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, Chief Executive Officer,
S&P 500(R) GEARED(SM) Fund Inc., 4 World Financial Center, 6th Floor, New
York, New York 10080. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (212) 449-8118
Date of fiscal year end: 12/31/2007
Date of reporting period: 01/01/07 - 03/31/07
Item 1 - Schedule of Investments
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
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Aerospace & Defense - 2.3% 4,500 Boeing Co. $ 400,095
2,200 General Dynamics Corp. 168,080
800 Goodrich Corp. 41,184
4,600 Honeywell International, Inc. 211,876
678 L-3 Communications Holdings, Inc. 59,305
2,000 Lockheed Martin Corp. 194,040
1,900 Northrop Grumman Corp. 141,018
2,700 Raytheon Co. 141,642
1,100 Rockwell Collins, Inc. 73,623
5,800 United Technologies Corp. 377,000
-------------
1,807,863
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Air Freight & Logistics - 0.8% 1,000 CH Robinson Worldwide, Inc. 47,750
1,700 FedEx Corp. 182,631
6,200 United Parcel Service, Inc. Class B 434,620
-------------
665,001
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Airlines - 0.1% 4,600 Southwest Airlines Co. 67,620
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Auto Components - 0.2% 700 The Goodyear Tire & Rubber Co. (a) 21,833
1,200 Johnson Controls, Inc. 113,544
-------------
135,377
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Automobiles - 0.3% 10,300 Ford Motor Co. 81,267
3,100 General Motors Corp. 94,984
1,400 Harley-Davidson, Inc. 82,250
-------------
258,501
---------------------------------------------------------------------------------------------------------------------------------
Beverages - 1.9% 4,300 Anheuser-Busch Cos., Inc. 216,978
500 Brown-Forman Corp. Class B 32,780
11,600 The Coca-Cola Co. 556,800
1,800 Coca-Cola Enterprises, Inc. 36,450
1,300 Constellation Brands, Inc. Class A (a) 27,534
200 Molson Coors Brewing Co. Class B 18,924
900 Pepsi Bottling Group, Inc. 28,701
9,400 PepsiCo, Inc. 597,464
-------------
1,515,631
---------------------------------------------------------------------------------------------------------------------------------
Biotechnology - 1.1% 6,700 Amgen, Inc. (a) 374,396
1,900 Biogen Idec, Inc. (a) 84,322
2,100 Celgene Corp. (a) 110,166
1,400 Genzyme Corp. (a) 84,028
2,600 Gilead Sciences, Inc. (a) 198,900
1,300 Medimmune, Inc. (a) 47,307
-------------
899,119
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Building Products - 0.2% 1,100 American Standard Cos., Inc. 58,322
2,400 Masco Corp. 65,760
-------------
124,082
---------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 3.5% 1,520 Ameriprise Financial, Inc. 86,853
4,200 The Bank of New York Co., Inc. 170,310
700 The Bear Stearns Cos., Inc. 105,245
6,100 The Charles Schwab Corp. 111,569
2,300 E*Trade Financial Corp. (a) 48,806
600 Federated Investors, Inc. Class B 22,032
900 Franklin Resources, Inc. 108,747
2,500 The Goldman Sachs Group, Inc. 516,575
1,300 Janus Capital Group, Inc. 27,183
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
700 Legg Mason, Inc. $ 65,947
3,100 Lehman Brothers Holdings, Inc. 217,217
2,200 Mellon Financial Corp. 94,908
5,100 Merrill Lynch & Co., Inc. (b) 416,517
6,200 Morgan Stanley 488,312
1,000 Northern Trust Corp. 60,140
1,800 State Street Corp. 116,550
1,600 T. Rowe Price Group, Inc. 75,504
-------------
2,732,415
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Chemicals - 1.5% 1,300 Air Products & Chemicals, Inc. 96,057
300 Ashland, Inc. 19,680
5,400 The Dow Chemical Co. 247,644
5,200 E.I. du Pont de Nemours & Co. 257,036
400 Eastman Chemical Co. 25,332
1,100 Ecolab, Inc. 47,300
800 Hercules, Inc. (a) 15,632
600 International Flavors & Fragrances, Inc. 28,332
3,000 Monsanto Co. 164,880
1,000 PPG Industries, Inc. 70,310
1,900 Praxair, Inc. 119,624
900 Rohm & Haas Co. 46,548
800 Sigma-Aldrich Corp. 33,216
-------------
1,171,591
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Commercial Banks - 3.8% 3,200 BB&T Corp. 131,264
800 Comerica, Inc. 47,296
1,200 Commerce Bancorp, Inc. 40,056
851 Compass Bancshares, Inc. 58,549
3,100 Fifth Third Bancorp 119,939
800 First Horizon National Corp. 33,224
1,600 Huntington Bancshares, Inc. 34,960
2,200 KeyCorp 82,434
500 M&T Bank Corp. 57,915
1,600 Marshall & Ilsley Corp. 74,096
3,300 National City Corp. 122,925
2,000 PNC Financial Services Group, Inc. 143,940
4,175 Regions Financial Corp. 147,670
2,000 SunTrust Banks, Inc. 166,080
2,000 Synovus Financial Corp. 64,680
10,100 U.S. Bancorp 353,197
10,912 Wachovia Corp. 600,706
19,300 Wells Fargo & Co. 664,499
700 Zions Bancorp. 59,164
-------------
3,002,594
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Commercial Services & Supplies - 0.5% 1,600 Allied Waste Industries, Inc. (a) 20,144
600 Avery Dennison Corp. 38,556
900 Cintas Corp. 32,490
800 Equifax, Inc. 29,160
700 Monster Worldwide, Inc. (a) 33,159
1,400 Pitney Bowes, Inc. 63,546
1,400 RR Donnelley & Sons Co. 51,226
1,100 Robert Half International, Inc. 40,711
3,200 Waste Management, Inc. 110,112
-------------
419,104
---------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
Communications Equipment - 2.4% 428 ADC Telecommunications, Inc. (a) $ 7,165
2,700 Avaya, Inc. (a) 31,887
328 Ciena Corp. (a) 9,168
35,000 Cisco Systems, Inc. (a) 893,550
9,000 Corning, Inc. (a) 204,660
950 JDS Uniphase Corp. (a) 14,469
3,100 Juniper Networks, Inc. (a) 61,008
14,100 Motorola, Inc. 249,147
9,400 QUALCOMM, Inc. 401,004
2,200 Tellabs, Inc. (a) 21,780
-------------
1,893,838
---------------------------------------------------------------------------------------------------------------------------------
Computers & Peripherals - 3.5% 4,900 Apple Computer, Inc. (a) 455,259
12,800 Dell, Inc. (a) 297,088
13,200 EMC Corp. (a) 182,820
15,400 Hewlett-Packard Co. 618,156
8,700 International Business Machines Corp. 820,062
500 Lexmark International, Inc. Class A (a) 29,230
1,100 NCR Corp. (a) 52,547
2,200 Network Appliance, Inc. (a) 80,344
800 QLogic Corp. (a) 13,600
1,100 SanDisk Corp. (a) 48,180
19,400 Sun Microsystems, Inc. (a) 116,594
-------------
2,713,880
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Construction & Engineering - 0.1% 500 Fluor Corp. 44,860
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Construction Materials - 0.1% 600 Vulcan Materials Co. 69,888
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Consumer Finance - 0.9% 6,900 American Express Co. 389,160
2,500 Capital One Financial Corp. 188,650
2,200 SLM Corp. 89,980
-------------
667,790
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Containers & Packaging - 0.2% 700 Ball Corp. 32,095
700 Bemis Co. 23,373
700 Pactiv Corp. (a) 23,618
1,000 Sealed Air Corp. 31,600
700 Temple-Inland, Inc. 41,818
-------------
152,504
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Distributors - 0.1% 1,100 Genuine Parts Co. 53,900
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Diversified Consumer Services - 0.1% 700 Apollo Group, Inc. Class A (a) 30,730
2,000 H&R Block, Inc. 42,080
-------------
72,810
---------------------------------------------------------------------------------------------------------------------------------
Diversified Financial Services - 5.1% 25,859 Bank of America Corp. 1,319,326
1,200 CIT Group, Inc. 63,504
200 Chicago Mercantile Exchange Holdings, Inc. 106,492
28,300 Citigroup, Inc. 1,452,922
19,800 JPMorgan Chase & Co. 957,924
1,400 Moody's Corp. 86,884
-------------
3,987,052
---------------------------------------------------------------------------------------------------------------------------------
Diversified Telecommunication 36,201 AT&T Inc. (c) 1,427,405
Services - 2.9% 800 CenturyTel, Inc. 36,152
2,000 Citizens Communications Co. 29,900
782 Embarq Corp. 44,066
8,700 Qwest Communications International Inc. (a) 78,213
16,700 Verizon Communications, Inc. 633,264
2,808 Windstream Corp. 41,250
-------------
2,290,250
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S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.8% 1,000 Allegheny Energy, Inc. (a) $ 49,140
2,100 American Electric Power Co., Inc. 102,375
6,964 Duke Energy Corp. 141,300
2,000 Edison International 98,260
1,100 Entergy Corp. 115,412
3,700 Exelon Corp. 254,227
2,200 FPL Group, Inc. 134,574
2,000 FirstEnergy Corp. 132,480
2,300 PPL Corp. 94,070
700 Pinnacle West Capital Corp. 33,775
1,300 Progress Energy, Inc. 65,572
4,100 The Southern Co. 150,265
-------------
1,371,450
---------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.4% 1,200 Cooper Industries Ltd. Class A 53,988
4,800 Emerson Electric Co. 206,832
900 Rockwell Automation, Inc. 53,883
-------------
314,703
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Electronic Equipment & 2,419 Agilent Technologies, Inc. (a) 81,496
Instruments - 0.2%
1,100 Jabil Circuit, Inc. 23,551
900 Molex, Inc. 25,380
3,600 Sanmina-SCI Corp. (a) 13,032
5,900 Solectron Corp. (a) 18,585
600 Tektronix, Inc. 16,896
-------------
178,940
---------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & Services - 1.7% 1,600 BJ Services Co. 44,640
1,800 Baker Hughes, Inc. 119,034
900 ENSCO International, Inc. 48,960
6,000 Halliburton Co. 190,440
1,700 Nabors Industries Ltd. (a) 50,439
907 National Oilwell Varco, Inc. (a) 70,556
700 Noble Corp. 55,076
500 Rowan Cos., Inc. 16,235
6,800 Schlumberger Ltd. 469,880
1,000 Smith International, Inc. 48,050
1,700 Transocean, Inc. (a) 138,890
2,100 Weatherford International Ltd. (a) 94,710
-------------
1,346,910
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Food & Staples Retailing - 2.3% 8,775 CVS Corp./Caremark Corp. 299,578
2,600 Costco Wholesale Corp. 139,984
4,300 The Kroger Co. 121,475
1,046 SUPERVALU INC. 40,867
3,400 SYSCO Corp. 115,022
2,400 Safeway, Inc. 87,936
14,100 Wal-Mart Stores, Inc. 661,995
5,700 Walgreen Co. 261,573
800 Whole Foods Market, Inc. 35,880
-------------
1,764,310
---------------------------------------------------------------------------------------------------------------------------------
Food Products - 1.1% 3,700 Archer-Daniels-Midland Co. 135,790
1,400 Campbell Soup Co. 54,530
2,700 ConAgra Foods, Inc. 67,257
900 Dean Foods Co. (a) 42,066
1,900 General Mills, Inc. 110,618
1,800 HJ Heinz Co. 84,816
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
900 The Hershey Co. $ 49,194
1,500 Kellogg Co. 77,145
900 Kraft Foods, Inc. 28,494
900 McCormick & Co., Inc. 34,668
4,100 Sara Lee Corp. 69,372
1,500 Tyson Foods, Inc. Class A 29,115
1,125 Wm. Wrigley Jr. Co. 57,296
-------------
840,361
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Gas Utilities - 0.2% 200 Nicor, Inc. 9,684
500 Questar Corp. 44,605
3,482 Spectra Energy Corp. 91,472
-------------
145,761
---------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & Supplies - 1.6% 300 Bausch & Lomb, Inc. 15,348
3,800 Baxter International, Inc. 200,146
1,500 Becton Dickinson & Co. 115,335
1,300 Biomet, Inc. 55,237
6,571 Boston Scientific Corp. (a) 95,542
500 CR Bard, Inc. 39,755
1,000 Hospira, Inc. (a) 40,900
6,500 Medtronic, Inc. 318,890
1,900 St. Jude Medical, Inc. (a) 71,459
1,800 Stryker Corp. 119,376
700 Varian Medical Systems, Inc. (a) 33,383
1,300 Zimmer Holdings, Inc. (a) 111,033
-------------
1,216,404
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Health Care Providers & Services - 2.1% 3,200 Aetna, Inc. 140,128
1,100 AmerisourceBergen Corp. 58,025
2,200 Cardinal Health, Inc. 160,490
600 Cigna Corp. 85,596
850 Coventry Health Care, Inc. (a) 47,642
700 Express Scripts, Inc. (a) 56,504
900 Humana, Inc. (a) 52,218
700 Laboratory Corp. of America Holdings (a) 50,841
300 Manor Care, Inc. 16,308
1,600 McKesson Corp. 93,664
1,600 Medco Health Solutions, Inc. (a) 116,048
900 Patterson Cos., Inc. (a) 31,941
800 Quest Diagnostics, Inc. 39,896
3,000 Tenet Healthcare Corp. (a) 19,290
7,700 UnitedHealth Group, Inc. 407,869
3,500 WellPoint, Inc. (a) 283,850
-------------
1,660,310
---------------------------------------------------------------------------------------------------------------------------------
Health Care Technology - 0.0% 1,300 IMS Health, Inc. 38,558
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Hotels, Restaurants & Leisure - 1.5% 2,500 Carnival Corp. 117,150
900 Darden Restaurants, Inc. 37,071
1,100 Harrah's Entertainment, Inc. 92,895
2,300 Hilton Hotels Corp. 82,708
2,000 International Game Technology 80,760
1,900 Marriott International, Inc. Class A 93,024
6,900 McDonald's Corp. 310,845
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
4,200 Starbucks Corp. (a) $ 131,712
1,200 Starwood Hotels & Resorts Worldwide, Inc. 77,820
600 Wendy's International, Inc. 18,780
1,260 Wyndham Worldwide Corp. (a) 43,029
1,500 Yum! Brands, Inc. 86,640
-------------
1,172,434
---------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.6% 400 Black & Decker Corp. 32,648
700 Centex Corp. 29,246
1,700 DR Horton, Inc. 37,400
800 Fortune Brands, Inc. 63,056
300 Harman International Industries, Inc. 28,824
400 KB Home, Inc. 17,068
1,200 Leggett & Platt, Inc. 27,204
697 Lennar Corp. Class A 29,420
1,700 Newell Rubbermaid, Inc. 52,853
1,300 Pulte Homes, Inc. 34,398
400 Snap-On, Inc. 19,240
600 The Stanley Works 33,216
407 Whirlpool Corp. 34,558
-------------
439,131
---------------------------------------------------------------------------------------------------------------------------------
Household Products - 2.0% 900 Clorox Co. 57,321
2,900 Colgate-Palmolive Co. 193,691
2,500 Kimberly-Clark Corp. 171,225
18,102 The Procter & Gamble Co. 1,143,322
-------------
1,565,559
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IT Services - 1.1% 700 Affiliated Computer Services, Inc. Class A (a) 41,216
3,300 Automatic Data Processing, Inc. 143,468
45 Broadridge Financial Solutions Inc. (a) 886
900 Cognizant Technology Solutions Corp. (a) 79,443
900 Computer Sciences Corp. (a) 46,917
900 Convergys Corp. (a) 22,869
3,100 Electronic Data Systems Corp. 85,808
1,400 Fidelity National Information Services, Inc. 63,644
4,200 First Data Corp. 112,980
900 Fiserv, Inc. (a) 47,754
1,800 Paychex, Inc. 68,166
900 Sabre Holdings Corp. Class A 29,475
2,300 Unisys Corp. (a) 19,389
4,200 The Western Union Co. 92,190
-------------
854,205
---------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers & 3,900 The AES Corp. (a) 83,928
Energy Traders - 0.4% 900 Constellation Energy Group, Inc. 78,255
2,500 Dynegy, Inc. Class A (a) 23,150
2,600 TXU Corp. 166,660
-------------
351,993
---------------------------------------------------------------------------------------------------------------------------------
Industrial Conglomerates - 3.6% 4,300 3M Co. 328,649
59,000 General Electric Co. 2,086,240
700 Textron, Inc. 62,860
11,600 Tyco International Ltd. 365,980
-------------
2,843,729
---------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
Insurance - 4.5% 1,900 ACE Ltd. $ 108,414
500 AMBAC Financial Group, Inc. 43,195
1,900 AON Corp. 72,124
2,900 Aflac, Inc. 136,474
3,500 The Allstate Corp. 210,210
14,900 American International Group, Inc. 1,001,578
2,400 Chubb Corp. 124,008
1,090 Cincinnati Financial Corp. 46,216
2,700 Genworth Financial, Inc. Class A 94,338
1,700 Hartford Financial Services Group, Inc. 162,486
1,668 Lincoln National Corp. 113,074
2,700 Loews Corp. 122,661
700 MBIA, Inc. 45,843
3,200 Marsh & McLennan Cos., Inc. 93,728
4,200 MetLife, Inc. 265,230
1,600 Principal Financial Group, Inc. 95,792
4,600 The Progressive Corp. 100,372
2,700 Prudential Financial, Inc. 243,702
700 Safeco Corp. 46,501
600 Torchmark Corp. 39,354
4,000 The Travelers Cos., Inc. 207,080
2,100 UnumProvident Corp. 48,363
1,100 XL Capital Ltd. Class A 76,956
-------------
3,497,699
---------------------------------------------------------------------------------------------------------------------------------
Internet & Catalog Retail - 0.1% 1,700 Amazon.com, Inc. (a) 67,643
1,500 IAC/InterActiveCorp (a) 56,565
-------------
124,208
---------------------------------------------------------------------------------------------------------------------------------
Internet Software & Services - 1.3% 6,800 eBay, Inc. (a) 225,420
1,240 Google, Inc. Class A (a) 568,118
1,500 VeriSign, Inc. (a) 37,680
7,200 Yahoo! Inc. (a) 225,288
-------------
1,056,506
---------------------------------------------------------------------------------------------------------------------------------
Leisure Equipment & Products - 0.2% 600 Brunswick Corp. 19,110
1,500 Eastman Kodak Co. 33,840
800 Hasbro, Inc. 22,896
2,300 Mattel, Inc. 63,411
-------------
139,257
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Life Sciences Tools & Services - 0.3% 1,100 Applera Corp. - Applied Biosystems Group 32,527
300 Millipore Corp. (a) 21,741
600 PerkinElmer, Inc. 14,532
2,400 Thermo Fisher Scientific, Inc. (a) 112,200
600 Waters Corp. (a) 34,800
-------------
215,800
---------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.5% 3,700 Caterpillar, Inc. 248,011
300 Cummins, Inc. 43,416
1,400 Danaher Corp. 100,030
1,300 Deere & Co. 141,232
1,300 Dover Corp. 63,453
800 Eaton Corp. 66,848
1,100 ITT Corp. 66,352
2,300 Illinois Tool Works, Inc. 118,680
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
1,700 Ingersoll-Rand Co. Class A $ 73,729
1,500 PACCAR, Inc. 110,100
800 Pall Corp. 30,400
600 Parker Hannifin Corp. 51,786
600 Terex Corp. (a) 43,056
-------------
1,157,093
---------------------------------------------------------------------------------------------------------------------------------
Media - 3.3% 4,250 CBS Corp. Class B 130,007
2,700 Clear Channel Communications, Inc. 94,608
17,850 Comcast Corp. Class A (a) 463,207
5,300 The DIRECTV Group, Inc. (a) 122,271
300 Dow Jones & Co., Inc. 10,341
600 EW Scripps Co. Class A 26,808
1,300 Gannett Co., Inc. 73,177
2,600 Interpublic Group of Cos., Inc. (a) 32,006
2,100 The McGraw-Hill Cos., Inc. 132,048
300 Meredith Corp. 17,217
600 The New York Times Co. Class A 14,106
13,500 News Corp. Class A 312,120
900 Omnicom Group, Inc. 92,142
22,300 Time Warner, Inc. 439,756
1,000 Tribune Co. 32,110
4,150 Viacom, Inc. Class B (a) 170,607
11,900 Walt Disney Co. 409,717
-------------
2,572,248
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Metals & Mining - 0.8% 4,800 Alcoa, Inc. 162,720
500 Allegheny Technologies, Inc. 53,345
2,037 Freeport-McMoRan Copper & Gold, Inc. Class B 134,829
2,500 Newmont Mining Corp. 104,975
1,800 Nucor Corp. 117,234
700 United States Steel Corp. 69,419
-------------
642,522
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Multi-Utilities - 1.2% 1,100 Ameren Corp. 55,330
1,400 CMS Energy Corp. 24,920
1,900 CenterPoint Energy, Inc. 34,086
1,300 Consolidated Edison, Inc. 66,378
1,100 DTE Energy Co. 52,690
2,000 Dominion Resources, Inc. 177,540
365 Integrys Energy Group, Inc. 20,261
1,100 KeySpan Corp. 45,265
1,800 NiSource, Inc. 43,992
2,100 PG&E Corp. 101,367
1,400 Public Service Enterprise Group, Inc. 116,256
1,600 Sempra Energy 97,616
1,500 TECO Energy, Inc. 25,815
2,500 Xcel Energy, Inc. 61,725
-------------
923,241
---------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 1.2% 500 Big Lots, Inc. (a) 15,640
300 Dillard's, Inc. Class A 9,819
1,900 Dollar General Corp. 40,185
700 Family Dollar Stores, Inc. 20,734
3,066 Federated Department Stores, Inc. 138,123
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
1,200 JC Penney Co., Inc. $ 98,592
1,800 Kohl's Corp. (a) 137,898
1,400 Nordstrom, Inc. 74,116
481 Sears Holdings Corp. (a) 86,657
5,000 Target Corp. 296,300
-------------
918,064
---------------------------------------------------------------------------------------------------------------------------------
Office Electronics - 0.1% 5,800 Xerox Corp. (a) 97,962
---------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable Fuels - 7.6% 2,700 Anadarko Petroleum Corp. 116,046
1,800 Apache Corp. 127,260
2,000 Chesapeake Energy Corp. 61,760
12,591 Chevron Corp. 931,230
9,508 ConocoPhillips 649,872
1,100 Consol Energy, Inc. 43,043
2,500 Devon Energy Corp. 173,050
1,300 EOG Resources, Inc. 92,742
4,100 El Paso Corp. 59,327
32,800 Exxon Mobil Corp. 2,474,760
1,300 Hess Corp. 72,111
700 Kinder Morgan, Inc. 74,515
2,036 Marathon Oil Corp. 201,218
1,000 Murphy Oil Corp. 53,400
4,900 Occidental Petroleum Corp. 241,619
1,800 Peabody Energy Corp. 72,432
700 Sunoco, Inc. 49,308
3,400 Valero Energy Corp. 219,266
3,500 Williams Cos., Inc. 99,610
2,033 XTO Energy, Inc. 111,429
-------------
5,923,998
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Paper & Forest Products - 0.3% 2,700 International Paper Co. 98,280
1,200 MeadWestvaco Corp. 37,008
1,300 Weyerhaeuser Co. 97,162
-------------
232,450
---------------------------------------------------------------------------------------------------------------------------------
Personal Products - 0.2% 2,600 Avon Products, Inc. 96,876
800 The Estee Lauder Cos., Inc. Class A 39,080
-------------
135,956
---------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 5.8% 8,700 Abbott Laboratories 485,460
800 Allergan, Inc. 88,656
700 Barr Pharmaceuticals, Inc. (a) 32,445
11,100 Bristol-Myers Squibb Co. 308,136
5,500 Eli Lilly & Co. 295,405
1,800 Forest Laboratories, Inc. (a) 92,592
16,700 Johnson & Johnson 1,006,342
1,500 King Pharmaceuticals, Inc. (a) 29,505
12,400 Merck & Co., Inc. 547,708
1,300 Mylan Laboratories, Inc. 27,482
41,300 Pfizer, Inc. 1,043,238
8,300 Schering-Plough Corp. 211,733
700 Watson Pharmaceuticals, Inc. (a) 18,501
7,700 Wyeth 385,231
-------------
4,572,434
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S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment Trusts 500 Apartment Investment & Management Co. Class A $ 28,845
(REITs) - 1.2% 1,100 Archstone-Smith Trust 59,708
400 AvalonBay Communities, Inc. 52,000
600 Boston Properties, Inc. 70,440
700 Developers Diversified Realty Corp. 44,030
1,700 Equity Residential 81,991
3,200 Host Marriott Corp. 84,192
1,300 Kimco Realty Corp. 63,362
1,200 Plum Creek Timber Co., Inc. 47,304
1,500 ProLogis 97,395
700 Public Storage, Inc. 66,269
1,200 Simon Property Group, Inc. 133,500
700 Vornado Realty Trust 83,538
-------------
912,574
---------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & 1,000 CB Richard Ellis Group, Inc. (a) 34,180
Development - 0.1% 1,342 Realogy Corp. (a) 39,737
-------------
73,917
---------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.7% 2,000 Burlington Northern Santa Fe Corp. 160,860
2,500 CSX Corp. 100,125
2,300 Norfolk Southern Corp. 116,380
300 Ryder System, Inc. 14,802
1,500 Union Pacific Corp. 152,325
-------------
544,492
---------------------------------------------------------------------------------------------------------------------------------
Semiconductors & Semiconductor 3,200 Advanced Micro Devices, Inc. (a) 41,792
Equipment - 2.2% 1,900 Altera Corp. 37,981
1,900 Analog Devices, Inc. 65,531
7,700 Applied Materials, Inc. 141,064
2,750 Broadcom Corp. Class A (a) 88,193
33,100 Intel Corp. 633,203
1,100 KLA-Tencor Corp. 58,652
4,700 LSI Logic Corp. (a) 49,068
1,600 Linear Technology Corp. 50,544
1,800 Maxim Integrated Products, Inc. 52,920
4,300 Micron Technology, Inc. (a) 51,944
1,600 National Semiconductor Corp. 38,624
600 Novellus Systems, Inc. (a) 19,212
1,900 Nvidia Corp. (a) 54,682
700 PMC-Sierra, Inc. (a) 4,907
800 Teradyne, Inc. (a) 13,232
8,900 Texas Instruments, Inc. 267,890
1,800 Xilinx, Inc. 46,314
-------------
1,715,753
---------------------------------------------------------------------------------------------------------------------------------
Software - 3.0% 3,400 Adobe Systems, Inc. (a) 141,780
1,200 Autodesk, Inc. (a) 45,120
1,300 BMC Software, Inc. (a) 40,027
2,500 CA, Inc. 64,775
1,000 Citrix Systems, Inc. (a) 32,030
2,400 Compuware Corp. (a) 22,776
1,700 Electronic Arts, Inc. (a) 85,612
1,800 Intuit, Inc. (a) 49,248
49,400 Microsoft Corp. 1,376,778
2,000 Novell, Inc. (a) 14,440
23,200 Oracle Corp. (a) 420,616
5,483 Symantec Corp. (a) 94,856
-------------
2,388,058
---------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Shares
Industry Held Common Stocks Value
---------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 1.8% 500 Abercrombie & Fitch Co. Class A $ 37,840
1,105 AutoNation, Inc. (a) 23,470
300 AutoZone, Inc. (a) 38,442
1,500 Bed Bath & Beyond, Inc. (a) 60,255
2,400 Best Buy Co., Inc. 116,928
700 Circuit City Stores, Inc. 12,971
2,900 The Gap, Inc. 49,909
11,800 Home Depot, Inc. 433,532
2,000 Limited Brands, Inc. 52,120
8,600 Lowe's Cos., Inc. 270,814
1,700 Office Depot, Inc. (a) 59,738
400 OfficeMax, Inc. 21,096
600 RadioShack Corp. 16,218
600 The Sherwin-Williams Co. 39,624
4,050 Staples, Inc. 104,652
2,400 TJX Cos., Inc. 64,704
900 Tiffany & Co. 40,932
-------------
1,443,245
---------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury Goods - 0.4% 2,000 Coach, Inc. (a) 100,100
800 Jones Apparel Group, Inc. 24,584
700 Liz Claiborne, Inc. 29,995
1,000 Nike, Inc. Class B 106,260
300 Polo Ralph Lauren Corp. 26,445
500 VF Corp. 41,310
-------------
328,694
---------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage Finance - 1.2% 3,600 Countrywide Financial Corp. 121,104
5,600 Fannie Mae 305,648
3,900 Freddie Mac 232,011
3,000 Hudson City Bancorp, Inc. 41,040
400 MGIC Investment Corp. 23,568
1,870 Sovereign Bancorp, Inc. 47,573
5,061 Washington Mutual, Inc. 204,363
-------------
975,307
---------------------------------------------------------------------------------------------------------------------------------
Tobacco - 1.5% 11,900 Altria Group, Inc. 1,044,939
900 Reynolds American, Inc. 56,169
800 UST, Inc. 46,384
-------------
1,147,492
---------------------------------------------------------------------------------------------------------------------------------
Trading Companies & Distributors - 0.0% 500 WW Grainger, Inc. 38,620
---------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 2,100 Alltel Corp. 130,200
Services - 0.6% 16,852 Sprint Nextel Corp. 319,514
-------------
449,714
---------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks (Cost - $58,427,822) - 93.3% 73,077,732
---------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of March 31, 2007
Face
Amount Short-Term Securities Value
---------------------------------------------------------------------------------------------------------------------------------
Time Deposits - 16.0% $ 12,570,637 State Street Bank & Trust Co., 4.25% due 4/02/2007 (d) $ 12,570,637
---------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities (Cost - $12,570,637) - 16.0% 12,570,637
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
Number of
Contracts Options Purchased
---------------------------------------------------------------------------------------------------------------------------------
Call Options Purchased - 16.1% 36,725 S&P 500 Index, expiring November 2007 at USD 1,364.30,
HSBC Securities 4,216,300
73,449 S&P 500 Index, expiring November 2007 at USD 1,364.30,
BNP Paribas 8,386,306
---------------------------------------------------------------------------------------------------------------------------------
Total Options Purchased (Premiums Paid - $0) - 16.1% 12,602,606
---------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $70,998,459) - 125.4% 98,250,975
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
Options Written
---------------------------------------------------------------------------------------------------------------------------------
Call Options Written - (16.3%) 55,087 S&P 500 Index, expiring November 2007 at USD 1,417.09,
HSBC Securities (4,291,205)
110,174 S&P 500 Index, expiring November 2007 at USD 1,417.50,
BNP Paribas (8,482,755)
---------------------------------------------------------------------------------------------------------------------------------
Total Options Written (Premiums Received - $0) - (16.3%) (12,773,960)
---------------------------------------------------------------------------------------------------------------------------------
Total Investments, Net of Options Written
(Cost - $70,998,459*) - 109.1% 85,477,015
Liabilities in Excess of Other Assets - (9.1%) (7,152,223)
------------
Net Assets - 100.0% $ 78,324,792
============
* The cost and unrealized appreciation (depreciation) of investments,
including options, as of March 31, 2007, as computed for federal income
tax purposes, were as follows:
Aggregate cost $ 70,998,459
============
Gross unrealized appreciation $ 28,932,460
Gross unrealized depreciation (14,453,904)
------------
Net unrealized appreciation $ 14,478,556
============
(a) Non-income producing security.
(b) 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 Sales Realized Dividend
Affiliate Cost Cost Gain Income
--------------------------------------------------------------------------
Merrill Lynch & Co., Inc. -- -- -- $ 1,785
--------------------------------------------------------------------------
(c) All or a portion of security held as collateral in connection with open
financial futures contracts.
(d) All or a portion of security held as collateral in connection with open
option contracts.
o Financial futures contracts purchased as of March 31, 2007 were as
follows:
--------------------------------------------------------------------------
Number of Expiration Face Unrealized
Contracts Issue Date Value Appreciation
--------------------------------------------------------------------------
15 S&P 500 Index June 2007 $ 5,268,227 $ 98,773
--------------------------------------------------------------------------
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.
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) - As of September 29, 2006, with the conclusion of the combination of
Merrill Lynch's asset management business with BlackRock, the registrant
was migrated to BlackRock's trading and compliance monitoring systems,
and various personnel changes occurred. In conjunction with these
business improvements, there were no changes in the registrant's internal
control over financial reporting (as defined in Rule 30a-3(d) under Act
(17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter that
has materially affected, or is reasonably likely to 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
S&P 500(R) GEARED(SM) Fund Inc.
Date: May 21, 2007
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
S&P 500(R) GEARED(SM) Fund Inc.
Date: May 21, 2007
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke
Chief Financial Officer
S&P 500(R) GEARED(SM) Fund Inc.
Date: May 21, 2007