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, 2008

Date of reporting period: February 28, 2008

 

 

 

---

ITEM 1.

SCHEDULE OF INVESTMENTS.

---

The Spain Fund

Portfolio of Investments

February 29, 2008 (unaudited)

 

Company		Shares		U.S. $ Value
COMMON STOCKS - 96.0%
Utilities - 42.9%
Electric & Gas Utility - 24.0%
Enagas		164,025		$	4,933,626		7383072
Energias de Portugal SA		319,020			1,865,553		4103596
Iberdrola Renovables (a)		248,828			1,548,809		B29NWR902
Iberdrola SA		669,941			9,675,802		B288C92
Red Electrica de Espana		64,724			4,038,104		5723777
Union Fenosa SA		34,415			2,267,578		491322004
					24,329,472
Miscellaneous - 0.5%
Fluidra SA (a)		68,368			524,154		B28V440
Telephone Utility - 18.4%
Telefonica SA		641,421			18,560,508		5732524
					43,414,134
Finance - 23.2%
Banking - Money Center - 19.9%
Banco Bilbao Vizcaya Argentaria SA		330,082			6,805,629		550190904
Banco Santander Central Hispano SA		744,844			13,310,017		5705946
					20,115,646
Insurance - 2.2%
Grupo Catalana Occidente SA		66,746			2,229,817		B188XC5
Miscellaneous - 1.1%
Corporacion Financiera Alba		18,024			1,094,933		5730409
					23,440,396
Consumer Services - 9.8%
Apparel - 2.0%
Inditex SA		39,444			2,033,482		711131904
Broadcasting & Cable - 2.9%
Sogecable SA (a)		70,130			2,942,271		5730669
Cellular Communications - 1.9%
America Movil SAB de CV Series L		647,200			1,956,707		2667470
Miscellaneous - 3.0%
Prosegur Cia de Seguridad SA		78,103			2,985,313		5140213
					9,917,773
Capital Goods - 4.7%
Engineering & Construction - 4.7%
Acciona SA		9,343			2,373,479		5579107
Obrascon Huarte Lain SA		27,148			908,546		5379749
Tecnicas Reunidas SA		22,236			1,506,652		B16FTB9
					4,788,677
Technology - 4.7%
Computer Services - 4.7%
Indra Sistemas SA		169,396			4,707,856		4476210
Health Care - 4.6%
Medical Services - 2.8%
Clinica Baviera SA (a)		115,064			2,864,824		B1VP8S4
Miscellaneous - 1.8%
Grifols SA		78,904			1,804,704		B01SPF2
					4,669,528
Energy - 4.4%
International - 4.4%
Repsol YPF SA		129,956			4,483,043		566935904
Basic Industry - 1.4%
Mining & Metals - 1.4%

---

Tubacex SA		151,325			1,411,371		4908735
Aerospace & Defense - 0.3%
Defense Electronics - 0.3%
European Aeronautic Defence & Space Co., NV		12,658			331,704		4057273
Total Investments - 96.0%
(cost $59,644,971)					97,164,482
Other assets less liabilities - 4.0%					4,078,625
Net Assets - 100.0%				$	101,243,107

 

(a)	Non-income producing security.

---

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 29, 2008:

 

Level		Investments in Securities			Other Financial Instruments*
Level 1		$	6,894,495		$	0
Level 2			90,269,987			0
Level 3			0			0
Total		$	97,164,482		$	0

 

*	Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation / depreciation on the instrument.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

		Investments In Securities			Other Financial Instruments
Balance as of 11/30/2007		$	0		$	0
Accrued discounts /premiums			0			0
Realized gain (loss)			0			0	*
Change in unrealized appreciation/depreciation			0			0
Net purchases (sales)			0			0
Net transfers in and/or out of Level 3			0			0
Balance as of 2/29/08		$	0		$	0
Net change in unrealized appreciation/depreciation from Investments still held as of 2/29/08		$	0		$	0

 

*	The realized gain (loss) recognized during the period ended 2/29/08 for other financial instruments was $0.

---

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/ Marc O. Mayer
		Marc O. Mayer
		President

Date: April 23, 2008

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/ Marc O. Mayer
		Marc O. Mayer
		President
Date: April 23, 2008
By:		/s/ Joseph J. Mantineo
		Joseph J. Mantineo
		Treasurer and Chief Financial Officer
Date: April 23, 2008