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: August 31, 2009

 

 

 

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ITEM 1.

SCHEDULE OF INVESTMENTS.

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The Spain Fund

Portfolio of Investments

August 31, 2009 (unaudited)

 

Company		Shares		U.S. $ Value
COMMON STOCKS - 99.5%
Financials - 33.2%
Commercial Banks - 24.1%
Banco Bilbao Vizcaya Argentaria SA		304,110		$	5,406,882
Banco Espirito Santo SA		202,251			1,333,293
Banco Santander Central Hispano SA		622,473			9,583,061
					16,323,236
Consumer Finance - 0.7%
Banco Compartamos SA de CV		130,500			446,588
Diversified Financial Services - 6.0%
BM&F BOVESPA SA		50,600			311,971
Bolsas y Mercados Espanoles		11,653			414,202
Corporacion Financiera Alba		34,048			1,848,207
Criteria Caixacorp SA		302,524			1,521,805
					4,096,185
Insurance - 2.4%
Grupo Catalana Occidente SA		40,627			873,160
Mapfre SA		180,000			741,294
					1,614,454
					22,480,463
Telecommunication Services - 23.8%
Diversified Telecommunication Services - 20.3%
Telefonica SA		544,681			13,772,246
Wireless Telecommunication Services - 3.5%
America Movil SAB de CV Series L		1,052,500			2,369,145
					16,141,391
Utilities - 14.7%
Electric Utilities - 9.6%
Acciona SA		12,152			1,577,723
EDP - Energias de Portugal SA		117,300			507,965
Endesa SA		10,584			314,640
Iberdrola SA		442,831			4,111,621
					6,511,949
Gas Utilities - 4.6%
Enagas		120,195			2,375,849
Gas Natural SDG SA		34,500			725,739
					3,101,588
Independent Power Producers & Energy Traders - 0.5%
EDP Renovaveis SA (a)		36,611			363,914
					9,977,451

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Industrials - 10.9%
Commercial Services & Supplies - 1.5%
Prosegur Cia de Seguridad SA		27,249			997,843
Construction & Engineering - 4.1%
ACS Actividades de Construccion y Servicios SA		21,750			1,123,051
Obrascon Huarte Lain SA		64,453			1,683,054
					2,806,105
Electrical Equipment - 1.6%
Gamesa Corp. Tecnologica SA		49,000			1,075,620
Transportation Infrastructure - 3.7%
Abertis Infraestructuras SA		82,564			1,800,206
Cintra Concesiones De Infrae		76,900			682,123
					2,482,329
					7,361,897
Energy - 5.3%
Energy Equipment & Services - 0.6%
Tecnicas Reunidas SA		7,588			413,448
Oil, Gas & Consumable Fuels - 4.7%
Repsol YPF SA		128,832			3,202,217
					3,615,665
Information Technology - 3.6%
Communications Equipment - 0.5%
Amper SA		39,300			368,292
IT Services - 3.1%
Indra Sistemas SA		61,701			1,466,294
Redecard SA		44,000			602,324
					2,068,618
					2,436,910
Consumer Staples - 2.9%
Food Products - 2.4%
Ebro Puleva SA		89,662			1,505,119
Natra SA (a)		24,000			122,315
					1,627,434
Household Products - 0.5%
Hypermarcas SA (a)		22,400			356,318
					1,983,752
Health Care - 2.8%
Biotechnology - 2.8%
Grifols SA		109,153			1,924,209
Consumer Discretionary - 1.7%
Household Durables - 0.4%
Urbi Desarrollos Urbanos SA de C.V. (a)		160,000			305,521
Specialty Retail - 1.3%
Inditex SA		15,957			870,242
					1,175,763
Materials - 0.6%
Metals & Mining - 0.6%
Tubacex SA		87,100			397,738
Total Investments - 99.5%
(cost $47,345,908) (c)					67,495,239
Other assets less liabilities - 0.5%					326,258
Net Assets - 100.0%				$	67,821,497

 

(a)	Non-income producing security.

(b)	Security represents investment in an affiliate.

(c)

As of August 31, 2009, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $24,066,691 and gross unrealized depreciation of investments was $3,917,360, resulting in net unrealized appreciation of $20,149,331.

 

Please note: The sector classifications presented herein are based on the Global Industry Classification Standards (GICS) which was developed b 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.

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FINANCIAL ACCOUNTING STANDARDS NO. 157

August 31, 2009 (unaudited)

Fair Value Measurements

The Fund adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), effective August 1, 2008. 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 August 31, 2009:

 

Level 1

Level 2

Level 3

Total

Investments in Securities

Common Stocks

Financials

$

758,559

$

21,721,904

$

– 0

–

$

22,480,463

Telecommunication Services

2,369,145

13,772,246

– 0

–

16,141,391

Utilities

– 0

–

9,977,451

– 0

–

9,977,451

Industrials

– 0

–

7,361,897

– 0

–

7,361,897

Energy

– 0

–

3,615,665

– 0

–

3,615,665

Information Technology

602,324

1,834,586

– 0

–

2,436,910

Consumer Staples

356,318

1,627,434

– 0

–

1,983,752

Health Care

– 0

–

1,924,209

– 0

–

1,924,209

Consumer Discretionary

305,521

870,242

– 0

–

1,175,763

Materials

– 0

–

397,738

– 0

–

397,738

4,391,867

63,103,372

†

– 0

–

67,495,239

Other Financial Instruments*

– 0

–

– 0

–

– 0

–

– 0

–

Total

$

4,391,867

$

63,103,372

$

– 0

–

$

67,495,239

 

*	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 between the close of the foreign markets and the time at which the Fund values its securities which may materially affect the value of securities trading in such markets. 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.

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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

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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:		October 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:		October 24, 2009
By:		/s/    Joseph J. Mantineo
		Joseph J. Mantineo Treasurer and Chief Financial Officer
Date:		October 24, 2009