------------------------------------------------------------------------
Interest Rate Swap 67 December 2005 $7,483,063 $7,328,125 $154,938
10 Yr Futures ========
- --------------------------------------------------------------------------------
(a) Represents entire or partial position segregated as collateral for
interest rate swap.
(b) Represents entire or partial position segregated as collateral for open
futures contracts.
(c) Variable rate coupon, rate shown as of September 30, 2005.
(d) Represents entire of partial position segregated as collateral for when
issued and delayed delivery securities.
(e) At September 30, 2005, the cost basis of investment securities for tax
purposes was $1,372,880,852. Gross unrealized appreciation of investments
was $28,672,505 and gross unrealized depreciation of investments was
$5,311,112, resulting in net unrealized appreciation of $23,361,393
(excluding swap and future transactions).
- --------------------------------------------------------------------------------
Explanation of abbreviations:
ACA--American Capital Access
AMBAC--American Municipal Bond Assurance Corporation
AMT--Subject to Alternative Minimum Tax
FGIC--Financial Guaranty Insurance Company
FHA--Federal Housing Administration
FSA--Financial Security Assurance, Inc.
IBC--International Bancshares Corporation
MBIA--Municipal Bond Investors Assurance Corporation
MTA--Metropolitan Transportation Authority
XLCA--XL Capital Assurance, Inc.
Allocation of Portfolio Net Assets at September 30, 2005:
Arizona 0.08%
California 2.53
Colorado 0.28
Florida 3.39
Illinois 0.15
Louisiana 0.52
Nevada 0.63
New Jersey 0.82
New York 86.13
North Carolina 0.35
Ohio 0.48
Pennsylvania 0.22
Texas 0.09
Virginia 0.63
West Virginia 0.15
Guam 0.24
Puerto Rico 2.74
Cash and Other Assets, Less Liabilities 0.57
------
Total 100.00%
======
See Notes to Financial Statements.
Schedule of Investments -- New York Municipal Portfolios 77
SCBMFANNMU0905
Sanford C. Bernstein Fund, Inc.
Sanford C. Bernstein Fund II, Inc.
SEPTEMBER 30, 2005
Schedule of Investments
To the Annual Report
For the Taxable Bond
Portfolios
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Intermediate Duration
- --------------------------------------------------------------------------------
Short Duration Plus
- --------------------------------------------------------------------------------
U.S. Government Short Duration
- --------------------------------------------------------------------------------
Intermediate Duration Institutional
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc. and Sanford C. Bernstein Fund II, Inc.
Report of Independent Registered Public Accounting Firm
- --------------------------------------------------------------------------------
To the Boards of Directors and Shareholders of Sanford C. Bernstein Fund, Inc.
and Sanford C. Bernstein Fund II, Inc.
In our opinion, the statements of assets and liabilities included in the
accompanying Annual Report, including the schedules of investments contained
herein, and the related statements of operations and of changes in net assets
and the financial highlights present fairly, in all material respects, the
financial position of Intermediate Duration Portfolio, Short Duration Plus
Portfolio, and U.S. Government Short Duration Portfolio (three of the twelve
portfolios constituting Sanford C. Bernstein Fund, Inc.) and the Intermediate
Duration Institutional Portfolio (constituting Sanford C. Bernstein Fund II,
Inc.) (hereafter, collectively referred to as the "Funds") at September 30,
2005, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods presented, except for
the financial highlights of the Short Duration Retail Classes of the Short
Duration Plus Portfolio, which are presented in a separate financial report, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at September
30, 2005, by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
November 22, 2005
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Intermediate Duration Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 13.78%
- --------------------------------------------------------------------------------
$ 82,380,000 3.75%, 03/31/2007 (a) $ 81,852,274
118,455,000 3.875%, 07/31/2007 (a) 117,825,767
103,185,000 3.875%, 05/15/2010 (a) 101,689,643
73,656,030 2.00%, 07/15/2014 (a) 75,241,329
66,807,885 1.625%, 01/15/2015 (a) 66,014,541
24,195,000 4.25%, 08/15/2015 (a) 24,043,781
---------------
Total U.S. Treasury Notes (Cost $468,621,869) 466,667,335
---------------
================================================================================
U.S. TREASURY BOND: 4.65%
- --------------------------------------------------------------------------------
140,560,000 5.375%, 02/15/2031 (a) 157,471,055
---------------
Total U.S. Treasury Bond (Cost $156,295,160) 157,471,055
---------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATION: 0.84%
- --------------------------------------------------------------------------------
28,946,000 Federal National Mortgage 28,445,234
Association
3.875%, 11/17/2008 (a)
---------------
Total U.S. Government Sponsored Agency
Obligation (Cost $28,686,235) 28,445,234
---------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 0.75%
- --------------------------------------------------------------------------------
486,250 Countrywide Home Loans, Series 484,985
2003-49 Class A1,
1.64%, 12/19/2033 (a)(b)
6,000,000 Residential Funding Mortgage 5,913,780
Securities II Series 2005-HI2 Class A3,
4.46%, 05/25/2035 (a)
9,773,110 Fanniemae Grantor Trust Series 9,773,110
2005-T3 Class A1A,
3.87%, 07/25/2035 (a)(b)
9,082,768 Washington Mutual, Series 9,075,865
2005-AR2 Class 2A22,
4.05%, 01/25/2045 (a)(b)
---------------
Total Collateralized Mortgage Obligations(Cost $25,340,118) 25,247,740
---------------
================================================================================
MORTGAGE PASS-THROUGHS: 33.31%
- --------------------------------------------------------------------------------
355,771,032 Federal National Mortgage 357,582,220
Association Pool,
5.50%, 01/01/2009-02/01/2035 (a)
156,677,475 Federal National Mortgage 159,616,056
Association Pool,
6.00%, 02/01/2017-09/01/2035 (a)
18,692,289 Federal Home Loan Mortgage 19,061,722
Corp. Pool,
6.00%, 06/01/2020-03/01/2035 (a)
202,480,000 Federal National Mortgage 198,240,474
Association Pool TBA,
4.50%, 10/25/2020 (c)
96,325,000 Federal National Mortgage 96,054,134
Association Pool TBA,
5.00%, 10/25/2020 (c)
6 Federal Home Loan Mortgage 7
Corp. Pool,
8.50%, 05/01/2025 (a)
2,442 Government National Mortgage 2,658
Association Pool,
8.50%, 11/15/2026 (a)
4,097 Government National Mortgage 4,317
Association Pool,
7.00%, 10/15/2027 (a)
66,675,000 Federal National Mortgage 63,549,609
Association Pool TBA,
4.50%, 10/25/2035 (c)
106,155,000 Federal National Mortgage 106,088,653
Association Pool TBA,
5.50%, 10/25/2035 (c)
124,490,000 Federal National Mortgage 128,107,929
Association Pool TBA,
6.50%, 10/25/2035 (c)
---------------
Total Mortgage Pass-Throughs (Cost $1,135,565,997) 1,128,307,779
---------------
================================================================================
AUTOMOTIVE: 0.54%
- --------------------------------------------------------------------------------
1,775,000 Ford Motor Credit Co., 1,777,064
6.50%, 01/25/2007 (a)
5,310,000 Ford Motor Credit Co., 5,189,872
6.625%, 06/16/2008 (a)
980,000 Ford Motor Credit Co., 890,243
5.70%, 01/15/2010 (a)
2,995,000 DaimlerChrysler NA, 2,935,157
4.875%, 06/15/2010 (a)
5,150,000 Ford Motor Credit Co., 4,926,006
7.375%, 02/01/2011 (a)
2,775,000 Ford Motor Credit Co., 2,573,415
7.00%, 10/01/2013 (a)
---------------
Total Automotive (Cost $19,031,443) 18,291,757
---------------
================================================================================
BANKING: 2.22%
- --------------------------------------------------------------------------------
4,770,000 Suntrust Bank, 4,775,712
3.99%, 06/02/2009 (a)(b)
4,435,000 Wells Fargo & Co., Senior Note, 4,347,679
4.20%, 01/15/2010 (a)
4,100,000 Huntington National Bank, 4,034,577
Senior Note,
4.375%, 01/15/2010 (a)
8,595,000 JP Morgan Chase & Co., 9,300,512
6.75%, 02/01/2011 (a)
1,210,000 UFJ Bank Ltd., Subordinated Note, 1,341,656
7.40%, 06/15/2011 (a)
Schedule of Investments -- Intermediate Duration Portfolio 1
================================================================================
Principal Amount Description Market Value
================================================================================
$ 2,366,000 UFJ Finance Aruba AEC, $ 2,597,998
6.75%, 07/15/2013 (a)
16,075,000 Mizuho Financial Group Ltd., 17,401,188
8.375%, 04/27/2049,
Callable 04/27/2009 @ 100.00 (a)
2,270,000 Sumitomo Mitsui Banking Corp. 2,259,086
5.625%, 07/29/2049,
Callable 10/15/2015 @ 100 (a)(b)(d)
10,580,000 RBS Capital Trust III, 10,762,812
5.512%, 09/29/2049,
Callable 09/30/2014 @ 100.00 (a)(b)
6,460,000 Barclays Bank plc, 7,571,449
8.55%, 09/29/2049,
Callable 06/15/2011 @ 100.00 (a)(b)(d)
11,320,000 RBS Capital Trust I, 10,921,219
4.709%, 12/29/2049,
Callable 07/01/2013 @ 100.00 (a)(b)
---------------
Total Banking (Cost $74,742,356) 75,313,888
---------------
================================================================================
BROADCASTING/MEDIA: 0.93%
- --------------------------------------------------------------------------------
4,175,000 Time Warner, Inc., 4,562,799
6.875%, 05/01/2012 (a)
4,800,000 News America Holdings, 5,928,581
9.25%, 02/01/2013 (a)
3,485,000 WPP Finance Corp. 3,603,225
(United Kingdom),
5.875%, 06/15/2014 (a)
3,355,000 Lamar Media Corp., Senior 3,413,712
Subordinated Note,
6.625%, 08/15/2015,
Callable 08/15/2010 @ 103.31 (a)(d)
8,475,000 TimeWarner Entertainment Co., 10,280,065
Senior Debenture,
8.375%, 03/15/2023 (a)
3,525,000 News America Holdings, 3,664,925
6.55%, 03/15/2033 (a)
---------------
Total Broadcasting/Media (Cost $31,328,326) 31,453,307
---------------
================================================================================
BUILDING/REAL ESTATE: 0.13%
- --------------------------------------------------------------------------------
2,965,000 iStar Financial Inc., Senior Note, 2,896,082
5.15%, 03/01/2012 (a)
1,530,000 William Lyon Homes, Inc., 1,648,575
10.75%, 04/01/2013,
Callable 04/01/2008 @ 105.38 (a)
---------------
Total Building/Real Estate(Cost $4,683,992) 4,544,657
---------------
================================================================================
CABLE: 0.79%
- --------------------------------------------------------------------------------
2,115,000 British Sky Broadcasting Group plc, 2,242,008
6.875%, 02/23/2009 (a)
2,730,000 Charter Communications 2,750,475
Operating LLC, Senior Note,
8.00%, 04/30/2012 (a)(d)
3,340,000 Cox Communications, Inc., 3,160,475
4.625%, 06/01/2013 (a)
4,795,000 Comcast Corp., 4,782,523
5.30%, 01/15/2014 (a)
1,742,000 PanAmSat Corp., 1,837,810
9.00%, 08/15/2014,
Callable 08/15/2009 @ 104.50 (a)
1,930,000 DirectTV Holdings LLC, 1,915,525
6.375%, 06/15/2015,
Callable 06/15/2010 @ 103.19 (a)(d)
7,600,000 Comcast Cable Communication 10,235,589
Holdings Inc.,
9.455%, 11/15/2022 (a)
---------------
Total Cable (Cost $27,591,186) 26,924,405
---------------
================================================================================
CHEMICALS: 0.24%
- --------------------------------------------------------------------------------
4,290,000 Nell AF SARL (Luxembourg), 4,193,475
Senior Note,
8.375%, 08/15/2015,
Callable 08/15/2010 @ 104.19 (c)(d)
3,600,000 Union Carbide Corp., Debenture, 3,785,821
7.75%, 10/01/2096 (a)
---------------
Total Chemicals (Cost $7,868,010) 7,979,296
---------------
================================================================================
COMMUNICATIONS: 2.02%
- --------------------------------------------------------------------------------
6,050,000 Cox Enterprises Inc., 5,942,467
4.375%, 05/01/2008 (a)(d)
11,555,000 Telecom Italia Capital, 11,095,284
4.00%, 01/15/2010 (a)
4,030,000 Deutsche Telekom International 4,568,912
Finance BV,
8.00%, 06/15/2010 (a)
10,250,000 British Telecommunications plc, 11,868,004
8.125%, 12/15/2010 (a)
5,600,000 AT&T Corp., Senior Note, 6,307,000
7.30%, 11/15/2011 (a)(d)
20,505,000 Sprint Capital Corp., 24,131,063
8.375%, 03/15/2012 (a)
2,220,000 Qwest Communications 2,109,000
International, Inc.,
7.50%, 02/15/2014,
Callable 02/15/2020 @ 103.75 (a)
1,800,000 AT&T Corp., 2,279,250
8.00%, 11/15/2031 (a)
---------------
Total Communications (Cost $69,491,475) 68,300,980
---------------
================================================================================
COMMUNICATIONS--FIXED: 0.05%
- --------------------------------------------------------------------------------
1,055,000 Qwest Corp., 1,152,588
8.875%, 03/15/2012 (a)(d)
655,000 Hawaiian Telcom 668,100
Communications, Inc.,
9.75%, 05/01/2013,
Callable 05/01/2009 @ 104.88 (a)(d)
---------------
Total Communications--Fixed (Cost $1,802,067) 1,820,688
---------------
- --------------------------------------------------------------------------------
2 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
COMMUNICATIONS--MOBILE: 1.09%
- --------------------------------------------------------------------------------
$ 6,706,000 Cingular Wireless LLC, $ 6,787,223
5.625%, 12/15/2006 (a)
5,595,000 Telus Corp., 5,842,590
7.50%, 06/01/2007 (a)
12,520,000 New Cingular Wireless Services, Inc., 14,253,982
7.875%, 03/01/2011 (a)
1,691,000 Digicel Ltd. (Bermuda), Senior 1,750,185
Note, 9.25%, 09/01/2012,
Callable 09/01/2009 @104.63 (a)(d)
6,200,000 AT&T Wireless Services, Inc., 8,368,748
Senior Note, 8.75%, 03/01/2031 (a)
---------------
Total Communications--Mobile(Cost $35,743,481) 37,002,728
---------------
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.23%
- --------------------------------------------------------------------------------
6,630,000 Hutchison Whampoa 7,658,313
International Ltd.,
7.45%, 11/24/2033 (a)(d)
---------------
Total Conglomerate/Miscellaneous(Cost $6,771,680) 7,658,313
---------------
================================================================================
CONSUMER MANUFACTURING: 0.23%
- --------------------------------------------------------------------------------
2,800,000 Fortune Brands Inc., 2,741,267
2.875%, 12/01/2006 (a)
1,990,000 Visant Corp., 2,009,900
7.625%, 10/01/2012,
Callable 10/01/2008 @ 103.81 (a)
3,100,000 Acco Brands Corp., Senior 3,069,000
Subordinated Note,
7.625%, 08/15/2015,
Callable 08/15/2010 @ 103.81 (a)(d)
---------------
Total Consumer Manufacturing(Cost $7,925,370) 7,820,167
---------------
================================================================================
ENERGY: 0.91%
- --------------------------------------------------------------------------------
2,100,000 Duke Energy Field Services Corp., 2,361,106
7.875%, 08/16/2010 (a)
715,000 Hilcorp Energy I LP, Senior Note, 786,500
10.50%, 09/01/2010,
Callable 09/01/2007 @ 105.25 (a)(d)
1,770,000 Amerada Hess Corp., 1,912,467
6.65%, 08/15/2011 (a)
6,055,000 Valero Energy Corp., 6,648,705
6.875%, 04/15/2012 (a)
3,310,000 Enterprise Products Operating 3,298,352
LP, Series B,
5.60%, 10/15/2014 (a)
6,230,000 Conoco Inc., Senior Note, 7,583,692
6.95%, 04/15/2029 (a)
4,590,000 Amerada Hess Corp., 5,629,667
7.875%, 10/01/2029 (a)
2,270,000 Valero Energy Corp., 2,739,915
7.50%, 04/15/2032 (a)
---------------
Total Energy (Cost $29,007,660) 30,960,404
---------------
================================================================================
FINANCIAL: 4.55%
- --------------------------------------------------------------------------------
2,945,000 CIT Group Inc., Medium-Term Note, 2,952,754
4.02%, 05/18/2007 (a)(b)
22,130,000 General Electric Capital 22,152,351
Corp., Medium-Term Note,
3.98%, 06/22/2007 (a)(b)
1,865,000 Boeing Capital Corp., Senior Note, 1,870,095
4.75%, 08/25/2008 (a)
8,840,000 Household Finance Corp., 9,282,698
6.50%, 11/15/2008 (a)
9,990,000 American General Finance 9,891,139
Corp., Medium-Term Note,
4.625%, 05/15/2009 (a)
3,435,000 Citigroup Inc., 3,440,541
3.94%, 06/09/2009 (a)(b)
36,156,000 Dow Jones Cdx, High Yield 36,201,195
Series 4-T3,
8.00%, 06/29/2010 (a)
5,700,000 Berkshire Hathaway Finance Corp., 5,563,901
4.20%, 12/15/2010 (a)
6,600,000 CountryWide Home Loans Inc., 6,269,908
Medium-Term Note, Series L,
4.00%, 03/22/2011 (a)
6,275,000 General Electric Capital Corp., 6,144,367
4.375%, 11/21/2011 (a)
6,035,000 CIT Group Inc., Senior Note, 6,918,102
7.75%, 04/02/2012 (a)
2,855,000 Household Finance Corp., 3,159,580
7.00%, 05/15/2012 (a)
2,884,000 Capital One Bank, Subordinated Note, 3,093,745
6.50%, 06/13/2013 (a)
4,790,000 Goldman Sachs Group Inc., 4,680,577
4.75%, 07/15/2013 (a)
18,963,000 Citigroup, Inc., Subordinated Note, 18,860,619
5.00%, 09/15/2014 (a)
2,695,000 SLM Corp., Medium-Term Note, 2,700,266
5.05%, 11/14/2014 (a)
3,450,000 Goldman Sachs Group Inc., 3,439,322
5.125%, 01/15/2015 (a)
3,795,000 Resona Preferred Global 3,928,819
Securities (Cayman),
7.191%, 07/30/2015,
Callable 07/30/2015 @ 100 (a)(b)(d)
3,310,000 CBA Capital Trust I, 3,427,902
5.805%, 12/31/2049,
Callable 07/30/2015 @ 100.00 (a)(d)
---------------
Total Financial (Cost $151,036,848) 153,977,881
---------------
================================================================================
FOOD/BEVERAGE: 0.31%
- --------------------------------------------------------------------------------
1,834,000 ConAgra Foods Inc., 2,052,176
7.875%, 09/15/2010 (a)
Schedule of Investments -- Intermediate Duration Portfolio 3
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,225,000 ConAgra Foods Inc., $ 1,317,205
6.75%, 09/15/2011 (a)
6,900,000 Kraft Foods Inc., 6,976,197
5.25%, 10/01/2013 (a)
---------------
Total Food/Beverage (Cost $10,475,450) 10,345,578
---------------
================================================================================
GAMING: 0.10%
- --------------------------------------------------------------------------------
1,110,000 Riviera Holdings Corp., 1,198,800
11.00%, 06/15/2010,
Callable 06/15/2006 @ 105.50 (a)
2,096,000 Seneca Gaming Corp., 2,148,400
7.25%, 05/01/2012,
Callable 05/01/2008 @ 103.63 (a)(d)
---------------
Total Gaming (Cost $3,218,951) 3,347,200
---------------
================================================================================
HEALTHCARE: 0.36%
- --------------------------------------------------------------------------------
1,796,000 Wellpoint Inc., 1,759,453
3.75%, 12/14/2007 (a)
1,157,000 Concentra Operating Corp., 1,203,280
9.125%, 06/01/2012,
Callable 06/01/2008 @ 104.56 (a)
5,326,000 Wyeth, 5,457,707
5.50%, 02/01/2014 (a)
3,550,000 Humana Inc., Senior Note, 3,781,531
6.30%, 08/01/2018 (a)
---------------
Total Healthcare (Cost $11,988,304) 12,201,971
---------------
================================================================================
INDUSTRIAL: 0.30%
- --------------------------------------------------------------------------------
1,055,000 Case New Holland Inc., 1,115,663
9.25%, 08/01/2011,
Callable 08/01/2007 @ 104.62 (a)
6,335,000 Tyco International Group SA, 6,752,362
6.375%, 10/15/2011 (a)
1,278,000 H&E Equipment Services LLC, 1,431,360
11.125%, 06/15/2012,
Callable 06/15/2007 @ 105.56 (a)
868,000 Teck Cominco Ltd., 864,354
5.375%, 10/01/2015 (a)
---------------
Total Industrial (Cost $10,222,108) 10,163,739
---------------
================================================================================
INSURANCE: 1.11%
- --------------------------------------------------------------------------------
4,125,000 MetLife Inc., 4,102,156
5.00%, 11/24/2013 (a)
3,825,000 Assurant Inc., 3,882,295
5.625%, 02/15/2014 (a)
4,025,000 Liberty Mutual Group, 3,932,924
5.75%, 03/15/2014 (a)(d)
2,320,000 Fairfax Financial Holdings Ltd., 2,006,800
7.375%, 04/15/2018 (a)
3,640,000 Royal & Sun Alliance Insurance 4,600,989
Group plc,
8.95%, 10/15/2029 (a)
10,015,000 Mangrove Bay Pass-Through Trust, 10,015,100
6.102%, 07/15/2033,
Callable 07/15/2013 @ 100 (a)(b)(d)
8,625,000 Zurich Capital Trust, 9,215,657
8.376%, 06/01/2037,
Callable 06/01/2007 @ 104.19 (a)(d)
---------------
Total Insurance (Cost $37,803,159) 37,755,921
---------------
================================================================================
METALS/MINING: 0.16%
- --------------------------------------------------------------------------------
2,540,000 AK Steel Corp., 2,463,800
7.875%, 02/15/2009,
Callable 11/07/2005 @ 102.65 (a)
2,470,000 Ispat Inland ULC, 2,865,200
9.75%, 04/01/2014,
Callable 04/01/2009 @ 104.88 (a)
---------------
Total Metals/Mining (Cost $5,304,275) 5,329,000
---------------
================================================================================
PAPER/PACKAGING: 0.46%
- --------------------------------------------------------------------------------
4,060,000 Weyerhaeuser Co., 4,207,098
5.95%, 11/01/2008 (a)
6,670,000 Packaging Corp. of America, 6,452,738
5.75%, 08/01/2013 (a)
5,165,000 International Paper Co., 5,040,973
5.30%, 04/01/2015 (a)
---------------
Total Paper/Packaging (Cost $16,029,464) 15,700,809
---------------
================================================================================
PETROLEUM PRODUCTS: 0.06%
- --------------------------------------------------------------------------------
1,840,000 Tengizchevroil Finance Co., 1,881,400
6.124%, 11/15/2014 (a)(d)
---------------
Total Petroleum Products (Cost $1,844,367) 1,881,400
---------------
================================================================================
PUBLIC UTILITIES--ELECTRIC & GAS: 1.92%
- --------------------------------------------------------------------------------
2,805,000 Consumers Energy Co., Series C, 2,764,785
4.25%, 04/15/2008 (a)
3,005,000 NiSource Finance Corp., 3,378,491
7.875%, 11/15/2010 (a)
4,845,000 Progress Energy Inc., 5,266,995
7.10%, 03/01/2011 (a)
7,945,000 FirstEnergy Corp., Series B, 8,459,558
6.45%, 11/15/2011 (a)
5,770,000 Carolina Power & Light Co., 6,241,865
6.50%, 07/15/2012 (a)
2,400,000 MidAmerican Energy Holdings Co., 2,504,177
Senior Note,
5.875%, 10/01/2012 (a)
2,540,000 Public Service Co. of Colorado, 2,986,242
7.875%, 10/01/2012 (a)
5,805,000 Txu Australia Holdings Pty Ltd., 6,234,094
6.15%, 11/15/2013 (a)(d)
3,275,000 Pacific Gas & Electric Co., 3,202,239
4.80%, 03/01/2014 (a)
- --------------------------------------------------------------------------------
4 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,125,000 Duke Capital LLC, Senior Note, $ 3,143,450
5.50%, 03/01/2014 (a)
5,475,000 Duke Capital LLC, Senior Note, 6,647,843
8.00%, 10/01/2019 (a)
7,850,000 FirstEnergy Corp., Series C, 9,207,014
7.375%, 11/15/2031 (a)
4,680,000 Pacific Gas & Electric Co., 4,869,035
6.05%, 03/01/2034 (a)
---------------
Total Public Utilities--Electric & Gas (Cost $63,520,830) 64,905,788
---------------
================================================================================
PUBLIC UTILITIES--TELEPHONE: 0.21%
- --------------------------------------------------------------------------------
7,010,000 Telecom Italia Capital, 7,210,584
6.375%, 11/15/2033 (a)
---------------
Total Public Utilities--Telephone(Cost $6,964,920) 7,210,584
---------------
================================================================================
RETAIL: 0.10%
- --------------------------------------------------------------------------------
3,380,000 GSC Holdings Corp., 3,380,000
8.00%, 10/01/2012,
Callable 10/01/09 @ 104.00 (a)(d)
---------------
Total Retail (Cost $3,335,694) 3,380,000
---------------
================================================================================
SERVICE: 0.28%
- --------------------------------------------------------------------------------
9,390,000 Pershing Road Development 9,390,000
Company LLC,
4.26%, 09/01/2026,
Callable 12/01/2005 @ 102.00 (a)(b)(d)
---------------
Total Service (Cost $9,390,000) 9,390,000
---------------
================================================================================
SUPERMARKET/DRUG: 0.11%
- --------------------------------------------------------------------------------
1,895,000 Safeway, Inc., 1,976,690
6.50%, 03/01/2011 (a)
1,917,000 Stater Bros. Holdings Inc., 1,893,037
8.125%, 06/15/2012,
Callable 6/15/2008 @ 104.06 (a)
---------------
Total Supermarket/Drug (Cost $3,874,279) 3,869,727
---------------
================================================================================
TECHNOLOGY: 0.07%
- --------------------------------------------------------------------------------
1,720,000 International Business 1,709,298
Machines Corp., Medium-Term Note,
4.375%, 06/01/2009 (a)
609,000 Motorola Inc., 689,237
7.625%, 11/15/2010 (a)
---------------
Total Technology (Cost $2,401,436) 2,398,535
---------------
================================================================================
ASSET-BACKED SECURITIES: 4.99%
- --------------------------------------------------------------------------------
11,900,000 Capital Auto Receivables Asset 11,820,032
Trust Series 2005-SN1A Class A3A,
4.10%, 06/15/2008 (a)
9,890,000 Bank One Issuance Trust, 9,894,945
Series 2004-A4 Class A4,
3.808%, 02/16/2010 (a)(b)
11,130,000 Discover Card Master Trust I, 11,131,781
Series 2004-1 Class A,
3.798%, 04/16/2010 (a)(b)
30,140,000 MBNA Credit Card Master Note 30,319,032
Trust, Series 2001-A5 Class A5,
3.98%, 03/15/2011 (a)
15,190,000 Citibank Omni Master Trust, 15,227,975
Series 1996-5 Class A,
3.998%, 12/16/2011 (a)(b)(d)
9,305,000 American Express Credit 9,300,627
Account Master Trust,
Series 2005-1 Class A,
3.798%, 10/25/2012 (a)(b)
871,663 RAAC, Series 2004-SP1 Class AI1, 871,663
4.01%, 06/25/2013 (a)(b)
10,523,753 SLM Student Loan Trust, Series 10,529,331
2003-C Class A1,
3.97%, 09/15/2016 (a)(b)
990,916 Residential Funding Mortgage 990,916
Securities Inc., Series
2004-HS2 Class AI1,
3.98%, 12/25/2018 (a)(b)
1,587,771 Residential Asset Securities 1,587,771
Corp., Series 2004-KS7 Class AI1,
3.98%, 10/25/2021 (a)(b)
5,204,832 Bear Stearns Asset Backed 5,204,832
Securities, Inc., Series
2005-SD1 Class 1A1,
3.98%, 04/25/2022 (a)(b)
299,965 Residential Asset Mortgage 299,965
Products Inc., Series 2004-RS6
Class AI1,
3.98%, 08/25/2022 (a)(b)
2,937,054 Novastar Home Equity Loan, 2,937,730
Series 2001-1 Class A1,
4.11%, 07/25/2031 (a)(b)
3,166,800 Residential Asset Securities 3,173,640
Corp., Series 2002-KS7 Class A2,
4.20%, 11/25/2032 (a)(b)
7,682,726 Asset Backed Funding Corp., 7,727,132
Series 2003-WF1 Class A2,
4.58%, 12/25/2032 (a)(b)
4,690,275 Citifinancial Mortgage 4,570,438
Securities Inc., Series 2003-1
Class AFPT,
3.36%, 01/25/2033 (a)
2,252,404 Residential Asset Securities 2,254,859
Corp., Series 2003-KS3 Class A2,
4.13%, 05/25/2033 (a)(b)
344,317 Centex Home Equity, Series 344,372
2003-C Class AV,
4.13%, 09/25/2033 (a)(b)
Schedule of Investments -- Intermediate Duration Portfolio 5
================================================================================
Principal Amount Description Market Value
================================================================================
$ 3,709,918 Structured Asset Investment $ 3,710,511
Loan Trust, Series 2004-5 Class A2,
4.01%, 05/25/2034 (a)(b)
2,869,230 Morgan Stanley ABS Capital I, 2,869,689
Series 2004-HE4 Class A3,
4.03%, 05/25/2034 (a)(b)
1,319,353 Equity One ABS Inc., Series 1,319,458
2004-3 Class AF1,
3.99%, 07/25/2034 (a)(b)
6,881,044 Aegis Asset Backed Securities 6,884,278
Trust, Series 2004-3 Class A2A,
4.03%, 09/25/2034 (a)(b)
3,799,726 Morgan Stanley ABS Capital I, 3,799,726
Series 2005-WMC1 Class A2A,
3.93%, 01/25/2035 (a)(b)
7,846,146 Residential Asset Mortgage 7,843,714
Products Inc., Series 2005-RS1
Class AII1,
3.94%, 01/25/2035 (a)(b)
5,030,569 Structured Asset Investment 5,029,764
Loan Trust, Series 2005-1 Class A3,
3.95%, 02/25/2035 (a)(b)(d)
619,050 Merrill Lynch Mortgage 619,149
Investors Inc., Series
2004-SL1 Class A,
4.09%, 04/25/2035 (a)(b)
8,695,000 Home Equity Mortgage Trust, 8,635,004
Series 2005-4 Class A3,
4.742%, 01/25/2036 (a)
---------------
Total Asset-Backed Securities (Cost $169,079,646) 168,898,334
---------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 8.21%
- --------------------------------------------------------------------------------
8,440,000 LB-UBS Commercial Mortgage 8,193,299
Trust, Series 2004-C7 Class A2,
3.992%, 10/15/2029 (a)
9,380,000 LB-UBS Commercial Mortgage 9,176,360
Trust, Series 2004-C8 Class A2,
4.201%, 12/15/2029 (a)
8,940,000 LB-UBS Commercial Mortgage 8,799,374
Trust, Series 2005-C1 Class A4,
4.742%, 02/15/2030 (a)
84 Commercial Mortgage Asset 89
Trust, Series 1999-C1 Class A3,
6.64%, 01/17/2032 (a)
9,240,000 Greenwich Capital Commercial 8,773,934
Funding Corp., Series 2003-C1
Class A4,
4.111%, 07/05/2035 (a)
300,000 Greenwich Capital Commercial 295,311
Funding Corp., Series 2003-C2
Class A3,
4.533%, 01/05/2036 (a)
7,790,000 CS First Boston Mortgage 7,597,587
Securities Corp., Series
2003-CK2 Class A2,
3.861%, 03/15/2036 (a)
10,070,000 CS First Boston Mortgage 9,811,805
Securities Corp., Series
2004-C5 Class A2,
4.183%, 11/15/2037 (a)
9,775,000 JP Morgan Chase Commercial 9,485,856
Mortgage Securities, Series
2004-C1 Class A2,
4.302%, 01/15/2038 (a)
10,900,000 CS First Boston Mortgage 10,888,991
Securities Corp., Series
2005-C1 Class A4,
5.014%, 02/15/2038 (a)
13,780,000 Banc of America Commercial 14,177,829
Mortgage Inc., Series 2004-3
Class A5,
5.482%, 06/10/2039 (a)
9,640,000 GE Capital Commercial Mortgage 9,762,524
Corp., Series 2004-C3 Class A4,
5.189%, 07/10/2039 (a)
7,390,000 Merrill Lynch Mortgage Trust, 7,189,435
Series 2004-KEY Class A2,
4.166%, 08/12/2039 (a)
13,195,000 Morgan Stanley Capital I, 12,975,303
Series 2005-T17 Class A5,
4.78%, 12/13/2041 (a)
16,915,000 Morgan Stanley Capital I, 17,102,249
Series 2005-HQ5 Class A4,
5.168%, 01/14/2042 (a)
12,490,000 Bear Stearns Commercial 12,417,558
Mortgage Securities Inc.,
Series 2005-T18 Class A4,
5.75%, 02/13/2042 (a)
8,850,000 Banc of America Commercial 8,656,185
Mortgage Inc., Series 2004-4
Class A3,
4.128%, 07/10/2042 (a)
13,565,000 Greenwich Capital Commercial 13,291,394
Funding Corp., Series 2005-GG3
Class A2,
4.305%, 08/10/2042 (a)
11,220,000 JP Morgan Chase Commercial 11,194,979
Mortgage Securities Corp.,
Series 2005-LDP3 Class A2,
4.851%, 08/15/2042 (a)
16,215,000 Merrill Lynch Mortgage Trust, 16,174,787
Series 2005-MKB2 Class A2,
4.806%, 09/12/2042 (a)
8,210,000 JP Morgan Chase Commercial 8,170,428
Mortgage Securities,
Series 2005-LDP4 Class A2,
4.79%, 10/15/2042 (a)
- --------------------------------------------------------------------------------
6 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 13,655,000 Banc of America Commercial $ 13,690,367
Mortgage, Inc., Series 2005-1
Class A3,
4.877%, 11/10/2042 (a)
11,835,000 Banc of America Commercial 11,534,746
Mortgage Inc., Series 2004-6
Class A2,
4.161%, 12/10/2042 (a)
12,735,000 GE Capital Commercial 12,707,874
Mortgage Corp.,
Series 2005-C3 Class A3FX,
4.863%, 07/10/2045 (a)
9,275,000 Morgan Stanley Capital I, 8,943,233
Series 2004-T13 Class A2,
3.94%, 09/13/2045 (a)
13,500,000 JP Morgan Chase Commercial 13,369,860
Mortgage Securities, Series
2005-LDP1 Class A2,
4.625%, 03/15/2046 (a)
13,750,000 JP Morgan Chase Commercial 13,756,050
Mortgage Securities, Series
2005-LDP1 Class A4,
5.038%, 03/15/2046 (a)
---------------
Total Commercial Mortgage-Backed Securities(Cost $281,112,286) 278,137,407
---------------
================================================================================
U.S. DOLLAR SOVEREIGN DEBT: 1.45%
- --------------------------------------------------------------------------------
14,390,000 Russian Federation, 16,534,110
5.00%, 03/30/2007 (a)
8,100,000 Peru (Republic of), 8,586,000
7.35%, 07/21/2025 (a)
190,000 Russian Federation, 218,310
5.00%, 03/31/2030 (a)(d)
6,595,000 United Mexican States, 7,650,200
7.50%, 04/08/2033 (a)
13,035,000 Brazil (Republic of), 15,967,875
11.00%, 08/17/2040,
Callable 08/17/2015 @ 100.00 (a)
---------------
Total U.S. Dollar Sovereign Debt (Cost $44,795,084) 48,956,495
---------------
================================================================================
NON U.S. DOLLAR SOVEREIGN DEBT: 3.74%
- --------------------------------------------------------------------------------
450,370,000 Sweden (Kingdom of), Series 1043, 62,646,335
5.00%, 01/28/2009 (a)
47,420,000 France (Govt of), 64,188,554
5.00%, 04/25/2012 (a)
---------------
Total Non U.S. Dollar Sovereign Debt(Cost $129,413,543) 126,834,889
---------------
================================================================================
SHORT-TERM INVESTMENTS: 24.05%
- --------------------------------------------------------------------------------
Commercial Paper: 18.22%
67,900,000 Rabobank Financial Corp., 67,885,364
3.39%, 10/03/2005 (e)
50,000,000 Prudential Funding LLC, 49,938,333
3.30%, 10/13/2005 (e)
50,000,000 General Electric Capital 49,938,667
Services,
3.35%, 10/13/2005 (e)
50,000,000 Societe Generale North America, 49,937,833
3.38%, 10/13/2005 (e)
50,000,000 Bear Stearns Co., 49,938,333
3.48%, 10/13/2005 (e)
50,000,000 Royal Bank of Scotland, 49,938,333
3.585%, 10/13/2005 (e)
50,000,000 A.I.G. Funding, Inc., 49,938,334
3.70%, 10/13/2005 (e)
50,000,000 Citigroup Inc., 49,938,333
3.70%, 10/13/2005 (e)
50,000,000 Deutsche Bank Financial, 49,938,333
3.70%, 10/13/2005 (e)
50,000,000 Barclays U.S. Funding LLC, 49,937,833
3.73%, 10/13/2005 (e)
50,000,000 Morgan Stanley, 49,937,667
3.74%, 10/13/2005 (e)
50,000,000 Fortis Funding LLC, 49,937,500
3.75%, 10/13/2005 (e)
---------------
Total Commercial Paper (Cost $617,204,863) 617,204,863
---------------
================================================================================
U.S. Government Sponsored Agency Obligations: 5.79%
98,100,000 Federal Home Loan Banks, 98,082,669
0.00%, 10/03/2005 (e)
95,000,000 Federal Home Loan Mortgage, 94,983,217
0.00%, 10/03/2005 (e)
3,000,000 Federal National Mortgage 2,981,296
Association,
0.00%, 12/02/2005 (e)(f)
---------------
Total U.S. Government Sponsored Agency
Obligations (Cost $196,047,182) 196,047,182
---------------
U.S. Treasury Bill: 0.04%
1,250,000 0.00%, 12/08/2005 (f)(g) 1,241,919
---------------
Total U.S. Treasury Bill (Cost $1,241,919) 1,241,919
---------------
Total Short-Term Investments (Cost $814,493,964) 814,493,964
---------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $3,906,801,033) (h) 115.25% $3,903,388,955
Cash and Other Assets, Less Liabilities (15.25) (516,643,998)
------- ---------------
Net Assets (Equivalent to $13.27 per
share based on 255,266,942 shares of
capital stock outstanding) 100.00% $3,386,744,957
======= ===============
Schedule of Investments -- Intermediate Duration Portfolio 7
===================================================================================================================================
CREDIT DEFAULT SWAP CONTRACTS
- -----------------------------------------------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized/Appreciation
Referenced Obligation Amount Rate Termination Date (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Buy Contracts
JP Morgan Chase
Dow Jones High Volume, 4.00%, 06/20/2010 87,500,000 0.90% 06/20/2010 $ (811,238)
JP Morgan Chase
Dow Jones High Volume, 4.00%, 06/20/2010 33,000,000 0.90% 06/20/2010 259,230
===================================================================================================================================
FORWARD EXCHANGE CURRENCY CONTRACTS
- -----------------------------------------------------------------------------------------------------------------------------------
Contract Amount U.S. $ Value on U.S. $ Unrealized Appreciation/
(000) Origination Date Current Value (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Purchase Contract
Mexican Peso Settling 10/20/2005 341,781 $ 31,498,515 $ 31,671,167 $ 172,652
Sale Contracts
Mexican Peso Settling 10/20/2005 341,781 31,465,746 31,671,167 (205,421)
Swedish Krona Settling 10/24/2005 500,804 66,133,207 64,681,871 1,451,336
Euro Currency Settling 10/28/2005 54,018 65,675,091 65,008,343 666,748
===================================================================================================================================
FINANCIAL FUTURES CONTRACTS
- -----------------------------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized Appreciation
Type Contracts Month Value September 30, 2005 (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Purchase Contracts
Federal Republic of Germany 753 December 2005 $111,515,004 $110,888,744 $ (626,260)
Bond 10 Yr Futures
Japan Government Bonds 52 December 2005 63,920,217 63,053,207 (867,010)
10 Yr Futures
Sale Contracts
U.S. Treasury Note 1,208 December 2005 134,368,233 132,785,625 1,582,608
10 Yr Futures
------------
$ 89,338
============
- --------------------------------------------------------------------------------
(a) Positions, or portion thereof, with an aggregate market value of
$2,496,854,192 have been segregated to collateralize open forward exchange
currency contracts.
(b) Variable rate coupon, rate shown as of September 30, 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 September 30, 2005, the aggregate market value of these
securities amounted to $123,468,221 or 3.65% of net assets.
(e) Represents entire or partial position segregated as collateral for TBA
securities.
(f) Represents entire or partial position segregated as collateral for open
futures contracts.
(g) Represents entire or partial position segregated as collateral for credit
default swaps.
(h) At September 30, 2005, the cost basis of investment securities for tax
purposes was $3,909,669,229. Gross unrealized appreciation of investments
was $20,024,376 and gross unrealized depreciation of investments was
$26,304,650, resulting in net unrealized depreciation of $6,280,274
(excluding swap and futures transactions).
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Short Duration Plus Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 26.89%
- --------------------------------------------------------------------------------
$114,485,000 3.50%, 05/31/2007 $ 113,246,272
9,214,551 3.875%, 01/15/2009 9,996,350
9,715,000 3.50%, 08/15/2009 9,469,473
--------------
Total U.S. Treasury Notes (Cost $133,993,475) 132,712,095
--------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATIONS: 7.97%
- --------------------------------------------------------------------------------
28,685,000 Federal National Mortgage 28,462,060
Association,
3.25%, 06/28/2006
1,080,000 Federal National Mortgage 1,071,330
Association,
3.875%, 05/15/2007
9,940,000 Federal Home Loan Mortgage 9,815,551
Corp.,
3.75%, 08/03/2007
--------------
Total U.S. Government Sponsored Agency
Obligations (Cost $39,735,567) 39,348,941
--------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 13.27%
- --------------------------------------------------------------------------------
2,645,000 Morgan Stanley Capital I, 2,644,683
Series 2005-XLF Class G,
4.14%, 08/15/2019 (a)
2,918,253 Federal National Mortgage 2,985,343
Association, Series 2000-M2 Class B,
7.016%, 02/17/2021
6,540,950 MLCC Mortgage Investors Inc., 6,547,949
Series 2003-F Class A1,
4.15%, 10/25/2028 (a)
5,688,843 MLCC Mortgage Investors Inc., 5,688,843
Series 2004-A Class A1,
4.06%, 04/25/2029 (a)
3,045,032 Irwin Home Equity, Series 3,047,407
2005-C Class 2A1,
4.08%, 04/25/2030 (a)
5,328,920 Federal National Mortgage 5,291,565
Association, Series 2005-M1 Class A,
4.479%, 10/26/2031
2,463,707 Structured Asset Securities 2,479,868
Corp., Series 2002-11A Class 1A,
4.626%, 06/25/2032 (a)
3,179,599 Credit Suisse First Boston 2,987,106
Mortgage Securities Corp.,
Series 2004-2R Class A1,
5.051%, 12/28/2033 (a)(b)
3,106,453 Master Asset Securitization 3,094,835
Trust, Series 2004-9 Class 3A1,
5.25%, 07/25/2034
2,000,000 American Home Mortgage 1,951,875
Investment Trust, Series
2004-3 Class MF1,
5.35%, 10/25/2034 (a)
2,446,542 Morgan Stanley Mortgage Loan 2,455,569
Trust, Series 2004-8AR Class 4A1,
5.408%, 10/25/2034
2,786,184 Bear Stearns Alt-A Trust, 2,777,491
Series 2004-11 Class 2A3,
5.065%, 11/25/2034
2,091,512 Structured Adjustable Rate 2,086,576
Mortgage Loan, Series 2005-5
Class A3,
4.06%, 05/25/2035 (a)
4,858,365 Countrywide Home Loans, Series 4,833,588
2005-12 Class 1A5,
5.25%, 05/25/2035
3,500,000 Merrill Lynch Mortgage 3,463,355
Investors Inc., Series 2005-A5
Class A3,
4.442%, 06/25/2035
3,662,085 Deutsche Alt-A Securites, Inc., 3,662,085
Mortgage Loan, Series 2005-AR1
Class 1A1,
4.14%, 08/23/2035 (a)
3,825,000 Home Equity Mortgage Trust, 3,832,650
Series 2005-3 Class M1,
4.37%, 11/25/2035 (a)
2,860,000 American Home Mortgage 2,829,613
Investment Trust, Series
2004-4 Class M2,
4.88%, 02/25/2045 (a)
2,740,257 American Home Mortgage 2,803,639
Investment Trust, Series
2005-2 Class 2A1,
5.40%, 09/25/2045 (a)
--------------
Total Collateralized Mortgage Obligations (Cost $65,953,000) 65,464,040
--------------
================================================================================
MORTGAGE PASS-THROUGHS: 8.86%
- --------------------------------------------------------------------------------
134,983 Federal Home Loan Mortgage 134,941
Corp. Pool,
9.00%, 03/17/2008
6,673,924 Federal National Mortgage 6,866,308
Association Pool,
6.00%, 12/01/2013-02/01/2017
506,064 Federal National Mortgage 535,184
Association Pool,
7.50%, 03/01/2015
917,426 Federal National Mortgage 983,740
Association Pool,
8.00%, 08/01/2016
Schedule of Investments -- Short Duration Plus Portfolio 9
================================================================================
Principal Amount Description Market Value
================================================================================
$ 12,325,000 Federal National Mortgage $ 12,671,641
Association Pool TBA,
6.00%, 10/25/2020 (c)
19,635,284 Federal National Mortgage 21,535,554
Association Pool,
7.00%, 09/01/2025
910,313 Government National Mortgage 967,019
Association,
7.50%, 03/15/2032
--------------
Total Mortgage Pass-Throughs (Cost $43,964,692) 43,694,387
--------------
================================================================================
AEROSPACE/DEFENSE: 0.51%
- --------------------------------------------------------------------------------
2,205,000 Raytheon Co., 2,501,800
8.30%, 03/01/2010
--------------
Total Aerospace/Defense (Cost $2,521,006) 2,501,800
--------------
================================================================================
AUTOMOTIVE: 2.28%
- --------------------------------------------------------------------------------
6,965,000 Ford Motor Credit Co., 6,973,100
6.50%, 01/25/2007
3,370,000 DaimlerChrysler North America, 3,334,760
4.125%, 03/07/2007
970,000 DaimlerChrysler North America, 950,619
4.875%, 06/15/2010
--------------
Total Automotive (Cost $11,330,965) 11,258,479
--------------
================================================================================
BANKING: 1.12%
- --------------------------------------------------------------------------------
2,305,000 Washington Mutual Bank, 2,291,456
4.50%, 08/25/2008
15,000 Wells Fargo & Co., 14,705
4.20%, 01/15/2010
3,260,000 U.S. Bancorp, 3,227,892
4.50%, 07/29/2010
--------------
Total Banking (Cost $5,568,474) 5,534,053
--------------
================================================================================
BROADCASTING/MEDIA: 1.06%
- --------------------------------------------------------------------------------
5,200,000 AOL TimeWarner, Inc., 5,243,363
6.125%, 04/15/2006
--------------
Total Broadcasting/Media (Cost $5,286,104) 5,243,363
--------------
================================================================================
CABLE: 1.80%
- --------------------------------------------------------------------------------
4,750,000 Comcast Cable Communications 5,011,687
Inc.,
8.375%, 05/01/2007
3,665,000 British Sky Broadcasting Group 3,885,087
plc,
6.875%, 02/23/2009
--------------
Total Cable (Cost $9,004,843) 8,896,774
--------------
================================================================================
COMMUNICATIONS: 1.06%
- --------------------------------------------------------------------------------
5,140,000 Sprint Capital Corp., 5,225,648
6.00%, 01/15/2007
--------------
Total Communications (Cost $5,255,572) 5,225,648
--------------
================================================================================
COMMUNICATIONS--MOBILE: 0.76%
- --------------------------------------------------------------------------------
3,720,000 Cingular Wireless LLC, 3,765,057
5.625%, 12/15/2006
--------------
Total Communications--Mobile (Cost $3,787,590) 3,765,057
--------------
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.31%
- --------------------------------------------------------------------------------
1,475,000 Tyco International Group SA, 1,527,842
6.125%, 11/01/2008
--------------
Total Conglomerate/Miscellaneous (Cost $1,536,641) 1,527,842
--------------
================================================================================
ENERGY: 0.51%
- --------------------------------------------------------------------------------
2,645,000 Valero Energy Corp., 2,527,533
3.50%, 04/01/2009
--------------
Total Energy (Cost $2,635,336) 2,527,533
--------------
================================================================================
FINANCIAL: 8.52%
- --------------------------------------------------------------------------------
7,310,000 CIT Group, Inc., 7,601,311
7.375%, 04/02/2007
7,695,000 Countrywide Home Loans, Inc., 7,806,570
5.625%, 05/15/2007
6,025,000 International Lease Finance Corp., 6,110,447
5.625%, 06/01/2007
7,725,000 Merrill Lynch & Co., Inc., 8,041,354
6.56%, 12/16/2007
6,390,000 Goldman Sachs Group, Inc., 6,325,493
4.125%, 01/15/2008
2,505,000 International Lease Finance Corp., 2,513,898
5.00%, 04/15/2010
3,660,000 Citigroup, Inc., 3,636,861
4.625%, 08/03/2010
--------------
Total Financial (Cost $42,342,670) 42,035,934
--------------
================================================================================
FOOD/BEVERAGE: 2.14%
- --------------------------------------------------------------------------------
2,250,000 General Mills, Inc., 2,261,774
5.125%, 02/15/2007
4,205,000 The Kroger Co., 4,418,252
7.80%, 08/15/2007
3,955,000 Kraft Foods, Inc., 3,856,489
4.125%, 11/12/2009
--------------
Total Food/Beverage (Cost $10,611,572) 10,536,515
--------------
- --------------------------------------------------------------------------------
10 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
HEALTHCARE: 2.23%
$ 3,790,000 Aetna, Inc., $ 3,833,854
7.375%, 03/01/2006
3,470,000 Anthem, Inc., 3,390,239
3.50%, 09/01/2007
3,864,000 Wellpoint, Inc., 3,785,371
3.75%, 12/14/2007
--------------
Total Healthcare (Cost $11,129,564) 11,009,464
--------------
================================================================================
NON-AIR TRANSPORTATION: 0.46%
- --------------------------------------------------------------------------------
2,180,000 CSX Corp., 2,268,264
6.25%, 10/15/2008
--------------
Total Non-Air Transportation (Cost $2,284,993) 2,268,264
--------------
================================================================================
PAPER/PACKAGING: 0.25%
- --------------------------------------------------------------------------------
1,190,000 Weyerhaeuser Co., 1,212,704
6.125%, 03/15/2007
--------------
Total Paper/Packaging (Cost $1,241,235) 1,212,704
--------------
================================================================================
PUBLIC UTILITIES--ELECTRIC & GAS: 2.62%
- --------------------------------------------------------------------------------
3,715,000 Progress Energy, Inc., 3,785,024
6.05%, 04/15/2007
4,137,000 Duke Energy Corp., 4,054,628
3.75%, 03/05/2008
5,250,000 Pacific Gas & Electric Co., 5,070,996
3.60%, 03/01/2009
--------------
Total Public Utilities--Electric & Gas(Cost $13,052,104) 12,910,648
--------------
================================================================================
PUBLIC UTILITIES--TELEPHONE: 0.83%
- --------------------------------------------------------------------------------
4,200,000 Telecom Italia Capital Corp., 4,097,990
4.00%, 11/15/2008
--------------
Total Public Utilities--Telephone (Cost $4,198,733) 4,097,990
--------------
================================================================================
SERVICE: 0.65%
- --------------------------------------------------------------------------------
3,045,000 Waste Management, Inc., 3,183,785
6.50%, 11/15/2008
--------------
Total Service (Cost $3,195,728) 3,183,785
--------------
================================================================================
SUPERMARKET/DRUG: 0.76%
- --------------------------------------------------------------------------------
3,600,000 Safeway, Inc., 3,747,640
6.50%, 11/15/2008
--------------
Total Supermarket/Drug (Cost $3,793,883) 3,747,640
--------------
================================================================================
ASSET-BACKED SECURITIES: 6.98%
- --------------------------------------------------------------------------------
1,995,000 Capital Auto Receivables Asset 1,981,594
Trust, Series 2005-SN1A Class A3A,
4.10%, 06/15/2008
3,500,000 Winston Funding Ltd., Series 3,508,505
2003-1 Class A2,
4.55%, 04/23/2009 (a)(b)
143,327 Residential Asset Mortgage Products Inc., 143,327
Series 2004-RS6 Class AI1,
3.98%, 08/25/2022 (a)
440,766 First Franklin Mortgage Loan 440,766
Asset-Backed Certificates,
Series 2000-FF1 Class A,
4.29%, 09/25/2030 (a)
1,823,349 Citifinancial Mortgage 1,776,763
Securities, Inc., Series
2003-1 Class AFPT,
3.36%, 01/25/2033
438,075 Countrywide Asset-Backed Certificates, 439,034
Series 2003-BC1 Class A,
4.23%, 03/25/2033 (a)
5,660,000 Long Beach Mortgage Loan Trust 5,724,581
Series 2003-1 Class M2,
5.88%, 03/25/2033 (a)
153,600 Centex Home Equity, Series 153,624
2003-C Class AV,
4.13%, 09/25/2033 (a)
55,000 Residential Asset Securities Corp., 55,234
Series 2003-KS8 Class A2B2,
4.27%, 10/25/2033
3,435,709 Ace Securities Corp., Series 3,441,756
2003-0P1 Class A2,
4.19%, 12/25/2033 (a)
51,660 Renaissance Home Equity Loan 51,668
Trust, Series 2003-4 Class A2,
4.03%, 03/25/2034 (a)
2,120,000 Residential Asset Mortgage 2,118,007
Products, Inc., Series
2004-RS4 Class AI4,
4.911%, 04/25/2034
669,825 Equity One ABS Inc., Series 669,879
2004-3 Class AF1,
3.99%, 07/25/2034 (a)
6,700,000 Long Beach Mortgage Loan 6,716,750
Trust, Series 2004-3 Class M2,
4.43%, 07/25/2034 (a)
1,071,734 Merrill Lynch Mortgage 1,072,570
Investors Inc., Series
2004-WMC1 Class A2,
4.13%, 10/25/2034 (a)
3,850,000 Credit-Based Asset Servicing & 3,826,553
Securities, Inc., Series
2005-CB4 Class AF2,
4.75%, 08/25/2035
2,330,000 Bayview Financial Acquisition 2,334,928
Trust, Series 2005-C Class A1B,
4.13%, 06/28/2044 (a)
--------------
Total Asset-Backed Securities (Cost $34,521,072) 34,455,539
--------------
Schedule of Investments -- Short Duration Plus Portfolio 11
================================================================================
Principal Amount Description Market Value
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 6.79%
- --------------------------------------------------------------------------------
$ 1,636,204 Bear Stearns Commercial $ 1,636,288
Mortgage Securities, Inc.,
Series 2003-BA1A Class B,
4.15%, 04/14/2015 (a)
1,550,000 Lehman Brothers Commercial 1,550,000
Mortgage Trust, Series
2005-LLFA Class F,
4.098%, 07/15/2018 (a)
1,065,000 Credit Suisse First Boston 1,065,000
Mortgage Securities Corp.,
Series 2005-TF2A Class F,
4.27%, 09/15/2020 (c)
1,065,000 Credit Suisse First Boston 1,065,000
Mortgage Securities Corp.,
Series 2005-TF2A Class G,
4.32%, 09/15/2020 (c)
3,385,000 LB-UBS Commercial Mortgage 3,286,056
Trust, Series 2004-C7 Class A2,
3.99%, 10/15/2029
6,809,575 Asset Securitization Corp., 6,964,561
Series 1996-MD6 Class A1C,
7.04%, 11/13/2029
4,910,000 Nomura Asset Securities Corp., 5,127,251
Series 1998-D6 Class A1B,
6.59%, 03/15/2030
569,301 Commercial Mortgage Acceptance 577,413
Corp., Series 1997-ML1 Class A2,
6.53%, 12/15/2030
4,000,412 First Union Lehman Brothers 4,148,147
Bank of America, Series 1998-C2
Class A2,
6.56%, 11/18/2035
7,995,000 Nomura Asset Securities Corp., 8,086,383
Series 1996-MD5 Class A1B,
7.12%, 04/13/2039
--------------
Total Commercial Mortgage-Backed Securities(Cost $34,468,936) 33,506,099
--------------
================================================================================
SHORT-TERM INVESTMENTS: 3.89%
- --------------------------------------------------------------------------------
Commercial Paper: 3.89%
19,200,000 Prudential Funding LLC, 19,195,872
3.25%, 10/03/2005 (d)
--------------
Total Commercial Paper (Cost $19,195,872) 19,195,872
--------------
Total Short-Term Investments (Cost $19,195,872) 19,195,872
--------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments
(Cost $510,609,627) (e) 102.52% $ 505,860,466
Cash and Other Assets, Less Liabilities (2.52) (12,411,545)
------- --------------
Net Assets 100.00% $ 493,448,921
======= ==============
- --------------------------------------------------------------------------------
(a) Variable rate coupon, rate shown as of September 30, 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 September 30, 2005, the aggregate market value of these
securities amounted to $6,495,611 or 1.32% of net assets.
(c) When-issued security.
(d) Represents entire or partial position segregated as collateral for TBA
security.
(e) At September 30, 2005, the cost basis of investment securities for tax
purposes was $510,774,719. Gross unrealized appreciation of investments
was $119,536 and gross unrealized depreciation of investments was
$5,033,789, resulting in net unrealized depreciation of $4,914,253.
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
12 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
U.S. Government Short Duration Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 50.97%
- --------------------------------------------------------------------------------
$ 18,060,000 3.00%, 12/31/2006 $ 17,804,613
2,570,000 3.75%, 03/31/2007 2,553,537
19,995,000 3.50%, 05/31/2007 19,778,654
1,578,446 3.875%, 01/15/2009 1,712,368
2,240,000 3.50%, 08/15/2009 2,183,388
--------------
Total U.S. Treasury Notes (Cost $44,411,035) 44,032,560
--------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATIONS: 30.52%
- --------------------------------------------------------------------------------
4,000,000 Federal Home Loan Bank, 3,939,000
2.04%, 06/12/2006
4,000,000 Federal Farm Credit Bank, 3,942,400
2.05%, 06/12/2006
4,670,000 Federal National Mortgage 4,633,705
Association,
3.25%, 06/28/2006
5,000,000 Federal Farm Credit Bank, 4,907,390
3.25%, 06/15/2007
3,985,000 Federal Home Loan Mortgage Corp., 3,935,108
3.75%, 08/03/2007,
Callable 08/03/2005 @ 100.00
250,000 Federal National Mortgage 246,264
Association,
3.80%, 01/18/2008,
Callable 01/18/2006 @ 100.00
5,000,000 Federal Home Loan Bank, 4,760,715
3.00%, 04/15/2009
--------------
Total U.S. Government Sponsored Agency
Obligations (Cost $26,761,217) 26,364,582
--------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 6.31%
- --------------------------------------------------------------------------------
503,382 Federal National Mortgage 514,954
Association, Series 2000-M2 Class B,
7.02%, 02/17/2021 (a)
1,032,088 MLCC Mortgage Investors, Inc., 1,032,088
Series 2004-A Class A1,
4.06%, 04/25/2029 (a)
933,700 Federal National Mortgage 927,155
Association, Series 2005-M1 Class A,
4.48%, 10/26/2031
1,168,703 Structured Asset Securities 1,166,879
Corp., Series 2003-23H Class 1A1,
5.50%, 07/25/2033
832,649 Countrywide Home Loans, 828,402
Series 2005-12 Class 1A5,
5.25%, 5/25/2035
500,000 MLCC Mortgage Investors, Inc., 494,765
Series 2005-A5 Class A3,
4.442%, 06/25/2035
481,078 American Home Mortgage 492,205
Investment Trust, Series 2005-2
Class 2A1,
5.40%, 09/25/2045 (a)
--------------
Total Collateralized Mortgage Obligations(Cost $5,499,968) 5,456,448
--------------
================================================================================
MORTGAGE PASS-THROUGHS: 8.43%
- --------------------------------------------------------------------------------
1,483,577 Federal National Mortgage 1,526,347
Association Pool,
6.00%, 12/01/2013-11/01/2016
180,737 Federal National Mortgage 191,137
Association Pool,
7.50%, 03/01/2015
347,428 Federal National Mortgage 372,541
Association Pool,
8.00%, 07/01/2017
1,840,000 Federal National Mortgage 1,891,750
Association Pool TBA,
6.00%, 10/25/2020 (b)
2,948,184 Federal National Mortgage 3,093,916
Association Pool,
7.00%, 02/01/2031-09/01/2033
197,048 Federal Home Loan Mortgage 205,912
Corp. Pool,
7.00%, 04/01/2032
--------------
Total Mortgage Pass-Throughs (Cost $7,311,546) 7,281,603
--------------
================================================================================
ASSET-BACKED SECURITIES: 1.84%
- --------------------------------------------------------------------------------
345,000 Capital Auto Receivables Asset 342,682
Trust, Series 2005-SN1A Class A3A,
4.10%, 06/15/2008
26,003 Residential Asset Mortgage 26,003
Products Inc., Series 2004-RS6
Class AI1,
3.98%, 08/25/2022 (a)
28,668 Centex Home Equity, Series 28,672
2003-C Class AV,
4.13%, 09/25/2033 (a)
665,000 Residential Asset Securities 667,833
Corp., Series 2003-KS8 Class A2B2,
4.27%, 10/25/2033 (a)
522,111 Ace Securities Corp., Series 523,030
2003-OP1 Class A2,
4.19%, 12/25/2033 (a)
--------------
Total Asset-Backed Securities(Cost $1,591,095) 1,588,220
--------------
Schedule of Investments -- U.S. Government Short Duration Portfolio 13
================================================================================
Principal Amount Description Market Value
================================================================================
SHORT-TERM INVESTMENTS: 3.12%
- --------------------------------------------------------------------------------
U.S. Government Sponsored Agency Obligations: 3.12%
$ 2,700,000 Federal Home Loan Mortgage $ 2,699,523
Corp.,
0.00%, 10/03/2005 (c)
--------------
Total U.S. Government Sponsored Agency
Obligations (Cost $2,699,523) 2,699,523
--------------
Total Short-Term Investments(Cost $2,699,523) 2,699,523
--------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost $88,274,384) (d) 101.19% $ 87,422,936
Cash and Other Assets, Less Liabilities (1.19) (1,028,437)
------ --------------
Net Assets (Equivalent to $12.45 per
share based on 6,939,375 shares of
capital stock outstanding) 100.00% $ 86,394,499
======= ==============
- --------------------------------------------------------------------------------
(a) Variable rate coupon, rate shown as of September 30, 2005.
(b) When-issued security.
(c) Represents entire or partial position segregated as collateral for TBA
security.
(d) At September 30, 2005, the cost basis of investment securities for tax
purposes was $88,296,054. Gross unrealized appreciation of investments was
$15,327 and gross unrealized depreciation of investments was $888,445,
resulting in net unrealized depreciation of $873,118.
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
Sanford C. Bernstein Fund, Inc.
Schedule of Investments
Intermediate Duration Institutional Portfolio
September 30, 2005
- --------------------------------------------------------------------------------
================================================================================
Principal Amount Description Market Value
================================================================================
U.S. TREASURY NOTES: 13.32%
- --------------------------------------------------------------------------------
$ 20,190,000 3.75%, 03/31/2007 (a) $ 20,060,663
18,055,000 3.875%, 07/31/2007 (a) 17,959,092
20,575,000 3.875%, 05/15/2010 (a) 20,276,827
13,567,261 2.00%, 07/15/2014 (a) 13,859,269
12,288,272 1.625%, 01/15/2015 (a) 12,142,349
2,415,000 4.25%, 08/15/2015 (a) 2,399,906
--------------
Total U.S. Treasury Notes (Cost $87,085,818) 86,698,106
--------------
================================================================================
U.S. TREASURY BOND: 4.54%
- --------------------------------------------------------------------------------
26,360,000 5.375%, 02/15/2031 (a) 29,531,424
--------------
Total U.S. Treasury Bond (Cost $29,510,842) 29,531,424
--------------
================================================================================
U.S. GOVERNMENT SPONSORED AGENCY OBLIGATION: 0.80%
- --------------------------------------------------------------------------------
5,305,000 Federal National Mortgage 5,213,223
Association,
3.875%, 11/17/2008 (a)
--------------
Total U.S. Government Sponsored Agency
Obligation (Cost $5,257,392) 5,213,223
--------------
================================================================================
COLLATERALIZED MORTGAGE OBLIGATIONS: 0.74%
- --------------------------------------------------------------------------------
88,775 Countrywide Home Loans, Series 88,544
2003-49 Class A1,
1.64%, 12/19/2033 (a)(b)
1,100,000 Residential Funding Mortgage 1,084,193
Secs II, Series 2005-HI2 Class A3,
4.46%, 05/25/2035 (a)
1,780,491 Fanniemae Grantor Trust, Series 1,780,491
2005-T3 Class A1A,
3.87%, 07/25/2035 (a)
1,860,221 Washington Mutual, Series 1,858,807
2005-AR2 Class 2A22,
4.05%, 01/25/2045 (a)(b)
--------------
Total Collateralized Mortgage Obligations(Cost $4,829,081) 4,812,035
--------------
================================================================================
MORTGAGE PASS-THROUGHS: 32.81%
- --------------------------------------------------------------------------------
66,120,342 Federal National Mortgage 66,458,761
Association Pool,
5.50%, 02/01/2009-02/01/2035 (a)
33,840,932 Federal National Mortgage 34,475,568
Association Pool,
6.00%, 02/01/2017-09/01/2035 (a)
4,029,662 Federal Home Loan Mortgage 4,106,290
Corp. Pool,
6.00%, 09/01/2020-03/01/2035 (a)
- --------------------------------------------------------------------------------
14 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 37,690,000 Federal National Mortgage $ 36,900,847
Association Pool TBA,
4.50%, 10/25/2020 (c)
18,530,000 Federal National Mortgage 18,477,893
Association Pool TBA,
5.00%, 10/25/2020 (c)
1,245,269 Federal National Mortgage 1,281,784
Association Pool,
6.50%, 05/01/2034-09/01/2034 (a)
12,540,000 Federal National Mortgage 11,952,187
Association Pool TBA,
4.50%, 10/25/2035 (c)
16,315,000 Federal National Mortgage 16,304,803
Association Pool TBA,
5.50%, 10/25/2035 (c)
22,930,000 Federal National Mortgage 23,596,392
Association Pool TBA,
6.50%, 10/25/2035 (c)
--------------
Total Mortgage Pass-Throughs (Cost $214,935,938) 213,554,525
--------------
================================================================================
AUTOMOTIVE: 0.54%
- --------------------------------------------------------------------------------
340,000 Ford Motor Credit Co., 340,395
6.50%, 01/25/2007 (a)
1,040,000 Ford Motor Credit Co., 1,016,472
6.625%, 06/16/2008 (a)
205,000 Ford Motor Credit Co., 186,224
5.70%, 01/15/2010 (a)
530,000 DaimlerChrysler NA, 519,410
4.875%, 06/15/2010 (a)
940,000 Ford Motor Credit Co., 899,116
7.375%, 02/01/2011 (a)
590,000 Ford Motor Credit Co., 547,141
7.00%, 10/01/2013 (a)
2,000 Keystone Automotive Operations 1,990
Inc., Senior Subordinated Note,
9.75%, 11/01/2013,
Callable 11/01/2008 @ 104.88 (a)
--------------
Total Automotive (Cost $3,669,194) 3,510,748
--------------
================================================================================
BANKING: 2.08%
- --------------------------------------------------------------------------------
1,015,000 Suntrust Bank, 1,016,216
3.99%, 06/02/2009 (a)(b)
955,000 Wells Fargo & Co., Senior Note, 936,197
4.20%, 01/15/2010 (a)
980,000 Huntington National Bank, 964,362
Senior Note,
4.375%, 01/15/2010 (a)
1,820,000 JP Morgan Chase & Co., 1,969,393
6.75%, 02/01/2011 (a)
280,000 UFJ Bank Ltd., Subordinated Note, 310,466
7.40%, 06/15/2011 (a)
1,400,000 Barclays Bank plc, 1,640,871
8.55%, 06/15/2011,
Callable 06/15/2011 @ 100.00 (a)(b)(d)
500,000 UFJ Finance Aruba AEC, 549,027
6.75%, 07/15/2013 (a)
120,000 Royal Bank of Scotland Group 120,689
plc, Subordinated Note,
5.00%, 10/01/2014 (a)
3,370,000 Mizuho Financial Group Ltd. 3,648,025
(Cayman),
8.375%, 04/27/2049,
Callable 04/27/2009 @ 100.00 (a)
410,000 Sumitomo Mitsui Banking Corp. 408,029
(Japan),
5.625%, 07/29/2049,
Callable 10/15/2015 @ 100.00 (a)(b)(d)
1,950,000 RBS Capital Trust III, 1,983,694
5.512%, 09/29/2049,
Callable 09/30/2014 @ 100.00 (a)(b)
--------------
Total Banking (Cost $13,409,338) 13,546,969
--------------
================================================================================
BROADCASTING/MEDIA: 0.95%
- --------------------------------------------------------------------------------
845,000 TimeWarner Inc., 923,488
6.875%, 05/01/2012 (a)
890,000 News America Holdings, 1,099,258
9.25%, 02/01/2013 (a)
735,000 WPP Finance Corp. 759,934
(United Kingdom),
5.875%, 06/15/2014 (a)
610,000 Lamar Media Corp., Senior 620,675
Subordinated Note,
6.625%, 08/15/2015
Callable 08/15/2010 @ 103.31 (a)(d)
1,710,000 TimeWarner Entertainment Co., 2,074,208
Senior Debenture,
8.375%, 03/15/2023 (a)
655,000 News America Holdings, 681,000
6.55%, 03/15/2033 (a)
--------------
Total Broadcasting/Media (Cost $5,838,701) 6,158,563
--------------
================================================================================
BUILDING/REAL ESTATE: 0.14%
- --------------------------------------------------------------------------------
590,000 iStar Financial, Inc., Senior Note, 576,286
5.15%, 03/01/2012 (a)
305,000 William Lyon Homes, Inc., 328,638
10.75%, 04/01/2013,
Callable 04/01/2008 @ 105.38 (a)
--------------
Total Building/Real Estate (Cost $932,670) 904,924
--------------
================================================================================
CABLE: 0.81%
- --------------------------------------------------------------------------------
445,000 British Sky Broadcasting Group plc, 471,723
6.875%, 02/23/2009 (a)
570,000 Charter Communications 574,275
Operating LLC, Senior Note,
8.00%, 04/30/2012 (a)(d)
620,000 Cox Communications Inc., 586,675
4.625%, 06/01/2013 (a)
Schedule of Investments -- Intermediate Duration Institutional Portfolio 15
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,025,000 Comcast Corp., $ 1,022,333
5.30%, 01/15/2014 (a)
347,000 PanAmSat Corp., 366,085
9.00%, 08/15/2014,
Callable 08/15/2009 @ 104.50 (a)
355,000 DirectTV Holdings LLC, 352,337
6.375%, 06/15/2015,
Callable 06/15/2015 @ 103.19 (a)(d)
1,400,000 AT&T Broadband Corp., 1,885,503
9.455%, 11/15/2022 (a)
--------------
Total Cable (Cost $5,385,970) 5,258,931
--------------
================================================================================
CHEMICALS: 0.24%
- --------------------------------------------------------------------------------
790,000 Nell AF SARL (Luxembourg), 772,225
Senior Note,
8.375%, 08/15/2015,
Callable 08/15/2010 @ 104.19 (a)(d)
735,000 Union Carbide Corp., 772,938
Debenture,
7.75%, 10/01/2096 (a)
--------------
Total Chemicals (Cost $1,519,164) 1,545,163
--------------
================================================================================
COMMUNICATIONS: 2.05%
- --------------------------------------------------------------------------------
1,155,000 Cox Enterprises Inc., 1,134,471
4.375%, 05/01/2008 (a)(d)
2,465,000 Telecom Italia Capital, 2,366,930
4.00%, 01/15/2010 (a)
740,000 Deutsche Telekom International 838,957
Finance BV,
8.00%, 06/15/2010 (a)
1,920,000 British Telecommunications plc, 2,223,080
8.375%, 12/15/2010 (a)
1,085,000 AT&T Corp., Senior Note, 1,221,981
7.30%, 11/15/2011 (a)(d)
4,035,000 Sprint Capital Corp., 4,748,541
8.375%, 03/15/2012 (a)
415,000 Qwest Communications 394,250
International Inc.,
7.50%, 02/15/2014,
Callable 02/15/2020 @ 103.75 (a)
335,000 AT&T Corp., 424,194
8.00%, 11/15/2031 (a)
--------------
Total Communications (Cost $13,589,980) 13,352,404
--------------
================================================================================
COMMUNICATIONS--FIXED: 0.05%
- --------------------------------------------------------------------------------
195,000 Qwest Corp., 213,038
8.875%, 03/15/2012 (a)(d)
120,000 Hawaiian Telcom Communications Inc., 122,400
9.75%, 05/01/2013,
Callable 05/01/2009 @ 104.88 (a)(d)
--------------
Total Communications--Fixed (Cost $332,030) 335,438
--------------
================================================================================
COMMUNICATIONS--MOBILE: 1.11%
- --------------------------------------------------------------------------------
1,225,000 Cingular Wireless LLC, 1,239,837
5.625%, 12/15/2006 (a)
1,480,000 Telus Corp., 1,545,493
7.50%, 06/01/2007 (a)
2,230,000 AT&T Wireless Services Inc., 2,538,848
Senior Note,
7.875%, 03/01/2011 (a)
310,000 Digicel Ltd. (Bermuda), Senior Note, 320,850
9.25%, 09/01/2012,
Callable 09/01/2009 @ 104.63 (a)(d)
1,185,000 AT&T Wireless Services Inc., 1,599,511
Senior Note,
8.75%, 03/01/2031 (a)
--------------
Total Communications--Mobile (Cost $7,012,464) 7,244,539
--------------
================================================================================
CONGLOMERATE/MISCELLANEOUS: 0.24%
- --------------------------------------------------------------------------------
1,330,000 Hutchison Whampoa 1,536,283
International Ltd.,
7.45%, 11/24/2033 (a)(d)
--------------
Total Conglomerate/Miscellaneous(Cost $1,362,982) 1,536,283
--------------
================================================================================
CONSUMER MANUFACTURING: 0.23%
- --------------------------------------------------------------------------------
540,000 Fortune Brands Inc., 528,673
2.875%, 12/01/2006 (a)
415,000 Visant Corp., 419,150
7.625%, 10/01/2012,
Callable 10/01/2008 @ 103.81 (a)
570,000 Acco Brands Corp., 564,300
7.625%, 08/15/2015,
Callable 08/15/2010 @ 103.81 (a)(d)
--------------
Total Consumer Manufacturing (Cost $1,531,785) 1,512,123
--------------
================================================================================
ENERGY: 0.92%
- --------------------------------------------------------------------------------
360,000 Duke Energy Field Services Corp., 404,761
7.875%, 08/16/2010 (a)
135,000 Hilcorp Energy I LP, Senior Note, 148,500
10.50%, 09/01/2010,
Callable 09/01/2007 @ 105.25 (a)(d)
345,000 Amerada Hess Corp., 372,769
6.65%, 08/15/2011 (a)
1,235,000 Valero Energy Corp., 1,356,094
6.875%, 04/15/2012 (a)
600,000 Enterprise Products Operating 597,889
LP, Series B,
5.60%, 10/15/2014 (a)
1,150,000 Conoco Inc., Senior Note, 1,399,879
6.95%, 04/15/2029 (a)
900,000 Amerada Hess Corp., 1,103,856
7.875%, 10/01/2029 (a)
- --------------------------------------------------------------------------------
16 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 510,000 Valero Energy Corp., $ 615,576
7.50%, 04/15/2032 (a)
--------------
Total Energy (Cost $5,701,894) 5,999,324
--------------
================================================================================
FINANCIAL: 3.47%
- --------------------------------------------------------------------------------
530,000 CIT Group Inc., Medium-Term Note, 531,395
4.022%, 05/18/2007 (a)(b)
365,000 Boeing Capital Corp., Senior 365,997
Note, 4.75%, 08/25/2008 (a)
1,880,000 Household Finance Corp., 1,974,149
6.50%, 11/15/2008 (a)
2,160,000 American General Finance 2,138,625
Corp., Medium-Term Note,
4.625%, 05/15/2009 (a)
720,000 Citigroup Inc., 721,161
3.938%, 06/09/2009 (a)(b)
4,569,000 Dow Jones Cdx, High Yield 4,574,711
Series 4-T3,
8.00%, 06/29/2010 (a)
1,225,000 Berkshire Hathaway Finance Corp., 1,195,751
4.20%, 12/15/2010 (a)
1,375,000 Countrywide Home Loans, Inc., 1,306,231
Medium-Term Note, Series L,
4.00%, 03/22/2011 (a)
1,435,000 General Electric Capital Corp., 1,405,126
4.375%, 11/21/2011 (a)
1,100,000 CIT Group Inc., Senior Note, 1,260,963
7.75%, 04/02/2012 (a)
565,000 Household Finance Corp., 625,276
7.00%, 05/15/2012 (a)
650,000 Goldman Sachs Group Inc., 635,151
4.75%, 07/15/2013 (a)
3,671,000 Citigroup Inc., Subordinated Note, 3,651,180
5.00%, 09/15/2014 (a)
790,000 Goldman Sachs Group Inc., 787,555
5.125%, 01/15/2015 (a)
690,000 Resona Preferred Global 714,331
Securities (Cayman),
7.191%, 12/29/2049 (a)(b)(d)
650,000 CBA Capital Trust I, 673,153
5.805%, 12/31/2049,
Callable 07/30/2015 @ 100.00 (a)(d)
--------------
Total Financial (Cost $22,318,745) 22,560,755
--------------
================================================================================
FOOD/BEVERAGE: 0.20%
- --------------------------------------------------------------------------------
341,000 ConAgra Foods Inc., 381,566
7.875%, 09/15/2010 (a)
223,000 ConAgra Foods Inc., 239,785
6.75%, 09/15/2011 (a)
650,000 Kraft Foods Inc., 657,178
5.25%, 10/01/2013 (a)
--------------
Total Food/Beverage (Cost $1,294,122) 1,278,529
--------------
================================================================================
GAMING: 0.10%
- --------------------------------------------------------------------------------
220,000 Riviera Holdings Corp., 237,600
11.00%, 06/15/2010,
Callable 06/15/2006 @ 105.50 (a)
390,000 Seneca Gaming Corp., 399,750
7.25%, 05/01/2012,
Callable 05/01/2008 @ 103.63 (a)(d)
--------------
Total Gaming (Cost $613,080) 637,350
--------------
================================================================================
HEALTHCARE: 0.36%
- --------------------------------------------------------------------------------
388,000 Wellpoint Inc., 380,104
3.75%, 12/14/2007 (a)
215,000 Concentra Operating Corp., 223,600
9.125%, 06/01/2012,
Callable 06/01/2008 @ 104.56 (a)
1,019,000 Wyeth, 1,044,199
5.50%, 02/01/2014 (a)
685,000 Humana Inc., Senior Note, 729,676
6.30%, 08/01/2018 (a)
--------------
Total Healthcare (Cost $2,337,344) 2,377,579
--------------
================================================================================
INDUSTRIAL: 0.29%
- --------------------------------------------------------------------------------
195,000 Case New Holland Inc., 206,212
9.25%, 08/01/2011,
Callable 08/01/2007 @ 104.62 (a)
1,165,000 Tyco International Group SA, 1,241,753
6.375%, 10/15/2011 (a)
250,000 H&E Equipment Services LLC, 280,000
11.125%, 06/15/2012,
Callable 06/15/2007 @ 105.56 (a)
165,000 Teck Cominco Ltd., Class B, 164,307
5.375%, 10/01/2015 (a)
--------------
Total Industrial (Cost $1,901,758) 1,892,272
--------------
================================================================================
INSURANCE: 1.14%
- --------------------------------------------------------------------------------
780,000 MetLife Inc., 775,680
5.00%, 11/24/2013 (a)
735,000 Assurant Inc., 746,009
5.625%, 02/15/2014 (a)
855,000 Liberty Mutual Group, 835,441
5.75%, 03/15/2014 (a)(d)
445,000 Fairfax Financial Holdings Ltd., 384,925
7.375%, 04/15/2018 (a)
720,000 Royal & Sun Alliance Insurance 910,086
Group plc,
8.95%, 10/15/2029 (a)
1,910,000 Mangrove Bay Pass-Through Trust, 1,910,019
6.102%, 07/15/2033,
Callable 07/15/2013 @ 100 (a)(b)(d)
Schedule of Investments -- Intermediate Duration Institutional Portfolio 17
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,740,000 Zurich Capital Trust, $ 1,859,159
8.376%, 06/01/2037,
Callable 06/01/2007 @ 104.19 (a)(d)
--------------
Total Insurance (Cost $7,432,552) 7,421,319
--------------
================================================================================
METALS/MINING: 0.15%
- --------------------------------------------------------------------------------
455,000 AK Steel Corp., 441,350
7.875%, 02/15/2009,
Callable 11/07/2005 @ 102.65 (a)
455,000 Ispat Inland ULC, 527,800
9.75%, 04/01/2014,
Callable 04/01/2009 @ 104.88 (a)
--------------
Total Metals/Mining (Cost $965,829) 969,150
--------------
================================================================================
PAPER/PACKAGING: 0.47%
- --------------------------------------------------------------------------------
830,000 Weyerhaeuser Co., 860,072
5.95%, 11/01/2008 (a)
5,000 International Paper Co., 5,359
6.75%, 09/01/2011 (a)
1,245,000 Packaging Corp. of America, 1,204,446
5.75%, 08/01/2013 (a)
1,015,000 International Paper Co., 990,627
5.30%, 04/01/2015 (a)
--------------
Total Paper/Packaging (Cost $3,125,016) 3,060,504
--------------
================================================================================
PETROLEUM PRODUCTS: 0.06%
- --------------------------------------------------------------------------------
405,000 Tengizchevroil Finance Co., 414,113
6.124%, 11/15/2014 (a)(d)
--------------
Total Petroleum Products (Cost $405,987) 414,113
--------------
================================================================================
PUBLIC UTILITIES--ELECTRIC & GAS: 1.95%
- --------------------------------------------------------------------------------
600,000 Consumers Energy Co., Series C, 591,398
4.25%, 04/15/2008 (a)
590,000 NiSource Finance Corp., 663,331
7.875%, 11/15/2010 (a)
895,000 Progress Energy Inc., 972,954
7.10%, 03/01/2011 (a)
1,415,000 FirstEnergy Corp,. Series B, 1,506,642
6.45%, 11/15/2011 (a)
1,135,000 Carolina Power & Light Co., 1,227,819
6.50%, 07/15/2012 (a)
410,000 MidAmerican Energy Holdings 427,797
Co., Senior Note,
5.875%, 10/01/2012 (a)
410,000 Public Service Co. of Colorado, 482,031
7.875%, 10/01/2012 (a)
1,150,000 TXU Australia Holdings Pty Ltd., 1,235,006
6.15%, 11/15/2013 (a)(d)
960,000 Pacific Gas & Electric Co., 938,672
4.80%, 03/01/2014 (a)
660,000 Duke Capital LLC, Senior Note, 663,896
5.50%, 03/01/2014 (a)
1,085,000 Duke Capital, LLC, Senior Note, 1,317,427
8.00%, 10/01/2019 (a)
1,500,000 FirstEnergy Corp., Series C, 1,759,302
7.375%, 11/15/2031 (a)
895,000 Pacific Gas & Electric Co., 931,151
6.05%, 03/01/2034 (a)
--------------
Total Public Utilities--Electric & Gas(Cost $12,411,648) 12,717,426
--------------
================================================================================
PUBLIC UTILITIES--TELEPHONE: 0.25%
- --------------------------------------------------------------------------------
165,000 Cincinnati Bell Inc., 159,225
7.00%, 02/15/2015,
Callable 02/15/2010 @ 103.50 (a)
1,445,000 Telecom Italia Capital, 1,486,347
6.375%, 11/15/2033 (a)
--------------
Total Public Utilities--Telephone (Cost $1,602,413) 1,645,572
--------------
================================================================================
RETAIL: 0.09%
- --------------------------------------------------------------------------------
620,000 GSC Holdings Corp., 620,000
8.00%, 10/01/2012,
Callable 10/01/2009 @ 104.00 (a)(d)
--------------
Total Retail (Cost $611,873) 620,000
--------------
================================================================================
SERVICE: 0.31%
- --------------------------------------------------------------------------------
2,015,000 Pershing Road Development 2,015,000
Company LLC,
4.26%, 09/01/2026,
Callable 12/01/2005 @ 102.00 (a)(b)(d)
--------------
Total Service (Cost $2,015,000) 2,015,000
--------------
================================================================================
SUPERMARKET/DRUG: 0.11%
- --------------------------------------------------------------------------------
350,000 Safeway, Inc., 365,088
6.50%, 03/01/2011(a)
361,000 Stater Bros. Holdings Inc., 356,487
8.125%, 06/15/2012,
Callable 06/15/2008 @ 104.06 (a)
--------------
Total Supermarket/Drug (Cost $722,437) 721,575
--------------
================================================================================
TECHNOLOGY: 0.07%
- --------------------------------------------------------------------------------
355,000 International Business 352,791
Machines Corp., Medium-Term Note,
4.375%, 06/01/2009 (a)
111,000 Motorola Inc., 125,625
7.625%, 11/15/2010 (a)
--------------
Total Technology (Cost $479,109) 478,416
--------------
================================================================================
ASSET-BACKED SECURITIES: 3.79%
- --------------------------------------------------------------------------------
2,300,000 Capital Auto Receivables Asset 2,284,544
Trust, Series 2005-SN1A Class A3A,
4.10%, 06/15/2008 (a)
- --------------------------------------------------------------------------------
18 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,910,000 Bank One Issuance Trust, $ 1,910,955
Series 2004-A4 Class A4,
3.808%, 02/16/2010 (a)(b)
2,220,000 Discover Card Master Trust I, 2,220,355
Series 2004-1 Class A,
3.798%, 04/16/2010 (a)(b)
2,940,000 Citibank Omni Master Trust, 2,947,350
Series 1996-5 Class A,
3.998%, 12/16/2011 (a)(b)(d)
1,845,000 American Express Credit 1,844,133
Account Master Trust, Series
2005-1 Class A,
3.798%, 10/15/2012 (a)(b)
186,370 RAAC, Series 2004-SP1 Class AI1, 186,370
4.01%, 06/25/2013 (a)(b)
1,877,056 SLM Student Loan Trust, Series 1,878,050
2003-C Class A1,
3.97%, 09/15/2016 (a)(b)
257,748 Residential Funding Mortgage 257,748
Securities Inc., Series
2004-HS2 Class AI1,
3.98%, 12/25/2018 (a)(b)
406,357 Residential Asset Securities 406,357
Corp., Series 2004-KS7 Class AI1,
3.98%, 10/25/2021 (a)(b)
1,105,200 Bear Stearns Asset Backed 1,105,200
Securities Inc., Series
2005-SD1 Class 1A1,
3.98%, 04/25/2022 (a)(b)
74,295 Residential Asset Mortgage Products Inc., 74,295
Series 2004-RS6 Class AI1,
3.98%, 08/25/2022 (a)(b)
772,909 Novastar Home Equity Loan 773,087
Series 2001-1 Class A1,
4.11%, 07/25/2031 (a)(b)
763,387 Residential Asset Securities 765,036
Corp., Series 2002-KS7 Class A2,
4.20%, 11/25/2032 (a)(b)
1,412,915 Asset Backed Funding Corp., 1,421,082
Series 2003-WF1 Class A2,
4.391%, 12/25/2032 (a)
866,091 Citifinancial Mortgage Securities Inc., 843,962
Series 2003-1 Class AFPT,
3.36%, 01/25/2033 (a)
69,708 Centex Home Equity, Series 69,719
2003-C Class AV,
4.13%, 09/25/2033 (a)(b)
757,150 Structured Asset Investment Loan Trust, 757,271
Series 2004-5 Class A2,
4.01%, 05/25/2034 (a)(b)
587,701 Morgan Stanley ABS Capital I, 587,795
Series 2004-HE4 Class A3,
4.03%, 05/25/2034 (a)(b)
335,927 Equity One ABS Inc., Series 335,954
2004-3 Class AF1,
3.99%, 07/25/2034 (a)(b)
1,469,558 Aegis Asset Backed Securities 1,470,249
Trust, Series 2004-3 Class A2A,
4.03%, 09/25/2034 (a)(b)
777,627 Morgan Stanley ABS Capital I, 777,627
Series 2005-WMC1 Class A2A,
3.93%, 01/25/2035 (a)(b)
147,736 Merrill Lynch Mortgage 147,760
Investors, Inc., Series
2004-SL1 Class A,
4.09%, 04/25/2035 (a)(b)
1,605,000 Home Equity Mortgage Trust, 1,593,926
Series 2005-4 Class A3,
4.742%, 01/25/2036 (a)
--------------
Total Asset-Backed Securities(Cost $24,693,039) 24,658,825
--------------
================================================================================
COMMERCIAL MORTGAGE-BACKED SECURITIES: 8.62%
- --------------------------------------------------------------------------------
1,975,000 LB-UBS Commercial Mortgage 1,917,271
Trust, Series 2004-C7 Class A2,
3.992%, 10/15/2029 (a)
2,025,000 LB-UBS Commercial Mortgage 1,981,037
Trust, Series 2004-C8 Class A2,
4.201%, 12/15/2029 (a)
1,760,000 LB-UBS Commercial Mortgage 1,732,315
Trust, Series 2005-C1 Class A4,
4.742%, 02/15/2030 (a)
2,035,000 Greenwich Capital Commercial 1,932,355
Funding Corp., Series 2003-C1
Class A4,
4.111%, 07/05/2035 (a)
895,000 Greenwich Capital Commercial 881,011
Funding Corp., Series 2003-C2
Class A3,
4.533%, 01/05/2036 (a)
1,695,000 CS First Boston Mortgage 1,653,134
Securities Corp., Series
2003-CK2 Class A2,
3.861%, 03/15/2036 (a)
2,170,000 CS First Boston Mortgage 2,114,361
Securities Corp., Series
2004-C5 Class A2,
4.183%, 11/15/2037 (a)
245,000 JP Morgan Chase Commercial 237,753
Mortgage Securities, Series
2004-C1 Class A2,
4.302%, 01/15/2038 (a)
2,150,000 CS First Boston Mortgage 2,147,829
Securities Corp., Series
2005-C1 Class A4,
5.014%, 02/15/2038 (a)
2,845,000 Banc of America Commercial 2,927,135
Mortgage Inc., Series 2004-3 Class A5,
5.482%, 06/10/2039 (a)
2,030,000 GE Capital Commercial Mortgage 2,055,801
Corp., Series 2004-C3 Class A4,
5.189%, 07/10/2039 (a)
Schedule of Investments -- Intermediate Duration Institutional Portfolio 19
================================================================================
Principal Amount Description Market Value
================================================================================
$ 1,605,000 Merrill Lynch Mortgage Trust, $ 1,561,440
Series 2004-KEY Class A2,
4.166%, 08/12/2039 (a)
2,850,000 Morgan Stanley Capital I, 2,802,547
Series 2005-T17 Class A5,
4.78%, 12/13/2041 (a)
3,745,000 Morgan Stanley Capital I, 3,786,457
Series 2005-HQ5 Class A4,
5.168%, 01/14/2042 (a)
2,520,000 Bear Stearns Commercial 2,505,384
Mortgage Securities Inc.,
Series 2005-T18 Class A4,
4.933%, 02/13/2042 (a)
1,900,000 Banc of America Commercial 1,858,390
Mortgage Inc., Series 2004-4 Class A3,
4.128%, 07/10/2042 (a)
2,620,000 Greenwich Capital Commercial 2,567,155
Funding Corp., Series 2005-GG3 Class A2,
4.305%, 08/10/2042 (a)
2,085,000 JP Morgan Chase Commercial 2,080,350
Mortgage Securities, Series
2005-LDP3 Class A2,
4.851%, 08/15/2042 (a)
3,175,000 Merrill Lynch Mortgage Trust, 3,167,126
Series 2005-MKB2 Class A2,
4.806%, 09/12/2042 (a)
1,945,000 JP Morgan Chase Commercial 1,935,625
Mortgage Securities, Series
2005-LDP4 Class A2,
4.79%, 10/15/2042 (a)
2,650,000 Banc of America Commercial 2,656,864
Mortgage Inc., Series 2005-1 Class A3,
4.877%, 11/10/2042 (a)
2,565,000 Banc of America Commercial 2,499,926
Mortgage Inc., Series 2004-6 Class A2,
4.161%, 12/10/2042 (a)
2,370,000 GE Capital Commercial Mortgage 2,364,952
Corp., Series 2005-C3 Class A3FX,
4.863%, 07/10/2045 (a)
1,555,000 Morgan Stanley Capital I, 1,499,378
Series 2004-T13 Class A2,
3.94%, 09/13/2045 (a)
2,665,000 JP Morgan Chase Commercial 2,639,309
Mortgage Securities, Series
2005-LDP1 Class A2,
4.625%, 03/15/2046 (a)
2,620,000 JP Morgan Chase Commercial 2,621,153
Mortgage Securities, Series
2005-LDP1 Class A4,
5.038%, 03/15/2046 (a)
--------------
Total Commercial Mortgage-Backed Securities(Cost $56,669,460) 56,126,058
--------------
================================================================================
U.S. DOLLAR SOVEREIGN DEBT: 1.55%
- --------------------------------------------------------------------------------
1,470,000 Republic of Peru, 1,558,200
7.35%, 07/21/2025 (a)
3,110,000 Russian Federation, 3,573,390
5.00%, 03/31/2030 (a)
1,530,000 United Mexican States, 1,774,800
7.50%, 04/08/2033 (a)
2,595,000 Brazil (Republic of), 3,178,875
11.00%, 08/17/2040,
Callable 08/17/2015 @ 100.00 (a)
--------------
Total U.S. Dollar Sovereign Debt(Cost $9,203,537) 10,085,265
--------------
================================================================================
NON U.S. DOLLAR SOVEREIGN DEBT: 3.59%
- --------------------------------------------------------------------------------
84,065,000 Sweden (Kingdom of), Series 1043, 11,693,417
5.00%, 01/28/2009 (a)
8,605,000 France (Govt of), 11,647,881
5.00%, 04/25/2012 (a)
--------------
Total Non U.S. Dollar Sovereign Debt(Cost $23,822,337) 23,341,298
--------------
================================================================================
SHORT-TERM INVESTMENTS: 21.19%
- --------------------------------------------------------------------------------
Commercial Paper: 3.07%
20,000,000 Rabobank Financial Corp., 19,995,689
3.39%, 10/03/2005 (e)
--------------
Total Commercial Paper (Cost $19,995,689) 19,995,689
--------------
U.S. Government Sponsored Agency Obligations: 18.08%
116,700,000 Federal Home Loan Banks, 116,679,383
0.00%, 10/03/2005 (e)
1,000,000 Federal National Mortgage 993,765
Association,
0.00%, 12/02/2005 (e)(f)
--------------
Total U.S. Government Sponsored Agency
Obligations (Cost $117,673,148) 117,673,148
--------------
U.S. Treasury Bill: 0.04%
250,000 0.00%, 12/08/2005 (f)(g) 248,384
--------------
Total U.S. Treasury Bill (Cost $248,384) 248,384
--------------
Total Short-Term Investments(Cost $137,917,221) 137,917,221
--------------
================================================================================
INVESTMENT SUMMARY
- --------------------------------------------------------------------------------
Total Investments (Cost $712,447,750) (h) 109.33% $ 711,652,949
Cash and Other Assets, Less Liabilities (9.33) (60,737,758)
------- --------------
Net Assets (Equivalent to $15.25 per
share based on 42,673,898 shares of
capital stock outstanding) 100.00% $ 650,915,191
======= ==============
- --------------------------------------------------------------------------------
20 Sanford C. Bernstein Fund, Inc. -- 2005 Annual Report
===================================================================================================================================
CREDIT DEFAULT SWAP CONTRACTS
- -----------------------------------------------------------------------------------------------------------------------------------
Swap Counterparty & Notional Interest Unrealized/Appreciation
Referenced Obligation Amount Rate Termination Date (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Buy Contracts
JP Morgan Chase
Dow Jones High Volume, 4.00%, 06/20/2010 19,000,000 0.90% 06/20/2010 $ (176,154)
JP Morgan Chase
Dow Jones High Volume, 4.00%, 06/20/20 106,000,000 0.90% 06/20/2010 47,133
===================================================================================================================================
FORWARD EXCHANGE CURRENCY CONTRACTS
- -----------------------------------------------------------------------------------------------------------------------------------
Contract Amount U.S. $ Value on U.S. $ Unrealized Appreciation/
(000) Origination Date Current Value (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Purchase Contract
Mexican Peso Settling 10/20/2005 62,737 $ 5,781,873 $ 5,813,565 $ 31,692
Sale Contracts
Mexican Peso Settling 10/20/2005 62,737 5,775,858 5,813,565 (37,707)
Swedish Krona Settling 10/24/2005 93,479 12,344,269 12,073,366 270,903
Euro Currency Settling 10/28/2005 9,802 11,917,633 11,796,643 120,990
===================================================================================================================================
FINANCIAL FUTURES CONTRACTS
- -----------------------------------------------------------------------------------------------------------------------------------
Number of Expiration Original Value at Unrealized Appreciation
Type Contracts Month Value September 30, 2005 (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Purchase Contracts
Federal Republic of Germany 140 December 2005 $20,733,388 $20,616,765 $ (116,623)
Bond 10 Yr Futures
Japan Government Bonds 10 December 2005 12,292,349 12,125,617 (166,732)
10 Yr Futures
Sale Contract
U.S. Treasury Note 171 December 2005 19,031,527 18,796,641 234,886
10 Yr Futures
-----------
$ (48,469)
===========
- --------------------------------------------------------------------------------
(a) Positions, or portion thereof, with an aggregate market value of
$466,503,607 have been segregated to collateralize open forward exchange
currency contracts.
(b) Variable rate coupon, rate shown as of September 30, 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 September 30, 2005, the aggregate market value of these
securities amounted to $23,253,557 or 3.57% of net assets.
(e) Represents entire or partial position segregated as collateral for TBA
securities.
(f) Represents entire or partial position segregated as collateral for open
futures contracts.
(g) Represents entire or partial position segregated as collateral for credit
default swaps.
(h) At September 30, 2005, the cost basis of investment securities for tax
purposes was $712,670,156. Gross unrealized appreciation of investments
was $3,669,991 and gross unrealized depreciation of investments was
$4,687,197, resulting in net unrealized depreciation of $1,017,206
(excluding swap and futures transactions).
Explanation of abbreviation:
TBA--To Be Announced
See Notes to Financial Statements.
Schedule of Investments -- Intermediate Duration Institutional Portfolio 21
SCBMFANNTAX0905
ITEM 2. CODE OF ETHICS.
(a) The registrant has adopted a code of ethics that applies to its principal
executive officer, principal financial officer and principal accounting officer.
A copy of the registrant's code of ethics is filed herewith as Exhibit 12(a)(1).
(b) During the period covered by this report, no material amendments were made
to the provisions of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, no implicit or explicit waivers to
the provisions of the code of ethics adopted in 2(a) above were granted.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors has determined that independent directors
David H. Dievler and William H. Foulk, Jr. qualify as audit committee financial
experts.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) - (c) The following table sets forth the aggregate fees billed by the
independent registered public accounting firm PricewaterhouseCoopers LLP, for
the Fund's last two fiscal years for professional services rendered for: (i) the
audit of the Fund's annual financial statements included in the Fund's annual
report to stockholders; (ii) assurance and related services that are reasonably
related to the performance of the audit of the Fund's financial statements and
are not reported under (i), which include advice and education related to
accounting and auditing issues, quarterly press release review (for those Funds
that issue press releases), and preferred stock maintenance testing (for those
Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax
return preparation.
Audit-Related
Audit Fees Fees Tax Fees
Bernstein Intermediate 2004 $35,000 $1,400 $15,376
Duration Institutional 2005 $37,000 $1,480 $11,826
Portfolio
(d) Not applicable.
(e) (1) Beginning with audit and non-audit service contracts entered into on or
after May 6, 2003, the Fund's Audit Committee policies and procedures require
the pre-approval of all audit and non-audit services provided to the Fund by the
Fund's independent auditors. The Fund's Audit Committee policies and procedures
also require pre-approval of all audit and non-audit services provided to the
Adviser and Service Affiliates to the extent that these services are directly
related to the operations or financial reporting of the Fund.
(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in
the table under Item 4 (a) - (c) are for services pre-approved by the Fund's
Audit Committee.
(f) Not applicable.
(g) The following table sets forth the aggregate non-audit services provided to
the Fund, the Fund's Adviser and entities that control, are controlled by or
under common control with the Adviser that provide ongoing services to the Fund,
("Service Affiliates"):
Total Amount of
Foregoing Column Pre-
approved by the
All Fees for Audit Committee
Non-Audit Services (Portion Comprised of
Provided to the Audit Related Fees)
Portfolio, the Adviser (Portion Comprised of
and Service Affiliates Tax Fees)
---------------------- ---------------------
Bernstein Intermediate 2004 $746,844 [$16,776]
Duration Institutional ( $1,400)
Portfolio ($15,376)
2005 $992,200 [$13,306]
( $1,480)
($11,826)
(h) The Audit Committee of the Fund has considered whether the provision of any
non-audit services not pre-approved by the Audit Committee provided by the
Fund's independent auditor to the Adviser and Service Affiliates is compatible
with maintaining the auditor's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. SCHEDULE OF INVESTMENTS.
Please see Schedule of Investments contained in the Report to Shareholders
included under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 10. 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 11. 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 changes in the registrant's internal controls over financial
reporting that occurred during the second fiscal quarter of the period that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
12 (a) (1) Code of Ethics that is subject to the disclosure of
Item 2 hereof
12 (b) (1) Certification of Principal Executive Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2) Certification of Principal Financial Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
12 (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/ Roger Hertog
----------------
Roger Hertog
President
Date: November 29, 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/ Roger Hertog
----------------
Roger Hertog
President
Date: November 29, 2005
By: /s/ Mark D. Gersten
-------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: November 29, 2005