N-Q 1 d622999dnq.htm THE ALLIANCEBERNSTEIN PORTFOLIOS The AllianceBernstein Portfolios

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05088

THE ALLIANCEBERNSTEIN PORTFOLIOS

(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)

Joseph J. Mantineo

AllianceBernstein 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: July 31, 2014

Date of reporting period: October 31, 2013

 

 

 

ITEM 1. SCHEDULE OF INVESTMENTS.

AllianceBernstein Growth Fund

Portfolio of Investments

October 31, 2013 (unaudited)

 

Company

    Shares        U.S. $ Value  

COMMON STOCKS - 98.3%

        

Information Technology - 24.2%

        

Communications Equipment - 0.5%

        

QUALCOMM, Inc.

      46,880         $ 3,256,754   
       

 

 

  

Computers & Peripherals - 4.2%

        

Apple, Inc.

      52,600           27,475,610   
       

 

 

  

Internet Software & Services - 9.0%

        

eBay, Inc. (a)

      245,570           12,943,995   

Facebook, Inc. - Class A (a)

      209,910           10,550,077   

Google, Inc. - Class A (a)

      27,644           28,489,353   

LinkedIn Corp. - Class A (a)

      28,460           6,365,648   
       

 

 

  
          58,349,073   
       

 

 

  

IT Services - 5.0%

        

Cognizant Technology Solutions Corp. - Class A (a)

      172,070           14,958,045   

Visa, Inc. - Class A

      88,490           17,403,328   
       

 

 

  
          32,361,373   
       

 

 

  

Software - 5.5%

        

ANSYS, Inc. (a)

      91,770           8,025,286   

Aspen Technology, Inc. (a)

      178,860           6,837,818   

Cadence Design Systems, Inc. (a)

      358,560           4,650,523   

Citrix Systems, Inc. (a)

      124,420           7,064,568   

ServiceNow, Inc. (a)

      55,950           3,055,429   

TIBCO Software, Inc. (a)

      237,855           5,841,719   
       

 

 

  
          35,475,343   
       

 

 

  
          156,918,153   
       

 

 

  

Consumer Discretionary - 19.4%

        

Automobiles - 1.5%

        

Harley-Davidson, Inc.

      148,450           9,506,738   
       

 

 

  

Distributors - 0.6%

        

LKQ Corp. (a)

      129,040           4,262,191   
       

 

 

  

Hotels, Restaurants & Leisure - 1.6%

        

Starbucks Corp.

      130,810           10,602,150   
       

 

 

  

Internet & Catalog Retail - 4.2%

        

Amazon.com, Inc. (a)

      35,820           13,039,555   

priceline.com, Inc. (a)

      13,335           14,052,823   
       

 

 

  
          27,092,378   
       

 

 

  

Leisure Equipment & Products - 0.8%

        

Polaris Industries, Inc.

      37,790           4,948,601   
       

 

 

  

Media - 5.6%

        

AMC Networks, Inc. - Class A (a)

      43,022           3,015,412   

Comcast Corp. - Class A

      292,920           13,937,133   

Liberty Media Corp. (a)

      47,370           7,243,347   

Viacom, Inc. - Class B

      146,410           12,194,489   
       

 

 

  
          36,390,381   
       

 

 

  

Company

    Shares        U.S. $ Value  

Specialty Retail - 3.3%

        

CarMax, Inc. (a)

      144,810           6,804,622   

Lowe’s Cos., Inc.

      161,590           8,043,950   

Lumber Liquidators Holdings, Inc. (a)

      33,760           3,855,054   

Tractor Supply Co.

      37,920           2,705,592   
       

 

 

  
          21,409,218   
       

 

 

  

Textiles, Apparel & Luxury Goods - 1.8%

        

Michael Kors Holdings Ltd. (a)

      105,853           8,145,389   

NIKE, Inc. - Class B

      42,770           3,240,255   
       

 

 

  
          11,385,644   
       

 

 

  
          125,597,301   
       

 

 

  

Health Care - 16.6%

        

Biotechnology - 8.5%

        

Biogen Idec, Inc. (a)

      73,540           17,957,733   

Celgene Corp.(a)

      68,750           10,208,687   

Gilead Sciences, Inc.(a)

      256,670           18,221,003   

Quintiles Transnational Holdings, Inc. (a)

      138,543           5,817,421   

Vertex Pharmaceuticals, Inc. (a)

      37,950           2,707,353   
       

 

 

  
          54,912,197   
       

 

 

  

Health Care Equipment & Supplies - 1.6%

        

HeartWare International, Inc. (a)

      62,370           4,525,567   

Intuitive Surgical, Inc. (a)

      16,060           5,966,290   
       

 

 

  
          10,491,857   
       

 

 

  

Health Care Providers & Services - 2.3%

        

McKesson Corp.

      32,590           5,095,120   

UnitedHealth Group, Inc.

      141,180           9,636,947   
       

 

 

  
          14,732,067   
       

 

 

  

Life Sciences Tools & Services - 1.3%

        

Illumina, Inc. (a)

      90,750           8,486,033   
       

 

 

  

Pharmaceuticals - 2.9%

        

Allergan, Inc./United States

      134,790           12,213,322   

Bristol-Myers Squibb Co.

      128,020           6,723,610   
       

 

 

  
          18,936,932   
       

 

 

  
          107,559,086   
       

 

 

  

Industrials - 14.8%

        

Aerospace & Defense - 4.0%

        

Boeing Co. (The)

      112,970           14,742,585   

Precision Castparts Corp.

      44,780           11,349,491   
       

 

 

  
          26,092,076   
       

 

 

  

Air Freight & Logistics - 0.9%

        

Expeditors International of Washington, Inc.

      127,280           5,764,511   
       

 

 

  

Airlines - 1.6%

        

Copa Holdings SA - Class A

      68,570           10,253,958   
       

 

 

  

Company

    Shares        U.S. $ Value  

Electrical Equipment - 1.8%

        

AMETEK, Inc.

      128,770           6,159,069   

Sensata Technologies Holding NV (a)

      144,281           5,429,294   
       

 

 

  
          11,588,363   
       

 

 

  

Industrial Conglomerates - 1.9%

        

Danaher Corp.

      166,110           11,974,870   
       

 

 

  

Machinery - 0.8%

        

Parker Hannifin Corp.

      43,620           5,091,326   
       

 

 

  

Marine - 0.8%

        

Kirby Corp. (a)

      61,430           5,435,941   
       

 

 

  

Professional Services - 0.6%

        

Robert Half International, Inc.

      108,210           4,169,331   
       

 

 

  

Road & Rail - 0.9%

        

JB Hunt Transport Services, Inc.

      76,800           5,762,304   
       

 

 

  

Trading Companies & Distributors - 1.5%

        

WW Grainger, Inc.

      35,020           9,419,330   
       

 

 

  
          95,552,010   
       

 

 

  

Consumer Staples - 11.9%

        

Beverages - 0.7%

        

Monster Beverage Corp. (a)

      84,480           4,834,790   
       

 

 

  

Food & Staples Retailing - 3.6%

        

Costco Wholesale Corp.

      108,990           12,860,820   

CVS Caremark Corp.

      167,080           10,402,401   
       

 

 

  
          23,263,221   
       

 

 

  

Food Products - 2.9%

        

Green Mountain Coffee Roasters, Inc. (a)(b)

      66,360           4,168,072   

Hershey Co. (The)

      94,280           9,356,347   

Mead Johnson Nutrition Co. - Class A

      63,310           5,169,895   
       

 

 

  
          18,694,314   
       

 

 

  

Personal Products - 0.7%

        

Estee Lauder Cos., Inc. (The) - Class A

      61,610           4,371,846   
       

 

 

  

Tobacco - 4.0%

        

Altria Group, Inc.

      269,290           10,025,667   

Philip Morris International, Inc.

      178,430           15,901,681   
       

 

 

  
          25,927,348   
       

 

 

  
          77,091,519   
       

 

 

  

Energy - 5.8%

        

Energy Equipment & Services - 3.8%

        

Oceaneering International, Inc.

      50,220           4,312,894   

Schlumberger Ltd.

      218,120           20,442,206   
       

 

 

  
          24,755,100   
       

 

 

  

Oil, Gas & Consumable Fuels - 2.0%

        

Antero Resources Corp. (a)

      42,692           2,411,671   

Company

    Shares        U.S. $ Value  

Noble Energy, Inc.

      140,540           10,530,662   
       

 

 

  
          12,942,333   
       

 

 

  
          37,697,433   
       

 

 

  

Financials - 5.6%

        

Capital Markets - 2.8%

        

Affiliated Managers Group, Inc. (a)

      56,950           11,244,208   

BlackRock, Inc. - Class A

      21,690           6,524,569   
       

 

 

  
          17,768,777   
       

 

 

  

Diversified Financial Services - 2.8%

        

IntercontinentalExchange, Inc. (a)

      94,700           18,251,531   
       

 

 

  
          36,020,308   
       

 

 

  

Total Common Stocks
(cost $493,956,982)

           636,435,810   
       

 

 

  

SHORT-TERM INVESTMENTS - 1.4%

        

Investment Companies - 1.4%

        

AllianceBernstein Fixed-Income Shares, Inc. - Government STIF Portfolio, 0.08% (c)
(cost $9,467,767)

      9,467,767           9,467,767   
       

 

 

  

Total Investments Before Security Lending Collateral for Securities Loaned - 99.7%
(cost $503,424,749)

           645,903,577   
       

 

 

  

INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED - 0.7%

        

Investment Companies - 0.7%

        

AllianceBernstein Exchange Reserves - Class I, 0.07% (c)
(cost $4,280,220)

      4,280,220           4,280,220   
       

 

 

  

Total Investments - 100.4%
(cost $507,704,969) (d)

           650,183,797   

Other assets less liabilities - (0.4)%

           (2,638,932 ) 
       

 

 

  

Net Assets - 100.0%

         $ 647,544,865   
       

 

 

  

 

(a) 

Non-income producing security.

(b)

Represents entire or partial securities out on loan.

(c)

Investment in affiliated money market mutual fund. The rate shown represents the 7-day yield as of period end.

(d) 

As of October 31, 2013, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $145,439,040 and gross unrealized depreciation of investments was $(2,960,212), resulting in net unrealized appreciation of $142,478,828.

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market.

AllianceBernstein Growth Fund

October 31, 2013 (unaudited)

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

 

  •  

Level 1—quoted prices in active markets for identical investments

  •  

Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

  •  

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, by pricing vendors, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2013:

 

Investments in Securities:

    Level 1     Level 2     Level 3     Total  

Assets:

         

Common Stocks*

    $ 636,435,810      $             – 0  –    $             – 0  –    $ 636,435,810   

Short-Term Investments

      9,467,767        – 0  –      – 0  –      9,467,767   

Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund

      4,280,220        – 0  –      – 0  –      4,280,220   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

      650,183,797        – 0  –      – 0  –      650,183,797   

Other Financial Instruments**

      – 0  –      – 0  –      – 0  –      – 0  – 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total^

    $ 650,183,797      $ – 0  –    $ – 0  –    $ 650,183,797   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

* See Portfolio of Investments for sector classifications.

 

** Other financial instruments are derivative instruments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

^ There were no transfers between Level 1 and Level 2 during the reporting period.

The Fund recognizes all transfers between levels of the fair value hierarchy assuming the financial instruments were transferred at the beginning of the reporting period.

The Adviser has established a Valuation Committee (the “Committee”) which is responsible for overseeing the pricing and valuation of all securities held in the Fund. The Committee operates under pricing and valuation policies and procedures established by the Adviser and approved by the Board, including pricing policies which set forth the mechanisms and processes to be employed on a daily basis to implement these policies and procedures. In particular, the pricing policies describe how to determine market quotations for securities and other instruments. The Committee’s responsibilities include: 1) fair value and liquidity determinations (and oversight of any third parties to whom any responsibility for fair value and liquidity determinations is delegated), and 2) regular monitoring of the Adviser’s pricing and valuation policies and procedures and modification or enhancement of these policies and procedures (or recommendation of the modification of these policies and procedures) as the Committee believes appropriate.

The Committee is also responsible for monitoring the implementation of the pricing policies by the Adviser’s Pricing Group (the “Pricing Group”) and a third party which performs certain pricing functions in accordance with the pricing policies. The Pricing Group is responsible for the oversight of the third party on a day-to-day basis. The Committee and the Pricing Group perform a series of activities to provide reasonable assurance of the accuracy of prices including: 1) periodic vendor due diligence meetings, review of methodologies, new developments and process at vendors, 2) daily compare of security valuation versus prior day for all securities that exceeded established thresholds, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by senior management and the Committee.

In addition, several processes outside of the pricing process are used to monitor valuation issues including: 1) performance and performance attribution reports are monitored for anomalous impacts based upon benchmark performance, and 2) portfolio managers review all portfolios for performance and analytics (which are generated using the Adviser’s prices).

ITEM 2. 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-3(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no significant changes in the registrant’s internal control over financial reporting that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

ITEM 3. EXHIBITS.

The following exhibits are attached to this Form N-Q:

 

EXHIBIT NO.

  

DESCRIPTION OF EXHIBIT

11 (a) (1)   Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
11 (a) (2)   Certification of Principal Financial Officer Pursuant to Section 302 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): The AllianceBernstein Portfolios

 

By:   /s/    Robert M. Keith
  Robert M. Keith
  President
Date:   December 23, 2013

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 M. Keith
  Robert M. Keith
  President
Date:   December 23, 2013
By:   /s/    Joseph J. Mantineo
  Joseph J. Mantineo
  Treasurer and Chief Financial Officer
Date:   December 23, 2013