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, 5th 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: 12/31/2006
Date of reporting period: 07/01/06 - 09/30/06
Item 1 - Schedule of Investments
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
Aerospace & Defense - 2.2% 7,100 Boeing Co. $ 559,835
3,400 General Dynamics Corp. 243,678
1,200 Goodrich Corp. 48,624
7,300 Honeywell International, Inc. 298,570
1,078 L-3 Communications Holdings, Inc. 84,440
3,100 Lockheed Martin Corp. 266,786
3,000 Northrop Grumman Corp. 204,210
4,100 Raytheon Co. 196,841
1,600 Rockwell Collins, Inc. 87,744
8,900 United Technologies Corp. 563,815
------------
2,554,543
--------------------------------------------------------------------------------------------------------------------------------
Air Freight & 2,600 FedEx Corp. 282,568
Logistics - 0.8% 9,500 United Parcel Service, Inc. Class B 683,430
------------
965,998
--------------------------------------------------------------------------------------------------------------------------------
Airlines - 0.1% 6,700 Southwest Airlines Co. 111,622
--------------------------------------------------------------------------------------------------------------------------------
Auto Components - 0.1% 1,400 The Goodyear Tire & Rubber Co. (a) 20,300
1,600 Johnson Controls, Inc. 114,784
------------
135,084
--------------------------------------------------------------------------------------------------------------------------------
Automobiles - 0.4% 17,000 Ford Motor Co. 137,530
5,100 General Motors Corp. 169,626
2,300 Harley-Davidson, Inc. 144,325
------------
451,481
--------------------------------------------------------------------------------------------------------------------------------
Beverages - 2.0% 6,600 Anheuser-Busch Cos., Inc. 313,566
800 Brown-Forman Corp. Class B 61,320
17,900 The Coca-Cola Co. 799,772
2,800 Coca-Cola Enterprises, Inc. 58,324
1,900 Constellation Brands, Inc. Class A (a) 54,682
500 Molson Coors Brewing Co. Class B 34,450
1,400 Pepsi Bottling Group, Inc. 49,700
14,500 PepsiCo, Inc. 946,270
------------
2,318,084
--------------------------------------------------------------------------------------------------------------------------------
Biotechnology - 1.2% 10,300 Amgen, Inc. (a) 736,759
2,900 Biogen Idec, Inc. (a) 129,572
2,200 Genzyme Corp. (a) 148,434
4,000 Gilead Sciences, Inc. (a) 274,800
2,000 Medimmune, Inc. (a) 58,420
------------
1,347,985
--------------------------------------------------------------------------------------------------------------------------------
Building Products - 0.1% 1,400 American Standard Cos., Inc. 58,758
3,500 Masco Corp. 95,970
------------
154,728
--------------------------------------------------------------------------------------------------------------------------------
Capital Markets - 3.4% 2,020 Ameriprise Financial, Inc. 94,738
6,600 The Bank of New York Co., Inc. 232,716
1,000 The Bear Stearns Cos., Inc. 140,100
9,300 The Charles Schwab Corp. 166,470
3,700 E*Trade Financial Corp. (a) 88,504
900 Federated Investors, Inc. Class B 30,429
1,400 Franklin Resources, Inc. 148,050
3,800 Goldman Sachs Group, Inc. 642,846
2,100 Janus Capital Group, Inc. 41,412
1,100 Legg Mason, Inc. 110,946
4,600 Lehman Brothers Holdings, Inc. 339,756
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
3,800 Mellon Financial Corp. $ 148,580
7,800 Merrill Lynch & Co., Inc. (b) 610,116
9,500 Morgan Stanley 692,645
1,500 Northern Trust Corp. 87,645
2,800 State Street Corp. 174,720
2,400 T. Rowe Price Group, Inc. 114,840
------------
3,864,513
--------------------------------------------------------------------------------------------------------------------------------
Chemicals - 1.4% 1,800 Air Products & Chemicals, Inc. 119,466
600 Ashland, Inc. 38,268
8,300 The Dow Chemical Co. 323,534
7,900 E.I. du Pont de Nemours & Co. 338,436
600 Eastman Chemical Co. 32,412
1,700 Ecolab, Inc. 72,794
1,000 Hercules, Inc. (a) 15,770
900 International Flavors & Fragrances, Inc. 35,586
4,600 Monsanto Co. 216,246
1,400 PPG Industries, Inc. 93,912
2,900 Praxair, Inc. 171,564
1,100 Rohm & Haas Co. 52,085
700 Sigma-Aldrich Corp. 52,969
------------
1,563,042
--------------------------------------------------------------------------------------------------------------------------------
Commercial Banks - 4.0% 3,300 AmSouth Bancorp 95,832
4,600 BB&T Corp. 201,388
1,300 Comerica, Inc. 73,996
1,600 Commerce Bancorp, Inc. 58,736
1,251 Compass Bancshares, Inc. 71,282
4,700 Fifth Third Bancorp 178,976
900 First Horizon National Corp. 34,209
2,500 Huntington Bancshares, Inc. 59,825
3,700 KeyCorp 138,528
700 M&T Bank Corp. 83,972
2,100 Marshall & Ilsley Corp. 101,178
5,100 National City Corp. 186,660
3,900 North Fork Bancorp., Inc. 111,696
2,500 PNC Financial Services Group, Inc. (b) 181,100
4,200 Regions Financial Corp. 154,518
3,100 SunTrust Banks, Inc. 239,568
2,900 Synovus Financial Corp. 85,173
15,800 U.S. Bancorp 524,876
14,600 Wachovia Corp. 814,680
29,600 Wells Fargo & Co. 1,070,928
900 Zions Bancorp. 71,829
------------
4,538,950
--------------------------------------------------------------------------------------------------------------------------------
Commercial Services & 2,200 Allied Waste Industries, Inc. (a) 24,794
Supplies - 0.5% 900 Avery Dennison Corp. 54,153
1,300 Cintas Corp. 53,079
1,300 Equifax, Inc. 47,723
1,000 Monster Worldwide, Inc. (a) 36,190
2,100 Pitney Bowes, Inc. 93,177
2,000 RR Donnelley & Sons Co. 65,920
1,600 Robert Half International, Inc. 54,352
4,700 Waste Management, Inc. 172,396
------------
601,784
--------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
Communications 828 ADC Telecommunications, Inc. (a) $ 12,420
Equipment - 2.6% 3,900 Avaya, Inc. (a) 44,616
629 Ciena Corp. (a) 17,129
53,800 Cisco Systems, Inc. (a) 1,237,400
1,900 Comverse Technology, Inc. (a) 40,736
13,600 Corning, Inc. (a) 331,976
13,200 JDS Uniphase Corp. (a) 28,908
5,000 Juniper Networks, Inc. (a) 86,400
37,900 Lucent Technologies, Inc. (a) 88,686
21,600 Motorola, Inc. 540,000
14,500 QUALCOMM, Inc. 527,075
3,700 Tellabs, Inc. (a) 40,552
------------
2,995,898
--------------------------------------------------------------------------------------------------------------------------------
Computers & 7,500 Apple Computer, Inc. (a) 577,725
Peripherals - 3.3% 19,800 Dell, Inc. (a) 452,232
20,700 EMC Corp. (a) 247,986
24,200 Hewlett-Packard Co. 887,898
13,500 International Business Machines Corp. 1,106,190
900 Lexmark International, Inc. Class A (a) 51,894
1,700 NCR Corp. (a) 67,116
3,200 Network Appliance, Inc. (a) 118,432
1,400 QLogic Corp. (a) 26,460
1,800 Sandisk Corp. (a) 96,372
30,200 Sun Microsystems, Inc. (a) 150,094
------------
3,782,399
--------------------------------------------------------------------------------------------------------------------------------
Construction & 800 Fluor Corp. 61,512
Engineering - 0.1%
--------------------------------------------------------------------------------------------------------------------------------
Construction 900 Vulcan Materials Co. 70,425
Materials - 0.1%
--------------------------------------------------------------------------------------------------------------------------------
Consumer Finance - 0.9% 10,800 American Express Co. 605,664
2,700 Capital One Financial Corp. 212,382
3,700 SLM Corp. 192,326
------------
1,010,372
--------------------------------------------------------------------------------------------------------------------------------
Containers & 1,100 Ball Corp. 44,495
Packaging - 0.2% 1,000 Bemis Co. 32,860
1,400 Pactiv Corp. (a) 39,788
800 Sealed Air Corp. 43,296
1,100 Temple-Inland, Inc. 44,110
------------
204,549
--------------------------------------------------------------------------------------------------------------------------------
Distributors - 0.1% 1,700 Genuine Parts Co. 73,321
--------------------------------------------------------------------------------------------------------------------------------
Diversified Consumer 1,200 Apollo Group, Inc. Class A (a) 59,088
Services - 0.1% 3,000 H&R Block, Inc. 65,220
------------
124,308
--------------------------------------------------------------------------------------------------------------------------------
Diversified Financial 39,959 Bank of America Corp. 2,140,604
Services - 5.4% 1,700 CIT Group, Inc. 82,671
300 Chicago Mercantile Exchange Holdings, Inc. 143,475
43,600 Citigroup, Inc. 2,165,612
30,500 JPMorgan Chase & Co. 1,432,280
2,200 Moody's Corp. 143,836
------------
6,108,478
--------------------------------------------------------------------------------------------------------------------------------
Diversified 34,389 AT&T, Inc. 1,119,706
Telecommunication 16,000 BellSouth Corp. 684,000
Services - 2.7%
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
1,100 CenturyTel, Inc. $ 43,637
3,300 Citizens Communications Co. 46,332
1,282 Embarq Corp. 62,010
14,600 Qwest Communications International Inc. (a) 127,312
25,600 Verizon Communications, Inc. 950,528
3,908 Windstream Corp. 51,547
------------
3,085,072
--------------------------------------------------------------------------------------------------------------------------------
Electric Utilities - 1.4% 1,500 Allegheny Energy, Inc. (a) 60,255
3,300 American Electric Power Co., Inc. 120,021
3,000 Edison International 124,920
1,700 Entergy Corp. 132,991
5,900 Exelon Corp. 357,186
3,400 FPL Group, Inc. 153,000
2,800 FirstEnergy Corp. 156,408
3,500 PPL Corp. 115,150
1,000 Pinnacle West Capital Corp. 45,050
2,300 Progress Energy, Inc. 104,374
6,300 The Southern Co. 217,098
------------
1,586,453
--------------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.4% 1,700 American Power Conversion Corp. 37,332
900 Cooper Industries Ltd. Class A 76,698
3,500 Emerson Electric Co. 293,510
1,600 Rockwell Automation, Inc. 92,960
------------
500,500
--------------------------------------------------------------------------------------------------------------------------------
Electronic Equipment & 3,719 Agilent Technologies, Inc. (a) 121,574
Instruments - 0.3% 1,600 Jabil Circuit, Inc. 45,712
1,400 Molex, Inc. 54,558
4,900 Sanmina-SCI Corp. (a) 18,326
9,300 Solectron Corp. (a) 30,318
2,400 Symbol Technologies, Inc. 35,664
900 Tektronix, Inc. 26,037
------------
332,189
--------------------------------------------------------------------------------------------------------------------------------
Energy Equipment & 2,800 BJ Services Co. 84,364
Services - 1.6% 2,800 Baker Hughes, Inc. 190,960
9,000 Halliburton Co. 256,050
2,600 Nabors Industries Ltd. (a) 77,350
1,607 National Oilwell Varco, Inc. (a) 94,090
1,100 Noble Corp. 70,598
800 Rowan Cos., Inc. 25,304
10,400 Schlumberger Ltd. 645,112
1,800 Smith International, Inc. 69,840
2,800 Transocean, Inc. (a) 205,044
2,900 Weatherford International Ltd. (a) 120,988
------------
1,839,700
--------------------------------------------------------------------------------------------------------------------------------
Food & Staples 7,100 CVS Corp. 228,052
Retailing - 2.2% 4,000 Costco Wholesale Corp. 198,720
6,500 The Kroger Co. 150,410
1,846 SUPERVALU Inc. 54,734
5,300 SYSCO Corp. 177,285
4,100 Safeway, Inc. 124,435
21,600 Wal-Mart Stores, Inc. 1,065,312
8,800 Walgreen Co. 390,632
1,200 Whole Foods Market, Inc. 71,316
------------
2,460,896
--------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
Food Products - 1.1% 5,600 Archer-Daniels-Midland Co. $ 212,128
1,800 Campbell Soup Co. 65,700
4,200 ConAgra Foods, Inc. 102,816
1,200 Dean Foods Co. (a) 50,424
3,100 General Mills, Inc. 175,460
2,800 HJ Heinz Co. 117,404
1,700 The Hershey Co. 90,865
2,300 Kellogg Co. 113,896
1,300 McCormick & Co., Inc. 49,374
7,200 Sara Lee Corp. 115,704
2,500 Tyson Foods, Inc. Class A 39,700
2,125 Wm. Wrigley Jr. Co. 97,878
------------
1,231,349
--------------------------------------------------------------------------------------------------------------------------------
Gas Utilities - 0.0% 200 Nicor, Inc. 8,552
200 Peoples Energy Corp. 8,130
------------
16,682
--------------------------------------------------------------------------------------------------------------------------------
Health Care Equipment & 400 Bausch & Lomb, Inc. 20,052
Supplies - 1.4% 5,600 Baxter International, Inc. 254,576
2,200 Becton Dickinson & Co. 155,474
2,000 Biomet, Inc. 64,380
10,171 Boston Scientific Corp. (a) 150,429
1,000 CR Bard, Inc. 75,000
1,500 Hospira, Inc. (a) 57,405
10,200 Medtronic, Inc. 473,688
3,200 St. Jude Medical, Inc. (a) 112,928
2,600 Stryker Corp. 128,934
2,100 Zimmer Holdings, Inc. (a) 141,750
------------
1,634,616
--------------------------------------------------------------------------------------------------------------------------------
Health Care Providers & 4,900 Aetna, Inc. 193,795
Services - 2.6% 1,700 AmerisourceBergen Corp. 76,840
3,700 Cardinal Health, Inc. 243,238
3,800 Caremark Rx, Inc. 215,346
1,000 Cigna Corp. 116,320
1,350 Coventry Health Care, Inc. (a) 69,552
1,200 Express Scripts, Inc. (a) 90,588
3,590 HCA, Inc. 179,105
1,900 Health Management Associates, Inc. Class A 39,710
1,400 Humana, Inc. (a) 92,526
1,200 Laboratory Corp. of America Holdings (a) 78,684
600 Manor Care, Inc. 31,368
2,700 McKesson Corp. 142,344
2,500 Medco Health Solutions, Inc. (a) 150,275
1,100 Patterson Cos., Inc. (a) 36,971
1,500 Quest Diagnostics, Inc. 91,740
4,400 Tenet Healthcare Corp. (a) 35,816
11,800 UnitedHealth Group, Inc. 580,560
5,500 WellPoint, Inc. (a) 423,775
------------
2,888,553
--------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
Health Care 2,000 IMS Health, Inc. $ 53,280
Technology - 0.0%
--------------------------------------------------------------------------------------------------------------------------------
Hotels, Restaurants & 3,800 Carnival Corp. 178,714
Leisure - 1.5% 1,200 Darden Restaurants, Inc. 50,964
1,600 Harrah's Entertainment, Inc. 106,288
3,300 Hilton Hotels Corp. 91,905
3,100 International Game Technology 128,650
2,900 Marriott International, Inc. Class A 112,056
10,700 McDonald's Corp. 418,584
6,500 Starbucks Corp. (a) 221,325
1,800 Starwood Hotels & Resorts Worldwide, Inc. 102,942
900 Wendy's International, Inc. 60,300
1,760 Wyndham Worldwide Corp. (a) 49,227
2,400 Yum! Brands, Inc. 124,920
------------
1,645,875
--------------------------------------------------------------------------------------------------------------------------------
Household Durables - 0.6% 600 Black & Decker Corp. 47,610
1,100 Centex Corp. 57,882
2,500 DR Horton, Inc. 59,875
1,200 Fortune Brands, Inc. 90,132
500 Harman International Industries, Inc. 41,720
600 KB Home 26,280
1,800 Leggett & Platt, Inc. 45,054
1,097 Lennar Corp. Class A 49,639
2,200 Newell Rubbermaid, Inc. 62,304
1,900 Pulte Homes, Inc. 60,534
600 Snap-On, Inc. 26,730
800 The Stanley Works 39,880
707 Whirlpool Corp. 59,466
------------
667,106
--------------------------------------------------------------------------------------------------------------------------------
Household Products - 2.1% 1,200 Clorox Co. 75,600
4,400 Colgate-Palmolive Co. 273,240
3,900 Kimberly-Clark Corp. 254,904
28,002 The Procter & Gamble Co. 1,735,564
------------
2,339,308
--------------------------------------------------------------------------------------------------------------------------------
IT Services - 0.9% 1,000 Affiliated Computer Services, Inc. Class A (a) 51,860
4,700 Automatic Data Processing, Inc. 222,498
1,500 Computer Sciences Corp. (a) 73,680
1,400 Convergys Corp. (a) 28,910
4,700 Electronic Data Systems Corp. 115,244
6,600 First Data Corp. 277,200
1,500 Fiserv, Inc. (a) 70,635
2,800 Paychex, Inc. 103,180
1,500 Sabre Holdings Corp. Class A 35,085
3,500 Unisys Corp. (a) 19,810
------------
998,102
--------------------------------------------------------------------------------------------------------------------------------
Independent Power Producers 5,900 The AES Corp. (a) 120,301
& Energy Trader - 0.4% 1,700 Constellation Energy Group, Inc. 100,640
3,200 Dynegy, Inc. Class A (a) 17,728
4,000 TXU Corp. 250,080
------------
488,749
--------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
Industrial 6,700 3M Co. $ 498,614
Conglomerates - 3.8% 90,900 General Electric Co. 3,208,770
1,100 Textron, Inc. 96,250
17,800 Tyco International Ltd. 498,222
------------
4,301,856
--------------------------------------------------------------------------------------------------------------------------------
Insurance - 4.5% 2,700 ACE Ltd. 147,771
1,000 AMBAC Financial Group, Inc. 82,750
2,800 AON Corp. 94,836
4,200 Aflac, Inc. 192,192
5,400 The Allstate Corp. 338,742
22,800 American International Group, Inc. 1,510,728
3,500 Chubb Corp. 181,860
1,690 Cincinnati Financial Corp. 81,221
3,800 Genworth Financial, Inc. Class A 133,038
2,600 Hartford Financial Services Group, Inc. 225,550
2,668 Lincoln National Corp. 165,629
3,800 Loews Corp. 144,020
1,300 MBIA, Inc. 79,872
4,800 Marsh & McLennan Cos., Inc. 135,120
6,500 MetLife, Inc. 368,420
2,500 Principal Financial Group, Inc. 135,700
6,800 The Progressive Corp. 166,872
4,300 Prudential Financial, Inc. 327,875
1,100 Safeco Corp. 64,823
6,200 The St. Paul Travelers Cos., Inc. 290,718
1,000 Torchmark Corp. 63,110
2,800 UnumProvident Corp. 54,292
1,500 XL Capital Ltd. Class A 103,050
------------
5,088,189
--------------------------------------------------------------------------------------------------------------------------------
Internet & Catalog 2,900 Amazon.com, Inc. (a) 93,148
Retail - 0.1%
--------------------------------------------------------------------------------------------------------------------------------
Internet Software & 10,300 eBay, Inc. (a) 292,108
Services - 1.2% 1,840 Google, Inc. Class A (a) 739,496
2,200 VeriSign, Inc. (a) 44,440
10,800 Yahoo!, Inc. (a) 273,024
------------
1,349,068
--------------------------------------------------------------------------------------------------------------------------------
Leisure Equipment & 700 Brunswick Corp. 21,833
Products - 0.2% 2,400 Eastman Kodak Co. 53,760
1,800 Hasbro, Inc. 40,950
3,700 Mattel, Inc. 72,890
------------
189,433
--------------------------------------------------------------------------------------------------------------------------------
Life Sciences Tools & 1,700 Applera Corp. - Applied Biosystems Group 56,287
Services - 0.3% 1,000 Fisher Scientific International (a) 78,240
500 Millipore Corp. (a) 30,650
1,300 PerkinElmer, Inc. 24,609
1,500 Thermo Electron Corp. (a) 58,995
1,000 Waters Corp. (a) 45,280
------------
294,061
--------------------------------------------------------------------------------------------------------------------------------
Machinery - 1.4% 5,800 Caterpillar, Inc. 381,640
400 Cummins, Inc. 47,692
2,100 Danaher Corp. 144,207
2,000 Deere & Co. 167,820
1,900 Dover Corp. 90,136
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
1,400 Eaton Corp. $ 96,390
1,500 ITT Corp. 76,905
3,500 Illinois Tool Works, Inc. 157,150
3,000 Ingersoll-Rand Co. Class A 113,940
800 Navistar International Corp. (a) 20,656
2,300 PACCAR, Inc. 131,146
1,300 Pall Corp. 40,053
1,100 Parker Hannifin Corp. 85,503
------------
1,553,238
--------------------------------------------------------------------------------------------------------------------------------
Media - 3.2% 6,750 CBS Corp. Class B 190,148
4,600 Clear Channel Communications, Inc. 132,710
18,600 Comcast Corp. Class A (a) 685,410
400 Dow Jones & Co., Inc. 13,416
700 EW Scripps Co. Class A 33,551
2,000 Gannett Co., Inc. 113,660
3,600 Interpublic Group of Cos., Inc. (a) 35,640
3,200 The McGraw-Hill Cos., Inc. 185,696
400 Meredith Corp. 19,732
1,100 New York Times Co. Class A 25,278
21,000 News Corp. Class A 412,650
1,500 Omnicom Group 140,400
35,800 Time Warner, Inc. 652,634
1,800 Tribune Co. 58,896
2,200 Univision Communications, Inc. Class A (a) 75,548
6,350 Viacom, Inc. Class B (a) 236,093
18,600 Walt Disney Co. 574,926
------------
3,586,388
--------------------------------------------------------------------------------------------------------------------------------
Metals & Mining - 0.8% 7,500 Alcoa, Inc. 210,300
900 Allegheny Technologies, Inc. 55,971
1,600 Freeport-McMoRan Copper & Gold, Inc. Class B 85,216
3,800 Newmont Mining Corp. 162,450
2,600 Nucor Corp. 128,674
1,800 Phelps Dodge Corp. 152,460
1,000 United States Steel Corp. 57,680
------------
852,751
--------------------------------------------------------------------------------------------------------------------------------
Multi-Utilities - 1.3% 1,700 Ameren Corp. 89,743
2,200 CMS Energy Corp. (a) 31,768
3,100 Centerpoint Energy, Inc. 44,392
2,000 Consolidated Edison, Inc. 92,400
1,700 DTE Energy Co. 70,567
3,000 Dominion Resources, Inc. 229,470
11,264 Duke Energy Corp. 340,173
1,700 KeySpan Corp. 69,938
2,600 NiSource, Inc. 56,524
2,900 PG&E Corp. 120,785
2,200 Public Service Enterprise Group, Inc. 134,618
2,400 Sempra Energy 120,600
2,100 TECO Energy, Inc. 32,865
3,900 Xcel Energy, Inc. 80,535
------------
1,514,378
--------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
Multiline Retail - 1.1% 1,000 Big Lots, Inc. (a) $ 19,810
700 Dillard's, Inc. Class A 22,911
3,000 Dollar General Corp. 40,890
1,200 Family Dollar Stores, Inc. 35,088
4,666 Federated Department Stores 201,618
1,900 JC Penney Co., Inc. 129,941
2,900 Kohl's Corp. (a) 188,268
2,000 Nordstrom, Inc. 84,600
781 Sears Holdings Corp. (a) 123,468
7,600 Target Corp. 419,900
------------
1,266,494
--------------------------------------------------------------------------------------------------------------------------------
Office Electronics - 0.1% 8,600 Xerox Corp. (a) 133,816
--------------------------------------------------------------------------------------------------------------------------------
Oil, Gas & Consumable 4,000 Anadarko Petroleum Corp. 175,320
Fuels - 7.1% 2,800 Apache Corp. 176,960
3,200 Chesapeake Energy Corp. 92,736
19,391 Chevron Corp. 1,257,700
14,508 ConocoPhillips 863,661
1,600 Consol Energy, Inc. 50,768
4,000 Devon Energy Corp. 252,600
2,000 EOG Resources, Inc. 130,100
6,200 El Paso Corp. 84,568
52,300 Exxon Mobil Corp. 3,509,330
2,100 Hess Corp. 86,982
900 Kinder Morgan, Inc. 94,365
3,136 Marathon Oil Corp. 241,158
1,500 Murphy Oil Corp. 71,325
7,600 Occidental Petroleum Corp. 365,636
1,100 Sunoco, Inc. 68,409
5,400 Valero Energy Corp. 277,938
5,100 Williams Cos., Inc. 121,737
3,033 XTO Energy, Inc. 127,780
------------
8,049,073
--------------------------------------------------------------------------------------------------------------------------------
Paper & Forest 4,100 International Paper Co. 141,983
Products - 0.3% 1,100 Louisiana-Pacific Corp. 20,647
1,800 MeadWestvaco Corp. 47,718
2,100 Weyerhaeuser Co. 129,213
------------
339,561
--------------------------------------------------------------------------------------------------------------------------------
Personal Products - 0.2% 800 Alberto-Culver Co. Class B 40,472
4,000 Avon Products, Inc. 122,640
1,000 The Estee Lauder Cos., Inc. Class A 40,330
------------
203,442
--------------------------------------------------------------------------------------------------------------------------------
Pharmaceuticals - 6.4% 13,400 Abbott Laboratories 650,704
1,300 Allergan, Inc. 146,393
900 Barr Pharmaceuticals, Inc. (a) 46,746
17,200 Bristol-Myers Squibb Co. 428,624
8,600 Eli Lilly & Co. 490,200
2,900 Forest Laboratories, Inc. (a) 146,769
25,700 Johnson & Johnson 1,668,958
2,300 King Pharmaceuticals, Inc. (a) 39,169
19,100 Merck & Co., Inc. 800,290
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
2,100 Mylan Laboratories $ 42,273
64,100 Pfizer, Inc. 1,817,876
13,000 Schering-Plough Corp. 287,170
900 Watson Pharmaceuticals, Inc. (a) 23,553
11,800 Wyeth 599,912
------------
7,188,637
--------------------------------------------------------------------------------------------------------------------------------
Real Estate Investment 700 Apartment Investment & Management Co. Class A 38,087
Trusts (REITs) - 1.0% 2,000 Archstone-Smith Trust 108,880
900 Boston Properties, Inc. 93,006
3,300 Equity Office Properties Trust 131,208
2,400 Equity Residential 121,392
1 Host Marriott Corp. 23
1,700 Kimco Realty Corp. 72,879
1,800 Plum Creek Timber Co., Inc. 61,272
2,300 ProLogis 131,238
1,000 Public Storage, Inc. 85,990
1,900 Simon Property Group, Inc. 172,178
1,000 Vornado Realty Trust 109,000
------------
1,125,153
--------------------------------------------------------------------------------------------------------------------------------
Real Estate Management & 1,944 Realogy Corp. (a) 44,090
Development - 0.0%
--------------------------------------------------------------------------------------------------------------------------------
Road & Rail - 0.7% 3,100 Burlington Northern Santa Fe Corp. 227,664
3,800 CSX Corp. 124,754
3,500 Norfolk Southern Corp. 154,175
500 Ryder System, Inc. 25,840
2,300 Union Pacific Corp. 202,400
------------
734,833
--------------------------------------------------------------------------------------------------------------------------------
Semiconductors & 4,500 Advanced Micro Devices, Inc. (a) 111,825
Semiconductor 3,000 Altera Corp. (a) 55,140
Equipment - 2.6% 3,100 Analog Devices, Inc. 91,109
12,500 Applied Materials, Inc. 221,625
4,250 Broadcom Corp. Class A (a) 128,945
3,646 Freescale Semiconductor, Inc. Class B (a) 138,584
51,100 Intel Corp. 1,051,127
1,600 Kla-Tencor Corp. 71,152
3,700 LSI Logic Corp. (a) 30,414
2,500 Linear Technology Corp. 77,800
2,700 Maxim Integrated Products, Inc. 75,789
6,300 Micron Technology, Inc. (a) 109,620
2,900 National Semiconductor Corp. 68,237
1,000 Novellus Systems, Inc. (a) 27,660
3,200 Nvidia Corp. (a) 94,688
1,400 PMC-Sierra, Inc. (a) 8,316
2,000 Teradyne, Inc. (a) 26,320
13,700 Texas Instruments, Inc. 455,525
2,800 Xilinx, Inc. 61,460
------------
2,905,336
--------------------------------------------------------------------------------------------------------------------------------
Software - 3.3% 5,200 Adobe Systems, Inc. (a) 194,740
1,900 Autodesk, Inc. (a) 66,082
2,000 BMC Software, Inc. (a) 54,440
4,200 CA, Inc. 99,498
1,500 Citrix Systems, Inc. (a) 54,315
3,700 Compuware Corp. (a) 28,823
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Shares
Industry Held Common Stocks Value
--------------------------------------------------------------------------------------------------------------------------------
2,600 Electronic Arts, Inc. (a) $ 144,768
3,000 Intuit, Inc. (a) 96,270
76,300 Microsoft Corp. 2,085,279
3,000 Novell, Inc. (a) 18,360
35,600 Oracle Corp. (a) 631,544
1,000 Parametric Technology Corp. (a) 17,460
8,983 Symantec Corp. (a) 191,158
------------
3,682,737
--------------------------------------------------------------------------------------------------------------------------------
Specialty Retail - 1.9% 1,405 AutoNation, Inc. (a) 29,364
400 AutoZone, Inc. (a) 41,320
2,400 Bed Bath & Beyond, Inc. (a) 91,824
3,500 Best Buy Co., Inc. 187,460
1,200 Circuit City Stores, Inc. 30,132
5,100 The Gap, Inc. 96,645
18,100 Home Depot, Inc. 656,487
3,300 Limited Brands 87,417
13,400 Lowe's Cos., Inc. 376,004
2,600 Office Depot, Inc. (a) 103,220
600 OfficeMax, Inc. 24,444
1,300 RadioShack Corp. 25,090
900 The Sherwin-Williams Co. 50,202
6,250 Staples, Inc. 152,063
3,800 TJX Cos., Inc. 106,514
1,100 Tiffany & Co. 36,520
------------
2,094,706
--------------------------------------------------------------------------------------------------------------------------------
Textiles, Apparel & Luxury 3,300 Coach, Inc. (a) 113,520
Goods - 0.4% 1,100 Jones Apparel Group, Inc. 35,684
1,100 Liz Claiborne, Inc. 43,461
1,600 Nike, Inc. Class B 140,192
900 VF Corp. 65,655
------------
398,512
--------------------------------------------------------------------------------------------------------------------------------
Thrifts & Mortgage 5,300 Countrywide Financial Corp. 185,712
Finance - 1.5% 8,400 Fannie Mae 469,644
6,000 Freddie Mac 397,980
2,200 Golden West Financial Corp. 169,950
600 MGIC Investment Corp. 35,982
3,570 Sovereign Bancorp, Inc. 76,791
8,461 Washington Mutual, Inc. 367,800
------------
1,703,859
--------------------------------------------------------------------------------------------------------------------------------
Tobacco - 1.4% 18,400 Altria Group, Inc. 1,408,520
1,400 Reynolds American, Inc. 86,758
1,400 UST, Inc. 76,762
------------
1,572,040
--------------------------------------------------------------------------------------------------------------------------------
Trading Companies & 700 WW Grainger, Inc. 46,914
Distributors - 0.0%
--------------------------------------------------------------------------------------------------------------------------------
Wireless Telecommunication 3,300 Alltel Corp. 183,150
Services - 0.6% 26,152 Sprint Nextel Corp. 448,507
------------
631,657
--------------------------------------------------------------------------------------------------------------------------------
Total Common Stocks
(Cost - $89,939,571) - 93.6% 105,750,876
--------------------------------------------------------------------------------------------------------------------------------
S&P 500(R) GEARED(SM) Fund Inc.
Schedule of Investments as of September 30, 2006 (in U.S. dollars)
Face
Amount Short-Term Securities Value
--------------------------------------------------------------------------------------------------------------------------------
Time Deposits - 12.1% $13,681,230 State Street Bank & Trust Co., 4.25% due 10/02/2006 $ 13,681,230
--------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $13,681,230) - 12.1% 13,681,230
--------------------------------------------------------------------------------------------------------------------------------
Number of
Contracts Options Purchased
--------------------------------------------------------------------------------------------------------------------------------
Call Options 131,985 S&P 500 Index, expiring November 2006 at
Purchased - 18.4% USD 1,214.76, Broker BNP Paribas 16,678,809
32,994 S&P 500 Index, expiring November 2006 at
USD 1,214.76, Broker HSBC Securities 4,146,356
--------------------------------------------------------------------------------------------------------------------------------
Total Options Purchased
(Premiums Paid - $0) - 18.4% 20,825,165
--------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $103,620,801) - 124.1% 140,257,271
--------------------------------------------------------------------------------------------------------------------------------
Options Written
--------------------------------------------------------------------------------------------------------------------------------
Call Options 49,491 S&P 500 Index, expiring November 2006 at
Written - (16.6%) USD 1,266.99, Broker HSBC Securities (3,748,302)
197,977 S&P 500 Index, expiring November 2006 at
USD 1,267.54, Broker BNP Paribas (15,035,266)
--------------------------------------------------------------------------------------------------------------------------------
Total Options Written
(Premiums Received - $0) - (16.6%) (18,783,568)
--------------------------------------------------------------------------------------------------------------------------------
Total Investments, Net of Options Written
(Cost - $103,620,801*) - 107.5% 121,473,703
Liabilities in Excess of Other Assets - (7.5%) (8,426,435)
------------
Net Assets - 100.0% $113,047,268
============
* The cost and unrealized appreciation (depreciation) of investments, net of
options written, as of September 30, 2006, as computed for federal income
tax purposes, were as follows:
Aggregate cost $ 103,625,369
=============
Gross unrealized appreciation $ 39,750,908
Gross unrealized depreciation (21,902,574)
-------------
Net unrealized appreciation $ 17,848,334
=============
(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:
--------------------------------------------------------------------------
Affiliate Net Activity Dividend Income
--------------------------------------------------------------------------
Merrill Lynch & Co., Inc. (300) $6,075
PNC Financial Services Group, Inc. 100 $3,840
--------------------------------------------------------------------------
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.
o Financial futures contracts purchased as of September 30, 2006 were as
follows:
--------------------------------------------------------------------------
Number of Expiration Face Unrealized
Contracts Issue Date Value Appreciation
--------------------------------------------------------------------------
14 S&P 500 Index December 2006 $4,601,774 $107,126
--------------------------------------------------------------------------
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
Chief Executive Officer
S&P 500(R) GEARED(SM) Fund Inc.
Date: November 17, 2006
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: November 17, 2006
By: /s/ Donald C. Burke
-------------------------------
Donald C. Burke
Chief Financial Officer
S&P 500(R) GEARED(SM) Fund Inc.
Date: November 17, 2006