-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OpmRwVGs+lsH82BDDOHs3UngnQQw8160TsQWoqx7H0HhWFx0KadtrzDgru/GMJRi krZYSNLFLYbhsg3LlGv5VQ== 0000051931-09-000466.txt : 20090529 0000051931-09-000466.hdr.sgml : 20090529 20090529134520 ACCESSION NUMBER: 0000051931-09-000466 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090331 FILED AS OF DATE: 20090529 DATE AS OF CHANGE: 20090529 EFFECTIVENESS DATE: 20090529 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN BALANCED FUND INC CENTRAL INDEX KEY: 0000004568 IRS NUMBER: 946050854 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00066 FILM NUMBER: 09860540 BUSINESS ADDRESS: STREET 1: ONE MARKET - STEUART TOWER STREET 2: SUITE 1800 CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 415-421-9360 MAIL ADDRESS: STREET 1: P.O. BOX 7650 (MICG) CITY: SAN FRANCISCO STATE: CA ZIP: 94120 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN EXPRESS INVESTMENT FUND INC DATE OF NAME CHANGE: 19750729 FORMER COMPANY: FORMER CONFORMED NAME: COMMONWEALTH INVESTMENT CO DATE OF NAME CHANGE: 19710203 0000004568 S000008801 AMERICAN BALANCED FUND INC C000023937 Class A ABALX C000023938 Class R-1 RLBAX C000023939 Class R-2 RLBBX C000023940 Class R-3 RLBCX C000023941 Class R-4 RLBEX C000023942 Class R-5 RLBFX C000023943 Class B BALBX C000023944 Class C BALCX C000023945 Class F-1 BALFX C000023946 Class 529-A CLBAX C000023947 Class 529-B CLBBX C000023948 Class 529-C CLBCX C000023949 Class 529-E CLBEX C000023950 Class 529-F-1 CLBFX C000068555 Class F-2 AMBFX N-Q 1 ambal_nq.htm N-Q Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM N-Q
Quarterly Schedule of Portfolio Holdings of
Registered Management Investment Company

Investment Company Act File Number: 811-00066



American Balanced Fund, Inc.
(Exact Name of Registrant as Specified in Charter)

P.O. Box 7650, One Market, Steuart Tower,
San Francisco, California 94120
(Address of Principal Executive Offices)




Registrant's telephone number, including area code:  (415) 421-9360

Date of fiscal year end: December 31

Date of reporting period: March 31, 2009





Patrick F. Quan
Capital Research and Management Company
P.O. Box 7650, One Market, Steuart Tower
San Francisco, California 94120
(Name and Address of Agent for Service)


Copies to:
Michael Glazer
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street, 25th Floor
Los Angeles, California 90071
(Counsel for the Registrant)

 
 
 

ITEM 1 – Schedule of Investments
 
[logo – American Funds®]

 
American Balanced Fund®
Investment portfolio
 
March 31, 2009 
unaudited
 
Common stocks — 65.14%
  
Shares
    
Value
(000)
  
             
INFORMATION TECHNOLOGY — 13.87%
            
Microsoft Corp.
     49,120,000     $ 902,335  
Cisco Systems, Inc.1
     34,800,000       583,596  
Oracle Corp.1
     30,819,284       556,905  
International Business Machines Corp.
     4,300,000       416,627  
Intel Corp.
     22,750,000       342,387  
Nokia Corp. (ADR)
     28,868,542       336,896  
Applied Materials, Inc.
     30,620,000       329,165  
Google Inc., Class A1
     910,000       316,735  
Yahoo! Inc.1
     22,359,000       286,419  
QUALCOMM Inc.
     6,000,000       233,460  
Hewlett-Packard Co.
     6,600,000       211,596  
SAP AG (ADR)
     5,000,000       176,450  
EMC Corp.1
     14,500,000       165,300  
Corning Inc.
     9,200,000       122,084  
Automatic Data Processing, Inc.
     3,200,000       112,512  
Paychex, Inc.
     3,250,000       83,427  
Intuit Inc.1
     2,600,000       70,200  
Texas Instruments Inc.
     3,000,000       49,530  
Tyco Electronics Ltd.
     3,360,000       37,094  
              5,332,718  
                 
                 
CONSUMER STAPLES — 8.02%
                
Wal-Mart Stores, Inc.
     16,050,000       836,205  
Coca-Cola Co.
     15,050,000       661,448  
Philip Morris International Inc.
     16,500,000       587,070  
Walgreen Co.
     9,350,000       242,726  
Kraft Foods Inc., Class A
     6,550,000       145,999  
Avon Products, Inc.
     7,000,000       134,610  
Estée Lauder Companies Inc., Class A
     4,500,000       110,925  
H.J. Heinz Co.
     3,250,000       107,445  
Procter & Gamble Co.
     2,100,000       98,889  
Unilever NV (New York registered)
     4,500,000       88,200  
Altria Group, Inc.
     4,450,000       71,289  
              3,084,806  
                 
                 
HEALTH CARE — 7.86%
                
Eli Lilly and Co.
     12,352,000       412,680  
UnitedHealth Group Inc.
     17,047,000       356,794  
Merck & Co., Inc.
     12,877,200       344,465  
Bristol-Myers Squibb Co.
     14,000,000       306,880  
Wyeth
     5,950,000       256,088  
Abbott Laboratories
     4,800,000       228,960  
Medtronic, Inc.
     7,200,000       212,184  
Aetna Inc.
     6,869,400       167,133  
Johnson & Johnson
     3,000,000       157,800  
Amgen Inc.1
     2,900,000       143,608  
Pfizer Inc
     10,500,000       143,010  
Schering-Plough Corp.
     5,500,000       129,525  
Roche Holding AG2
     700,000       95,946  
Stryker Corp.
     2,000,000       68,080  
              3,023,153  
                 
                 
ENERGY — 7.78%
                
Chevron Corp.
     12,050,000       810,242  
Royal Dutch Shell PLC, Class B (ADR)
     13,159,700       573,894  
Occidental Petroleum Corp.
     6,150,000       342,248  
Schlumberger Ltd.
     6,600,000       268,092  
Exxon Mobil Corp.
     3,500,000       238,350  
ConocoPhillips
     6,000,000       234,960  
TOTAL SA (ADR)
     3,860,000       189,372  
Baker Hughes Inc.
     6,500,000       185,575  
EnCana Corp.
     3,000,000       122,623  
Smith International, Inc.
     1,250,000       26,850  
              2,992,206  
                 
                 
FINANCIALS — 7.72%
                
Berkshire Hathaway Inc., Class A1
     8,430       730,881  
Wells Fargo & Co.
     33,150,000       472,056  
JPMorgan Chase & Co.
     16,200,000       430,596  
U.S. Bancorp
     22,710,000       331,793  
American Express Co.
     16,979,000       231,424  
ACE Ltd.
     3,990,000       161,196  
Bank of America Corp.
     18,150,000       123,783  
Allstate Corp.
     5,700,000       109,155  
SunTrust Banks, Inc.
     8,005,000       93,979  
Chubb Corp.
     2,200,000       93,104  
Citigroup Inc.
     26,495,000       67,032  
Comerica Inc.
     2,857,775       52,326  
Marsh & McLennan Companies, Inc.
     2,100,000       42,525  
Lincoln National Corp.
     4,100,000       27,429  
              2,967,279  
                 
                 
INDUSTRIALS — 7.02%
                
United Technologies Corp.
     8,580,000       368,768  
Boeing Co.
     9,813,000       349,147  
Deere & Co.
     9,290,000       305,362  
Northrop Grumman Corp.
     6,035,000       263,367  
Burlington Northern Santa Fe Corp.
     3,000,000       180,450  
FedEx Corp.
     3,900,000       173,511  
General Electric Co.
     17,000,000       171,870  
Emerson Electric Co.
     5,500,000       157,190  
Union Pacific Corp.
     3,400,000       139,774  
United Parcel Service, Inc., Class B
     2,500,000       123,050  
Tyco International Ltd.
     6,260,000       122,446  
Parker Hannifin Corp.
     3,000,000       101,940  
Illinois Tool Works Inc.
     3,000,000       92,550  
General Dynamics Corp.
     2,100,000       87,339  
European Aeronautic Defence and Space Co. EADS NV2
     5,500,000       63,898  
              2,700,662  
                 
                 
CONSUMER DISCRETIONARY — 4.64%
                
Home Depot, Inc.
     19,400,000       457,064  
Time Warner Inc.
     12,583,334       242,858  
Lowe’s Companies, Inc.
     12,300,000       224,475  
McDonald’s Corp.
     4,070,000       222,100  
Best Buy Co., Inc.
     4,100,000       155,636  
Nordstrom, Inc.
     8,500,000       142,375  
News Corp., Class A
     16,500,000       109,230  
Carnival Corp., units
     3,600,000       77,760  
Target Corp.
     1,700,000       58,463  
Magna International Inc., Class A
     1,750,000       46,813  
Macy’s, Inc.
     4,500,000       40,050  
Gannett Co., Inc.
     2,400,000       5,280  
              1,782,104  
                 
                 
TELECOMMUNICATION SERVICES — 2.79%
                
AT&T Inc.
     28,212,500       710,955  
Verizon Communications Inc.
     8,000,000       241,600  
Vodafone Group PLC2
     68,312,500       119,163  
              1,071,718  
                 
                 
UTILITIES — 2.04%
                
Exelon Corp.
     6,000,000       272,340  
PG&E Corp.
     5,900,000       225,498  
GDF Suez2
     5,800,000       199,132  
Edison International
     3,000,000       86,430  
              783,400  
                 
                 
MATERIALS — 1.45%
                
E.I. du Pont de Nemours and Co.
     13,600,000       303,688  
Alcoa Inc.
     17,500,000       128,450  
Weyerhaeuser Co.
     4,590,000       126,546  
              558,684  
                 
                 
MISCELLANEOUS — 1.95%
                
Other common stocks in initial period of acquisition
             749,307  
                 
                 
Total common stocks (cost: $32,326,672,000)
             25,046,037  
                 
                 
                 
Preferred stocks — 0.44%
                
                 
FINANCIALS — 0.42%
                
BNP Paribas 7.195%2,3,4
     57,200,000       25,454  
JPMorgan Chase & Co., Series I, 7.90%4
     35,750,000       23,021  
SMFG Preferred Capital USD 1 Ltd. 6.078%3,4
     30,471,000       18,797  
Barclays Bank PLC 7.434%3,4
     39,975,000       16,627  
AXA SA, Series B, 6.379%3,4
     42,000,000       15,390  
QBE Capital Funding II LP 6.797%3,4
     24,470,000       15,192  
Santander Finance Preferred S.A., Unipersonal, 6.50%
     940,000       13,313  
Bank of America Corp., Series K, 8.00% noncumulative4
     15,000,000       6,014  
Bank of America Corp., Series E, 0% depositary shares
     746,800       5,050  
Standard Chartered PLC 6.409%3,4
     12,400,000       5,649  
XL Capital Ltd., Series E, 6.50%4
     25,035,000       4,760  
Lloyds TSB Group PLC 6.267%3,4
     19,100,000       4,110  
DBS Capital Funding Corp., Series A, 7.657% noncumulative guaranteed preference shares3,4
     4,640,000       3,940  
Mizuho Capital Investment (USD) 1 Ltd. 6.686% noncumulative3,4
     4,050,000       2,405  
ING Capital Funding Trust III 8.439% noncumulative4
     6,750,000       1,969  
Fannie Mae, Series S, 8.25% noncumulative
     839,700       632  
Royal Bank of Scotland Group PLC, Series U, 7.64%4
     1,800,000       405  
              162,728  
                 
                 
U.S. GOVERNMENT AGENCY SECURITIES — 0.02%
                
US AgBank 6.11%3,4
     10,000,000       6,577  
                 
                 
Total preferred stocks (cost: $374,901,000)
             169,305  
                 
                 
   
Principal amount
          
Bonds & notes — 31.17%
     (000 )        
                 
MORTGAGE-BACKED OBLIGATIONS5 — 11.10%
                
Fannie Mae, Series 2000-T5, Class B, 7.30% 2010
   $ 52,930       55,782  
Fannie Mae, Series 2001-T11, Class B, 5.503% 2011
     45,000       48,114  
Fannie Mae, Series 2003-T1, Class B, 4.491% 2012
     16,000       16,877  
Fannie Mae 4.89% 2012
     30,000       31,175  
Fannie Mae 4.00% 2015
     16,524       17,003  
Fannie Mae 5.00% 2018
     2,998       3,134  
Fannie Mae 5.00% 2018
     1,708       1,785  
Fannie Mae 11.00% 2018
     387       442  
Fannie Mae 5.50% 2019
     2,678       2,814  
Fannie Mae 5.50% 2020
     38,695       40,601  
Fannie Mae 11.00% 2020
     113       127  
Fannie Mae, Series 2003-48, Class TJ, 4.50% 2022
     13,735       14,125  
Fannie Mae 5.00% 2022
     19,654       20,419  
Fannie Mae 5.00% 2022
     12,582       13,072  
Fannie Mae 10.50% 2022
     220       250  
Fannie Mae 4.50% 2024
     65,000       67,016  
Fannie Mae, Series 2001-4, Class NA, 11.855% 20254
     326       365  
Fannie Mae 6.00% 2027
     15,981       16,723  
Fannie Mae 8.50% 2027
     91       99  
Fannie Mae 8.50% 2027
     64       70  
Fannie Mae 8.50% 2027
     33       36  
Fannie Mae 8.50% 2027
     22       24  
Fannie Mae 7.50% 2030
     164       176  
Fannie Mae 7.50% 2030
     46       49  
Fannie Mae 7.50% 2031
     233       250  
Fannie Mae 7.50% 2031
     169       182  
Fannie Mae, Series 2001-20, Class D, 11.04% 20314
     92       106  
Fannie Mae 5.50% 2032
     3,238       3,381  
Fannie Mae 5.50% 2033
     31,407       32,763  
Fannie Mae 5.50% 2033
     23,478       24,492  
Fannie Mae 5.50% 2033
     3,825       3,990  
Fannie Mae 5.50% 2035
     14,022       14,619  
Fannie Mae 5.50% 2035
     8,528       8,900  
Fannie Mae 6.50% 2035
     16,350       17,414  
Fannie Mae, Series 2006-43, Class JO, principal only, 0% 2036
     6,321       5,217  
Fannie Mae 5.50% 2036
     3,629       3,777  
Fannie Mae 5.50% 2036
     3,375       3,512  
Fannie Mae, Series 2006-49, Class PA, 6.00% 2036
     15,940       16,830  
Fannie Mae 6.00% 2036
     7,607       7,962  
Fannie Mae 6.50% 2036
     11,818       12,424  
Fannie Mae 5.625% 20374
     28,680       29,758  
Fannie Mae 6.00% 2037
     110,563       115,992  
Fannie Mae 6.00% 2037
     55,211       57,758  
Fannie Mae 6.00% 2037
     26,327       27,541  
Fannie Mae 6.00% 20372
     25,109       26,024  
Fannie Mae 6.00% 2037
     20,041       20,966  
Fannie Mae 6.00% 2037
     4,816       5,038  
Fannie Mae 6.50% 2037
     63,197       66,439  
Fannie Mae 6.50% 2037
     46,594       49,158  
Fannie Mae 6.50% 2037
     37,274       39,325  
Fannie Mae 6.50% 2037
     23,990       25,220  
Fannie Mae 6.50% 2037
     3,943       4,146  
Fannie Mae 6.50% 2037
     2,562       2,694  
Fannie Mae 7.00% 2037
     43,264       45,886  
Fannie Mae 7.00% 2037
     41,957       44,761  
Fannie Mae 7.00% 2037
     15,355       16,285  
Fannie Mae 7.00% 2037
     11,651       12,357  
Fannie Mae 7.00% 2037
     11,512       12,209  
Fannie Mae 7.00% 2037
     7,876       8,353  
Fannie Mae 7.00% 2037
     5,291       5,611  
Fannie Mae 4.50% 2038
     31,342       32,049  
Fannie Mae 4.50% 2038
     9,842       10,073  
Fannie Mae 6.00% 2038
     46,370       48,509  
Fannie Mae 6.00% 2038
     13,351       13,967  
Fannie Mae 6.50% 2038
     53,905       56,872  
Fannie Mae 4.50% 2039
     50,914       52,064  
Fannie Mae 4.50% 2039
     8,912       9,113  
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041
     660       707  
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041
     607       633  
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041
     917       984  
Fannie Mae, Series 2002-W1, Class 2A, 7.50% 2042
     841       903  
Fannie Mae 6.50% 2047
     9,169       9,616  
Fannie Mae 6.50% 2047
     5,264       5,521  
Fannie Mae 6.50% 2047
     3,940       4,133  
Fannie Mae 6.50% 2047
     3,077       3,228  
Fannie Mae 6.50% 2047
     2,967       3,112  
Fannie Mae 6.50% 2047
     2,453       2,573  
Fannie Mae 6.50% 2047
     1,258       1,319  
Fannie Mae 7.00% 2047
     7,466       7,909  
Fannie Mae 7.00% 2047
     4,241       4,493  
Fannie Mae 7.00% 2047
     3,355       3,555  
Fannie Mae 7.00% 2047
     3,011       3,190  
Fannie Mae 7.00% 2047
     2,601       2,756  
Fannie Mae 7.00% 2047
     2,375       2,516  
Fannie Mae 7.00% 2047
     1,602       1,697  
Fannie Mae 7.00% 2047
     1,312       1,390  
Fannie Mae 7.00% 2047
     707       749  
Fannie Mae 7.00% 2047
     378       400  
Freddie Mac, Series 2310, Class B, 9.908% 20154
     141       159  
Freddie Mac 10.00% 2018
     324       362  
Freddie Mac 8.50% 2020
     248       266  
Freddie Mac 8.50% 2020
     20       21  
Freddie Mac 5.00% 2023
     42,149       43,770  
Freddie Mac 5.00% 2023
     29,486       30,620  
Freddie Mac 5.00% 2023
     26,748       27,776  
Freddie Mac 5.00% 2023
     21,722       22,557  
Freddie Mac 5.00% 2023
     20,147       20,922  
Freddie Mac 5.00% 2023
     11,559       12,003  
Freddie Mac 5.00% 2023
     10,387       10,786  
Freddie Mac 5.00% 2023
     10,014       10,399  
Freddie Mac 5.00% 2023
     9,085       9,434  
Freddie Mac 5.00% 2023
     7,836       8,137  
Freddie Mac 5.00% 2023
     6,151       6,387  
Freddie Mac 5.00% 2023
     547       568  
Freddie Mac 5.50% 2023
     21,491       22,449  
Freddie Mac 5.50% 2023
     17,570       18,354  
Freddie Mac 5.50% 2023
     11,568       12,084  
Freddie Mac 6.00% 2026
     20,769       21,785  
Freddie Mac 6.00% 2026
     15,179       15,922  
Freddie Mac 6.00% 2026
     11,901       12,484  
Freddie Mac 6.50% 2027
     3,888       4,102  
Freddie Mac 6.50% 2027
     1,486       1,568  
Freddie Mac 6.50% 2027
     1,243       1,311  
Freddie Mac 6.50% 2028
     3,210       3,386  
Freddie Mac, Series T-041, Class 3-A, 7.50% 2032
     3,364       3,593  
Freddie Mac, Series 3061, Class PN, 5.50% 2035
     14,592       15,270  
Freddie Mac, Series 3156, Class PO, principal only, 0% 2036
     18,225       16,810  
Freddie Mac, Series 3146, Class PO, principal only, 0% 2036
     12,995       11,522  
Freddie Mac, Series 3233, Class PA, 6.00% 2036
     31,992       33,667  
Freddie Mac 5.434% 20374
     10,915       11,275  
Freddie Mac, Series 3318, Class JT, 5.50% 2037
     32,132       33,289  
Freddie Mac, Series 3312, Class PA, 5.50% 2037
     23,805       24,623  
Freddie Mac 5.601% 20374
     3,920       4,042  
Freddie Mac 5.725% 20374
     8,588       8,885  
Freddie Mac, Series 3272, Class PA, 6.00% 2037
     24,975       26,107  
Freddie Mac 6.00% 2038
     230,446       241,210  
Freddie Mac 6.00% 2038
     7,385       7,733  
Freddie Mac 6.00% 2038
     1,944       2,036  
Freddie Mac 6.00% 2038
     1,901       1,990  
Freddie Mac 6.00% 2038
     1,108       1,161  
Government National Mortgage Assn. 9.00% 2009
     —       —  
Government National Mortgage Assn. 10.00% 2021
     497       571  
Government National Mortgage Assn. 6.00% 2038
     131,290       137,341  
Government National Mortgage Assn. 6.50% 2038
     65,534       68,826  
Government National Mortgage Assn. 6.50% 2038
     31,484       33,066  
CS First Boston Mortgage Securities Corp., Series 2005-7, Class III-A-1, 5.00% 2020
     10,037       9,025  
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032
     1,494       1,234  
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032
     1,130       972  
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033
     1,492       1,027  
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033
     2,436       2,229  
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A-4, 5.435% 2034
     21,863       21,448  
CS First Boston Mortgage Securities Corp., Series 2004-5, Class IV-A-1, 6.00% 2034
     7,119       4,991  
CS First Boston Mortgage Securities Corp., Series 2001-CP4, Class A-4, 6.18% 2035
     34,900       34,547  
CS First Boston Mortgage Securities Corp., Series 2005-5, Class IV-A-1, 6.25% 2035
     15,156       10,078  
CS First Boston Mortgage Securities Corp., Series 2001-CK1, Class A-3, 6.38% 2035
     35,821       35,477  
CS First Boston Mortgage Securities Corp., Series 2006-2R, Class A-PO, principal only, 0% 20363
     16,430       6,497  
CS First Boston Mortgage Securities Corp., Series 2003-CK2, Class A-4, 4.801% 2036
     17,585       15,233  
CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A-3, 6.387% 2036
     20,534       20,489  
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A-3, 6.133% 2037
     16,045       15,774  
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-3, 5.23% 20404
     30,875       24,934  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-CIBC5, Class A-1, 4.372% 2037
     9,256       9,141  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-2, 4.739% 2037
     1,993       1,892  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.317% 20374
     63,000       52,037  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C1, Class A-3, 5.376% 2037
     10,680       10,310  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2003-ML1, Class A-1, 3.972% 2039
     6,746       6,165  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A-SB, 4.824% 2042
     25,000       22,473  
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 5.875% 20454
     20,375       14,771  
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-4, Class 5-A-1, 5.882% 20364
     101,405       49,791  
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-4, Class 6-A, 5.915% 20364
     22,265       9,411  
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-2, Class 5-A-1, 6.00% 20364
     43,271       19,826  
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-12, Class 2-A1, 5.922% 20374
     19,049       9,032  
Countrywide Alternative Loan Trust, Series 2005-6CB, Class 2-A-1, 5.00% 2020
     3,038       2,397  
Countrywide Alternative Loan Trust, Series 2006-J3, Class 3-A-1, 5.50% 2021
     15,886       11,347  
Countrywide Alternative Loan Trust, Series 2004-5CB, Class 1-A-1, 6.00% 2034
     9,542       6,213  
Countrywide Alternative Loan Trust, Series 2005-40CB, Class A-1, 5.50% 2035
     19,553       10,665  
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 5-A-1, 5.75% 2035
     14,434       11,991  
Countrywide Alternative Loan Trust, Series 2004-36CB, Class 1-A-1, 6.00% 2035
     18,811       15,916  
Countrywide Alternative Loan Trust, Series 2005-50CB, Class 3-A-1, 6.00% 2035
     10,407       5,424  
Countrywide Alternative Loan Trust, Series 2007-14T2, Class A-4, 0.872% 20374
     19,906       7,578  
Countrywide Alternative Loan Trust, Series 2007-2CB, Class 1-A-9, 5.75% 2037
     12,457       7,430  
Countrywide Alternative Loan Trust, Series 2007-HY4, Class 3-A-1, 5.848% 20474
     21,222       8,936  
GMAC Commercial Mortgage Securities, Inc., Series 2001-C1, Class A-2, 6.465% 2034
     80,250       80,020  
GMAC Commercial Mortgage Securities, Inc., Series 1999-C3, Class F, 7.922% 20364
     4,000       3,991  
GMAC Commercial Mortgage Securities, Inc., Series 2002-C2, Class A-2, 5.389% 2038
     2,409       2,362  
Residential Accredit Loans, Inc., Series 2004-QS6, Class A-1, 5.00% 2019
     12,990       11,932  
Residential Accredit Loans, Inc., Series 2004-QS16, Class 1-A-1, 5.50% 2034
     20,884       14,863  
Residential Accredit Loans, Inc., Series 2005-QR1, Class A, 6.00% 2034
     30,804       23,292  
Residential Accredit Loans, Inc., Series 2006-QA1, Class A-III-1, 6.235% 20364
     22,542       9,826  
Residential Accredit Loans, Inc., Series 2007-QS9, Class A-33, 6.50% 2037
     42,509       21,464  
GE Commercial Mortgage Corp., Series 2004-C1, Class A-2, 3.915% 2038
     1,399       1,316  
GE Commercial Mortgage Corp., Series 2005-C3, Class A-4, 5.046% 20454
     24,730       23,054  
GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.332% 20454
     65,575       54,764  
Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class A-PB, 4.692% 2041
     32,750       29,736  
Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class A-4, 5.083% 20424
     50,455       34,976  
American Tower Trust I, Series 2007-1A, Class A-FX, 5.42% 20373
     18,300       15,829  
American Tower Trust I, Series 2007-1A, Class B, 5.537% 20373
     20,000       16,900  
American Tower Trust I, Series 2007-1A, Class D, 5.957% 20373
     32,200       25,921  
Wells Fargo Mortgage-backed Securities Trust, Series 2006-1, Class A-3, 5.00% 2021
     16,341       15,012  
Wells Fargo Mortgage-backed Securities Trust, Series 2005-AR10, Class II-A-6, 4.191% 20354
     30,000       16,365  
Wells Fargo Mortgage-backed Securities Trust, Series 2006-AR19, Class A-6, 5.625% 20364
     22,000       10,319  
Wells Fargo Mortgage-backed Securities Trust, Series 2006-AR15, Class A-1, 5.658% 20364
     30,703       16,083  
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 4-A, 5.679% 20344
     21,202       19,925  
Morgan Stanley Mortgage Loan Trust, Series 2005-10, Class 4-A-1, 5.50% 2035
     33,459       21,939  
Morgan Stanley Mortgage Loan Trust, Series 2007-11AR, Class 2-A-1, 6.588% 20374
     25,216       10,941  
Commercial Mortgage Trust, Series 2000-C1, Class E, 8.132% 2033
     4,000       3,848  
Commercial Mortgage Trust, Series 2003-LNB1, Class A-2, 4.084% 2038
     39,825       33,937  
Commercial Mortgage Trust, Series 2004-LNB2, Class A-3, 4.221% 2039
     15,461       14,249  
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-3, 6.428% 2035
     49,905       49,978  
Wells Fargo Alternative Loan Trust, Series 2007-PA3, Class III-A-1, 6.25% 2037
     63,263       35,129  
Wells Fargo Alternative Loan Trust, Series 2007-PA3, Class IV-A-1, 6.50% 2037
     22,716       10,327  
Banc of America Commercial Mortgage Inc., Series 2002-PB2, Class A-4, 6.186% 2035
     4,350       4,315  
Banc of America Commercial Mortgage Inc., Series 2001-1, Class A-2, 6.503% 2036
     40,104       39,667  
Bank of America 5.50% 20123
     44,500       43,623  
SBA CMBS Trust, Series 2005-1, Class A, 5.369% 20353
     16,250       15,275  
SBA CMBS Trust, Series 2006-1A, Class A, 5.314% 20363
     27,350       25,025  
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 2048
     46,550       32,667  
Bear Stearns Asset-backed Securities I Trust, Series 2005-AC3, Class II-A-1, 5.25% 2020
     36,006       31,759  
Nationwide Building Society, Series 2007-2, 5.50% 20123
     32,500       31,405  
GE Capital Commercial Mortgage Corp., Series 2002-2, Class A-3, 5.349% 2036
     10,000       9,629  
GE Capital Commercial Mortgage Corp., Series 2002-3, Class A-1, 4.229% 2037
     22,658       21,655  
Structured Products Asset Return Certificates Trust, Series 2001-CF1, Class A, 6.36% 20332
     31,350       30,981  
American Home Mortgage Assets Trust, Series 2007-3, Class II-2A-1, 6.25% 20374
     53,330       28,584  
Bear Stearns ARM Trust, Series 2005-10, Class A-3, 4.65% 20354
     20,000       9,810  
Bear Stearns ARM Trust, Series 2005-6, Class I-A-1, 4.872% 20354
     20,634       11,013  
Bear Stearns ARM Trust, Series 2006-4, Class II-A-1, 5.773% 20364
     13,869       6,893  
CHL Mortgage Pass-Through Trust, Series 2003-HYB3, Class 4-A-1, 4.746% 20334
     1,300       983  
CHL Mortgage Pass-Through Trust, Series 2003-56, Class 6-A-1, 5.324% 20334
     6,589       4,675  
CHL Mortgage Pass-Through Trust, Series 2005-HYB8, Class 4-A-1, 5.55% 20354
     23,781       12,936  
CHL Mortgage Pass-Through Trust, Series 2006-HYB5, Class 3-A-1B, 5.899% 20364
     13,536       6,404  
GS Mortgage Securities Corp. II, Series 2001-ROCK, Class D, 6.878% 20183
     15,000       16,103  
GS Mortgage Securities Corp. II, Series 2006-GG8, Class A-4, 5.56% 2039
     11,880       8,305  
IndyMac INDX Mortgage Loan Trust, Series 2006-AR11, Class 6-A-1, 5.664% 20364
     20,506       9,090  
IndyMac INDX Mortgage Loan Trust, Series 2006-AR5, Class 2-A-1, 5.724% 20364
     12,505       6,389  
IndyMac INDX Mortgage Loan Trust, Series 2006-AR25, Class 3-A-1, 6.153% 20364
     14,707       6,904  
Tower Ventures, LLC, Series 2006-1, Class A1-FX, 5.361% 20363
     22,800       21,546  
J.P. Morgan Mortgage Trust, Series 2006-A3, Class 3-A-3, 5.73% 20364
     40,000       17,642  
J.P. Morgan Mortgage Trust, Series 2006-A7, Class 2-A-4, 5.793% 20374
     9,890       3,664  
IndyMac IMSC Mortgage Loan Trust, Series 2007-F3, Class 3-A-1, 7.00% 2037
     35,005       19,805  
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20263
     22,411       19,604  
Chase Commercial Mortgage Securities Corp., Series 2000-1, Class A-2, 7.757% 2032
     19,819       19,520  
Bear Stearns Commercial Mortgage Securities Inc., Series 2002-PBW1, Class A-1, 3.97% 2035
     7,468       7,385  
Bear Stearns Commercial Mortgage Securities Inc., Series 2001-TOP2, Class A-2, 6.48% 2035
     1,725       1,734  
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PW10, Class AM, 5.449% 20404
     20,000       10,136  
LB-UBS Commercial Mortgage Trust, Series 2000-C3, Class A-2, 7.95% 2025
     3,542       3,588  
LB-UBS Commercial Mortgage Trust, Series 2002-C1, Class A-4, 6.462% 2031
     13,185       13,170  
Citigroup Commercial Mortgage Trust, Series 2004-C2, Class A-4, 4.623% 2041
     21,190       16,181  
Prudential Mortgage Capital Funding, LLC, Series ROCK 2001-C1, Class A-2, 6.605% 2034
     15,202       15,406  
Four Times Square Trust, Series 2000-4TS, Class C, 7.86% 20153
     14,000       14,720  
First Horizon Alternative Mortgage Securities Trust, Series 2005-FA11, Class I-A-5, 5.75% 2036
     20,377       14,639  
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY7, Class 2-A1, 5.83% 20374
     30,480       14,391  
Washington Mutual Mortgage, WMALT Series 2005-1, Class 5-A-1, 6.00% 2035
     16,536       13,173  
GSR Mortgage Loan Trust, Series 2004-2F, Class XIIIA-1, 5.00% 2019
     6,535       6,305  
GSR Mortgage Loan Trust, Series 2004-15F, Class 5A-1, 5.50% 2020
     6,898       6,686  
Bear Stearns ALT-A Trust, Series 2006-2, Class II-4-A-1, 5.869% 20364
     27,497       11,698  
First Union National Bank Commercial Mortgage Trust, Series 2002-C1, Class A-1, 5.585% 2034
     2,206       2,194  
First Union National Bank Commercial Mortgage Trust, Series 2002-C1, Class A-2, 6.141% 2034
     8,810       8,754  
Meristar Commercial Mortgage Trust, Series 1999-C1, Class A-1, 7.28% 20163
     858       867  
Meristar Commercial Mortgage Trust, Series 1999-C1, Class B, 7.90% 20163
     7,750       7,914  
Banc of America Alternative Loan Trust, Series 2005-2, Class 3-A-1, 5.00% 2020
     8,932       8,305  
Merrill Lynch Mortgage Trust, Series 2005-LC1, Class A-2, 5.202% 20444
     7,816       7,714  
Citigroup Mortgage Loan Trust, Inc., Series 2005-8, Class I-A4A, 5.572% 20354
     11,037       6,381  
Residential Funding Corp., Series 2003-RM2, Class A-II, 5.00% 2018
     5,958       5,808  
Structured Asset Securities Corp., Series 2004-3, Class 3-A-1, 5.50% 2019
     4,632       4,142  
Structured Asset Securities Corp., Series 1998-RF2, Class A, 8.454% 20273,4
     968       705  
Merrill Lynch Mortgage Investors, Inc., Series 1999-C1, Class A-2, 7.56% 2031
     4,334       4,353  
GMAC Mortgage Loan Trust, Series 2006-AR1, Class 2-A-1, 5.631% 20364
     6,652       3,670  
Adjustable Rate Mortgage Trust, Series 2006-1, Class 3-A-3, 5.867% 20364
     6,173       2,958  
Hilton Hotel Pool Trust, Series 2000-HLTA, Class A-1, 7.055% 20153
     2,539       2,633  
MASTR Alternative Loan Trust, Series 2005-3, Class 1-A-1, 5.50% 2035
     3,328       2,407  
Morgan Stanley Dean Witter Capital I Trust, Series 2001-TOP5, Class A-3, 6.16% 2035
     644       643  
Morgan Stanley Dean Witter Capital I Trust, Series 2003-TOP9, Class A-1, 3.98% 2036
     1,721       1,631  
Host Marriott Pool Trust, Series 1999-HMTA, Class A, 6.98% 20153
     669       674  
              4,268,113  
                 
                 
BONDS & NOTES OF U.S. GOVERNMENT & GOVERNMENT AGENCIES — 9.38%
                
U.S. Treasury 0.875% 20102,6
     22,288       22,204  
U.S. Treasury 4.625% 2011
     348,750       382,903  
U.S. Treasury 5.00% 2011
     25,000       27,007  
U.S. Treasury 3.00% 20122,6
     138,991       147,945  
U.S. Treasury 4.25% 2012
     211,600       232,967  
U.S. Treasury 2.75% 2013
     175,000       184,597  
U.S. Treasury 3.625% 2013
     20,000       21,777  
U.S. Treasury 4.25% 2013
     386,835       433,572  
U.S. Treasury 2.00% 20152,6
     118,847       122,109  
U.S. Treasury 8.875% 2017
     37,125       54,240  
U.S. Treasury 2.00% 20182,6
     42,324       42,915  
U.S. Treasury 3.50% 2018
     323,000       346,721  
U.S. Treasury 2.125% 20192,6
     49,165       52,549  
U.S. Treasury 7.875% 2021
     104,000       151,121  
U.S. Treasury 6.25% 2023
     88,500       116,661  
U.S. Treasury 2.375% 20252,6
     55,999       58,220  
U.S. Treasury 6.875% 2025
     79,500       114,039  
U.S. Treasury 6.00% 2026
     42,000       55,388  
U.S. Treasury 5.50% 2028
     45,125       57,025  
U.S. Treasury 5.25% 2029
     15,000       18,503  
U.S. Treasury 4.50% 2036
     109,550       126,325  
U.S. Treasury 4.375% 2038
     48,000       54,561  
U.S. Treasury 3.50% 2039
     160,000       158,200  
Fannie Mae 6.25% 2011
     28,375       29,897  
Fannie Mae 5.25% 2012
     105,000       110,036  
Fannie Mae 6.25% 2029
     30,000       37,442  
Federal Home Loan Bank 5.25% 2014
     25,875       29,128  
Federal Home Loan Bank 5.625% 2016
     144,800       146,286  
Federal Agricultural Mortgage Corp. 4.875% 20113
     40,000       42,486  
Federal Agricultural Mortgage Corp. 5.50% 20113
     7,000       7,433  
CoBank ACB 7.875% 20183
     20,000       19,550  
CoBank ACB 1.92% 20223,4
     23,425       16,498  
United States Government Agency-Guaranteed (FDIC insured), Regions Bank 3.25% 2011
     33,000       34,183  
United States Government Agency-Guaranteed (FDIC insured), Bank of America Corp., Series L, 3.125% 2012
     30,000       31,056  
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.875% 2011
     30,000       30,814  
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.20% 2012
     27,500       27,725  
United States Government Agency-Guaranteed (FDIC insured), Sovereign Bancorp, Inc. 2.75% 2012
     22,000       22,455  
Freddie Mac 5.00% 2018
     20,000       19,232  
United States Government Agency-Guaranteed (FDIC insured), PNC Funding Corp. 2.30% 2012
     14,000       14,159  
United States Government-Guaranteed Certificates of Participation, Overseas Private Investment Corp.,
                
Series 2000-044-A, 3.74% 20155
     6,539       6,876  
              3,606,805  
                 
                 
CORPORATE BONDS & NOTES — 9.26%
                
FINANCIALS — 2.66%
                
Liberty Mutual Group Inc. 6.50% 20353
     19,845       10,794  
Liberty Mutual Group Inc. 7.50% 20363
     25,350       14,268  
Liberty Mutual Group Inc., Series C, 10.75% 20883,4
     36,795       18,050  
Liberty Mutual Group Inc. 7.697% 20973
     22,180       12,976  
Westfield Group 5.40% 20123
     495       412  
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20143
     1,980       1,532  
Westfield Group 5.70% 20163
     37,745       28,165  
Westfield Group 7.125% 20183
     15,750       12,324  
American Express Bank 5.50% 2013
     21,300       18,387  
American Express Co. 6.15% 2017
     22,800       18,924  
PRICOA Global Funding I 4.20% 20103
     11,000       10,221  
Prudential Financial, Inc., Series D, 5.50% 2016
     14,000       8,599  
Prudential Holdings, LLC, Series C, 8.695% 20233,5
     19,500       16,813  
CNA Financial Corp. 5.85% 2014
     25,000       18,150  
CNA Financial Corp. 6.50% 2016
     16,000       11,466  
CNA Financial Corp. 7.25% 2023
     8,000       4,799  
Simon Property Group, LP 5.30% 2013
     11,750       9,603  
Simon Property Group, LP 5.875% 2017
     15,165       11,715  
Simon Property Group, LP 6.125% 2018
     15,160       11,936  
Kimco Realty Corp. 6.00% 2012
     2,750       2,097  
Kimco Realty Corp., Series C, 4.82% 2014
     13,000       8,532  
Kimco Realty Corp., Series C, 5.783% 2016
     14,000       9,145  
Kimco Realty Corp. 5.70% 2017
     21,180       13,384  
CIT Group Inc. 7.625% 2012
     21,000       15,468  
CIT Group Inc. 5.40% 2013
     25,400       15,855  
CIT Group Inc. 6.10% 20674
     5,000       1,205  
Santander Issuances, SA Unipersonal 5.805% 20163,4
     20,000       14,883  
Sovereign Bancorp, Inc. 8.75% 2018
     9,000       8,056  
Santander Perpetual, SA Unipersonal 6.671% (undated)3,4
     15,400       8,482  
Monumental Global Funding 5.50% 20133
     12,000       10,919  
Monumental Global Funding III 1.294% 20143,4
     29,000       20,217  
JPMorgan Chase & Co. 4.891% 20154
     20,000       16,273  
JPMorgan Chase Bank NA 6.00% 2017
     5,000       4,696  
JPMorgan Chase Capital XXV, Series Y, 6.80% 2037
     14,865       9,868  
UniCredito Italiano SpA 5.584% 20173,4
     40,000       25,215  
UniCredito Italiano SpA 6.00% 20173
     10,000       5,508  
Citigroup Inc. 6.00% 2017
     10,272       8,879  
Citigroup Capital XXI 8.30% 20774
     44,800       21,603  
Metropolitan Life Global Funding I, 5.125% 20133
     12,000       10,969  
MetLife Capital Trust X 9.25% 20683,4
     31,900       17,891  
Principal Life Insurance Co. 3.20% 2009
     14,000       14,000  
Principal Life Insurance Co. 5.30% 2013
     15,500       14,252  
HBOS PLC 6.75% 20183
     34,050       26,308  
Lloyds Banking Group PLC 6.657% preference shares (undated)3,4
     3,000       631  
Developers Diversified Realty Corp. 4.625% 2010
     28,625       21,499  
Developers Diversified Realty Corp. 5.50% 2015
     13,000       5,237  
Goldman Sachs Group, Inc. 6.15% 2018
     10,120       9,259  
Goldman Sachs Group, Inc. 7.50% 2019
     16,245       16,619  
New York Life Global Funding 5.25% 20123
     25,000       25,053  
ProLogis 5.50% 2012
     15,000       9,372  
ProLogis 5.625% 2015
     13,030       6,649  
ProLogis 6.625% 2018
     15,500       7,868  
Allstate Life Global Funding Trust, Series 2008-4, 5.375% 2013
     13,000       12,586  
Allstate Corp., Series B, 6.125% 20674
     9,600       5,424  
Allstate Corp., Series A, 6.50% 20674
     7,290       3,973  
Fifth Third Bancorp 8.25% 2038
     9,000       5,526  
Fifth Third Capital Trust IV 6.50% 20674
     50,500       16,439  
Hospitality Properties Trust 6.85% 2012
     2,000       1,298  
Hospitality Properties Trust 6.75% 2013
     14,720       8,934  
Hospitality Properties Trust 6.70% 2018
     21,025       10,773  
American Honda Finance Corp. 5.125% 20103
     20,500       20,198  
ERP Operating LP 5.375% 2016
     25,000       19,730  
Household Finance Corp. 6.375% 2012
     13,000       10,505  
HSBC Holdings PLC 6.50% 2037
     9,730       7,985  
Midland Bank 2.061% Eurodollar note (undated)4
     3,000       1,215  
ACE INA Holdings Inc. 5.875% 2014
     20,000       19,587  
Bank of America Corp. 5.30% 2017
     25,275       18,601  
Lazard Group LLC 7.125% 2015
     20,822       17,322  
Protective Life Insurance Co., Series 2005-C, 4.85% 2010
     18,000       17,088  
PNC Funding Corp. 1.374% 20144
     15,000       10,590  
PNC Funding Corp., Series II, 6.113% (undated)3,4
     10,200       2,825  
Royal Bank of Scotland Group PLC 6.99% (undated)3,4
     30,250       13,310  
Assurant, Inc. 5.625% 2014
     15,320       12,857  
Loews Corp. 6.00% 2035
     14,000       10,423  
Zions Bancorporation 6.00% 2015
     14,320       10,098  
Nationwide Financial Services, Inc. 6.75% 20674
     21,950       9,256  
Charles Schwab Corp., Series A, 6.375% 2017
     10,000       9,215  
ZFS Finance (USA) Trust V 6.50% 20673,4
     21,590       8,862  
Lincoln National Corp. 5.65% 2012
     10,250       4,629  
Lincoln National Corp. 7.00% 20664
     16,750       3,803  
Nationwide Mutual Insurance 5.81% 20243,4
     10,000       6,337  
Nationwide Mutual Insurance Co. 7.875% 20333
     3,425       1,946  
Standard Chartered Bank 6.40% 20173
     10,800       8,148  
Resona Bank, Ltd. 5.85% (undated)3,4
     15,000       7,659  
Federal Realty Investment Trust 4.50% 2011
     8,500       7,277  
Chubb Corp. 6.375% 20674
     12,440       7,110  
Catlin Insurance Ltd. 7.249% (undated)3,4
     25,135       6,821  
Silicon Valley Bank 5.70% 2012
     7,600       6,785  
Wells Fargo & Co. 4.375% 2013
     6,920       6,455  
City National Corp. 5.125% 2013
     7,000       6,033  
United Dominion Realty Trust, Inc. 5.00% 2012
     6,000       4,690  
Glen Meadow Pass-Through Trust 6.505% 20673,4
     15,280       3,935  
Credit Agricole SA 6.637% (undated)3,4
     8,000       2,840  
ING Groep NV 5.775% (undated)4
     10,300       2,835  
Bank of Nova Scotia 1.938% 20854
     4,000       2,069  
Den Norske CreditBank 1.563% (undated)4
     3,000       1,155  
American International Group, Inc. 8.175% 20583,4
     11,820       1,007  
iStar Financial, Inc. 6.50% 2013
     3,000       871  
Canadian Imperial Bank of Commerce 2.00% Eurodollar note 20852,4
     1,600       800  
              1,022,851  
                 
                 
TELECOMMUNICATION SERVICES — 1.22%
                
SBC Communications Inc. 6.25% 2011
     10,000       10,450  
AT&T Wireless Services, Inc. 7.875% 2011
     12,170       13,009  
AT&T Wireless Services, Inc. 8.125% 2012
     5,230       5,706  
AT&T Inc. 4.95% 2013
     16,250       16,499  
SBC Communications Inc. 5.10% 2014
     15,000       15,068  
SBC Communications Inc. 5.625% 2016
     49,300       49,481  
BellSouth Capital Funding Corp. 7.875% 2030
     51,500       52,718  
AT&T Corp. 8.00% 20314
     10,000       10,891  
SBC Communications Inc. 6.45% 2034
     40,000       36,123  
Verizon Global Funding Corp. 7.25% 2010
     30,000       31,707  
Verizon Communications Inc. 5.55% 20143
     12,440       12,463  
Verizon Communications Inc. 5.50% 2017
     9,475       9,171  
Verizon Communications Inc. 6.10% 2018
     21,250       21,088  
Verizon Global Funding Corp. 7.75% 2030
     9,395       9,597  
Verizon Communications Inc. 6.25% 2037
     50,000       44,614  
Verizon Communications Inc. 6.90% 2038
     4,500       4,366  
Verizon Communications Inc. 8.95% 2039
     8,500       9,796  
Telecom Italia Capital SA 5.25% 2015
     38,425       32,441  
Telecom Italia Capital SA 7.20% 2036
     16,000       12,693  
Telecom Italia Capital SA 7.721% 2038
     31,500       26,267  
Vodafone Group PLC 6.15% 20372
     18,000       16,664  
Deutsche Telekom International Finance BV 5.875% 2013
     12,500       12,727  
British Telecommunications PLC 5.15% 2013
     11,390       10,580  
Nextel Communications, Inc., Series E, 6.875% 2013
     8,500       4,888  
              469,007  
                 
                 
CONSUMER DISCRETIONARY — 1.13%
                
Comcast Corp. 5.45% 2010
     25,000       25,477  
Comcast Corp. 5.30% 2014
     15,000       14,578  
Comcast Corp. 6.45% 2037
     6,500       5,696  
Comcast Corp. 6.95% 2037
     34,250       31,988  
Comcast Corp. 6.40% 2038
     13,425       11,749  
AOL Time Warner Inc. 6.875% 2012
     40,000       40,740  
Time Warner Inc. 5.875% 2016
     14,210       13,469  
AOL Time Warner Inc. 7.625% 2031
     25,315       22,676  
Time Warner Inc. 6.50% 2036
     10,000       8,249  
Cox Communications, Inc. 4.625% 2010
     25,000       24,767  
Cox Communications, Inc. 7.75% 2010
     15,000       15,279  
Cox Communications, Inc. 5.45% 2014
     15,500       13,958  
Cox Communications, Inc. 8.375% 20393
     7,500       7,055  
Time Warner Cable Inc. 6.75% 2018
     55,370       52,063  
Viacom Inc. 5.75% 2011
     35,000       34,112  
Thomson Reuters Corp. 5.95% 2013
     8,140       7,958  
Thomson Reuters Corp. 6.50% 2018
     20,815       19,423  
News America Inc. 5.30% 2014
     8,750       8,235  
News America Inc. 6.90% 20193
     5,750       5,375  
News America Inc. 6.65% 2037
     5,000       3,757  
Omnicom Group Inc. 5.90% 2016
     20,000       17,098  
Toll Brothers, Inc. 4.95% 2014
     20,000       16,994  
Macy’s Retail Holdings, Inc. 7.875% 2015
     17,000       12,561  
McGraw-Hill Companies, Inc. 5.375% 2012
     11,000       10,546  
Seminole Tribe of Florida 5.798% 20133,5
     11,185       9,481  
              433,284  
                 
                 
UTILITIES — 0.93%
                
National Rural Utilities Cooperative Finance Corp. 5.50% 2013
     65,500       66,103  
National Rural Utilities Cooperative Finance Corp., Collateral Trust Bonds, 10.375% 2018
     8,450       9,798  
MidAmerican Energy Holdings Co., Series D, 5.00% 2014
     18,000       18,035  
MidAmerican Energy Holdings Co. 5.75% 2018
     30,925       30,476  
MidAmerican Energy Holdings Co. 6.125% 2036
     9,750       8,673  
MidAmerican Energy Holdings Co. 6.50% 2037
     5,000       4,638  
PG&E Corp. 5.75% 2014
     5,750       5,799  
Pacific Gas and Electric Co., First Mortgage Bonds, 6.05% 2034
     20,000       19,633  
Abu Dhabi National Energy Co. PJSC (TAQA) 5.875% 20163
     15,350       13,792  
Abu Dhabi National Energy Co. PJSC (TAQA) 6.50% 20363
     14,000       10,431  
E.ON International Finance BV 5.80% 20183
     24,450       24,092  
Alabama Power Co., Series FF, 5.20% 2016
     16,000       16,081  
Alabama Power Co. 6.00% 2039
     7,500       7,402  
PSEG Power LLC 3.75% 2009
     14,700       14,700  
Public Service Electric and Gas Co., Series E, 5.30% 2018
     8,500       8,584  
Exelon Corp. 4.45% 2010
     20,000       19,671  
Southern California Edison Co., First and Refunding Mortgage Bonds, Series 2005-A, 5.00% 2016
     16,000       16,135  
San Diego Gas & Electric Co., Series CCC, 5.30% 2015
     15,000       15,283  
Virginia Electric and Power Co., Series 2003-B, 4.50% 2010
     3,500       3,555  
Virginia Electric and Power Co., Series B, 5.95% 2017
     10,000       10,430  
Electricité de France SA 6.95% 20393
     12,000       11,931  
Appalachian Power Co., Series M, 5.55% 2011
     7,800       7,802  
Veolia Environnement 5.25% 2013
     6,500       6,498  
Kern River Funding Corp. 4.893% 20183,5
     4,994       4,779  
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20183,5
     4,089       3,799  
              358,120  
                 
                 
INDUSTRIALS — 0.90%
                
Continental Airlines, Inc., Series 1997-1, Class A, 7.461% 20165
     18,731       13,112  
Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20195
     9,197       7,266  
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20195
     4,791       3,833  
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20205
     11,834       10,178  
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20225
     7,943       5,878  
Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20225
     9,045       4,788  
Burlington Northern Santa Fe Corp. 7.00% 2014
     31,850       34,120  
BNSF Funding Trust I 6.613% 20554
     6,175       4,487  
Delta Air Lines, Inc., Series 2002-1, Class G-2, MBIA insured, 6.417% 20145
     29,550       22,502  
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20245
     17,506       11,904  
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class B, 7.156% 20113,5
     21,114       18,187  
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class G, MBIA insured, 6.664% 20133,5
     14,822       14,141  
Union Pacific Corp. 5.75% 2017
     4,325       4,136  
Union Pacific Corp. 5.70% 2018
     29,150       27,795  
CSX Corp. 5.75% 2013
     7,670       7,415  
CSX Corp. 6.25% 2015
     5,990       5,452  
CSX Corp. 6.15% 2037
     17,645       12,507  
Caterpillar Financial Services Corp., Series F, 6.20% 2013
     23,940       23,986  
Koninklijke Philips Electronics NV 5.75% 2018
     23,500       23,143  
Norfolk Southern Corp. 5.75% 20163
     7,615       7,662  
Norfolk Southern Corp. 5.75% 2018
     15,500       15,430  
General Electric Co. 5.25% 2017
     24,250       22,465  
Atlas Copco AB 5.60% 20173
     14,000       12,669  
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20135
     13,650       11,005  
United Air Lines, Inc., Series 2001-1, Class A-2, 6.201% 20105
     32       31  
United Air Lines, Inc., Series 2001-1, Class A-3, 6.602% 20155
     95       92  
United Air Lines, Inc., Series 2007-1, Class A, 6.636% 20245
     14,142       9,537  
Hutchison Whampoa International Ltd. 6.50% 20133
     6,190       6,289  
Canadian National Railway Co. 4.95% 2014
     6,000       6,218  
Southern Capital Corp. Pass Through Trust, Series 2002-1, Class G, MBIA insured, 5.70% 20233,5
     1,232       1,229  
              347,457  
                 
                 
HEALTH CARE — 0.89%
                
Cardinal Health, Inc. 1.705% 20094
     23,000       22,640  
Cardinal Health, Inc. 4.00% 2015
     44,100       37,296  
Cardinal Health, Inc. 5.80% 2016
     27,500       25,297  
Cardinal Health, Inc. 5.85% 2017
     3,575       3,263  
UnitedHealth Group 6.00% 2017
     22,170       20,651  
UnitedHealth Group Inc. 6.00% 2018
     35,000       33,683  
GlaxoSmithKline Capital Inc. 4.85% 2013
     33,700       35,094  
GlaxoSmithKline Capital Inc. 6.375% 2038
     16,500       16,718  
AstraZeneca PLC 5.90% 2017
     25,000       26,515  
Pfizer Inc. 4.45% 2012
     25,000       25,697  
Hospira, Inc. 1.712% 20104
     10,000       9,329  
Hospira, Inc. 5.55% 2012
     14,120       14,308  
Roche Holdings Inc. 4.50% 20123
     20,000       20,574  
Biogen Idec Inc. 6.00% 2013
     13,500       13,693  
Humana Inc. 6.45% 2016
     14,200       11,946  
Coventry Health Care, Inc. 6.30% 2014
     16,500       11,226  
Abbott Laboratories 5.125% 2019
     8,600       8,666  
WellPoint, Inc. 6.00% 2014
     6,200       6,211  
              342,807  
                 
                 
ENERGY — 0.70%
                
Kinder Morgan Energy Partners LP 6.00% 2017
     41,610       39,139  
Kinder Morgan Energy Partners LP 6.50% 2037
     10,000       8,033  
Gaz Capital SA 8.146% 20183
     7,000       5,775  
Gaz Capital SA 6.51% 20223
     27,495       17,803  
Gaz Capital SA, Series 9, 6.51% 2022
     20,000       12,950  
Ras Laffan Liquefied Natural Gas Co. Ltd. 3.437% 20093,5
     1,677       1,650  
Ras Laffan Liquefied Natural Gas II 5.298% 20203,5
     22,000       18,795  
Ras Laffan Liquefied Natural Gas III 5.838% 20273,5
     20,000       15,357  
Enbridge Energy Partners, LP, Series B, 6.50% 2018
     12,250       10,753  
Enbridge Energy Partners, LP, Series B, 7.50% 2038
     12,250       9,790  
Enbridge Energy Partners, LP 8.05% 20774
     17,520       9,297  
TransCanada PipeLines Ltd. 6.35% 20674
     44,785       25,562  
Williams Companies, Inc. 7.875% 2021
     15,850       14,689  
Williams Companies, Inc. 8.75% 2032
     6,025       5,480  
Rockies Express Pipeline LLC 6.85% 20183
     14,750       14,515  
Sunoco, Inc. 4.875% 2014
     15,000       13,272  
Enterprise Products Operating LLC 6.30% 2017
     13,000       12,001  
Canadian Natural Resources Ltd. 5.70% 2017
     11,925       10,649  
Enbridge Inc. 5.60% 2017
     10,000       8,439  
Husky Energy Inc. 6.80% 2037
     9,375       7,182  
Polar Tankers, Inc. 5.951% 20373,5
     6,685       5,430  
Petroleum Export Ltd., Class A-2, XLCA insured, 4.633% 20103,5
     3,194       2,889  
              269,450  
                 
                 
CONSUMER STAPLES — 0.37%
                
Kraft Foods Inc. 6.75% 2014
     16,180       17,511  
Kraft Foods Inc. 6.875% 2038
     13,000       12,806  
British American Tobacco International Finance PLC 9.50% 20183
     26,395       30,038  
Altria Group, Inc. 9.25% 2019
     15,000       16,065  
Altria Group, Inc. 9.95% 2038
     13,500       13,504  
Anheuser-Busch InBev NV 7.75% 20193
     20,000       19,976  
PepsiCo, Inc. 7.90% 2018
     15,000       18,462  
CVS Corp. 6.036% 20283,5
     7,423       5,593  
CVS Caremark Corp. 6.943% 20303,5
     12,700       9,705  
              143,660  
                 
                 
INFORMATION TECHNOLOGY — 0.25%
                
Hewlett-Packard Co. 4.50% 2013
     20,000       20,586  
Electronic Data Systems Corp., Series B, 6.00% 20134
     32,500       34,454  
Electronic Data Systems Corp. 7.45% 2029
     16,594       18,079  
KLA-Tencor Corp. 6.90% 2018
     30,250       23,949  
              97,068  
                 
                 
MATERIALS — 0.21%
                
Rio Tinto Finance (USA) Ltd. 5.875% 2013
     28,500       25,580  
International Paper Co. 7.40% 2014
     23,250       19,200  
ArcelorMittal 6.125% 2018
     20,925       15,162  
Rohm and Haas Co. 6.00% 2017
     17,445       14,515  
BHP Billiton Finance (USA) Ltd. 5.50% 2014
     4,690       4,727  
              79,184  
                 
                 
                 
Total corporate bonds & notes
             3,562,888  
                 
                 
ASSET-BACKED OBLIGATIONS5 — 1.39%
                
World Omni Auto Receivables Trust, Series 2006-B, Class A-4, 5.12% 2012
     62,000       62,635  
Drive Auto Receivables Trust, Series 2005-3, Class A-4, FSA insured, 5.09% 20133
     27,198       25,341  
Drive Auto Receivables Trust, Series 2006-2, Class A-3, MBIA insured, 5.33% 20143
     18,541       17,006  
AmeriCredit Automobile Receivables Trust, Series 2006-B-G, Class A-4, FGIC insured, 5.21% 2013
     20,880       16,273  
AmeriCredit Automobile Receivables Trust, Series 2007-C-M, Class A-4-A, MBIA insured, 5.55% 2014
     14,225       10,247  
AmeriCredit Automobile Receivables Trust, Series 2007-D-F, Class A-4-A, FSA insured, 5.56% 2014
     15,000       12,702  
Nissan Auto Lease Trust, Series 2008-A, Class A-3a, 5.14% 2011
     25,750       24,928  
USAA Auto Owner Trust, Series 2007-1, Class A-4, 5.55% 2013
     24,000       24,600  
Washington Mutual Master Note Trust, Series 2007-A4A, Class A-4, 5.20% 20143
     25,000       22,834  
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2005-1, Class A-5, MBIA insured, 5.08% 20113
     29,550       21,706  
Susquehanna Auto Lease Trust, Series 2007-1, Class A-3, 5.25% 20103
     21,691       21,632  
ARG Funding Corp., Series 2005-2, Class A-4, AMBAC insured, 4.84% 20113
     24,500       19,156  
PG&E Energy Recovery Funding LLC, Series 2005-1, Class A-2, 3.87% 2011
     583       585  
PG&E Energy Recovery Funding LLC, Series 2005-2, Class A-3, 5.12% 2014
     16,076       17,052  
Residential Asset Securities Corp. Trust, Series 2001-KS3, Class A-I-6, 5.96% 2031
     5,635       4,291  
Residential Asset Securities Corp. Trust, Series 2004-KS9, Class A-I-4, FGIC insured, 4.61% 2032
     7,825       6,544  
Residential Asset Securities Corp. Trust, Series 2003-KS6, Class A-2, 1.122% 20334
     124       109  
Residential Asset Securities Corp. Trust, Series 2003-KS8, Class A-I-6, 4.83% 2033
     7,005       6,421  
Chase Issuance Trust, Series 2008-4, Class A, 4.65% 2015
     17,000       16,428  
CPS Auto Receivables Trust, Series 2004-B, Class A-2, XLCA insured, 3.56% 20113
     1,095       1,050  
CPS Auto Receivables Trust, Series 2006-A, Class 1-A-4, FSA insured, 5.33% 20123
     7,062       6,115  
CPS Auto Receivables Trust, Series 2007-TFC, Class A-2, XLCA insured, 5.25% 20133
     9,670       7,962  
Ameriquest Mortgage Securities Inc., Series 2004-R4, Class M-1, 1.072% 20344
     20,990       15,062  
UPFC Auto Receivables Trust, Series 2007-B, Class A-3, AMBAC insured, 6.15% 2014
     16,750       14,298  
CarMax Auto Owner Trust, Series 2007-2, Class A-3, 5.23% 2011
     14,424       14,128  
Prestige Auto Receivables Trust, Series 2007-1, Class A-3, FSA insured, 5.58% 20143
     17,000       12,864  
Long Beach Acceptance Auto Receivables Trust, Series 2004-C, Class A-4, FSA insured, 3.777% 2011
     4,842       4,518  
Long Beach Acceptance Auto Receivables Trust, Series 2005-B, Class A-4, FSA insured, 4.522% 2012
     8,238       8,172  
RAMP Trust, Series 2003-RZ4, Class A-7, 4.79% 20334
     6,869       5,457  
RAMP Trust, Series 2003-RS11, Class A-I-7, 4.828% 2033
     7,979       6,309  
Citibank Credit Card Issuance Trust, Series 2008, Class A5, 4.85% 2015
     12,000       11,551  
West Penn Funding LLC, Transition Bonds, Series 2005-A, Class A-1, 4.46% 20103
     9,841       9,910  
Triad Automobile Receivables Trust, Series 2006-C, Class A-3, AMBAC insured, 5.26% 2011
     8,767       8,699  
Chase Credit Card Owner Trust, Series 2003-4, Class B, 1.206% 20164
     14,000       8,608  
Securitized Asset-backed Receivables LLC Trust, Series 2006-HE2, Class A-2C, 0.672% 20364
     20,000       4,558  
Securitized Asset-backed Receivables LLC Trust, Series 2006-NC3, Class A-2B, 0.672% 20364
     10,000       3,475  
Morgan Stanley ABS Capital I Inc., Series 2004-NC3, Class M-1, 1.317% 20344
     14,117       7,042  
World Financial Network Credit Card Master Note Trust, Series 2004-A, Class B, 1.056% 20134
     7,000       6,785  
Cendant Timeshare Receivables Funding, LLC, Series 2005-1, Class A-1, FGIC insured, 4.67% 20173
     8,188       6,359  
Rental Car Finance Corp., Series 2005-1, Class A-2, XLCA insured, 4.59% 20113
     10,730       5,580  
GE SeaCo Finance SRL, Series 2004-1, Class A, AMBAC insured, 0.856% 20192,3,4
     11,005       5,393  
Credit-Based Asset Servicing and Securitization LLC, Series 2007-CB1, Class AF-2, 5.721% 20374
     18,000       5,097  
CWHEQ Home Equity Loan Trust, Series 2006-S4, Class A-6, AMBAC insured, 5.834% 20344
     9,775       4,252  
GMAC Mortgage Loan Trust, Series 2006-HE3, Class A-5, FGIC insured, 5.809% 20364
     13,000       3,604  
Home Equity Asset Trust, Series 2004-2, Class M-1, 1.317% 20344
     7,984       3,231  
GSAA Home Equity Trust, Series 2006-7, Class AF-5A, 6.205% 20464
     5,125       3,136  
CWABS, Inc., Series 2004-BC1, Class M-1, 1.022% 20344
     5,581       2,925  
CWHEQ Revolving Home Equity Loan Trust, Series 2007-C, Class A, FGIC insured, 0.706% 20374
     10,066       2,208  
Residential Funding Mortgage Securities II, Inc., Series 2007-HSA2, Class A-1F, MBIA insured, 8.47% 20374
     2,064       2,028  
Impac CMB Grantor Trust, Series 2004-6, Class 1-A-1, 1.322% 20344
     1,516       606  
Impac CMB Grantor Trust, Series 2004-6, Class M-2, 1.422% 20344
     1,492       541  
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-3, 5.70% 2023
     666       658  
              532,671  
                 
                 
MUNICIPALS — 0.04%
                
State of South Dakota, Educational Enhancement Funding Corp., Tobacco Settlement Asset-backed Bonds,
                
Series 2002-A, Class A, 6.72% 2025
     16,449       12,201  
State of Louisiana, Tobacco Settlement Financing Corp., Tobacco Settlement Asset-backed Bonds,
                
Series 2001-A, Class A, 6.36% 2025
     2,185       1,583  
              13,784  
                 
                 
                 
Total bonds & notes (cost: $13,217,023,000)
             11,984,261  
                 
                 
                 
   
Principal amount
    
Value
  
Short-term securities — 3.16%
     (000 )     (000 )
                 
Freddie Mac 0.19%–0.77% due 5/5–7/27/2009
   $ 436,252     $ 435,950  
U.S. Treasury Bills 0.151%–1.20% due 4/16–9/10/2009
     172,500       172,390  
Federal Home Loan Bank 0.15%–3.10% due 4/6–7/13/2009
     130,050       129,983  
Fannie Mae 0.25%–0.60% due 4/15–7/6/2009
     96,043       96,002  
Tennessee Valley Authority 0.23% due 6/11/2009
     94,350       94,292  
Procter & Gamble International Funding S.C.A. 0.40% due 4/23/20093
     59,200       59,181  
General Electric Capital Corp. 0.08% due 4/1/2009
     25,000       25,000  
General Electric Capital Corp., FDIC insured, 0.50% due 8/25/2009
     25,000       24,958  
Private Export Funding Corp. 0.37% due 4/17/20093
     30,000       29,991  
Jupiter Securitization Co., LLC 0.40% due 4/17/20093
     16,600       16,597  
Park Avenue Receivables Co., LLC 0.50% due 4/20/20093
     10,100       10,097  
NetJets Inc. 0.25% due 4/13/20093
     25,000       24,998  
Merck & Co. Inc. 0.20% due 5/1/2009
     25,000       24,996  
Wal-Mart Stores Inc. 0.25% due 6/16/20093
     24,800       24,786  
Johnson & Johnson 0.25% due 7/20/20093
     20,400       20,381  
Hewlett-Packard Co. 0.25% due 4/2/20093
     13,500       13,500  
Coca-Cola Co. 0.42% due 7/20/20093
     9,900       9,890  
Abbott Laboratories 0.25% due 6/9/20093
     1,800       1,799  
                 
Total short-term securities (cost: $1,214,733,000)
             1,214,791  
                 
                 
Total investment securities (cost: $47,133,329,000)
             38,414,394  
Other assets less liabilities
             35,220  
                 
Net assets
           $ 38,449,614  
 
“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

1
Security did not produce income during the last 12 months.
2
Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in “Miscellaneous,” was $1,062,751,000, which represented 2.76% of the net assets of the fund.
3
Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,566,471,000, which represented 4.07% of the net assets of the fund.
4
Coupon rate may change periodically.
5
Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
6
Index-linked bond whose principal amount moves with a government retail price index.


Key to abbreviation

ADR = American Depositary Receipts

 
 
Disclosure of fair value measurements

The fund classifies its assets and liabilities into three levels based on the method used to value the assets or liabilities as required by the Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are generally high-quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of March 31, 2009 (dollars in thousands):

   
Investment securities
  
       
Level 1 – Quoted prices
   $ 24,534,543  
Level 2 – Other significant observable inputs
     13,842,678 *
Level 3 – Significant unobservable inputs
     37,173  
Total
   $ 38,414,394  
 
 
*Includes certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading; therefore, $511,494,000 of investment securities were classified as Level 2 instead of Level 1.
 
 
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions during the three months ended March 31, 2009 (dollars in thousands):

  Level 3 investment securities  
       
Beginning value at 1/1/2009
   $ 249,459  
Net sales
     (35,813 )
Net realized loss
     (3,765 )
Net unrealized appreciation
     7,214  
Net transfers out of Level 3
     (179,922 )
Ending value at 3/31/2009
   $ 37,173  
         
Net unrealized appreciation during the period on Level 3 investment securities held at 3/31/2009
   $ 826  


Federal income tax information
  
(dollars in thousands)
  
       
Gross unrealized appreciation on investment securities
   $ 1,320,331  
Gross unrealized depreciation on investment securities
     (10,071,554 )
Net unrealized depreciation on investment securities
     (8,751,223 )
Cost of investment securities for federal income tax purposes
     47,165,617  



Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.
 
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing.
 
 
 
 
 
MFGEFP-911-0509O-S15792
 
 
ITEM 2 – Controls and Procedures

The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.


ITEM 3 – Exhibits

The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.


 
 
 

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.

 
AMERICAN BALANCED FUND, INC.
   
 
By /s/ Robert G. O'Donnell
 
Robert G. O'Donnell, Vice Chairman and
Principal Executive Officer
 
   
 
Date: May 29, 2009



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By /s/ Robert G. O'Donnell
Robert G. O'Donnell, Vice Chairman and
Principal Executive Officer
 
Date: May 29, 2009



By /s/ Jennifer M. Buchheim
Jennifer M. Buchheim, Treasurer and
Principal Financial Officer
 
Date: May 29, 2009
 
 EX-99.CERT 2 ambal_cert302.htm CERT302 Unassociated Document

[logo - American Funds®]
American Balanced Fund, Inc.
One Market, Steuart Tower
Suite 1800
San Francisco, California 94105
Phone (415) 421-9360


CERTIFICATION

I, Robert G. O'Donnell, certify that:

1.
I have reviewed this report on Form N-Q of American Balanced Fund, Inc.;
   
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3.
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which this report is filed;
   
4.
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
   
 
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
 
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
 
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
   
 
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
   
5.
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):
   
 
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
   
 
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
   


Date: May 29, 2009

/s/ Robert G. O'Donnell
Robert G. O'Donnell, Vice Chairman and
Principal Executive Officer
American Balanced Fund, Inc.

 
 
 

[logo - American Funds®]
American Balanced Fund, Inc.
One Market, Steuart Tower
Suite 1800
San Francisco, California 94105
Phone (415) 421-9360


CERTIFICATION

I, Jennifer M. Buchheim, certify that:

1.
I have reviewed this report on Form N-Q of American Balanced Fund, Inc.;
   
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
   
3.
Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which this report is filed;
   
4.
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
   
 
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
   
 
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
   
 
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
   
 
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
   
5.
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing the equivalent functions):
   
 
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
   
 
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
   


Date: May 29, 2009

/s/ Jennifer M. Buchheim
Jennifer M. Buchheim, Treasurer and
Principal Financial Officer
American Balanced Fund, Inc.
 -----END PRIVACY-ENHANCED MESSAGE-----