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.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Mitchell M. Cox, President, S&P 500 (R)
GEARED SM Fund Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536.
Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011
Registrant's telephone number, including area code: (609) 282-2800
Date of fiscal year end: 09/30/05
Date of reporting period: 10/01/04 - 12/31/04
Item 1 - Schedule of Investments
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004
Shares
Industry* Held Common Stocks Value
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Aerospace & Defense - 2.1% 10,900 Boeing Co. $ 564,293
2,700 General Dynamics Corp. 282,420
1,200 Goodrich Corp. 39,168
10,300 Honeywell International, Inc. 364,723
1,578 L-3 Communications Holdings, Inc. 115,573
5,900 Lockheed Martin Corp. 327,745
4,900 Northrop Grumman Corp. 266,364
5,700 Raytheon Co. 221,331
2,000 Rockwell Collins, Inc. 78,880
6,600 United Technologies Corp. 682,110
-------------
2,942,607
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Air Freight & Logistics - 1.2% 3,900 FedEx Corp. 384,111
900 Ryder System, Inc. 42,993
14,400 United Parcel Service, Inc. 1,230,624
-------------
1,657,728
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Airlines - 0.1% 2,500 + Delta Air Lines, Inc. 18,700
9,200 Southwest Airlines Co. 149,776
-------------
168,476
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Auto Components - 0.2% 1,200 Cooper Tire & Rubber Co. 25,860
1,500 Dana Corp. 25,995
6,100 Delphi Corp. 55,022
2,700 + The Goodyear Tire & Rubber Co. 39,582
2,200 Johnson Controls, Inc. 139,568
1,000 Visteon Corp. 9,770
-------------
295,797
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Automobiles - 0.6% 21,800 Ford Motor Co. 319,152
7,500 General Motors Corp. 300,450
3,900 Harley-Davidson, Inc. 236,925
-------------
856,527
-----------------------------------------------------------------------------------------------------------------------------------
Beverages - 2.3% 400 Adolph Coors Co. Class B 30,268
9,800 Anheuser-Busch Cos., Inc. 497,154
1,300 Brown-Forman Corp. Class B 63,284
31,100 The Coca-Cola Co. 1,294,693
5,500 Coca-Cola Enterprises, Inc. 114,675
2,800 Pepsi Bottling Group, Inc. 75,712
21,500 PepsiCo, Inc. 1,122,300
-------------
3,198,086
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Biotechnology - 1.3% 16,000 + Amgen, Inc. 1,026,400
2,200 Applera Corp. - Applied Biosystems Group 46,002
4,400 + Biogen Idec, Inc. 293,084
2,500 + Chiron Corp. 83,325
2,800 + Genzyme Corp. 162,596
5,100 + Gilead Sciences, Inc. 178,449
3,200 + Medimmune, Inc. 86,752
-------------
1,876,608
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Building Products - 0.2% 2,400 + American Standard Cos., Inc. 99,168
5,000 Masco Corp. 182,650
-------------
281,818
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Capital Markets - 2.9% 9,700 The Bank of New York Co., Inc. 324,174
1,400 The Bear Stearns Cos., Inc. 143,234
16,100 The Charles Schwab Corp. 192,556
4,200 + E*Trade Financial Corp. 62,790
1,000 Federated Investors, Inc. Class B 30,400
2,900 Franklin Resources, Inc. 201,985
6,200 Goldman Sachs Group, Inc. 645,048
2,500 Janus Capital Group, Inc. 42,025
3,600 Lehman Brothers Holdings, Inc. 314,928
4,900 Mellon Financial Corp. 152,439
11,900 Merrill Lynch & Co., Inc. (b) 711,263
13,900 Morgan Stanley 771,728
2,900 Northern Trust Corp. 140,882
4,600 State Street Corp. 225,952
1,400 T. Rowe Price Group, Inc. 87,080
-------------
4,046,484
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Chemicals - 1.7% 2,900 Air Products & Chemicals, Inc. $ 168,113
11,600 The Dow Chemical Co. 574,316
13,000 EI Du Pont de Nemours & Co. 637,650
1,100 Eastman Chemical Co. 63,503
2,900 Ecolab, Inc. 101,877
1,200 Engelhard Corp. 36,804
400 Great Lakes Chemical Corp. 11,396
1,000 + Hercules, Inc. 14,850
1,000 International Flavors & Fragrances, Inc. 42,840
3,600 Monsanto Co. 199,980
2,000 PPG Industries, Inc. 136,320
3,800 Praxair, Inc. 167,770
2,500 Rohm & Haas Co. 110,575
1,000 Sigma-Aldrich Corp. 60,460
-------------
2,326,454
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Commercial Banks - 6.3% 4,000 AmSouth Bancorp 103,600
6,500 BB&T Corp. 273,325
51,000 Bank of America Corp. 2,396,490
2,400 Comerica, Inc. 146,448
1,551 Compass Bancshares, Inc. 75,487
7,600 Fifth Third Bancorp 359,328
1,700 First Horizon National Corp. 73,287
2,400 Huntington Bancshares, Inc./OH 59,472
4,700 Keycorp 159,330
1,300 M&T Bank Corp. 140,192
2,500 Marshall & Ilsley Corp. 110,500
8,500 National City Corp. 319,175
5,700 North Fork Bancorporation, Inc. 164,445
3,900 PNC Financial Services Group, Inc. 224,016
5,400 Regions Financial Corp. 192,186
4,700 SunTrust Banks, Inc. 347,236
3,500 Synovus Financial Corp. 100,030
23,800 US Bancorp 745,416
20,300 Wachovia Corp. 1,067,780
21,400 Wells Fargo & Co. 1,330,010
1,200 Zions Bancorporation 81,636
-------------
8,469,389
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Commercial Services & Supplies - 1.0% 3,400 + Allied Waste Industries, Inc. 31,552
2,500 + Apollo Group, Inc. Class A 201,775
1,700 Avery Dennison Corp. 101,949
12,500 Cendant Corp. 292,250
2,200 Cintas Corp. 96,492
1,400 Equifax, Inc. 39,340
2,200 H&R Block, Inc. 107,800
1,600 + Monster Worldwide, Inc. 53,824
2,600 Pitney Bowes, Inc. 120,328
2,400 RR Donnelley & Sons Co. 84,696
1,900 Robert Half International, Inc. 55,917
6,800 Waste Management, Inc. 203,592
-------------
1,389,515
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Communications Equipment - 2.7% 7,900 + ADC Telecommunications, Inc. 21,172
2,300 + Andrew Corp. 31,349
5,200 + Avaya, Inc. 89,440
8,800 + Ciena Corp. 29,392
83,300 + Cisco Systems, Inc. 1,607,690
2,600 + Comverse Technology, Inc. 63,570
16,700 + Corning, Inc. 196,559
19,000 + JDS Uniphase Corp. 60,230
53,800 + Lucent Technologies, Inc. 202,288
29,400 Motorola, Inc. 505,680
20,600 Qualcomm, Inc. 873,440
2,000 Scientific-Atlanta, Inc. 66,020
7,100 + Tellabs, Inc. 60,989
-------------
3,807,819
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Computers & Peripherals - 4.0% 4,800 + Apple Computer, Inc. 309,120
31,600 + Dell, Inc. 1,331,624
29,800 + EMC Corp. 443,126
3,900 + Gateway, Inc. 23,439
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals (concluded) 38,200 Hewlett-Packard Co. $ 801,054
21,100 International Business Machines Corp. 2,080,038
1,800 + Lexmark International, Inc. Class A 153,000
1,200 + NCR Corp. 83,076
4,200 + Network Appliance, Inc. 139,524
1,300 + QLogic Corp. 47,749
41,600 + Sun Microsystems, Inc. 223,808
-------------
5,635,558
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Construction & Engineering - 0.1% 1,300 Fluor Corp. 70,863
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Construction Materials - 0.0% 1,100 Vulcan Materials Co. 60,071
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Consumer Finance - 1.4% 16,000 American Express Co. 901,920
2,900 Capital One Financial Corp. 244,209
15,600 MBNA Corp. 439,764
3,300 + Providian Financial Corp. 54,351
5,500 SLM Corp. 293,645
-------------
1,933,889
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Containers & Packaging - 0.2% 1,200 Ball Corp. 52,776
1,000 Bemis Co. 29,090
1,500 + Pactiv Corp. 37,935
1,100 + Sealed Air Corp. 58,597
800 Temple-Inland, Inc. 54,720
-------------
233,118
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Distributors - 0.1% 1,900 Genuine Parts Co. 83,714
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Diversified Financial Services - 4.0% 2,700 CIT Group, Inc. 123,714
65,500 Citigroup, Inc. 3,155,790
45,000 JPMorgan Chase & Co. 1,755,450
1,700 Moody's Corp. 147,645
3,600 Principal Financial Group 147,384
2,395 SPDR Trust Series 1(a) 289,484
-------------
5,619,467
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Diversified Telecommunication 10,700 AT&T Corp. 203,942
Services - 3.0% 3,600 Alltel Corp. 211,536
22,300 BellSouth Corp. 619,717
1,800 CenturyTel, Inc. 63,846
3,700 Citizens Communications Co. 51,023
20,900 + Qwest Communications International 92,796
41,900 SBC Communications, Inc. 1,079,763
18,900 Sprint Corp. 469,665
35,000 Verizon Communications, Inc. 1,417,850
-------------
4,210,138
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Electric Utilities - 2.0% 1,900 + Allegheny Energy, Inc. 37,449
2,200 Ameren Corp. 110,308
4,600 American Electric Power Co., Inc. 157,964
3,300 Centerpoint Energy, Inc. 37,290
2,400 Cinergy Corp. 99,912
3,400 Consolidated Edison, Inc. 148,750
1,900 DTE Energy Co. 81,947
4,200 Edison International 134,526
3,100 Entergy Corp. 209,529
7,800 Exelon Corp. 343,746
2,500 FPL Group, Inc. 186,875
4,600 FirstEnergy Corp. 181,746
5,500 + PG&E Corp. 183,040
2,500 PPL Corp. 133,200
900 Pinnacle West Capital Corp. 39,969
2,800 Progress Energy, Inc. 126,672
9,800 The Southern Co. 328,496
1,900 TECO Energy, Inc. 29,146
3,300 TXU Corp. 213,048
4,400 Xcel Energy, Inc. 80,080
-------------
2,863,693
-----------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.4% 2,200 American Power Conversion Corp. 47,080
1,300 Cooper Industries Ltd. Class A 88,257
5,000 Emerson Electric Co. 350,500
500 + Power-One, Inc. 4,460
2,100 Rockwell Automation, Inc. 104,055
-------------
594,352
-----------------------------------------------------------------------------------------------------------------------------------
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & Instruments - 0.3% 5,700 + Agilent Technologies, Inc. $ 137,370
2,300 + Jabil Circuit, Inc. 58,834
2,100 Molex, Inc. 63,000
6,800 + Sanmina-SCI Corp. 57,596
10,900 + Solectron Corp. 58,097
2,600 Symbol Technologies, Inc. 44,980
900 Tektronix, Inc. 27,189
-------------
447,066
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Energy Equipment & Services - 1.0% 2,300 BJ Services Co. 107,042
4,100 Baker Hughes, Inc. 174,947
5,600 Halliburton Co. 219,744
2,000 + Nabors Industries Ltd. 102,580
2,000 + Noble Corp. 99,480
1,600 + Rowan Cos., Inc. 41,440
7,500 Schlumberger Ltd. 502,125
3,700 + Transocean, Inc. 156,843
-------------
1,404,201
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Food & Staples Retailing - 3.3% 5,300 Albertson's, Inc. 126,564
4,700 CVS Corp. 211,829
6,100 Costco Wholesale Corp. 295,301
8,600 + The Kroger Co. 150,844
6,400 + Safeway, Inc. 126,336
1,900 Supervalu, Inc. 65,588
8,500 Sysco Corp. 324,445
53,600 Wal-Mart Stores, Inc. 2,831,152
12,600 Walgreen Co. 483,462
-------------
4,615,521
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Food Products - 1.3% 8,900 Archer-Daniels-Midland Co. 198,559
4,700 Campbell Soup Co. 140,483
6,100 ConAgra Foods, Inc. 179,645
5,100 General Mills, Inc. 253,521
4,500 HJ Heinz Co. 175,455
3,100 Hershey Foods Corp. 172,174
4,800 Kellogg Co. 214,368
1,400 McCormick & Co., Inc. 54,040
9,300 Sara Lee Corp. 224,502
2,600 Wm. Wrigley Jr. Co. 179,894
-------------
1,792,641
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Gas Utilities - 0.1% 1,700 KeySpan Corp. 67,065
2,800 NiSource, Inc. 63,784
800 Nicor, Inc. 29,552
300 Peoples Energy Corp. 13,185
-------------
173,586
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Health Care Equipment & Supplies - 2.3% 800 Bausch & Lomb, Inc. 51,568
7,300 Baxter International, Inc. 252,142
3,400 Becton Dickinson & Co. 193,120
3,500 Biomet, Inc. 151,865
10,100 + Boston Scientific Corp. 359,055
1,400 CR Bard, Inc. 89,572
1,500 + Fisher Scientific International 93,570
4,100 Guidant Corp. 295,610
1,700 + Hospira, Inc. 56,950
15,300 Medtronic, Inc. 759,951
700 + Millipore Corp. 34,867
1,300 PerkinElmer, Inc. 29,237
4,800 + St. Jude Medical, Inc. 201,264
5,000 Stryker Corp. 241,250
1,800 + Thermo Electron Corp. 54,342
1,300 + Waters Corp. 60,827
3,100 + Zimmer Holdings, Inc. 248,372
-------------
3,173,562
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Health Care Providers & Services - 2.3% 2,000 Aetna, Inc. New Shares 249,500
1,500 AmerisourceBergen Corp. 88,020
5,300 Cardinal Health, Inc. 308,195
5,500 + Caremark Rx, Inc. 216,865
1,800 Cigna Corp. 146,826
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & Services (concluded) 1,000 + Express Scripts, Inc. $ 76,440
5,690 HCA, Inc. 227,372
3,300 Health Management Associates, Inc. Class A 74,976
1,700 + Humana, Inc. 50,473
2,600 IMS Health, Inc. 60,346
1,900 + Laboratory Corp. Of America Holdings 94,658
1,200 Manor Care, Inc. 42,516
3,700 McKesson Corp. 116,402
3,500 + Medco Health Solutions, Inc. 145,600
1,200 Quest Diagnostics 114,660
5,300 + Tenet Healthcare Corp. 58,194
8,300 UnitedHealth Group, Inc. 730,649
3,700 + WellPoint, Inc. 425,500
-------------
3,227,192
-----------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure - 1.6% 7,700 Carnival Corp. 443,751
1,700 Darden Restaurants, Inc. 47,158
1,600 Harrah's Entertainment, Inc. 107,024
5,700 Hilton Hotels Corp. 129,618
4,300 International Game Technology 147,834
2,900 Marriott International, Inc. Class A 182,642
16,400 McDonald's Corp. 525,784
5,200 + Starbucks Corp. 324,272
2,700 Starwood Hotels & Resorts Worldwide, Inc. 157,680
1,600 Wendy's International, Inc. 62,816
3,700 Yum! Brands, Inc. 174,566
-------------
2,303,145
-----------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.6% 1,000 Black & Decker Corp. 88,330
1,600 Centex Corp. 95,328
1,600 Fortune Brands, Inc. 123,488
600 KB Home 62,640
2,100 Leggett & Platt, Inc. 59,703
1,200 Maytag Corp. 25,320
3,700 Newell Rubbermaid, Inc. 89,503
1,700 Pulte Homes, Inc. 108,460
800 Snap-On, Inc. 27,488
1,200 The Stanley Works 58,788
900 Whirlpool Corp. 62,289
-------------
801,337
-----------------------------------------------------------------------------------------------------------------------------------
Household Products - 1.9% 2,200 Clorox Co. 129,646
7,000 Colgate-Palmolive Co. 358,120
6,500 Kimberly-Clark Corp. 427,765
32,100 Procter & Gamble Co. 1,768,068
-------------
2,683,599
-----------------------------------------------------------------------------------------------------------------------------------
IT Services - 1.1% 1,700 + Affiliated Computer Services, Inc. Class A 102,323
6,900 Automatic Data Processing, Inc. 306,015
2,600 + Computer Sciences Corp. 146,562
1,400 + Convergys Corp. 20,986
6,500 Electronic Data Systems Corp. 150,150
10,000 First Data Corp. 425,400
2,600 + Fiserv, Inc. 104,494
4,800 Paychex, Inc. 163,584
1,400 Sabre Holdings Corp. Class A 31,024
3,700 + Sungard Data Systems, Inc. 104,821
3,800 + Unisys Corp. 38,684
-------------
1,594,043
-----------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 4.8% 10,000 3M Co. 820,700
133,500 General Electric Co. 4,872,750
1,600 Textron, Inc. 118,080
25,400 Tyco International Ltd. 907,796
-------------
6,719,326
-----------------------------------------------------------------------------------------------------------------------------------
Insurance - 4.3% 3,700 ACE Ltd. 158,175
1,400 AMBAC Financial Group, Inc. 114,982
4,200 AON Corp. 100,212
6,900 Aflac, Inc. 274,896
8,300 The Allstate Corp. 429,276
32,900 American International Group, Inc. 2,160,543
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Insurance (concluded) 2,400 Chubb Corp. $ 184,560
1,800 Cincinnati Financial Corp. 79,668
3,700 Hartford Financial Services Group, Inc. 256,447
1,500 Jefferson-Pilot Corp. 77,940
2,000 Lincoln National Corp. 93,360
2,100 Loews Corp. 147,630
1,900 MBIA, Inc. 120,232
6,600 Marsh & McLennan Cos., Inc. 217,140
8,900 Metlife, Inc. 360,539
2,500 The Progressive Corp. 212,100
6,500 Prudential Financial, Inc. 357,240
1,700 Safeco Corp. 88,808
7,900 The St. Paul Travelers Cos., Inc. 292,853
1,200 Torchmark Corp. 68,568
4,100 UnumProvident Corp. 73,554
1,800 XL Capital Ltd. Class A 139,770
-------------
6,008,493
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Internet & Catalog Retail - 0.7% 8,400 + eBay, Inc. 976,752
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Internet Software & Services - 0.5% 17,200 + Yahoo!, Inc. 648,096
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Leisure Equipment & Products - 0.2% 1,000 Brunswick Corp. 49,500
3,700 Eastman Kodak Co. 119,325
1,800 Hasbro, Inc. 34,884
4,700 Mattel, Inc. 91,603
-------------
295,312
-----------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.6% 4,500 Caterpillar, Inc. 438,795
600 Cummins, Inc. 50,274
3,600 Danaher Corp. 206,676
3,200 Deere & Co. 238,080
2,300 Dover Corp. 96,462
2,000 Eaton Corp. 144,720
1,300 ITT Industries, Inc. 109,785
3,600 Illinois Tool Works, Inc. 333,648
2,200 Ingersoll-Rand Co. Class A 176,660
1,000 + Navistar International Corp. 43,980
2,400 Paccar, Inc. 193,152
1,300 Pall Corp. 37,635
1,600 Parker Hannifin Corp. 121,184
-------------
2,191,051
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Media - 4.0% 7,400 Clear Channel Communications, Inc. 247,826
28,200 + Comcast Corp. Class A 938,496
800 Dow Jones & Co., Inc. 34,448
3,600 Gannett Co., Inc. 294,120
4,800 + Interpublic Group of Cos., Inc. 64,320
1,100 Knight-Ridder, Inc. 73,634
2,400 The McGraw-Hill Cos., Inc. 219,696
400 Meredith Corp. 21,680
1,600 New York Times Co. Class A 65,280
29,400 News Corp. Class A 548,604
2,400 Omnicom Group 202,368
57,900 + Time Warner, Inc. 1,125,576
3,700 Tribune Co. 155,918
3,700 + Univision Communications, Inc. Class A 108,299
21,600 Viacom, Inc. Class B 786,024
26,000 Walt Disney Co. 722,800
-------------
5,609,089
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Metals & Mining - 0.7% 10,400 Alcoa, Inc. 326,768
900 Allegheny Technologies, Inc. 19,503
2,300 Freeport-McMoRan Copper & Gold, Inc. Class B 87,929
5,900 Newmont Mining Corp. 262,019
2,100 Nucor Corp. 109,914
1,200 Phelps Dodge Corp. 118,704
1,500 United States Steel Corp. 76,875
-------------
1,001,712
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Multi-Utilities & Unregulated Power - 0.8% 7,600 + The AES Corp. 103,892
3,000 + CMS Energy Corp. 31,350
8,400 + Calpine Corp. 33,096
1,900 Constellation Energy Group, Inc. 83,049
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities & Unregulated Power 4,400 Dominion Resources, Inc. $ 298,056
(concluded) 11,700 Duke Energy Corp. 296,361
3,800 + Dynegy, Inc. Class A 17,556
3,100 Public Service Enterprise Group, Inc. 160,487
3,100 Sempra Energy 113,708
-------------
1,137,555
-----------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 1.1% 1,000 + Big Lots, Inc. 12,130
800 Dillard's, Inc. Class A 21,496
3,900 Dollar General Corp. 81,003
2,300 Family Dollar Stores, Inc. 71,829
2,300 Federated Department Stores 132,917
3,700 JC Penney Co., Inc. Holding Co. 153,180
4,200 + Kohl's Corp. 206,514
3,800 The May Department Stores Co. 111,720
1,800 Nordstrom, Inc. 84,114
2,800 Sears Roebuck and Co. 142,884
11,200 Target Corp. 581,616
-------------
1,599,403
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Office Electronics - 0.1% 11,200 + Xerox Corp. 190,512
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Oil & Gas - 6.3% 1,200 Amerada Hess Corp. 98,856
3,400 Anadarko Petroleum Corp. 220,354
4,400 Apache Corp. 222,508
1,000 Ashland, Inc. 58,380
4,700 Burlington Resources, Inc. 204,450
26,900 ChevronTexaco Corp. 1,412,519
8,700 ConocoPhillips 755,421
5,600 Devon Energy Corp. 217,952
1,700 EOG Resources, Inc. 121,312
7,300 El Paso Corp. 75,920
81,400 Exxon Mobil Corp. 4,172,564
2,000 Kerr-McGee Corp. 115,580
1,800 Kinder Morgan, Inc. 131,634
4,800 Marathon Oil Corp. 180,528
4,600 Occidental Petroleum Corp. 268,456
1,000 Sunoco, Inc. 81,710
3,400 Unocal Corp. 147,016
3,200 Valero Energy Corp. 145,280
6,400 Williams Cos., Inc. 104,256
3,400 XTO Energy, Inc. 120,292
-------------
8,854,988
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Paper & Forest Products - 0.5% 3,000 Georgia-Pacific Corp. 112,440
6,100 International Paper Co. 256,200
1,600 Louisiana-Pacific Corp. 42,784
2,200 MeadWestvaco Corp. 74,558
2,800 Weyerhaeuser Co. 188,216
-------------
674,198
-----------------------------------------------------------------------------------------------------------------------------------
Personal Products - 0.6% 1,000 Alberto-Culver Co. Class B 48,570
6,300 Avon Products, Inc. 243,810
12,700 The Gillette Co. 568,706
-------------
861,086
-----------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 7.0% 19,700 Abbott Laboratories 919,005
1,700 Allergan, Inc. 137,819
23,700 Bristol-Myers Squibb Co. 607,194
14,300 Eli Lilly & Co. 811,525
4,900 + Forest Laboratories, Inc. 219,814
37,500 Johnson & Johnson 2,378,250
3,000 + King Pharmaceuticals, Inc. 37,200
28,300 Merck & Co., Inc. 909,562
3,000 Mylan Laboratories 53,040
95,000 Pfizer, Inc. 2,554,550
19,100 Schering-Plough Corp. 398,808
1,500 + Watson Pharmaceuticals, Inc. 49,215
16,900 Wyeth 719,771
-------------
9,795,753
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate - 0.6% 1,400 Apartment Investment & Management Co. Class A 53,956
2,200 Archstone-Smith Trust 84,260
5,600 Equity Office Properties Trust 163,072
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Real Estate (concluded) 4,000 Equity Residential $ 144,720
2,000 Plum Creek Timber Co., Inc. 76,880
2,000 Prologis 86,660
3,100 Simon Property Group, Inc. 200,477
-------------
810,025
-----------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.5% 4,700 Burlington Northern Santa Fe Corp. 222,357
2,800 CSX Corp. 112,224
4,700 Norfolk Southern Corp. 170,093
3,300 Union Pacific Corp. 221,925
-------------
726,599
-----------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor 4,600 + Advanced Micro Devices, Inc. 101,292
Equipment - 3.1% 4,700 + Altera Corp. 97,290
4,500 Analog Devices, Inc. 166,140
20,300 + Applied Materials, Inc. 347,130
2,700 + Applied Micro Circuits Corp. 11,367
4,000 + Broadcom Corp. Class A 129,120
600 + Freescale Semiconductor, Inc. Class A 10,692
4,946 + Freescale Semiconductor, Inc. Class B 90,809
79,900 Intel Corp. 1,868,861
2,500 + Kla-Tencor Corp. 116,450
3,800 + LSI Logic Corp. 20,824
4,200 Linear Technology Corp. 162,792
4,100 Maxim Integrated Products, Inc. 173,799
7,100 + Micron Technology, Inc. 87,685
4,100 National Semiconductor Corp. 73,595
1,900 + Novellus Systems, Inc. 52,991
2,300 + Nvidia Corp. 54,188
2,700 + PMC - Sierra, Inc. 30,375
2,600 + Teradyne, Inc. 44,382
21,400 Texas Instruments, Inc. 526,868
4,400 Xilinx, Inc. 130,460
-------------
4,297,110
-----------------------------------------------------------------------------------------------------------------------------------
Software - 4.4% 3,000 Adobe Systems, Inc. 188,220
3,000 Autodesk, Inc. 113,850
2,500 + BMC Software, Inc. 46,500
2,200 + Citrix Systems, Inc. 53,966
6,900 Computer Associates International, Inc. 214,314
4,000 + Compuware Corp. 25,880
4,000 + Electronic Arts, Inc. 246,720
2,400 + Intuit, Inc. 105,624
1,200 + Mercury Interactive Corp. 54,660
137,400 Microsoft Corp. 3,669,954
6,500 + Novell, Inc. 43,875
65,500 + Oracle Corp. 898,660
2,500 + Parametric Technology Corp. 14,725
6,700 + Siebel Systems, Inc. 70,350
7,600 + Symantec Corp. 195,776
5,500 + Veritas Software Corp. 157,025
-------------
6,100,099
-----------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 2.5% 2,900 + Autonation, Inc. 55,709
1,100 + Autozone, Inc. 100,441
3,800 + Bed Bath & Beyond, Inc. 151,354
4,300 Best Buy Co., Inc. 255,506
2,700 Circuit City Stores, Inc. 42,228
10,700 The Gap, Inc. 225,984
27,800 Home Depot, Inc. 1,188,172
5,600 Limited Brands 128,912
9,600 Lowe's Cos., Inc. 552,864
3,500 + Office Depot, Inc. 60,760
1,300 OfficeMax, Inc. 40,794
2,100 RadioShack Corp. 69,048
1,500 The Sherwin-Williams Co. 66,945
6,700 Staples, Inc. 225,857
5,700 TJX Cos., Inc. 143,241
2,200 Tiffany & Co. 70,334
2,300 + Toys R US, Inc. 47,081
-------------
3,425,230
-----------------------------------------------------------------------------------------------------------------------------------
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (continued)
Shares
Industry* Held Common Stocks Value
-----------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods - 0.5% 2,200 + Coach, Inc. $ 124,080
1,700 Jones Apparel Group, Inc. 62,169
1,100 Liz Claiborne, Inc. 46,431
3,500 Nike, Inc. Class B 317,415
900 Reebok International Ltd. 39,600
1,200 VF Corp. 66,456
-------------
656,151
-----------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance - 1.8% 6,600 Countrywide Financial Corp. 244,266
12,200 Fannie Mae 868,762
8,500 Freddie Mac 626,450
3,900 Golden West Financial Corp. 239,538
1,100 MGIC Investment Corp. 75,801
3,800 Sovereign Bancorp, Inc. 85,690
10,400 Washington Mutual, Inc. 439,712
-------------
2,580,219
-----------------------------------------------------------------------------------------------------------------------------------
Tobacco - 1.3% 25,900 Altria Group, Inc. 1,582,490
1,900 Reynolds American, Inc. 149,340
2,200 UST, Inc. 105,842
-------------
1,837,672
-----------------------------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors - 0.0% 1,000 WW Grainger, Inc. 66,620
-----------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication Services - 0.3% 14,400 + Nextel Communications, Inc. Class A 432,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments in Common Stocks
(Cost - $133,508,204) - 101.8% 142,333,115
-----------------------------------------------------------------------------------------------------------------------------------
Face
Amount Short-Term Securities
-----------------------------------------------------------------------------------------------------------------------------------
Time Deposits $ 4,926,348 Brown Brothers Harriman & Co., 1.75% due 1/03/2005 4,926,348
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments in Short-Term Securities
(Cost - $4,926,348) -- 3.5% 4,926,348
-----------------------------------------------------------------------------------------------------------------------------------
Number of
Contracts Options Purchased
-----------------------------------------------------------------------------------------------------------------------------------
Call Options Purchased 136,717 S&P 500 Geared Index, expiring November 2005 at
USD 113.01, Broker BNP Paribas 2,905,728
98,893 S&P 500 Geared Index, expiring November 2005 at
USD 113.05, Broker HSBC Securities Inc. 2,101,840
----------------------------------------------------------------------------------------------------
Total Options Purchased
(Premiums Paid - $0) - 3.6% 5,007,568
----------------------------------------------------------------------------------------------------
Total Investments (Cost - $138,434,552) - 108.9% 152,267,031
-----------------------------------------------------------------------------------------------------------------------------------
Options Written
-----------------------------------------------------------------------------------------------------------------------------------
Call Options Written 148,340 S&P 500 Geared Index, expiring November 2005 at
USD 117.69, Broker HSBC Securities Inc. (3,152,760)
205,075 S&P 500 Geared Index, expiring November 2005 at
USD 117.71, Broker BNP Paribas (4,358,592)
----------------------------------------------------------------------------------------------------
Total Options Written
(Premiums Received - $60,000) - (5.4)% (7,511,352)
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments, Net of Options Written
(Cost - $138,374,552**) - 103.5% 144,755,679
Liabilities in Excess of Other Assets - (3.5%) (4,972,619)
-------------
Net Assets - 100.0% $ 139,783,060
=============
* For Fund compliance purposes, "Industry" means 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.
** The cost and unrealized appreciation/depreciation of investments as of
December 31, 2004, as computed for federal income tax purposes, were as
follows:
Aggregate cost, net of options written $ 138,374,552
=============
Gross unrealized appreciation $ 14,528,611
Gross unrealized depreciation (8,147,484)
-------------
Net unrealized appreciation $ 6,381,127
=============
S&P 500 GEARED Fund Inc.
Schedule of Investments as of December 31, 2004 (concluded)
+ Non-income producing security.
(a) Represents ownership in S&P 500 SPDR Trust, a registered unit investment
trust. The investment objective of the S&P 500 SPDR Trust is to provide
investment results that generally correspond to the price performance and
dividend yield of the component stock.
(b) Investments in companies considered to be an affiliate of the Fund (such
companies are defined as "Affiliated Companies" in Section 2(a)(3) of the
Investment Company Act of 1940) were as follows:
Affiliate Net Activity Dividend Income
--------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 11,900 $ 1,824
--------------------------------------------------------------------------
Item 2 - Controls and Procedures
2(a) - The registrant's certifying officers have reasonably designed such
disclosure controls and procedures to ensure material information
relating to the registrant is made known to us by others particularly
during the period in which this report is being prepared. The
registrant's certifying officers have determined that the registrant's
disclosure controls and procedures are effective based on our evaluation
of these controls and procedures as of a date within 90 days prior to the
filing date of this report.
2(b) - There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the last fiscal quarter of the period
covered by this report that has materially affected, or is 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
President
S&P 500 (R) GEARED SM Fund Inc.
Date: February 24, 2005
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
President
S&P 500 (R) GEARED SM Fund Inc.
Date: February 24, 2005
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke
Chief Financial Officer
S&P 500 (R) GEARED SM Fund Inc.
Date: February 24, 2005