UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21611
Name of Fund: S&P 500(R) GEARED(SM) Fund Inc. (GRE)
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Mitchell M. Cox, Chief Executive
Officer, S&P 500(R) GEARED(SM) Fund Inc., 4 World Financial Center, 6th
Floor, New York, New York 10080.
Registrant's telephone number, including area code: (877) 449-4742
Date of fiscal year end: 12/31/2008
Date of reporting period: 07/01/2008 - 09/30/2008
Item 1 - Schedule of Investments
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
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Aerospace & Defense - 2.6% Boeing Co. 3,235 $ 185,527
General Dynamics Corp. 1,754 129,129
Goodrich Corp. 528 21,965
Honeywell International, Inc. 3,246 134,871
L-3 Communications Holdings, Inc. 546 53,683
Lockheed Martin Corp. 1,453 159,351
Northrop Grumman Corp. 1,465 88,691
Precision Castparts Corp. 603 47,504
Raytheon Co. 1,855 99,261
Rockwell Collins, Inc. 705 33,903
United Technologies Corp. 4,262 255,976
---------------
1,209,861
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Air Freight & Logistics - 1.0% C.H. Robinson Worldwide, Inc. 766 39,035
Expeditors International Washington, Inc. 910 31,704
FedEx Corp. 1,383 109,312
United Parcel Service, Inc. Class B 4,453 280,049
---------------
460,100
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Airlines - 0.1% Southwest Airlines Co. 3,200 46,432
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Auto Components - 0.2% The Goodyear Tire & Rubber Co. (a) 1,016 15,555
Johnson Controls, Inc. 2,604 78,979
---------------
94,534
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Automobiles - 0.3% Ford Motor Co. (a) 9,807 50,996
General Motors Corp. 2,557 24,164
Harley-Davidson, Inc. 1,031 38,456
---------------
113,616
------------------------------------------------------------------------------------------------------------------------------------
Beverages - 2.7% Anheuser-Busch Cos., Inc. 3,173 205,864
Brown-Forman Corp. Class B 328 23,554
The Coca-Cola Co. 8,744 462,383
Coca-Cola Enterprises, Inc. 1,337 22,421
Constellation Brands, Inc. Class A (a) 896 19,228
Molson Coors Brewing Co. Class B 643 30,060
Pepsi Bottling Group, Inc. 600 17,502
PepsiCo, Inc. 6,894 491,335
---------------
1,272,347
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Biotechnology - 1.6% Amgen, Inc. (a) 4,659 276,139
Biogen Idec, Inc. (a) 1,293 65,025
Celgene Corp. (a) 1,985 125,611
Genzyme Corp. (a) 1,193 96,502
Gilead Sciences, Inc. (a) 4,046 184,417
---------------
747,694
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Building Products - 0.1% Masco Corp. 1,596 28,632
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Capital Markets - 2.7% American Capital Ltd. 900 22,959
Ameriprise Financial, Inc. 955 36,481
The Bank of New York Mellon Corp. 5,005 163,063
The Charles Schwab Corp. 4,100 106,600
E*Trade Financial Corp. (a) 2,139 5,989
Federated Investors, Inc. Class B 350 10,098
1
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Franklin Resources, Inc. 682 $ 60,105
The Goldman Sachs Group, Inc. 1,920 245,760
Invesco Ltd. (b) 1,700 35,666
Janus Capital Group, Inc. 673 16,340
Legg Mason, Inc. 606 23,064
Merrill Lynch & Co., Inc. (c) 6,740 170,522
Morgan Stanley 4,861 111,803
Northern Trust Corp. 956 69,023
State Street Corp. 1,900 108,072
T. Rowe Price Group, Inc. 1,121 60,209
---------------
1,245,754
------------------------------------------------------------------------------------------------------------------------------------
Chemicals - 2.0% Air Products & Chemicals, Inc. 915 62,668
Ashland, Inc. 280 8,187
CF Industries Holdings, Inc. 255 23,322
The Dow Chemical Co. 4,096 130,171
E.I. du Pont de Nemours & Co. 3,941 158,822
Eastman Chemical Co. 317 17,454
Ecolab, Inc. 798 38,719
Hercules, Inc. 500 9,895
International Flavors & Fragrances, Inc. 319 12,588
Monsanto Co. 2,419 239,433
PPG Industries, Inc. 716 41,757
Praxair, Inc. 1,400 100,436
Rohm & Haas Co. 533 37,310
Sigma-Aldrich Corp. 573 30,037
---------------
910,799
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Commercial Banks - 2.9% BB&T Corp. 2,400 90,720
Comerica, Inc. 686 22,494
Fifth Third Bancorp 2,581 30,714
First Horizon National Corp. 848 7,939
Huntington Bancshares, Inc. 1,539 12,297
KeyCorp 2,114 25,241
M&T Bank Corp. 326 29,096
Marshall & Ilsley Corp. 1,168 23,535
National City Corp. 3,434 6,010
The PNC Financial Services Group, Inc. 1,524 113,843
Regions Financial Corp. 3,075 29,520
SunTrust Banks, Inc. 1,537 69,150
U.S. Bancorp 7,663 276,021
Wachovia Corp. 9,451 33,079
Wells Fargo & Co. 14,555 546,249
Zions Bancorporation 488 18,886
---------------
1,334,794
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Commercial Services & Allied Waste Industries, Inc. (a) 1,420 15,776
Supplies - 0.4% Avery Dennison Corp. 441 19,616
Cintas Corp. 600 17,226
2
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Pitney Bowes, Inc. 884 $ 29,402
R.R. Donnelley & Sons Co. 900 22,077
Waste Management, Inc. 2,137 67,294
---------------
171,391
------------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 2.5% Ciena Corp. (a) 328 3,306
Cisco Systems, Inc. (a) 25,984 586,199
Corning, Inc. 6,889 107,744
Harris Corp. 572 26,426
JDS Uniphase Corp. (a) 950 8,037
Juniper Networks, Inc. (a) 2,362 49,767
Motorola, Inc. 10,000 71,400
QUALCOMM, Inc. 7,218 310,157
Tellabs, Inc. (a) 1,865 7,572
---------------
1,170,608
------------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 4.2% Apple, Inc. (a) 3,897 442,933
Dell, Inc. (a) 7,623 125,627
EMC Corp. (a) 9,058 108,334
Hewlett-Packard Co. 10,773 498,144
International Business Machines Corp. 5,959 696,965
Lexmark International, Inc. Class A (a) 400 13,028
NetApp, Inc. (a) 1,480 26,980
QLogic Corp. (a) 600 9,216
SanDisk Corp. (a) 982 19,198
Sun Microsystems, Inc. (a) 3,405 25,878
Teradata Corp. (a) 800 15,600
---------------
1,981,903
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Construction & Engineering - 0.2% Fluor Corp. 801 44,616
Jacobs Engineering Group, Inc. (a) 525 28,513
---------------
73,129
------------------------------------------------------------------------------------------------------------------------------------
Construction Materials - 0.1% Vulcan Materials Co. 472 35,164
------------------------------------------------------------------------------------------------------------------------------------
Consumer Finance - 0.7% American Express Co. 5,100 180,693
Capital One Financial Corp. 1,650 84,150
Discover Financial Services, Inc. 2,059 28,455
SLM Corp. (a) 2,040 25,174
---------------
318,472
------------------------------------------------------------------------------------------------------------------------------------
Containers & Packaging - 0.1% Ball Corp. 400 15,796
Bemis Co. 400 10,484
Pactiv Corp. (a) 600 14,898
Sealed Air Corp. 700 15,393
---------------
56,571
------------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.1% Genuine Parts Co. 742 29,836
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Diversified Consumer Apollo Group, Inc. Class A (a) 479 28,405
Services - 0.1% H&R Block, Inc. 1,424 32,396
---------------
60,801
------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Bank of America Corp. (d) 20,058 702,030
Services - 4.7% CIT Group, Inc. 1,326 9,229
CME Group, Inc. 298 110,710
3
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Citigroup, Inc. 23,953 $ 491,276
IntercontinentalExchange, Inc. (a) 322 25,979
JPMorgan Chase & Co. 16,439 767,701
Leucadia National Corp. 784 35,625
Moody's Corp. 860 29,240
NYSE Euronext 1,152 45,135
---------------
2,216,925
------------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication AT&T Inc. (d) 25,938 724,189
Services - 2.6% CenturyTel, Inc. 461 16,896
Embarq Corp. 656 26,601
Frontier Communications Corp. 1,400 16,100
Qwest Communications International Inc. 6,738 21,764
Verizon Communications, Inc. 12,526 401,959
Windstream Corp. 2,044 22,361
---------------
1,229,870
------------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 2.0% Allegheny Energy, Inc. 733 26,952
American Electric Power Co., Inc. 1,734 64,210
Duke Energy Corp. 5,599 97,591
Edison International 1,443 57,576
Entergy Corp. 857 76,282
Exelon Corp. 2,877 180,158
FPL Group, Inc. 1,800 90,540
FirstEnergy Corp. 1,346 90,169
PPL Corp. 1,612 59,676
Pepco Holdings, Inc. 897 20,550
Pinnacle West Capital Corp. 408 14,039
Progress Energy, Inc. 1,124 48,478
The Southern Co. 3,356 126,488
---------------
952,709
------------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.4% Cooper Industries Ltd. Class A 792 31,640
Emerson Electric Co. 3,400 138,686
Rockwell Automation, Inc. 665 24,831
---------------
195,157
------------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & Agilent Technologies, Inc. (a) 1,566 46,447
Instruments - 0.3% Amphenol Corp. Class A 900 36,126
Jabil Circuit, Inc. 859 8,195
Molex, Inc. 600 13,470
Tyco Electronics Ltd. 2,072 57,311
---------------
161,549
------------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & BJ Services Co. 1,300 24,869
Services - 2.5% Baker Hughes, Inc. 1,375 83,242
Cameron International Corp. (a) 929 35,804
ENSCO International, Inc. 623 35,903
Halliburton Co. 3,821 123,762
Nabors Industries Ltd. (a) 1,273 31,723
National Oilwell Varco, Inc. (a) 1,819 91,368
Noble Corp. 1,200 52,680
4
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
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Rowan Cos., Inc. 467 $ 14,267
Schlumberger Ltd. 5,277 412,081
Smith International, Inc. 931 54,594
Transocean, Inc. 1,413 155,204
Weatherford International Ltd. (a) 2,958 74,364
---------------
1,189,861
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Food & Staples Retailing - 2.8% CVS Caremark Corp. 6,313 212,496
Costco Wholesale Corp. 1,911 124,081
The Kroger Co. 2,923 80,324
SUPERVALU, Inc. 903 19,595
SYSCO Corp. 2,611 80,497
Safeway, Inc. 1,919 45,519
Wal-Mart Stores, Inc. 9,863 590,695
Walgreen Co. 4,316 133,623
Whole Foods Market, Inc. 600 12,018
---------------
1,298,848
------------------------------------------------------------------------------------------------------------------------------------
Food Products - 1.7% Archer-Daniels-Midland Co. 2,800 61,348
Campbell Soup Co. 900 34,740
ConAgra Foods, Inc. 2,000 38,920
Dean Foods Co. (a) 636 14,857
General Mills, Inc. 1,461 100,400
H.J. Heinz Co. 1,399 69,908
The Hershey Co. 755 29,853
Kellogg Co. 1,100 61,710
Kraft Foods, Inc. 6,678 218,705
McCormick & Co., Inc. 599 23,032
Sara Lee Corp. 3,178 40,138
Tyson Foods, Inc. Class A 1,260 15,044
Wm. Wrigley Jr. Co. 932 74,001
---------------
782,656
------------------------------------------------------------------------------------------------------------------------------------
Gas Utilities - 0.1% Nicor, Inc. 200 8,870
Questar Corp. 792 32,409
---------------
41,279
------------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & Baxter International, Inc. 2,742 179,957
Supplies - 2.2% Becton Dickinson & Co. 1,056 84,754
Boston Scientific Corp. (a) 6,537 80,209
C.R. Bard, Inc. 424 40,225
Covidien Ltd. 2,187 117,573
Hospira, Inc. (a) 700 26,740
Intuitive Surgical, Inc. (a) 170 40,967
Medtronic, Inc. 4,963 248,646
St. Jude Medical, Inc. (a) 1,481 64,409
Stryker Corp. 1,068 66,536
Varian Medical Systems, Inc. (a) 533 30,450
Zimmer Holdings, Inc. (a) 998 64,431
---------------
1,044,897
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5
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & Aetna, Inc. 2,100 $ 75,831
Services - 1.9% AmerisourceBergen Corp. 724 27,259
Cardinal Health, Inc. 1,558 76,778
Cigna Corp. 1,207 41,014
Coventry Health Care, Inc. (a) 656 21,353
DaVita, Inc. (a) 476 27,137
Express Scripts, Inc. (a) 1,097 80,981
Humana, Inc. (a) 761 31,353
Laboratory Corp. of America Holdings (a) 492 34,194
McKesson Corp. 1,234 66,402
Medco Health Solutions, Inc. (a) 2,217 99,765
Patterson Cos., Inc. (a) 432 13,137
Quest Diagnostics, Inc. 700 36,169
Tenet Healthcare Corp. (a) 1,947 10,806
UnitedHealth Group, Inc. 5,386 136,751
WellPoint, Inc. (a) 2,266 105,981
---------------
884,911
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Health Care Technology - 0.0% IMS Health, Inc. 846 15,998
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Hotels, Restaurants & Carnival Corp. 1,901 67,200
Leisure - 1.3% Darden Restaurants, Inc. 600 17,178
International Game Technology 1,400 24,052
Marriott International, Inc. Class A 1,339 34,935
McDonald's Corp. 4,947 305,230
Starbucks Corp. (a) 3,175 47,212
Starwood Hotels & Resorts Worldwide, Inc. 845 23,778
Wyndham Worldwide Corp. 760 11,940
Yum! Brands, Inc. 2,050 66,851
---------------
598,376
------------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.4% Black & Decker Corp. 280 17,010
Centex Corp. 500 8,100
D.R. Horton, Inc. 1,200 15,624
Fortune Brands, Inc. 680 39,005
Harman International Industries, Inc. 281 9,574
KB Home 300 5,904
Leggett & Platt, Inc. 747 16,277
Lennar Corp. Class A 597 9,068
Newell Rubbermaid, Inc. 1,200 20,712
Pulte Homes, Inc. 981 13,705
Snap-On, Inc. 274 14,429
The Stanley Works 321 13,399
Whirlpool Corp. 318 25,214
---------------
208,021
------------------------------------------------------------------------------------------------------------------------------------
Household Products - 2.7% Clorox Co. 600 37,614
Colgate-Palmolive Co. 2,208 166,373
Kimberly-Clark Corp. 1,832 118,787
The Procter & Gamble Co. 13,364 931,337
---------------
1,254,111
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6
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
IT Services - 0.9% Affiliated Computer Services, Inc. Class A (a) 406 $ 20,556
Automatic Data Processing, Inc. 2,238 95,674
Cognizant Technology Solutions Corp. (a) 1,300 29,679
Computer Sciences Corp. (a) 691 27,771
Convergys Corp. (a) 576 8,513
Fidelity National Information Services, Inc. 800 14,768
Fiserv, Inc. (a) 712 33,692
MasterCard, Inc. Class A 322 57,100
Paychex, Inc. 1,447 47,794
Total System Services, Inc. 900 14,760
Unisys Corp. (a) 1,600 4,400
The Western Union Co. 3,229 79,659
---------------
434,366
------------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & The AES Corp. (a) 2,900 33,901
Energy Traders - 0.1% Constellation Energy Group, Inc. 824 20,023
Dynegy, Inc. Class A (a) 2,270 8,127
---------------
62,051
------------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 3.1% 3M Co. 3,092 211,215
General Electric Co. 43,758 1,115,829
Textron, Inc. 1,100 32,208
Tyco International Ltd. 2,092 73,262
---------------
1,432,514
------------------------------------------------------------------------------------------------------------------------------------
Insurance - 2.9% AON Corp. 1,244 55,930
Aflac, Inc. 2,075 121,906
The Allstate Corp. 2,409 111,103
American International Group, Inc. 11,714 39,008
Assurant, Inc. 497 27,335
Chubb Corp. 1,589 87,236
Cincinnati Financial Corp. 751 21,358
Genworth Financial, Inc. Class A 1,900 16,359
Hartford Financial Services Group, Inc. 1,347 55,214
Lincoln National Corp. 1,145 49,017
Loews Corp. 1,561 61,644
MBIA, Inc. 900 10,710
Marsh & McLennan Cos., Inc. 2,252 71,524
MetLife, Inc. 3,040 170,240
Principal Financial Group, Inc. 1,117 48,578
The Progressive Corp. 3,031 52,739
Prudential Financial, Inc. 1,892 136,224
Torchmark Corp. 372 22,246
The Travelers Cos., Inc. 2,620 118,424
UnumProvident Corp. 1,500 37,650
XL Capital Ltd. Class A 1,400 25,116
---------------
1,339,561
------------------------------------------------------------------------------------------------------------------------------------
Internet & Catalog Retail - 0.2% Amazon.com, Inc. (a) 1,399 101,791
Expedia, Inc. (a) 900 13,599
---------------
115,390
------------------------------------------------------------------------------------------------------------------------------------
7
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Internet Software & Services - 1.4% Akamai Technologies, Inc. (a) 738 $ 12,871
eBay, Inc. (a) 4,839 108,297
Google, Inc. Class A (a) 1,050 420,546
VeriSign, Inc. (a) 881 22,976
Yahoo! Inc. (a) 6,061 104,855
---------------
669,545
------------------------------------------------------------------------------------------------------------------------------------
Leisure Equipment & Eastman Kodak Co. 1,300 19,994
Products - 0.2% Hasbro, Inc. 573 19,895
Mattel, Inc. 1,600 28,864
---------------
68,753
------------------------------------------------------------------------------------------------------------------------------------
Life Sciences Tools & Applied Biosystems, Inc. 777 26,612
Services - 0.4% Millipore Corp. (a) 259 17,819
PerkinElmer, Inc. 500 12,485
Thermo Fisher Scientific, Inc. (a) 1,863 102,465
Waters Corp. (a) 419 24,377
---------------
183,758
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Machinery - 1.6% Caterpillar, Inc. 2,659 158,476
Cummins, Inc. 877 38,342
Danaher Corp. 1,106 76,756
Deere & Co. 1,895 93,803
Dover Corp. 855 34,670
Eaton Corp. 730 41,011
ITT Corp. 809 44,988
Illinois Tool Works, Inc. 1,754 77,965
Ingersoll-Rand Co. Class A 1,407 43,856
Manitowoc Co. 593 9,221
PACCAR, Inc. 1,575 60,149
Pall Corp. 500 17,195
Parker Hannifin Corp. 756 40,068
Terex Corp. (a) 406 12,391
---------------
748,891
------------------------------------------------------------------------------------------------------------------------------------
Media - 2.5% CBS Corp. Class B 2,950 43,011
Comcast Corp. Class A 12,898 253,188
The DIRECTV Group, Inc. (a) 2,586 67,676
Gannett Co., Inc. 1,000 16,910
Interpublic Group of Cos., Inc. (a) 2,000 15,500
The McGraw-Hill Cos., Inc. 1,423 44,981
Meredith Corp. 186 5,215
The New York Times Co. Class A 568 8,117
News Corp. Class A 10,010 120,020
Omnicom Group Inc. 1,380 53,213
Scripps Networks Interactive 400 14,524
Time Warner, Inc. 15,761 206,627
Viacom, Inc. Class B (a) 2,770 68,807
Walt Disney Co. 8,288 254,359
The Washington Post Co. Class B 24 13,362
---------------
1,185,510
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8
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
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Metals & Mining - 0.8% AK Steel Holding Corp. 500 $ 12,960
Alcoa, Inc. 3,615 81,627
Allegheny Technologies, Inc. 423 12,500
Freeport-McMoRan Copper & Gold, Inc. Class B 1,677 95,337
Newmont Mining Corp. 2,005 77,714
Nucor Corp. 1,373 54,234
Titanium Metals Corp. 400 4,536
United States Steel Corp. 509 39,503
---------------
378,411
------------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 1.1% Ameren Corp. 894 34,893
CMS Energy Corp. 900 11,223
CenterPoint Energy, Inc. 1,415 20,617
Consolidated Edison, Inc. 1,200 51,552
DTE Energy Co. 747 29,970
Dominion Resources, Inc. 2,581 110,415
Integrys Energy Group, Inc. 312 15,581
NiSource, Inc. 1,200 17,712
PG&E Corp. 1,546 57,898
Public Service Enterprise Group, Inc. 2,200 72,138
Sempra Energy 1,097 55,366
TECO Energy, Inc. 900 14,157
Xcel Energy, Inc. 1,905 38,081
---------------
529,603
------------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 0.8% Big Lots, Inc. (a) 347 9,657
Dillard's, Inc. Class A 300 3,540
Family Dollar Stores, Inc. 600 14,220
J.C. Penney Co., Inc. 958 31,940
Kohl's Corp. (a) 1,357 62,531
Macy's, Inc. 1,866 33,551
Nordstrom, Inc. 724 20,866
Sears Holdings Corp. (a) 257 24,030
Target Corp. 3,338 163,729
---------------
364,064
------------------------------------------------------------------------------------------------------------------------------------
Office Electronics - 0.1% Xerox Corp. 3,921 45,209
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Oil, Gas & Consumable Fuels - Anadarko Petroleum Corp. 2,038 98,863
10.3% Apache Corp. 1,461 152,353
Cabot Oil & Gas Corp. Class A 429 15,504
Chesapeake Energy Corp. 2,292 82,191
Chevron Corp. 9,037 745,372
ConocoPhillips 6,689 489,969
Consol Energy, Inc. 819 37,584
Devon Energy Corp. 1,956 178,387
EOG Resources, Inc. 1,086 97,154
El Paso Corp. 3,051 38,931
Exxon Mobil Corp. 22,847 1,774,298
Hess Corp. 1,235 101,369
Marathon Oil Corp. 3,115 124,195
9
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Massey Energy Co. 352 $ 12,556
Murphy Oil Corp. 856 54,904
Noble Energy, Inc. 779 43,305
Occidental Petroleum Corp. 3,594 253,197
Peabody Energy Corp. 1,182 53,190
Pioneer Natural Resources Co. 600 31,368
Range Resources Corp. 699 29,966
Southwestern Energy Co. (a) 1,486 45,382
Spectra Energy Corp. 2,699 64,236
Sunoco, Inc. 500 17,790
Tesoro Corp. 651 10,735
Valero Energy Corp. 2,325 70,448
Williams Cos., Inc. 2,582 61,064
XTO Energy, Inc. 2,396 111,462
---------------
4,795,773
------------------------------------------------------------------------------------------------------------------------------------
Paper & Forest Products - 0.3% International Paper Co. 1,900 49,742
MeadWestvaco Corp. 798 18,601
Weyerhaeuser Co. 908 55,007
---------------
123,350
------------------------------------------------------------------------------------------------------------------------------------
Personal Products - 0.2% Avon Products, Inc. 1,900 78,983
The Estee Lauder Cos., Inc. Class A 500 24,955
---------------
103,938
------------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 6.4% Abbott Laboratories 6,781 390,450
Allergan, Inc. 1,369 70,503
Barr Pharmaceuticals, Inc. (a) 467 30,495
Bristol-Myers Squibb Co. 8,652 180,394
Eli Lilly & Co. 4,401 193,776
Forest Laboratories, Inc. (a) 1,371 38,772
Johnson & Johnson 12,292 851,590
King Pharmaceuticals, Inc. (a) 1,013 9,705
Merck & Co., Inc. 9,424 297,421
Mylan, Inc. (a) 1,300 14,846
Pfizer, Inc. 29,652 546,783
Schering-Plough Corp. 7,111 131,340
Watson Pharmaceuticals, Inc. (a) 429 12,227
Wyeth 5,865 216,653
---------------
2,984,955
------------------------------------------------------------------------------------------------------------------------------------
Professional Services - 0.1% Equifax, Inc. 595 20,498
Monster Worldwide, Inc. (a) 568 8,469
Robert Half International, Inc. 700 17,325
---------------
46,292
------------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts Apartment Investment & Management Co. Class A 408 14,288
(REITs) - 1.2% AvalonBay Communities, Inc. 326 32,085
Boston Properties, Inc. 514 48,141
Developers Diversified Realty Corp. 500 15,845
Equity Residential 1,200 53,292
General Growth Properties, Inc. 1,045 15,780
10
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
HCP, Inc. 1,079 $ 43,300
Host Marriott Corp. 2,223 29,544
Kimco Realty Corp. 1,029 38,011
Plum Creek Timber Co., Inc. 775 38,642
ProLogis 1,131 46,676
Public Storage 538 53,267
Simon Property Group, Inc. 977 94,769
Vornado Realty Trust 600 54,570
---------------
578,210
------------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & Development - 0.0% CB Richard Ellis Group, Inc. (a) 800 10,696
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Road & Rail - 1.1% Burlington Northern Santa Fe Corp. 1,255 116,000
CSX Corp. 1,800 98,226
Norfolk Southern Corp. 1,655 109,578
Ryder System, Inc. 263 16,306
Union Pacific Corp. 2,241 159,470
---------------
499,580
------------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor Advanced Micro Devices, Inc. (a) 2,700 14,175
Equipment - 2.2% Altera Corp. 1,369 28,311
Analog Devices, Inc. 1,309 34,492
Applied Materials, Inc. 5,981 90,492
Broadcom Corp. Class A (a) 1,978 36,850
Intel Corp. 24,730 463,193
KLA-Tencor Corp. 792 25,067
LSI Corp. (a) 2,863 15,346
Linear Technology Corp. 935 28,667
MEMC Electronic Materials, Inc. (a) 984 27,808
Microchip Technology, Inc. 846 24,898
Micron Technology, Inc. (a) 3,200 12,960
National Semiconductor Corp. 908 15,627
Novellus Systems, Inc. (a) 443 8,701
Nvidia Corp. (a) 2,499 26,764
Teradyne, Inc. (a) 800 6,248
Texas Instruments, Inc. 5,748 123,582
Xilinx, Inc. 1,258 29,500
---------------
1,012,681
------------------------------------------------------------------------------------------------------------------------------------
Software - 3.6% Adobe Systems, Inc. (a) 2,358 93,070
Autodesk, Inc. (a) 967 32,443
BMC Software, Inc. (a) 865 24,765
CA, Inc. 1,700 33,932
Citrix Systems, Inc. (a) 820 20,713
Compuware Corp. (a) 1,201 11,638
Electronic Arts, Inc. (a) 1,411 52,193
Intuit, Inc. (a) 1,451 45,866
Microsoft Corp. 34,538 921,819
Novell, Inc. (a) 1,500 7,710
11
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Shares
Industry Common Stocks Held Value
------------------------------------------------------------------------------------------------------------------------------------
Oracle Corp. (a) 17,237 $ 350,083
Salesforce.com, Inc. (a) 471 22,796
Symantec Corp. (a) 3,743 73,288
---------------
1,690,316
------------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 1.6% Abercrombie & Fitch Co. Class A 366 14,439
AutoNation, Inc. (a) 531 5,968
AutoZone, Inc. (a) 193 23,805
Bed Bath & Beyond, Inc. (a) 1,152 36,184
Best Buy Co., Inc. 1,491 55,912
GameStop Corp. Class A (a) 711 24,323
The Gap, Inc. 2,042 36,307
Home Depot, Inc. 7,471 193,424
Limited Brands, Inc. 1,295 22,429
Lowe's Cos., Inc. 6,409 151,829
Office Depot, Inc. (a) 1,200 6,984
RadioShack Corp. 600 10,368
The Sherwin-Williams Co. 418 23,893
Staples, Inc. 3,150 70,875
TJX Cos., Inc. 1,877 57,286
Tiffany & Co. 560 19,891
---------------
753,917
------------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Coach, Inc. (a) 1,473 36,884
Luxury Goods - 0.5% Jones Apparel Group, Inc. 400 7,404
Liz Claiborne, Inc. 400 6,572
Nike, Inc. Class B 1,707 114,198
Polo Ralph Lauren Corp. 262 17,460
VF Corp. 368 28,450
---------------
210,968
------------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance - 0.1% Hudson City Bancorp, Inc. 2,300 42,435
MGIC Investment Corp. 491 3,452
Sovereign Bancorp, Inc. 2,304 9,101
---------------
54,988
------------------------------------------------------------------------------------------------------------------------------------
Tobacco - 1.6% Altria Group, Inc. 9,123 181,000
Lorillard, Inc. 782 55,639
Philip Morris International, Inc. 9,067 436,123
Reynolds American, Inc. 772 37,535
UST, Inc. 667 44,382
---------------
754,679
------------------------------------------------------------------------------------------------------------------------------------
Trading Companies & Fastenal Co. 587 28,992
Distributors - 0.1% W.W. Grainger, Inc. 271 23,569
---------------
52,561
------------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication American Tower Corp. Class A (a) 1,751 62,983
Services - 0.3% Sprint Nextel Corp. 12,437 75,866
---------------
138,849
------------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks
(Cost - $42,831,902) - 95.9% 44,806,985
------------------------------------------------------------------------------------------------------------------------------------
12
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Face
Short-Term Securities Amount Value
------------------------------------------------------------------------------------------------------------------------------------
Time Deposits - 11.7% State Street Bank & Trust Co., 1%, 10/01/08 $ 5,447,058 $ 5,447,058
------------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $5,447,058) - 11.7% 5,447,058
------------------------------------------------------------------------------------------------------------------------------------
Number of
Options Purchased Contracts
------------------------------------------------------------------------------------------------------------------------------------
Call Options Purchased S&P 500 Index, expiring November 2008 at USD 1,502.17, 46,186 416
Deutsche Bank AG
S&P 500 Index, expiring November 2008 at USD 1,502.17,
HSBC Securities 33,285 700
------------------------------------------------------------------------------------------------------------------------------------
Total Options Purchased
(Premiums Paid - $12,086,639) - 0.0% 1,116
------------------------------------------------------------------------------------------------------------------------------------
Total Investments Before Options Written
(Cost - $60,365,599*) - 107.6% 50,255,159
------------------------------------------------------------------------------------------------------------------------------------
Options Written
------------------------------------------------------------------------------------------------------------------------------------
Call Options Written S&P 500 Index, expiring November 2008 at USD 1,592.60, 69,279 (1,041)
Deutsche Bank AG
S&P 500 Index, expiring November 2008 at USD 1,592.30,
HSBC Securities 49,928 (750)
------------------------------------------------------------------------------------------------------------------------------------
Total Options Written
(Premiums Received - $12,086,639) - (0.0)% (1,791)
------------------------------------------------------------------------------------------------------------------------------------
Total Investments, Net of Options Written
(Cost - $48,278,960) - 107.6% 50,253,368
Liabilities in Excess of Other Assets - (7.6)% (3,534,046)
---------------
Net Assets - 100.0% $ 46,719,322
===============
* The cost and unrealized appreciation (depreciation) of investments
as of September 30, 2008, as computed for federal income tax
purposes, were as follows:
Aggregate cost $ 60,371,670
=====================
Gross unrealized appreciation $ 9,155,042
Gross unrealized depreciation (19,271,553)
---------------------
Net unrealized depreciation $ (10,116,511)
=====================
(a) Non-income producing security.
(b) Depositary receipts.
(c) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:
-----------------------------------------------------------------------------------------------------------------------
Purchase Realized Dividend
Affiliate Cost Sales Cost Gain Income
-----------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. $ 105,929 $ 66,261 $ (38,937) $ 5,762
-----------------------------------------------------------------------------------------------------------------------
(d) All or a portion of security has been pledged as collateral in
connection with open financial futures contracts.
o Financial futures contracts purchased as of September 30, 2008 were
as follows:
-----------------------------------------------------------------------------------------------------------------------
Number of Appreciation
Contracts Issue Face Value (Depreciation)
-----------------------------------------------------------------------------------------------------------------------
33 S&P 500 Index December 2008 $2,001,363 $(75,153)
-----------------------------------------------------------------------------------------------------------------------
o For Fund compliance purposes, the Fund's industry classifications
refer to any one or more of the industry sub-classifications used
by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Fund management. This definition may
not apply for purposes of this report, which may combine industry
sub-classifications for reporting ease. Industries are shown as a
percent of net assets.
13
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
o Effective January 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 - price quotations in active markets/exchanges for identical
securities
o Level 2 - other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 - unobservable inputs based on the best information available
in the circumstance, to the extent observable inputs are not available
(including the Fund's own assumption used in determining the fair
value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For
information about the Fund's policy regarding valuation of investments and other
significant accounting policies, please refer to the Fund's most recent
financial statements as contained in its semi-annual report.
The following table summarizes the inputs used as of September 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------------
Valuation Investments in Other Financial
Inputs Securities Instruments*
--------------------------------------------------------------------------------
Level 1 $ 50,254,043 $ (75,153)
Level 2 - (675)
Level 3 - -
--------------------------------------------------------------------------------
Total 50,254,043 (75,828)
================================================================================
* Other financial instruments are futures and options.
Item 2 - Controls and Procedures
2(a) - The registrant's principal executive and principal financial officers
or persons performing similar functions 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 (the
"1940 Act")) are effective as of a date within 90 days of the filing
of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the registrant's last fiscal quarter that have
materially affected, or are reasonably likely to materially affect,
the registrant's internal control over financial reporting.
Item 3 - Exhibits
Certifications - Attached hereto
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.
S&P 500(R) GEARED(SM) Fund Inc.
By: /s/ Mitchell M. Cox
---------------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of S&P
500(R) GEARED(SM) Fund Inc.
Date: November 24, 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/ Mitchell M. Cox
---------------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of S&P
500(R) GEARED(SM) Fund Inc.
Date: November 24, 2008
By: /s/ James E. Hillman
---------------------------
James E. Hillman
Chief Financial Officer (principal financial officer) of S&P
500(R) GEARED(SM) Fund Inc.
Date: November 24, 2008