NPORT-EX 2 3121.htm HTML

AB Cap Fund, Inc.

AB FlexFee International Strategic Core Portfolio

Portfolio of Investments

September 30, 2019 (unaudited)

 

Company

    Shares        U.S. $ Value  

COMMON STOCKS - 96.9%

        

Financials - 23.5%

        

Banks - 13.2%

        

Bank Leumi Le-Israel BM

      12,858        $ 91,547  

DBS Group Holdings Ltd.

      5,700          103,119  

DNB ASA

      3,236          57,044  

Hang Seng Bank Ltd.

      3,300          71,107  

KBC Group NV

      700          45,466  

Mitsubishi UFJ Financial Group, Inc.

      11,000          56,021  

Oversea-Chinese Banking Corp., Ltd.

      7,328          57,608  

Royal Bank of Canada

      1,283          104,075  

Sumitomo Mitsui Financial Group, Inc.

      1,400          48,107  

Toronto-Dominion Bank (The)

      1,552          90,495  

Westpac Banking Corp.

      2,460          49,133  
       

 

 

  
          773,722  
       

 

 

  

Capital Markets - 3.8%

        

Euronext NV (a)

      775          63,458  

Partners Group Holding AG

      121          92,923  

Singapore Exchange Ltd.

      10,400          63,804  
       

 

 

  
          220,185  
       

 

 

  

Diversified Financial Services - 1.0%

        

ORIX Corp.

      4,100          61,332  
       

 

 

  

Insurance - 5.5%

        

Admiral Group PLC

      2,490          64,751  

Allianz SE (REG)

      163          37,942  

NN Group NV

      1,030          36,502  

Sampo Oyj-Class A

      1,892          75,174  

Swiss Re AG

      443          46,224  

Zurich Insurance Group AG

      168          64,345  
       

 

 

  
          324,938  
       

 

 

  
            1,380,177  
       

 

 

  

Industrials - 15.5%

        

Aerospace & Defense - 2.5%

        

Airbus SE

      310          40,247  

BAE Systems PLC

      8,726          61,111  

MTU Aero Engines AG

      170          45,172  
       

 

 

  
          146,530  
       

 

 

  

Air Freight & Logistics - 0.8%

        

SG Holdings Co., Ltd.

      2,000          49,012  
       

 

 

  

Airlines - 1.7%

        

Qantas Airways Ltd.

      23,071          98,044  
       

 

 

  

Commercial Services & Supplies - 0.6%

        

Secom Co., Ltd.

      400          36,603  
       

 

 

  

Construction & Engineering - 1.1%

        

Taisei Corp.

      1,700          66,159  
       

 

 

  

Industrial Conglomerates - 0.4%

        

NWS Holdings Ltd.

      14,000          21,684  
       

 

 

  

Professional Services - 7.6%

        

Experian PLC

      2,342          74,895  

Company

    Shares        U.S. $ Value  

Intertek Group PLC

      470        $ 31,637  

Intertrust NV (a)

      1,380          26,996  

Meitec Corp.

      900          44,225  

RELX PLC

      6,358          151,001  

Wolters Kluwer NV

      1,580          115,285  
       

 

 

  
            444,039  
       

 

 

  

Road & Rail - 0.8%

        

East Japan Railway Co.

      500          47,811  
       

 

 

  
          909,882  
       

 

 

  

Information Technology - 12.5%

        

IT Services - 3.6%

        

Amadeus IT Group SA-Class A

      1,117          80,034  

Capgemini SE

      732          86,194  

Otsuka Corp.

      1,200          48,026  
       

 

 

  
          214,254  
       

 

 

  

Software - 8.2%

        

Check Point Software Technologies Ltd. (b)

      890          97,455  

Constellation Software, Inc./Canada

      120          119,846  

Nice Ltd. (b)

      829          119,483  

Oracle Corp. Japan

      1,300          113,329  

SAP SE

      262          30,830  
       

 

 

  
          480,943  
       

 

 

  

Technology Hardware, Storage & Peripherals - 0.7%

        

Samsung Electronics Co., Ltd.

      650          26,614  

Samsung Electronics Co., Ltd. (GDR) (a)

      15          15,283  
       

 

 

  
          41,897  
       

 

 

  
               737,094  
       

 

 

  

Consumer Staples - 9.5%

        

Beverages - 0.5%

        

Diageo PLC

      675          27,574  
       

 

 

  

Food & Staples Retailing - 1.3%

        

Koninklijke Ahold Delhaize NV

        3,180          79,524  
       

 

 

  

Food Products - 4.0%

        

Danone SA

      490          43,160  

Nestle SA (REG)

      985          106,828  

Salmar ASA

      1,901          83,458  
       

 

 

  
          233,446  
       

 

 

  

Personal Products - 1.8%

        

Unilever PLC

      1,803          108,364  
       

 

 

  

Tobacco - 1.9%

        

British American Tobacco PLC

      1,624          59,975  

Philip Morris International, Inc.

      661          50,190  
       

 

 

  
          110,165  
       

 

 

  
          559,073  
       

 

 

  

Company

    Shares        U.S. $ Value  

Health Care - 8.2%

        

Health Care Providers & Services - 0.8%

        

Galenica AG (a)(b)

      780        $ 44,800  
       

 

 

  

Pharmaceuticals - 7.4%

        

Astellas Pharma, Inc.

      5,700          81,534  

Novo Nordisk A/S-Class B

      1,649          85,214  

Roche Holding AG

      672          195,662  

Sanofi

      798          73,921  
       

 

 

  
          436,331  
       

 

 

  
          481,131  
       

 

 

  

Consumer Discretionary - 8.1%

        

Hotels, Restaurants & Leisure - 3.1%

        

Aristocrat Leisure Ltd.

      4,756          98,331  

Compass Group PLC

      3,223          82,937  
       

 

 

  
          181,268  
       

 

 

  

Household Durables - 1.1%

        

Auto Trader Group PLC

      10,721          67,196  
       

 

 

  

Internet & Direct Marketing Retail - 0.6%

        

Moneysupermarket.com Group PLC

      7,810          36,321  
       

 

 

  

Leisure Products - 1.2%

        

Bandai Namco Holdings, Inc.

      1,100          68,593  
       

 

 

  

Specialty Retail - 0.4%

        

Hikari Tsushin, Inc.

      100          21,694  
       

 

 

  

Textiles, Apparel & Luxury Goods - 1.7%

        

adidas AG

      250          77,836  

Moncler SpA

      720          25,663  
       

 

 

  
          103,499  
       

 

 

  
               478,571  
       

 

 

  

Communication Services - 6.1%

        

Diversified Telecommunication Services - 4.5%

        

Cogeco Communications, Inc.

      710          57,219  

HKT Trust & HKT Ltd.-Class SS

      55,000          87,248  

Nippon Telegraph & Telephone Corp.

      1,900          90,903  

TELUS Corp.

      791          28,151  
       

 

 

  
          263,521  
       

 

 

  

Entertainment - 0.6%

        

Daiichikosho Co., Ltd.

      800          37,035  
       

 

 

  

Interactive Media & Services - 1.0%

        

Kakaku.com, Inc.

      2,400          59,288  
       

 

 

  
          359,844  
       

 

 

  

Real Estate - 4.6%

        

Equity Real Estate Investment Trusts (REITs) - 3.7%

        

Merlin Properties Socimi SA

      5,353          74,735  

Nippon Building Fund, Inc.

      14          107,564  

Nippon Prologis REIT, Inc.

      12          32,905  
       

 

 

  
          215,204  
       

 

 

  

Company

    Shares        U.S. $ Value  

Real Estate Management & Development - 0.9%

        

Vonovia SE

      1,075        $ 54,541  
       

 

 

  
          269,745  
       

 

 

  

Energy - 3.8%

        

Oil, Gas & Consumable Fuels - 3.8%

        

Repsol SA

      4,117          64,209  

Royal Dutch Shell PLC-Class B

      3,970          117,335  

TOTAL SA (c)

      750          39,050  
       

 

 

  
          220,594  
       

 

 

  

Utilities - 3.1%

        

Electric Utilities - 2.6%

        

EDP - Energias de Portugal SA

      10,891          42,266  

Enel SpA

      10,860          81,116  

Kansai Electric Power Co., Inc. (The)

      2,300          25,761  
       

 

 

  
          149,143  
       

 

 

  

Gas Utilities - 0.5%

        

Tokyo Gas Co., Ltd.

      1,200          30,352  
       

 

 

  
          179,495  
       

 

 

  

Materials - 2.0%

        

Chemicals - 1.0%

        

Covestro AG (a)

      719          35,578  

Tosoh Corp.

      1,900          25,311  
       

 

 

  
          60,889  
       

 

 

  

Metals & Mining - 1.0%

        

Evolution Mining Ltd.

      9,760          29,778  

Northern Star Resources Ltd.

      4,030          29,951  
       

 

 

  
          59,729  
       

 

 

  
          120,618  
       

 

 

  

Total Common Stocks
(cost $5,311,278)

             5,696,224  
       

 

 

  

Company

    Shares        U.S. $ Value  

SHORT-TERM INVESTMENTS - 1.0%

        

Investment Companies - 1.0%

        

AB Fixed Income Shares, Inc. - Government Money
Market Portfolio - Class AB, 1.89% (d)(e)(f)
(cost $57,004)

      57,004        $ 57,004  
       

 

 

  

Total Investments Before Security Lending Collateral for Securities Loaned - 97.9%
(cost $5,368,282)

 

        5,753,228  
    

 

 

  

INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED - 0.7%

 

Investment Companies - 0.7%

 

AB Fixed Income Shares, Inc. - Government Money Market
Portfolio-Class AB, 1.89% (d)(e)(f)
(cost $40,624)

      40,624          40,624  
       

 

 

  

Total Investments - 98.6%
(cost $5,408,906) (g)

 

        5,793,852  

Other assets less liabilities - 1.4%

           81,638  
       

 

 

  

Net Assets - 100.0%

         $   5,875,490  
       

 

 

  

FORWARD CURRENCY EXCHANGE CONTRACTS

 

Counterparty

    Contracts to
Deliver
(000)		             In Exchange
For
(000)		             Settlement
Date		      Unrealized
Appreciation/
(Depreciation)		  

Brown Brothers Harriman & Co.

    AUD 17         USD 12           12/16/19      $ 196  

Brown Brothers Harriman & Co.

    CAD 499         USD 380           12/16/19        2,704  

Brown Brothers Harriman & Co.

    CAD 15         USD 11           12/16/19        (6 ) 

Brown Brothers Harriman & Co.

    CHF 41         USD 41           12/16/19        264  

Brown Brothers Harriman & Co.

    EUR 43         USD 48           12/16/19        593  

Brown Brothers Harriman & Co.

    GBP 9         USD 11           12/16/19        172  

Brown Brothers Harriman & Co.

    GBP 26         USD 32           12/16/19        (437 ) 

Brown Brothers Harriman & Co.

    ILS 977         USD 277           12/16/19        (4,966 ) 

Brown Brothers Harriman & Co.

    JPY         3,718         USD 35           12/16/19        73  

Brown Brothers Harriman & Co.

    NOK 937         USD 104           12/16/19        1,216  

Brown Brothers Harriman & Co.

    SGD 203         USD 147           12/16/19        286  

Brown Brothers Harriman & Co.

    USD 96         AUD 141           12/16/19        (961 ) 

Brown Brothers Harriman & Co.

    USD 41         CHF 41           12/16/19        (443 ) 

Brown Brothers Harriman & Co.

    USD 409         EUR 368           12/16/19        (5,727 ) 

Brown Brothers Harriman & Co.

    USD 51         GBP 42           12/16/19        550  

Brown Brothers Harriman & Co.

    USD 95         GBP 76           12/16/19        (1,220 ) 

Brown Brothers Harriman & Co.

    USD 269         JPY         28,512           12/16/19        (4,085 ) 

Brown Brothers Harriman & Co.

    USD 105         NOK 937           12/16/19        (1,545 ) 

Brown Brothers Harriman & Co.

    USD 144         SEK 1,391           12/16/19        (2,184 ) 

Citibank, NA

    KRW 35,013         USD 29           10/30/19        (267 ) 
                 

 

 

  
                  $ (15,787 ) 
                 

 

 

  

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2019, the aggregate market value of these securities amounted to $186,115 or 3.2% of net assets.

(b)

Non-income producing security.

(c)

Represents entire or partial securities out on loan.

(d)

Affiliated investments.

(e)

To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618.

(f)

The rate shown represents the 7-day yield as of period end.

(g)

As of September 30, 2019, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $544,874 and gross unrealized depreciation of investments was $(175,715) resulting in net unrealized appreciation of $369,159.

Currency Abbreviations:

 

AUD

    -    Australian Dollar

CAD

    -    Canadian Dollar

CHF

    -    Swiss Franc

EUR

    -    Euro

GBP

    -    Great British Pound

ILS

    -    Israeli Shekel

JPY

    -    Japanese Yen

KRW

    -    South Korean Won

NOK

    -    Norwegian Krone

SEK

    -    Swedish Krona

SGD

    -    Singapore Dollar

USD

    -    United States Dollar

Glossary:

 

GDR

    -    Global Depositary Receipt

REG

    -    Registered Shares

COUNTRY BREAKDOWN1

September 30, 2019 (unaudited)

 

  20.0%       

Japan

  15.4%       

United Kingdom

  9.6%       

Switzerland

  6.9%       

Canada

  5.6%       

Netherlands

  5.4%       

Israel

  5.3%       

Australia

  4.9%       

France

  4.9%       

Germany

  3.9%       

Singapore

  3.8%       

Spain

  3.1%       

Hong Kong

  2.4%       

Norway

  7.8%       

Other

  1.0%       

Short-Term

 

 

       
  100.0%       

Total Investments

 

 

       

 

1

All data are as of September 30, 2019. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. “Other” country weightings represent 1.9% or less in the following countries: Belgium, Denmark, Finland, Italy, Portugal, South Korea and United States.

AB Cap Fund, Inc.

AB FlexFee International Strategic Core Portfolio

September 30, 2019 (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)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which is then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3. In addition, non-agency rated investments are classified as Level 3.

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, 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 September 30, 2019:

 

Investments in Securities

    Level 1     Level 2     Level 3     Total  

Assets:

         

Common Stocks:

         

Financials

    $ 194,570     $  1,185,607     $ – 0  –    $  1,380,177  

Industrials

      – 0  –      909,882       – 0  –      909,882  

Information Technology

      217,301       519,793       – 0  –      737,094  

Consumer Staples

      50,190       508,883       – 0  –      559,073  

Health Care

      – 0  –      481,131       – 0  –      481,131  

Consumer Discretionary

      77,836       400,735       – 0  –      478,571  

Communication Services

      85,370       274,474       – 0  –      359,844  

Real Estate

      – 0  –      269,745       – 0  –      269,745  

Energy

      – 0  –      220,594       – 0  –      220,594  

Utilities

      – 0  –      179,495       – 0  –      179,495  

Materials

      – 0  –      120,618       – 0  –      120,618  

Short-Term Investments:

         

Investment Companies

      57,004       – 0  –      – 0  –      57,004  

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

      40,624       – 0  –      – 0  –      40,624  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Investments in Securities

      722,895       5,070,957 †      – 0  –      5,793,852  

Other Financial Instruments*:

         

Assets

         

Forward Currency Exchange Contracts

      – 0  –      6,054       – 0  –      6,054  

Liabilities

         

Forward Currency Exchange Contracts

      – 0  –      (21,841 )      – 0  –      (21,841 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $     722,895     $     5,055,170     $             – 0  –    $     5,778,065  
  

 

 

    

 

 

    

 

 

    

 

 

  

†

A significant portion of the Fund’s foreign equity investments are categorized as Level 2 investments since they are valued using fair value prices based on third party vendor modeling tools to the extent available.

*

Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

A summary of the Fund’s transactions in AB mutual funds for the nine months ended September 30, 2019 is as follows:

 

Fund

    Market Value
12/31/18
(000)		     Purchases
at Cost
(000)		      Sales
Proceeds
(000)		      Market Value
9/30/19
(000)		      Dividend
Income
(000)		  

Government Money Market Portfolio

    $ 26     $ 2,846      $ 2,815      $ 57      $ 2  

Government Money Market Portfolio*

      – 0  –      311        270        41        0 ** 
          

 

 

     

 

 

  

Total

            $ 98      $ 2  
          

 

 

     

 

 

  

 

*

Investment of cash collateral for securities lending transactions.

**

Amount is less than $500.