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: 811-05189
THE SPAIN FUND, INC.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
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: November 30, 2009
Date of reporting period: February 28, 2009
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
The Spain Fund
Portfolio of Investments
February 28, 2009 (unaudited)
| Company |
Shares | U.S. $ Value | |||
| COMMON STOCKS - 96.6% |
|||||
| Utilities - 26.0% |
|||||
| Electric & Gas Utility - 23.6% |
|||||
| Enagas |
114,220 | $ | 1,829,187 | ||
| Endesa SA |
32,636 | 894,918 | |||
| Iberdrola Renovables SA (a) |
241,725 | 974,256 | |||
| Iberdrola SA |
709,031 | 4,610,864 | |||
| Red Electrica Corp. SA |
55,318 | 2,218,572 | |||
| 10,527,797 | |||||
| Miscellaneous - 2.4% |
|||||
| Abertis Infraestructuras SA |
75,973 | 1,049,031 | |||
| 11,576,828 | |||||
| Telecommunication Services - 22.5% |
|||||
| Diversified Telecommunication Services - 22.5% |
|||||
| Telefonica SA |
544,681 | 10,024,338 | |||
| Financials - 8.5% |
|||||
| Banking - Money Center - 8.5% |
|||||
| Banco Santander Central Hispano SA |
622,473 | 3,802,630 | |||
| Finance - 8.5% |
|||||
| Banking - Money Center - 4.8% |
|||||
| Banco Bilbao Vizcaya Argentaria SA (b) |
299,283 | 2,162,026 | |||
| Miscellaneous - 3.7% |
|||||
| Corporacion Financiera Alba |
31,327 | 982,560 | |||
| Criteria Caixacorp SA |
235,524 | 654,440 | |||
| 1,637,000 | |||||
| 3,799,026 | |||||
| Capital Goods - 7.2% |
|||||
| Engineering & Construction - 7.2% |
|||||
| Acciona SA |
10,652 | 1,045,962 | |||
| ACS Actividades de Construccion y Servicios SA |
34,952 | 1,380,309 | |||
| Obrascon Huarte Lain SA |
54,653 | 571,106 | |||
| Tecnicas Reunidas SA |
7,588 | 210,752 | |||
| 3,208,129 | |||||
| Energy - 6.3% |
|||||
| International - 4.8% |
|||||
| EDP Renovaveis SA (a) |
19,811 | 144,680 | |||
| Repsol YPF SA |
130,432 | 1,992,199 | |||
| 2,136,879 | |||||
| Miscellaneous - 1.5% |
|||||
| Gamesa Corp. Tecnologica SA |
49,000 | 646,281 | |||
| 2,783,160 | |||||
| Consumer Services - 5.5% |
|||||
| Apparel - 1.1% |
|||||
| Inditex SA |
13,574 | 509,194 | |||
| Cellular Communications - 2.8% |
|||||
| America Movil SAB de CV Series L |
964,700 | 1,229,470 | |||
| Miscellaneous - 1.6% |
|||||
| Prosegur Cia de Seguridad SA |
27,249 | 698,689 | |||
| 2,437,353 | |||||
| Technology - 3.7% |
|||||
| Computer Services - 3.7% |
|||||
| Indra Sistemas SA |
89,701 | 1,629,097 | |||
| Consumer Staples - 3.6% |
|||||
| Food - 3.6% |
|||||
| Ebro Puleva SA |
63,991 | 724,264 | |||
| Viscofan SA |
46,561 | 899,541 | |||
| 1,623,805 | |||||
| Health Care - 3.3% |
|||||
| Miscellaneous - 3.3% |
|||||
| Grifols SA |
92,453 | 1,449,432 | |||
| Basic Industry - 1.5% |
|||||
| Mining & Metals - 1.5% |
|||||
| Tubacex SA |
271,615 | 669,707 | |||
| Total Investments - 96.6% |
43,003,505 | ||||
| Other assets less liabilities - 3.4% |
1,535,983 | ||||
| Net Assets - 100.0% |
$ | 44,539,488 | |||
| (a) | Non-income producing security. |
| (b) | Security represents investments in an affiliate. |
As of February 28, 2009, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $9,865,616 and gross unrealized depreciation of investments was $(17,169,680) resulting in net unrealized depreciation of ($7,304,064).
FINANCIAL ACCOUNTING STANDARDS NO. 157
The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective December 1, 2007. In accordance with FAS 157, 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. FAS 157 also 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. 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 developed 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 following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of February 28, 2009:
| Level |
Investments in Securities |
Other Financial Instruments* |
||||||
| Level 1 |
$ | 1,229,470 | $ | - 0 | - | |||
| Level 2 |
41,774,035 | † | - 0 | - | ||||
| Level 3 |
- 0 | - | - 0 | - | ||||
| Total |
$ | 43,003,505 | $ | - 0 | - | |||
| * | Other financial instruments are derivative instruments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
| † | The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a significant portion of the Fund’s investments are categorized as Level 2 investments. |
| 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 changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| ITEM 3. | EXHIBITS. |
The following exhibits are attached to this Form N-Q:
| EXHIBIT NO. |
DESCRIPTION OF EXHIBIT | |
| 3 (a) (1) | Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
| 3 (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 Spain Fund, Inc.
| By: | /s/ Robert M. Keith | |
| Robert M. Keith President | ||
| Date: | April 24, 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 M. Keith | |
| Robert M. Keith President | ||
| Date: | April 24, 2009 | |
| By: | /s/ Joseph J. Mantineo | |
| Joseph J. Mantineo Treasurer and Chief Financial Officer | ||
| Date: | April 24, 2009 | |