Ab Unconstrained Bond Fund N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07391

AB UNCONSTRAINED BOND FUND, INC.

(Exact name of registrant as specified in charter)

1345 Avenue of the Americas, New York, New York 10105

(Address of principal executive offices) (Zip code)

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 221-5672

Date of fiscal year end: October 31, 2017

Date of reporting period: October 31, 2017

ITEM 1. REPORTS TO STOCKHOLDERS.

OCT    ^10.31.17

ANNUAL REPORT

AB UNCONSTRAINED BOND FUND

Investment Products Offered • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Unconstrained Bond Fund (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

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ANNUAL REPORT

December 13, 2017

This report provides management’s discussion of fund performance for AB Unconstrained Bond Fund for the annual reporting period ended October 31, 2017.

The Fund’s investment objective is to generate current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2017 (unaudited)

	6 Months		12 Months
AB UNCONSTRAINED BOND FUND1
Class A Shares2		0.50%		4.36%
Class B Shares3		-0.03%		3.52%
Class C Shares2,4		0.10%		3.56%
Advisor Class Shares2,4		0.51%		4.52%
Class R Shares4		0.26%		4.02%
Class K Shares4		0.32%		4.23%
Class I Shares2,4		0.54%		4.56%
Class Z Shares4		0.54%		4.57%
Primary benchmark: BofA ML 3-Month US T-Bill Index		0.49%		0.72%
Bloomberg Barclays Global Aggregate Bond Index (USD hedged)		1.51%		1.23%

1 Includes the impact of proceeds received and credited to the Fund resulting from class-action settlements, which enhanced the performance of the Fund for the six- and 12-month periods ended October 31, 2017, by 0.02% and 0.05%, respectively.

2 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the Financial Highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

3 Effective January 31, 2009, Class B shares are no longer available for purchase to new investors. Please see Note A for more information.

4 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared with its primary benchmark, the Bank of America Merrill Lynch (“BofA ML”) 3-Month US Treasury Bill (“T-Bill”) Index, and the Bloomberg Barclays Global Aggregate Bond Index (USD hedged) for the six- and 12-month periods ended October 31, 2017.

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In the 12-month period, all share classes of the Fund outperformed the primary benchmark, before sales charges. Sector and security selection contributed to relative performance, primarily because of positions in high-yield corporates and non-agency mortgages. The protection that the Fund owns on high-yield corporates took back some of these gains. Currency allocation was also positive, as a beneficial long position in the Czech koruna more than offset a detrimental short in the euro. Country allocation (a result of bottom-up security analysis combined with fundamental research) and yield-curve positioning detracted. Negative returns from positions in the US, UK and eurozone outweighed gains from the Fund’s positioning in Brazil.

In the six-month period, Class A, I, Z and Advisor Class shares of the Fund outperformed the primary benchmark, while Class B, C, R and K shares underperformed, before sales charges. Sector and security selection contributed to relative returns, mainly because of the Fund’s positions in high-yield corporates and non-agency mortgages. Currency positioning was also positive, as gains from a long position in the Czech koruna outweighed losses from shorts in the euro and Canadian dollar. Country and yield-curve positioning detracted, primarily because of positions in Canada, the eurozone and the US, while the Fund’s position in the UK contributed.

During both periods, the Fund utilized derivatives in the form of interest rate swaps, futures and interest rate swaptions to manage and hedge duration risk and/or take active yield-curve positioning. It also utilized currency forwards and currency options, both written and purchased, to hedge foreign currency exposure and to take active currency risk. Purchased and written equity options were used in an effort to add alpha (a measure of how the Fund is performing on a risk-adjusted basis versus its benchmark) through different strategies, including but not limited to relative value, put spreads and call spreads. Credit default swaps, both single name and index, were used to take active risk and hedge investment-grade and high-yield credit risk taken through cash bonds. Total return swaps and variance swaps were used to take active risk and as hedging tools against other active equity-like risks in the Fund, which had an immaterial impact on absolute returns.

MARKET REVIEW AND INVESTMENT STRATEGY

Political events and central bank action had a significant impact on bond markets in the six- and 12-month periods ended October 31, 2017. Donald Trump’s US election victory and the promise of fiscal stimulus, a retreat from globalization and relaxed regulation were treated as positive developments by financial markets. However, uncertainty regarding the Trump administration’s ability to implement meaningful change increased through the 12-month period. UK prime minister Theresa May surprised investors when she called for a snap parliamentary election in an effort to firm up the UK’s mandate going into Brexit negotiations. However, the

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results of the vote increased political uncertainty when May’s Conservative Party failed to secure a majority position. Investors were relieved when centrist, pro-EU candidate Emmanuel Macron was elected president of France, as his reformist agenda was seen as more business friendly than the protectionist policies espoused by his opponent. In June, the US Federal Reserve (the “Fed”) raised interest rates for the third consecutive quarter, hikes that were well-telegraphed and universally anticipated by markets. Late in the period, the Fed formally confirmed that its balance sheet reduction program would start in October, while the European Central Bank announced that it would start to taper the pace of its monthly asset purchases in January 2018.

Emerging-market debt rallied over both periods, helped by a positive global growth story and increasing oil prices. Outside of Europe, developed-market treasury yields generally rose; in the eurozone and UK, yields moved in different directions. Emerging-market local-currency government bonds, developed-market treasuries and investment-grade credit securities all rose in both periods, yet trailed the rally in global high yield. Within high yield, performance was almost uniformly positive, led by the transportation and basic industries sectors, while consumer sectors tended to lag the rising market.

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities and derivatives related to fixed-income securities. The Fund employs a dynamic risk allocation, meaning that the Fund’s risk profile may vary significantly over time based upon market conditions. The Fund invests in a portfolio that includes fixed-income securities of US and non-US companies and US and non-US government securities and supranational entities, including lower-rated securities.

The Fund may invest in debt securities with a range of maturities from short- to long-term. The Fund expects that its average portfolio duration will vary normally from negative three years to positive seven years, depending upon the Adviser’s forecast of interest rates and assessment of market risks generally. Duration is a measure of a fixed-income security’s sensitivity to changes in interest rates. The value of a fixed-income security with positive duration will decline if interest rates increase. Conversely, the value of a fixed-income security with negative duration will increase as interest rates increase. The Fund will seek to achieve negative duration through the use of derivatives, such as futures and total return swaps.

The Fund typically maintains at least 50% of its net assets in

(continued on next page)

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investment-grade securities. The Fund may invest up to 50% of its net assets in below investment-grade securities, such as corporate high-yield fixed-income securities, sovereign debt obligations and fixed-income securities of issuers located in emerging markets.

The Fund may also invest in mortgage-related and other asset-backed securities, loan participations, inflation-indexed securities, structured securities, variable, floating, and inverse floating-rate instruments and preferred stock, and may use other investment techniques. The Fund may make short sales of securities or currencies or maintain a short position. The Fund may use borrowings or other leverage for investment purposes. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements and dollar rolls. The Fund may utilize, without limit, derivatives, such as options, futures contracts, forwards or swaps, including those on fixed-income and equity securities and foreign currencies.

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DISCLOSURES AND RISKS

Benchmark Disclosure

The BofA ML^® 3-Month US T-Bill Index and the Bloomberg Barclays Global Aggregate Bond Index (USD hedged) are unmanaged and do not reflect fees and expenses associated with the active management of a mutual fund portfolio. The BofA ML 3-Month US T-Bill Index measures the performance of Treasury securities maturing in 90 days. The Bloomberg Barclays Global Aggregate Bond Index represents the performance of the global investment-grade developed fixed-income markets. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.

Interest Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. The Fund may be subject to heightened interest rate risk due to rising rates as the current period of historically low interest rates may be ending. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, negative perceptions of the junk bond market generally and less secondary market liquidity.

Duration Risk: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to the full maturity of a fixed-income security. Fixed-income securities with longer durations have

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DISCLOSURES AND RISKS (continued)

more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater if the Fund invests a significant portion of its assets in fixed-income securities with longer maturities.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk: Investments in emerging-market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Leverage Risk: To the extent the Fund uses leveraging techniques, its net asset value (“NAV”) may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund’s investments.

Prepayment Risk: The value of mortgage-related or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early payments of principal on some mortgage-related securities may occur during periods of falling mortgage interest rates and expose the Fund to a lower rate of return upon reinvestment of principal. Early payments associated with mortgage-related securities cause these securities to experience significantly greater price and yield volatility than is experienced by traditional fixed-income securities. During periods of rising interest rates, a reduction in prepayments may increase the effective life of mortgage-related securities, subjecting them to greater risk of decline in market value in response to rising interest rates. If the life of a mortgage-related security is inaccurately predicted, the Fund may not be able to realize the rate of return it expected.

Derivatives Risk: Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and may be subject to counterparty risk to a greater degree than more traditional investments.

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DISCLOSURES AND RISKS (continued)

Liquidity Risk: Liquidity risk occurs when certain investments become difficult to purchase or sell. Difficulty in selling less liquid securities may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of liquidity risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years liquidity risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Liquidity risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares; the applicable contingent deferred sales charge for Class B shares (4% year 1, 3% year 2, 2% year 3, 1% year 4) and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

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HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2007 TO 10/31/2017

This chart illustrates the total value of an assumed $10,000 investment in AB Unconstrained Bond Fund Class A shares (from 10/31/2007 to 10/31/2017) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

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HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2017 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						2.18%
1 Year		4.36%		-0.05%
5 Years		1.99%		1.12%
10 Years		2.69%		2.25%
CLASS B SHARES						1.49%
1 Year		3.52%		-0.48%
5 Years		1.26%		1.26%
10 Years2		2.14%		2.14%
CLASS C SHARES						1.53%
1 Year		3.56%		2.56%
5 Years		1.25%		1.25%
10 Years		1.99%		1.99%
ADVISOR CLASS SHARES3						2.53%
1 Year		4.52%		4.52%
5 Years		2.24%		2.24%
10 Years		2.97%		2.97%
CLASS R SHARES3						1.71%
1 Year		4.02%		4.02%
5 Years		1.75%		1.75%
10 Years		2.49%		2.49%
CLASS K SHARES3						2.05%
1 Year		4.23%		4.23%
5 Years		2.00%		2.00%
10 Years		2.76%		2.76%
CLASS I SHARES3						2.50%
1 Year		4.56%		4.56%
5 Years		2.26%		2.26%
10 Years		3.01%		3.01%
CLASS Z SHARES3						2.49%
1 Year		4.57%		4.57%
Since Inception4		3.12%		3.12%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.08%, 1.82%, 1.82%, 0.82%, 1.49%, 1.18%, 0.78% and 0.79% for Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expenses (exclusive of interest expense) to 0.90%, 1.65%, 1.65%, 0.65%, 1.15%, 0.90%, 0.65% and 0.65% for Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These

(footnotes continued on next page)

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HISTORICAL PERFORMANCE (continued)

waivers/reimbursements may not be terminated before January 31, 2018 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights sections since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2017.

2 Assumes conversion of Class B shares into Class A shares after eight years.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 11/4/2014.

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HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2017 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		1.57%
5 Years		1.19%
10 Years		2.31%
CLASS B SHARES
1 Year		1.26%
5 Years		1.34%
10 Years1		2.21%
CLASS C SHARES
1 Year		4.29%
5 Years		1.33%
10 Years		2.05%
ADVISOR CLASS SHARES2
1 Year		6.25%
5 Years		2.32%
10 Years		3.04%
CLASS R SHARES2
1 Year		5.76%
5 Years		1.82%
10 Years		2.56%
CLASS K SHARES2
1 Year		5.97%
5 Years		2.07%
10 Years		2.83%
CLASS I SHARES2
1 Year		6.30%
5 Years		2.33%
10 Years		3.08%
CLASS Z SHARES2
1 Year		6.31%
Since Inception3		3.31%

1 Assumes conversion of Class B shares into Class A shares after eight years.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 11/4/2014.

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EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 5/1/2017		Ending Account Value 10/31/2017		Expenses Paid During Period*		Annualized Expense Ratio*			Effective Expenses Paid During Period+		Effective Annualized Expense Ratio+
Class A
Actual	$	1,000	$	1,005.00	$	4.45		0.88	%	$	4.55		0.90	%
Hypothetical**	$	1,000	$	1,020.77	$	4.48		0.88	%	$	4.58		0.90	%

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EXPENSE EXAMPLE (continued)

	Beginning Account Value 5/1/2017		Ending Account Value 10/31/2017		Expenses Paid During Period*		Annualized Expense Ratio*			Effective Expenses Paid During Period+		Effective Annualized Expense Ratio+
Class B
Actual	$	1,000	$	999.70	$	8.17		1.62	%	$	8.27		1.64	%
Hypothetical**	$	1,000	$	1,017.04	$	8.24		1.62	%	$	8.34		1.64	%
Class C
Actual	$	1,000	$	1,001.00	$	8.17		1.62	%	$	8.27		1.64	%
Hypothetical**	$	1,000	$	1,017.04	$	8.24		1.62	%	$	8.34		1.64	%
Advisor Class
Actual	$	1,000	$	1,005.10	$	3.18		0.63	%	$	3.34		0.66	%
Hypothetical**	$	1,000	$	1,022.03	$	3.21		0.63	%	$	3.36		0.66	%
Class R
Actual	$	1,000	$	1,002.60	$	5.70		1.13	%	$	5.80		1.15	%
Hypothetical**	$	1,000	$	1,019.51	$	5.75		1.13	%	$	5.85		1.15	%
Class K
Actual	$	1,000	$	1,003.20	$	4.44		0.88	%	$	4.54		0.90	%
Hypothetical**	$	1,000	$	1,020.77	$	4.48		0.88	%	$	4.58		0.90	%
Class I
Actual	$	1,000	$	1,005.40	$	3.18		0.63	%	$	3.29		0.65	%
Hypothetical**	$	1,000	$	1,022.03	$	3.21		0.63	%	$	3.31		0.65	%
Class Z
Actual	$	1,000	$	1,005.40	$	3.18		0.63	%	$	3.29		0.65	%
Hypothetical**	$	1,000	$	1,022.03	$	3.21		0.63	%	$	3.31		0.65	%

* Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

+ In connection with the Fund’s investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund’s total expenses are equal to the classes’ annualized expense ratio plus the Fund’s pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

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PORTFOLIO SUMMARY

October 31, 2017 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $306.7

1 All data are as of October 31, 2017. The Fund’s sector type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” security type weightings represent 0.3% or less in the following security types: Asset-Backed Securities, Commercial Mortgage-Backed Securities, Common Stocks, Local Governments–Regional Bonds, Local Governments–US Municipal Bonds, Options Purchased–Puts, Preferred Stocks and Warrants.

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PORTFOLIO SUMMARY (continued)

October 31, 2017 (unaudited)

1 All data are as of October 31, 2017. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.3% or less in the following countries or regions: Australia, Dominican Republic, Ecuador, Eurozone, Finland, Gabon, Germany, Hong Kong, Hungary, Israel, Ivory Coast, Jamaica, Japan, Jersey (Channel Islands), Kuwait, Netherlands, New Zealand, Norway, Qatar, South Africa, Spain, Sweden, Switzerland, Uruguay and Zambia.

16    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2017

		Principal Amount (000)		U.S. $ Value
CORPORATES – NON-INVESTMENT GRADE – 18.9%
Industrial – 15.1%
Basic – 1.4%
AK Steel Corp. 7.625%, 10/01/21	U.S.$		29	$	30,034
ArcelorMittal 5.75%, 8/05/20			150		162,861
7.25%, 3/01/41			204		250,238
7.50%, 10/15/39			120		149,755
CF Industries, Inc. 7.125%, 5/01/20			150		164,950
FMG Resources August 206 Pty Ltd. 5.125%, 5/15/24(a)			64		65,899
Freeport-McMoRan, Inc. 2.375%, 3/15/18			149		148,958
3.55%, 3/01/22			469		463,848
Graphic Packaging International, Inc. 4.75%, 4/15/21			60		63,343
Grinding Media, Inc./Moly-Cop AltaSteel Ltd. 7.375%, 12/15/23(a)			44		47,837
Huntsman International LLC 4.875%, 11/15/20			100		105,098
Joseph T Ryerson & Son, Inc. 11.00%, 5/15/22(a)			161		181,442
Lecta SA 6.50%, 8/01/23(a)	EUR		104		128,306
Momentive Performance Materials, Inc. 3.88%, 10/24/21	U.S.$		650		675,598
8.875%, 10/15/20(b)(c)(d)(e)			650		– 0	–
Multi-Color Corp. 4.875%, 11/01/25(a)			57		57,496
NOVA Chemicals Corp. 5.25%, 8/01/23(a)			12		12,377
Novelis Corp. 6.25%, 8/15/24(a)			90		95,176
Peabody Energy Corp. 6.00%, 11/15/18(b)(c)(d)(f)			396		– 0	–
Plastipak Holdings, Inc. 6.25%, 10/15/25(a)			42		42,836
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu 5.125%, 7/15/23(a)			150		155,847
7.00%, 7/15/24(a)			87		92,947
Sealed Air Corp. 6.875%, 7/15/33(a)			442		517,140

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Steel Dynamics, Inc. 5.125%, 10/01/21	U.S.$		90	$	92,497
Teck Resources Ltd. 5.40%, 2/01/43			538		545,089
8.50%, 6/01/24(a)			22		25,189
United States Steel Corp. 8.375%, 7/01/21(a)			134		147,090
					4,421,851
Capital Goods – 0.6%
Apex Tool Group LLC 7.00%, 2/01/21(a)			70		66,140
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc. 6.75%, 5/15/24(a)	EUR		280		364,889
Ball Corp. 5.00%, 3/15/22	U.S.$		120		129,316
Bombardier, Inc. 5.75%, 3/15/22(a)			447		443,964
6.00%, 10/15/22(a)			70		69,085
BWAY Holding Co. 5.50%, 4/15/24(a)			156		162,514
Exide Technologies 11.00%, 4/30/22(b)(g)(h)			110		93,500
Gates Global LLC/Gates Global Co. 6.00%, 7/15/22(a)			62		63,738
GFL Environmental, Inc. 5.625%, 5/01/22(a)			29		30,128
9.875%, 2/01/21(a)			86		91,835
KLX, Inc. 5.875%, 12/01/22(a)			123		128,663
TransDigm, Inc. 6.00%, 7/15/22			150		156,222
6.50%, 7/15/24			67		69,092
					1,869,086
Communications - Media – 2.2%
Altice Financing SA 6.625%, 2/15/23(a)			420		442,097
Altice Finco SA 4.75%, 1/15/28	EUR		100		117,795
Altice US Finance I Corp. 5.375%, 7/15/23(a)	U.S.$		200		208,997
AMC Networks, Inc. 5.00%, 4/01/24			21		21,385
CCO Holdings LLC/CCO Holdings Capital Corp. 4.00%, 3/01/23(a)			218		221,148
5.00%, 2/01/28(a)			285		282,849

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.125%, 2/15/23	U.S.$		244	$	251,637
5.875%, 5/01/27(a)			91		95,361
Clear Channel Worldwide Holdings, Inc. Series B 6.50%, 11/15/22			353		365,303
CSC Holdings LLC 5.25%, 6/01/24			195		194,482
6.75%, 11/15/21			116		127,849
10.875%, 10/15/25(a)			173		212,404
DISH DBS Corp. 5.875%, 7/15/22			520		523,826
6.75%, 6/01/21			150		157,469
iHeartCommunications, Inc. 9.00%, 12/15/19-3/01/21			571		415,367
Lamar Media Corp. 5.00%, 5/01/23			92		94,990
McGraw-Hill Global Education Holdings LLC/McGraw-Hill Global Education Finance 7.875%, 5/15/24(a)			510		514,133
Netflix, Inc. 4.375%, 11/15/26(a)			77		75,545
Radiate Holdco LLC/Radiate Finance, Inc. 6.625%, 2/15/25(a)			43		42,028
SFR Group SA 6.00%, 5/15/22(a)			200		208,549
7.375%, 5/01/26(a)			450		484,183
Sirius XM Radio, Inc. 3.875%, 8/01/22(a)			185		188,512
6.00%, 7/15/24(a)			85		90,866
TEGNA, Inc. 6.375%, 10/15/23			247		262,692
Time, Inc. 5.75%, 4/15/22(a)			32		32,238
7.50%, 10/15/25(a)			74		74,346
Univision Communications, Inc. 5.125%, 5/15/23(a)			123		124,346
Urban One, Inc. 7.375%, 4/15/22(a)			37		37,370
9.25%, 2/15/20(a)			155		146,188
Virgin Media Receivables Financing Notes I DAC 5.50%, 9/15/24(a)	GBP		100		138,351
Virgin Media Secured Finance PLC 4.875%, 1/15/27(a)			166		229,260
Ziggo Bond Finance BV 5.875%, 1/15/25(a)	U.S.$		220		227,342
					6,608,908

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Telecommunications – 1.8%
CenturyLink, Inc. Series S 6.45%, 6/15/21	U.S.$		60	$	63,358
Series T 5.80%, 3/15/22			464		470,855
Series U 7.65%, 3/15/42			103		93,586
Embarq Corp. 7.995%, 6/01/36			105		105,998
Frontier Communications Corp. 7.625%, 4/15/24			630		480,554
8.75%, 4/15/22			134		110,410
10.50%, 9/15/22			55		48,070
Intelsat Jackson Holdings SA 5.50%, 8/01/23			88		74,805
7.25%, 10/15/20			93		89,301
7.50%, 4/01/21			266		252,646
9.50%, 9/30/22(a)			119		139,867
9.75%, 7/15/25(a)			129		129,118
Level 3 Financing, Inc. 5.375%, 8/15/22			144		148,349
Qwest Corp. 6.75%, 12/01/21			67		74,152
SoftBank Group Corp. 4.50%, 4/15/20(a)			200		206,485
Sprint Communications, Inc. 7.00%, 3/01/20(a)			521		564,648
Sprint Corp. 7.25%, 9/15/21			58		63,213
7.625%, 2/15/25			423		463,221
7.875%, 9/15/23			266		297,558
T-Mobile USA, Inc. 6.00%, 4/15/24			128		137,014
6.375%, 3/01/25			153		165,204
6.836%, 4/28/23			310		327,119
Telecom Italia Capital SA 7.20%, 7/18/36			313		388,685
Wind Acquisition Finance SA 4.75%, 7/15/20(a)			358		362,388
Wind Tre SpA Series X 5.00%, 1/20/26			200		201,240
Windstream Services LLC 6.375%, 8/01/23			193		140,635
7.75%, 10/01/21			45		34,172

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Zayo Group LLC/Zayo Capital, Inc. 6.00%, 4/01/23	U.S.$		52	$	54,793
					5,687,444
Consumer Cyclical - Automotive – 0.2%
Dana Financing Luxembourg SARL 6.50%, 6/01/26(a)			178		193,570
Exide Technologies 7.00%, 4/30/25(b)(g)(h)(i)			251		152,118
Goodyear Tire & Rubber Co. (The) 5.125%, 11/15/23			152		156,583
Meritor, Inc. 6.25%, 2/15/24			70		74,805
					577,076
Consumer Cyclical - Entertainment – 0.1%
NCL Corp., Ltd. 4.75%, 12/15/21(a)			90		93,568
Silversea Cruise Finance Ltd. 7.25%, 2/01/25(a)			84		90,139
					183,707
Consumer Cyclical - Other – 1.8%
Beazer Homes USA, Inc. 8.75%, 3/15/22			482		535,306
CalAtlantic Group, Inc. 5.875%, 11/15/24			302		335,562
Eldorado Resorts, Inc. 6.00%, 4/01/25			38		40,177
K. Hovnanian Enterprises, Inc. 10.00%, 7/15/22(a)			108		118,022
10.50%, 7/15/24(a)			108		120,237
Lennar Corp. 4.50%, 6/15/19-4/30/24			885		908,829
MDC Holdings, Inc. 6.00%, 1/15/43			361		349,563
Meritage Homes Corp. 7.00%, 4/01/22			340		389,371
MGM Resorts International 6.75%, 10/01/20			172		189,509
PulteGroup, Inc. 5.00%, 1/15/27			754		792,450
7.875%, 6/15/32			220		272,011
RSI Home Products, Inc. 6.50%, 3/15/23(a)			280		293,681
Scientific Games International, Inc. 7.00%, 1/01/22(a)			70		74,048

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Shea Homes LP/Shea Homes Funding Corp. 5.875%, 4/01/23(a)	U.S.$		789	$	818,030
Standard Industries, Inc./NJ 5.50%, 2/15/23(a)			180		190,436
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 5/15/25(a)			43		41,902
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc. 5.625%, 3/01/24(a)			165		172,588
					5,641,722
Consumer Cyclical - Retailers – 0.4%
Dollar Tree, Inc. 5.75%, 3/01/23			60		63,089
FirstCash, Inc. 5.375%, 6/01/24(a)			16		16,742
Group 1 Automotive, Inc. 5.00%, 6/01/22			154		158,773
JC Penney Corp., Inc. 5.875%, 7/01/23(a)			31		29,744
L Brands, Inc. 6.875%, 11/01/35			73		72,479
6.95%, 3/01/33			260		255,489
Neiman Marcus Group Ltd. LLC 8.00%, 10/15/21(a)			191		112,690
8.75% (8.75% Cash or 9.50% PIK), 10/15/21(a)(g)			155		83,716
Penske Automotive Group, Inc. 3.75%, 8/15/20			130		132,613
PetSmart, Inc. 7.125%, 3/15/23(a)			67		51,253
Sonic Automotive, Inc. 5.00%, 5/15/23			139		136,915
6.125%, 3/15/27			48		49,744
					1,163,247
Consumer Non-Cyclical – 2.0%
Albertsons Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC 6.625%, 6/15/24			258		241,929
Catalent Pharma Solutions, Inc. 4.875%, 1/15/26(a)			25		25,374
CHS/Community Health Systems, Inc. 5.125%, 8/01/21			66		64,313
6.875%, 2/01/22			230		167,427
7.125%, 7/15/20			359		311,399

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
DaVita, Inc. 5.00%, 5/01/25	U.S.$		130	$	128,480
5.75%, 8/15/22			32		32,989
Endo Dac/Endo Finance LLC/Endo Finco, Inc. 6.00%, 7/15/23(a)			298		241,380
Endo Finance LLC/Endo Finco, Inc. 5.375%, 1/15/23(a)			40		32,232
Envision Healthcare Corp. 5.625%, 7/15/22			170		173,390
HCA Healthcare, Inc. 6.25%, 2/15/21			88		94,695
HCA, Inc. 4.75%, 5/01/23			170		177,854
5.875%, 3/15/22			655		716,674
6.50%, 2/15/20			230		248,309
7.58%, 9/15/25			65		72,925
Kinetic Concepts, Inc./KCI USA, Inc. 7.875%, 2/15/21(a)			461		482,754
LifePoint Health, Inc. 5.375%, 5/01/24			41		41,153
5.875%, 12/01/23			127		130,826
Mallinckrodt International Finance SA 4.75%, 4/15/23			38		32,204
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 5.50%, 4/15/25(a)			278		249,902
5.625%, 10/15/23(a)			20		18,708
MEDNAX, Inc. 5.25%, 12/01/23(a)			185		193,113
Post Holdings, Inc. 5.75%, 3/01/27(a)			190		197,712
Spectrum Brands, Inc. 6.625%, 11/15/22			90		93,691
Tenet Healthcare Corp. 4.50%, 4/01/21			313		316,194
6.00%, 10/01/20			148		156,142
6.75%, 6/15/23			227		213,131
8.125%, 4/01/22			130		130,598
Valeant Pharmaceuticals International, Inc. 5.375%, 3/15/20(a)			188		184,724
5.50%, 3/01/23-11/01/25(a)			332		303,677
5.625%, 12/01/21(a)			565		516,660
5.875%, 5/15/23(a)			85		71,825
					6,062,384

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PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 2.1%
Antero Resources Corp. 5.00%, 3/01/25	U.S.$		65	$	66,158
5.125%, 12/01/22			49		50,313
5.625%, 6/01/23			154		161,004
Bill Barrett Corp. 7.00%, 10/15/22			43		41,873
8.75%, 6/15/25			5		4,927
California Resources Corp. 5.50%, 9/15/21			45		26,606
6.00%, 11/15/24			51		23,651
8.00%, 12/15/22(a)			223		147,180
Carrizo Oil & Gas, Inc. 6.25%, 4/15/23			73		74,184
8.25%, 7/15/25			19		20,444
Cheniere Corpus Christi Holdings LLC 5.875%, 3/31/25			172		186,089
7.00%, 6/30/24			180		205,692
Cheniere Energy Partners LP 5.25%, 10/01/25(a)			82		84,417
Cheniere Energy, Inc. 4.875%, 5/28/21(a)(b)(g)(i)			61		59,489
Chesapeake Energy Corp. 6.125%, 2/15/21			268		270,668
6.625%, 8/15/20			31		32,011
Continental Resources, Inc./OK 3.80%, 6/01/24			165		160,727
5.00%, 9/15/22			85		86,127
Denbury Resources, Inc. 5.50%, 5/01/22			150		93,750
Diamond Offshore Drilling, Inc. 4.875%, 11/01/43			154		115,885
5.70%, 10/15/39			212		178,846
7.875%, 8/15/25			23		24,601
Energy Transfer Equity LP 4.25%, 3/15/23			197		200,400
5.875%, 1/15/24			310		336,707
Ensco PLC 4.50%, 10/01/24			138		113,261
5.20%, 3/15/25			138		116,162
EP Energy LLC/Everest Acquisition Finance, Inc. 8.00%, 2/15/25(a)			150		110,813
9.375%, 5/01/20			103		86,554
Genesis Energy LP/Genesis Energy Finance Corp. 6.75%, 8/01/22			22		22,703

24    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Golden Energy Offshore Services AS 5.00%, 12/31/17(b)(h)	NOK		7,579	$	417,546
Gulfport Energy Corp. 6.00%, 10/15/24	U.S.$		70		70,331
6.375%, 5/15/25			72		72,785
6.375%, 1/15/26(a)			52		52,604
Murphy Oil Corp. 4.00%, 6/01/22			59		58,725
6.875%, 8/15/24			76		81,793
Murphy Oil USA, Inc. 5.625%, 5/01/27			5		5,329
Nabors Industries, Inc. 4.625%, 9/15/21			82		79,142
5.50%, 1/15/23			183		175,779
Noble Holding International Ltd. 5.25%, 3/15/42			70		44,275
6.20%, 8/01/40			63		42,604
7.70%, 4/01/25(j)			139		121,101
7.75%, 1/15/24			143		127,584
Oasis Petroleum, Inc. 6.875%, 3/15/22			62		63,614
QEP Resources, Inc. 5.25%, 5/01/23			202		199,063
Range Resources Corp. 5.00%, 8/15/22-3/15/23			204		202,615
5.875%, 7/01/22			6		6,165
Rowan Cos., Inc. 7.375%, 6/15/25			40		40,113
Sanchez Energy Corp. 6.125%, 1/15/23			69		57,846
7.75%, 6/15/21			10		9,302
SandRidge Energy, Inc. 8.125%, 10/15/22(b)(c)(d)(f)			665		– 0	–
SemGroup Corp. 6.375%, 3/15/25(a)			35		34,547
7.25%, 3/15/26(a)			32		32,636
SM Energy Co. 5.00%, 1/15/24			35		33,537
6.50%, 11/15/21-1/01/23			194		197,063
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 4.125%, 11/15/19			96		97,085
Transocean, Inc. 6.80%, 3/15/38			261		212,457
7.50%, 1/15/26(a)			39		40,195
9.00%, 7/15/23(a)			279		303,406

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Vine Oil & Gas LP/Vine Oil & Gas Finance Corp. 8.75%, 4/15/23(a)	U.S.$		65	$	63,549
Weatherford International Ltd. 5.875%, 7/01/21(i)			77		77,425
7.75%, 6/15/21			147		151,600
9.875%, 2/15/24			34		36,376
Whiting Petroleum Corp. 5.75%, 3/15/21			34		34,145
WPX Energy, Inc. 7.50%, 8/01/20			100		108,707
					6,452,286
Other Industrial – 0.2%
American Builders & Contractors Supply Co., Inc. 5.75%, 12/15/23(a)			68		72,282
American Tire Distributors, Inc. 10.25%, 3/01/22(a)			182		189,775
Belden, Inc. 5.50%, 4/15/23(a)	EUR		100		122,356
H&E Equipment Services, Inc. 5.625%, 9/01/25(a)	U.S.$		27		28,480
HRG Group, Inc. 7.875%, 7/15/19			182		183,976
Travis Perkins PLC 4.50%, 9/07/23(a)	GBP		100		139,106
					735,975
Services – 0.6%
ADT Corp. (The) 3.50%, 7/15/22	U.S.$		179		178,468
APX Group, Inc. 8.75%, 12/01/20			450		460,992
CSVC Acquisition Corp. 7.75%, 6/15/25(a)			75		73,228
DB Master Finance LLC Series 2017-1A, Class A2I 3.629%, 11/20/47(a)(b)			72		72,382
GEO Group, Inc. (The) 5.875%, 1/15/22			94		97,138
iPayment, Inc. 10.75%, 4/15/24(a)			100		112,647
KAR Auction Services, Inc. 5.125%, 6/01/25(a)			28		28,984
Nielsen Finance LLC/Nielsen Finance Co. 5.00%, 4/15/22(a)			135		139,016

26    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Prime Security Services Borrower LLC/Prime Finance, Inc. 9.25%, 5/15/23(a)	U.S.$		313	$	346,844
Sabre GLBL, Inc. 5.25%, 11/15/23(a)			66		69,095
Team Health Holdings, Inc. 6.375%, 2/01/25(a)			207		190,741
					1,769,535
Technology – 1.1%
Ascend Learning LLC 6.875%, 8/01/25(a)			18		18,851
Avaya, Inc. 10.50%, 3/01/21(a)(b)(c)(k)			1,062		63,720
BMC Software Finance, Inc. 8.125%, 7/15/21(a)			655		672,111
Boxer Parent Co., Inc. 9.00% (9.00% Cash or 9.75% PIK), 10/15/19(a)(g)			175		175,086
Conduent Finance, Inc./Conduent Business Services LLC 10.50%, 12/15/24(a)			135		159,701
CURO Financial Technologies Corp. 12.00%, 3/01/22(a)			56		61,290
Dell International LLC/EMC Corp. 5.875%, 6/15/21(a)			62		64,845
7.125%, 6/15/24(a)			289		319,172
First Data Corp. 5.00%, 1/15/24(a)			96		99,839
Infor US, Inc. 6.50%, 5/15/22			470		489,966
Nokia Oyj 3.375%, 6/12/22			38		37,872
NXP BV/NXP Funding LLC 4.125%, 6/01/21(a)			200		208,962
Quintiles IMS, Inc. 3.25%, 3/15/25(a)	EUR		213		257,453
Solera LLC/Solera Finance, Inc. 10.50%, 3/01/24(a)	U.S.$		136		154,774
Western Digital Corp. 10.50%, 4/01/24			411		482,240
					3,265,882
Transportation - Services – 0.6%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.50%, 4/01/23			468		469,597
6.375%, 4/01/24(a)			397		412,384

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

			Principal Amount (000)		U.S. $ Value
CEVA Group PLC 9.00%, 9/01/21(a)	U.S.$			217	$	199,719
Herc Rentals, Inc. 7.50%, 6/01/22(a)				72		77,937
7.75%, 6/01/24(a)				134		147,032
Hertz Corp. (The) 5.50%, 10/15/24(a)				35		31,607
5.875%, 10/15/20				24		23,853
7.375%, 1/15/21				240		240,925
Loxam SAS 4.25%, 4/15/24(a)	EUR			100		124,977
United Rentals North America, Inc. 5.50%, 7/15/25-5/15/27	U.S.$			256		274,285
						2,002,316
						46,441,419
Financial Institutions – 3.4%
Banking – 2.4%
Allied Irish Banks PLC Series E 7.375%, 12/03/20(a)(l)	EUR			200		265,586
Ally Financial, Inc. 4.125%, 3/30/20	U.S.$			432		446,391
8.00%, 11/01/31				270		355,206
Banco Bilbao Vizcaya Argentaria SA 8.875%, 4/14/21(a)(l)	EUR			200		279,880
Barclays PLC 8.00%, 12/15/20(l)				200		269,782
Credit Suisse Group AG 6.25%, 12/18/24(a)(l)	U.S.$			208		227,589
Goldman Sachs Group, Inc. (The) Series P 5.00%, 11/10/22(l)				89		88,984
Intesa Sanpaolo SpA 3.928%, 9/15/26(a)	EUR			180		232,766
National Westminster Bank PLC 1.82% (EURIBOR 3 Month + 2.15%), 1/05/18(l)(m)				200		226,211
Royal Bank of Scotland Group PLC 2.001% (EURIBOR 3 Month + 2.33%), 12/31/17(a)(l)(m)				50		56,714
Series U 3.655% (LIBOR 3 Month + 2.32%), 9/30/27(l)(m)	U.S.$	��		3,400		3,307,670
Standard Chartered PLC 2.888% (LIBOR 3 Month + 1.51%), 1/30/27(a)(l)(m)				1,200		1,040,701
7.50%, 4/02/22(a)(l)				335		367,268

28    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
UBS Group AG 7.00%, 2/19/25(a)(l)	U.S.$		200	$	229,225
					7,393,973
Brokerage – 0.0%
Lehman Brothers Holdings, Inc. Zero Coupon, 1/12/12(b)(c)(n)			440		29,150
Zero Coupon (LIBOR 3 Month + 0.14%), 5/25/10(b)(c)(m)(n)			435		28,819
LPL Holdings, Inc. 5.75%, 9/15/25(a)			59		61,372
					119,341
Finance – 0.7%
Enova International, Inc. 9.75%, 6/01/21			121		129,002
goeasy Ltd. 7.875%, 11/01/22(a)			28		28,638
Lincoln Finance Ltd. 7.375%, 4/15/21(a)			200		211,239
Navient Corp. 5.875%, 3/25/21			660		693,632
6.50%, 6/15/22			60		63,764
6.625%, 7/26/21			752		805,550
OneMain Financial Holdings LLC 6.75%, 12/15/19(a)			60		62,136
SLM Corp. 5.125%, 4/05/22			31		32,126
					2,026,087
Insurance – 0.1%
Genworth Holdings, Inc. 7.20%, 2/15/21			66		63,098
Liberty Mutual Group, Inc. 7.80%, 3/15/37(a)			156		197,876
WellCare Health Plans, Inc. 5.25%, 4/01/25			61		64,380
					325,354
Other Finance – 0.1%
Intrum Justitia AB 2.75%, 7/15/22(a)	EUR		100		119,416
LHC3 PLC 4.125%, 8/15/24(a)(g)			100		120,410
VFH Parent LLC/Orchestra Co-Issuer, Inc. 6.75%, 6/15/22(a)	U.S.$		8		8,315
					248,141

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITS – 0.1%
MPT Operating Partnership LP/MPT Finance Corp. 5.00%, 10/15/27	U.S.$		14	$	14,357
5.25%, 8/01/26			86		89,552
5.50%, 5/01/24			63		66,574
SBA Communications Corp. 4.00%, 10/01/22(a)			41		41,558
					212,041
					10,324,937
Utility – 0.4%
Electric – 0.4%
Calpine Corp. 5.375%, 1/15/23			86		83,601
5.75%, 1/15/25			280		265,629
ContourGlobal Power Holdings SA 5.125%, 6/15/21(a)	EUR		164		200,301
Dynegy, Inc. 7.375%, 11/01/22	U.S.$		236		253,371
7.625%, 11/01/24			64		69,920
Talen Energy Supply LLC 4.625%, 7/15/19(a)			49		49,505
6.50%, 5/01/18			180		182,701
					1,105,028
Total Corporates – Non-Investment Grade (cost $56,763,434)					57,871,384
COLLATERALIZED MORTGAGE OBLIGATIONS – 12.6%
Risk Share Floating Rate – 6.6%
Bellemeade Re II Ltd. Series 2016-1A, Class M2B 7.738% (LIBOR 1 Month + 6.50%), 4/25/26(h)(m)			2,391		2,452,076
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2014-DN3, Class M3 5.238% (LIBOR 1 Month + 4.00%), 8/25/24(m)			3,582		3,870,748
Series 2015-DNA1, Class B 10.438% (LIBOR 1 Month + 9.20%), 10/25/27(m)			498		657,896
Series 2015-HQ1, Class B 11.988% (LIBOR 1 Month + 10.75%), 3/25/25(m)			1,161		1,579,559

30    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 2M2 6.238% (LIBOR 1 Month + 5.00%), 11/25/24(m)	U.S.$		1,191	$	1,337,625
Series 2015-C01, Class 1M2 5.538% (LIBOR 1 Month + 4.30%), 2/25/25(m)			672		722,877
Series 2015-C02, Class 1M2 5.238% (LIBOR 1 Month + 4.00%), 5/25/25(m)			802		859,816
Series 2015-C03, Class 1M2 6.238% (LIBOR 1 Month + 5.00%), 7/25/25(m)			615		679,712
Series 2015-C03, Class 2M2 6.238% (LIBOR 1 Month + 5.00%), 7/25/25(m)			3,929		4,295,136
Series 2015-C04, Class 1M2 6.938% (LIBOR 1 Month + 5.70%), 4/25/28(m)			1,003		1,130,261
Series 2015-C04, Class 2M2 6.788% (LIBOR 1 Month + 5.55%), 4/25/28(m)			1,521		1,686,267
Series 2016-C02, Class 1M2 7.238% (LIBOR 1 Month + 6.00%), 9/25/28(m)			749		865,562
					20,137,535
Non-Agency Fixed Rate – 4.1%
Alternative Loan Trust Series 2005-11CB, Class 2A7 5.50%, 6/25/35			883		863,849
Series 2005-86CB, Class A8 5.50%, 2/25/36			511		471,574
Series 2005-J14, Class A7 5.50%, 12/25/35			293		248,739
Series 2006-16CB, Class A6 6.00%, 6/25/36			1,732		1,417,813
Series 2006-24CB, Class A1 6.00%, 6/25/36			820		702,796
Series 2006-24CB, Class A11 5.75%, 6/25/36			456		384,808
Series 2006-32CB, Class A5 6.00%, 11/25/36			1,198		1,079,751
Series 2006-J1, Class 1A11 5.50%, 2/25/36			527		479,848

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BCAP LLC Trust Series 2009-RR10, Class 10A2 6.00%, 1/26/38(a)	U.S.$		2,571	$	2,090,705
CitiMortgage Alternative Loan Trust Series 2006-A4, Class 1A3 6.00%, 9/25/36			239		228,962
Countrywide Home Loan Mortgage Pass-Through Trust Series 2006-6, Class A1 6.00%, 4/25/36			492		432,802
Series 2006-9, Class A2 6.00%, 5/25/36			664		562,857
Series 2007-4, Class 1A39 6.00%, 5/25/37			372		303,669
GSR Mortgage Loan Trust Series 2006-9F, Class 4A1 6.50%, 10/25/36			515		462,101
JP Morgan Mortgage Trust Series 2007-S3, Class 1A45 6.00%, 8/25/37			1,430		1,264,860
Morgan Stanley Mortgage Loan Trust Series 2007-6XS, Class 2A5S 6.00%, 2/25/47			824		570,434
Residential Accredit Loans, Inc. Trust Series 2005-QA10, Class A31 4.28%, 9/25/35			314		264,319
Wells Fargo Mortgage Backed Securities Trust Series 2005-17, Class 2A1 5.50%, 1/25/36			401		399,597
Series 2007-8, Class 2A6 6.00%, 7/25/37			226		226,601
Series 2007-10, Class 1A7 6.00%, 7/25/37			312		310,521
					12,766,606
Agency Fixed Rate – 1.3%
Federal National Mortgage Association REMICs Series 2016-26, Class IO 5.00%, 5/25/46(o)			2,914		596,195
Series 2016-33, Class NI 5.00%, 7/25/34(o)			5,774		1,216,167
Government National Mortgage Association Series 2016-47, Class IK 4.00%, 4/20/46(o)			4,539		837,571
Series 2016-111, Class PI 3.50%, 6/20/45(o)			8,090		1,244,143
					3,894,076

32    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Non-Agency Floating Rate – 0.6%
Alternative Loan Trust Series 2006-19CB, Class A3 6.00% (LIBOR 1 Month + 1.00%), 8/25/36(m)	U.S.$		1,379	$	1,234,008
Deutsche Alt-A Securities Mortgage Loan Trust Series 2006-AR4, Class A2 1.428% (LIBOR 1 Month + 0.19%), 12/25/36(m)			557		350,025
GreenPoint Mortgage Funding Trust Series 2006-AR2, Class 4A1 2.944% (12MTA + 2.00%), 3/25/36(m)			223		206,336
					1,790,369
Total Collateralized Mortgage Obligations (cost $37,590,923)					38,588,586
GOVERNMENTS – TREASURIES – 7.5%
Malaysia – 0.5%
Malaysia Government Bond Series 511 3.58%, 9/28/18	MYR		6,710		1,591,818
South Africa – 0.2%
Republic of South Africa Government Bond Series R213 7.00%, 2/28/31	ZAR		10,492		593,530
United States – 6.7%
U.S. Treasury Bonds 2.50%, 5/15/46	U.S.$		405		375,258
3.75%, 11/15/43			2,372		2,771,767
U.S. Treasury Notes 1.50%, 12/31/18(p)			5,743		5,743,200
1.625%, 5/15/26(p)			12,185		11,518,633
					20,408,858
Uruguay – 0.1%
Uruguay Government International Bond 8.50%, 3/15/28(a)	UYU		8,615		295,387
Total Governments – Treasuries (cost $23,303,694)					22,889,593
INFLATION-LINKED SECURITIES – 6.2%
Brazil – 0.4%
Brazil Notas do Tesouro Nacional Series B 6.00%, 8/15/50	BRL		1,150		1,175,233

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
United States – 5.8%
U.S. Treasury Inflation Index 0.375%, 1/15/27 (TIPS)	U.S.$		17,985	$	17,748,398
Total Inflation-Linked Securities (cost $18,799,166)					18,923,631
CORPORATES – INVESTMENT GRADE – 4.6%
Industrial – 2.5%
Basic – 0.4%
Anglo American Capital PLC 3.75%, 4/10/22(a)			220		226,536
Equate Petrochemical BV 3.00%, 3/03/22(a)			653		646,797
LYB International Finance II BV 1.875%, 3/02/22	EUR		100		123,146
Monsanto Co. 3.375%, 7/15/24	U.S.$		96		98,081
Southern Copper Corp. 3.875%, 4/23/25			94		97,760
					1,192,320
Capital Goods – 0.2%
CNH Industrial Capital LLC 4.375%, 4/05/22			91		96,603
4.875%, 4/01/21			211		225,019
Embraer Netherlands Finance BV 5.40%, 2/01/27			99		106,079
Republic Services, Inc. 5.25%, 11/15/21			200		220,534
Rolls-Royce PLC 2.125%, 6/18/21(a)	EUR		129		161,264
					809,499
Communications - Media – 0.1%
21st Century Fox America, Inc. 4.00%, 10/01/23	U.S.$		77		81,471
CBS Corp. 3.70%, 8/15/24			93		96,217
Charter Communications Operating LLC/Charter Communications Operating Capital 4.908%, 7/23/25			91		96,773
Time Warner, Inc. 4.05%, 12/15/23			58		61,156
Viacom, Inc. 4.375%, 3/15/43			150		127,661
					463,278

34    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Telecommunications – 0.1%
AT&T, Inc. 3.90%, 8/14/27	U.S.$		61	$	60,742
5.45%, 3/01/47			93		97,021
					157,763
Consumer Cyclical - Automotive – 0.1%
FCE Bank PLC 1.615%, 5/11/23(a)	EUR		118		144,191
General Motors Financial Co., Inc. 0.955%, 9/07/23(a)			141		165,094
Volkswagen International Finance NV Series 4Y 0.50%, 3/30/21(a)			100		117,888
					427,173
Consumer Cyclical - Entertainment – 0.1%
Carnival Corp. 1.875%, 11/07/22			128		160,312
Royal Caribbean Cruises Ltd. 7.25%, 3/15/18	U.S.$		91		92,720
					253,032
Consumer Cyclical - Retailers – 0.1%
AutoNation, Inc. 4.50%, 10/01/25			130		137,597
AutoZone, Inc. 3.25%, 4/15/25			165		165,708
					303,305
Consumer Non-Cyclical – 0.3%
Altria Group, Inc. 9.25%, 8/06/19			34		38,233
Coca-Cola European Partners PLC 0.75%, 2/24/22(a)	EUR		136		161,968
Fresenius Medical Care US Finance II, Inc. 4.125%, 10/15/20(a)	U.S.$		93		96,928
General Mills, Inc. 2.10%, 11/16/20	EUR		155		191,240
McKesson Corp. 0.625%, 8/17/21			138		163,096
Teva Pharmaceutical Finance Netherlands III BV 3.15%, 10/01/26	U.S.$		171		151,323
Zimmer Biomet Holdings, Inc. 3.55%, 4/01/25			126		128,174
					930,962

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 0.3%
Andeavor Logistics LP/Tesoro Logistics Finance Corp. 6.25%, 10/15/22	U.S.$		26	$	27,673
Cenovus Energy, Inc. 4.25%, 4/15/27(a)			135		135,170
EQT Corp. 8.125%, 6/01/19			35		38,216
Husky Energy, Inc. 7.25%, 12/15/19			84		92,422
Kinder Morgan, Inc./DE Series G 7.75%, 1/15/32			76		97,707
Marathon Oil Corp. 6.80%, 3/15/32			77		91,048
Marathon Petroleum Corp. 4.75%, 9/15/44			98		99,139
Plains All American Pipeline LP/PAA Finance Corp. 8.75%, 5/01/19			345		375,692
Tesoro Logistics LP/Tesoro Logistics Finance Corp. 5.875%, 10/01/20			155		157,712
					1,114,779
Services – 0.1%
eBay, Inc. 3.60%, 6/05/27			163		163,006
Expedia, Inc. 3.80%, 2/15/28(a)			70		68,118
					231,124
Technology – 0.5%
Agilent Technologies, Inc. 5.00%, 7/15/20			28		30,000
Dell International LLC/EMC Corp. 6.02%, 6/15/26(a)			203		226,625
8.35%, 7/15/46(a)			47		60,742
Hewlett Packard Enterprise Co. 6.35%, 10/15/45(q)			59		62,835
Micron Technology, Inc. 7.50%, 9/15/23			307		340,014
Motorola Solutions, Inc. 7.50%, 5/15/25			181		219,889
Seagate HDD Cayman 4.75%, 1/01/25			99		98,239
Western Digital Corp. 7.375%, 4/01/23(a)			321		351,001

36    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Xerox Corp. 3.625%, 3/15/23	U.S.$		130	$	128,312
					1,517,657
Transportation - Airlines – 0.1%
Ryanair DAC 1.125%, 3/10/23(a)	EUR		138		164,462
Transportation - Services – 0.1%
FedEx Corp. 1.00%, 1/11/23			136		162,090
					7,727,444
Financial Institutions – 1.7%
Banking – 1.0%
American Express Credit Corp. 0.625%, 11/22/21			109		129,333
BPCE SA 5.70%, 10/22/23(a)	U.S.$		200		223,330
Citigroup, Inc. 0.75%, 10/26/23(a)	EUR		139		162,424
Cooperatieve Rabobank UA 11.00%, 6/30/19(a)(l)	U.S.$		75		85,139
Series G 0.50%, 12/06/22(a)	EUR		50		59,031
Credit Suisse Group Funding Guernsey Ltd. 1.25%, 4/14/22(a)			100		120,463
Goldman Sachs Group, Inc. (The) 2.00%, 7/27/23(a)			131		162,820
2.35%, 11/15/21	U.S.$		693		685,547
HSBC Holdings PLC 6.00%, 9/29/23(a)(l)	EUR		200		275,464
Lloyds Banking Group PLC 1.00%, 11/09/23(a)			110		130,129
Macquarie Group Ltd. 7.625%, 8/13/19(a)	U.S.$		115		125,430
Morgan Stanley 5.00%, 11/24/25			88		96,309
Series G 5.50%, 7/24/20			175		189,740
Santander Holdings USA, Inc. 4.40%, 7/13/27(a)			64		65,925
SMFG Preferred Capital USD 3 Ltd. 9.50%, 7/25/18(a)(l)			100		105,210
Sumitomo Mitsui Banking Corp. 1.966%, 1/11/19			358		358,115
					2,974,409

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.1%
International Lease Finance Corp. 5.875%, 4/01/19	U.S.$		117	$	123,012
Santander Consumer Finance SA 0.90%, 2/18/20(a)	EUR		100		118,800
					241,812
Insurance – 0.4%
Aetna, Inc. 6.75%, 12/15/37	U.S.$		257		341,752
Allied World Assurance Co. Holdings Ltd. 5.50%, 11/15/20			180		193,441
Anthem, Inc. 7.00%, 2/15/19			45		47,800
Berkshire Hathaway, Inc. 0.625%, 1/17/23	EUR		138		163,232
Chubb Corp. (The) 3.609% (LIBOR 3 Month + 2.25%), 4/15/37(m)	U.S.$		98		97,554
Cigna Corp. 5.125%, 6/15/20			90		96,387
Humana, Inc. 6.30%, 8/01/18			25		25,828
Lincoln National Corp. 8.75%, 7/01/19			15		16,591
Nationwide Mutual Insurance Co. 9.375%, 8/15/39(a)			165		275,761
Prudential Financial, Inc. 5.625%, 6/15/43			57		61,899
					1,320,245
REITS – 0.2%
American Tower Corp. 5.05%, 9/01/20			140		150,399
DDR Corp. 3.90%, 8/15/24			65		65,450
Sabra Health Care LP/Sabra Capital Corp. 5.50%, 2/01/21			90		92,915
VEREIT Operating Partnership LP 4.875%, 6/01/26			88		94,048
Welltower, Inc. 4.95%, 1/15/21			86		92,148
Weyerhaeuser Co. 7.375%, 3/15/32			204		283,336
					778,296
					5,314,762

38    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Utility – 0.4%
Electric – 0.1%
Exelon Corp. 5.15%, 12/01/20	U.S.$		180	$	193,564
TECO Finance, Inc. 5.15%, 3/15/20			55		58,381
					251,945
Natural Gas – 0.3%
GNL Quintero SA 4.634%, 7/31/29(a)			836		870,510
					1,122,455
Total Corporates – Investment Grade (cost $13,473,459)					14,164,661
AGENCIES – 2.4%
Agency Debentures – 2.4%
Federal National Mortgage Association 1.875%, 9/24/26 (cost $7,551,754)			7,595		7,202,513
EMERGING MARKETS – TREASURIES – 1.4%
Argentina – 0.4%
Argentine Bonos del Tesoro 15.50%, 10/17/26	ARS		10,059		593,278
16.00%, 10/17/23			10,316		587,617
					1,180,895
Brazil – 0.3%
Brazil Notas do Tesouro Nacional Series F 10.00%, 1/01/21	BRL		3,105		973,857
Dominican Republic – 0.2%
Dominican Republic International Bond 15.95%, 6/04/21(h)	DOP		27,000		679,540
Turkey – 0.5%
Turkey Government Bond 11.00%, 2/24/27	TRY		5,670		1,450,176
Total Emerging Markets – Treasuries (cost $4,767,868)					4,284,468

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS – CORPORATE BONDS – 1.0%
Industrial – 1.0%
Basic – 0.1%
First Quantum Minerals Ltd. 7.25%, 4/01/23(a)	U.S.$		200	$	211,996
Communications - Telecommunications – 0.1%
Digicel Group Ltd. 8.25%, 9/30/20(a)			335		331,650
Consumer Non-Cyclical – 0.0%
Virgolino de Oliveira Finance SA 10.50%, 1/28/18(c)(h)(k)			804		41,204
Energy – 0.8%
Petrobras Global Finance BV 5.999%, 1/27/28(a)			1,126		1,139,941
7.375%, 1/17/27			1,130		1,256,124
					2,396,065
Other Industrial – 0.0%
Noble Group Ltd. 6.75%, 1/29/20(a)			100		41,750
Total Emerging Markets – Corporate Bonds (cost $3,208,982)					3,022,665
QUASI-SOVEREIGNS – 0.9%
Quasi-Sovereign Bonds – 0.9%
Mexico – 0.9%
Petroleos Mexicanos 5.375%, 3/13/22(a)			212		224,911
Series 14-2 7.47%, 11/12/26	MXN		55,570		2,570,333
Total Quasi-Sovereigns (cost $3,980,710)					2,795,244
GOVERNMENTS – SOVEREIGN BONDS – 0.6%
Hungary – 0.2%
Hungary Government International Bond 6.375%, 3/29/21	U.S.$		510		569,925
Mexico – 0.4%
Mexico Government International Bond 4.125%, 1/21/26			1,233		1,284,786

40    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Qatar – 0.0%
Qatar Government International Bond 5.25%, 1/20/20(a)	U.S.$		100	$	105,750
Total Governments – Sovereign Bonds (cost $1,842,448)					1,960,461
EMERGING MARKETS – SOVEREIGNS – 0.6%
Argentina – 0.3%
Argentine Republic Government International Bond 6.875%, 1/26/27			945		1,030,522
Ecuador – 0.1%
Ecuador Government International Bond 9.65%, 12/13/26(a)			275		296,313
Gabon – 0.1%
Gabon Government International Bond 6.95%, 6/16/25(a)			360		359,550
Ivory Coast – 0.1%
Ivory Coast Government International Bond 5.125%, 6/15/25(a)	EUR		144		177,174
Total Emerging Markets – Sovereigns (cost $1,696,230)					1,863,559
BANK LOANS – 0.4%
Industrial – 0.4%
Energy – 0.3%
California Resources Corporation 11.612% (LIBOR 1 Month + 10.38%), 12/31/21(r)	U.S.$		962		1,030,355
Technology – 0.1%
Avaya Inc. 6.621% (LIBOR 3 Month + 5.25%), 5/29/20(c)(k)(r)			372		308,697
Total Bank Loans (cost $1,274,198)					1,339,052
WHOLE LOAN TRUSTS – 0.3%
Performing Asset – 0.3%
Deutsche Bank Mexico SA 8.00%, 10/31/34(b)(d)(f)(q)	MXN		18,436		591,696

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Recife Funding Zero Coupon, 11/05/29(b)(d)(f)	U.S.$		530	$	446,822
Total Whole Loan Trusts (cost $1,600,330)					1,038,518
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.3%
Non-Agency Fixed Rate CMBS – 0.2%
Banc of America Commercial Mortgage Trust Series 2007-5, Class AM 5.772%, 2/10/51(b)			247		247,035
DBUBS Mortgage Trust Series 2011-LC2A, Class E 5.542%, 7/10/44(a)(b)			600		556,117
					803,152
Non-Agency Floating Rate CMBS – 0.1%
CLNS Trust Series 2017-IKPR, Class F 5.737% (LIBOR 1 Month + 4.50%), 6/11/32(a)(b)(m)			203		204,012
Total Commercial Mortgage-Backed Securities (cost $1,019,483)					1,007,164
		Shares
COMMON STOCKS – 0.3%
Energy – 0.2%
Oil, Gas & Consumable Fuels – 0.2%
Carrizo Oil & Gas, Inc.(c)			2,782		49,214
Oasis Petroleum, Inc.(c)			5,854		55,320
Paragon Offshore Ltd. (Trust A)(b)(c)(f)			3,303		3,577
Paragon Offshore Ltd. (Trust B)(b)(c)(f)			4,955		94,145
Paragon Offshore Ltd. (Equity)(b)(c)(f)			3,302		53,931
Peabody Energy Corp.(c)			6,789		209,712
SandRidge Energy, Inc.(c)			3,719		69,806
Whiting Petroleum Corp.(c)			6,000		36,060
					571,765
Consumer Discretionary – 0.1%
Auto Components – 0.0%
Exide Technologies(b)(c)(d)(e)			2,970		11,694
Diversified Consumer Services – 0.0%
Laureate Education, Inc. – Class A(c)			8,639		115,503

42    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Company		Shares		U.S. $ Value
Media – 0.1%
Gray Television, Inc.(c)			3,341	$	52,020
Nexstar Media Group, Inc. – Class A			1,019		65,012
					117,032
					244,229
Health Care – 0.0%
Pharmaceuticals – 0.0%
Endo International PLC(c)			4,607		29,393
Horizon Pharma PLC(c)			1,344		18,224
					47,617
Materials – 0.0%
Paper & Forest Products – 0.0%
Resolute Forest Products, Inc.(c)			48		286
Total Common Stocks (cost $743,912)					863,897
		Principal Amount (000)
ASSET-BACKED SECURITIES – 0.3%
Other ABS - Fixed Rate – 0.2%
SoFi Consumer Loan Program LLC Series 2017-3, Class B 3.85%, 5/25/26(a)(b)	U.S.$		440		443,168
Autos - Fixed Rate – 0.1%
Flagship Credit Auto Trust Series 2016-2, Class D 8.56%, 11/15/23(a)			350		380,195
Total Asset-Backed Securities (cost $805,127)					823,363
LOCAL GOVERNMENTS – REGIONAL BONDS – 0.1%
Argentina – 0.1%
Provincia de Buenos Aires/Argentina 9.125%, 3/16/24(a) (cost $327,852)			388		452,020
		Notional Amount
OPTIONS PURCHASED – PUTS – 0.1%
Options on Indices – 0.1%
S&P 500 Index 3M5Y Expiration: Jan 2023; Contracts: 75,390,000; Exercise Price: USD 2,493.00; Counterparty: Morgan Stanley Capital Services LLC(c)	USD		75,390,000		28,045

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

Company		Notional Amount		U.S. $ Value
S&P 500 Index 3M5Y Expiration: Jan 2023; Contracts: 70,000,000; Exercise Price: USD 2,497.00; Counterparty: Morgan Stanley Capital Services LLC(c)	USD		70,000,000	$	39,620
					67,665
Options on Funds and Investment Trusts – 0.0%
SPDR S&P 500 ETF Trust Expiration: Jan 2018; Contracts: 908; Exercise Price: USD 226.00; Counterparty: Morgan Stanley & Co. LLC(c)			90,800		56,750
Options on Forward Contracts – 0.0%
MXN/USD Expiration: Aug 2018; Contracts: 28,000,000; Exercise Price: MXN 17.50; Counterparty: Credit Suisse International(c)	MXN		28,000,000		7,765
SEK/EUR Expiration: Mar 2018; Contracts: 50,085,000; Exercise Price: SEK 9.45; Counterparty: Citibank, NA(c)	SEK		50,085,000		26,073
TRY/USD Expiration: Jan 2018; Contracts: 11,684,000; Exercise Price: TRY 3.68; Counterparty: Citibank, NA(c)	TRY		11,684,000		13,102
TRY/EUR Expiration: Jan 2018; Contracts: 5,614,953; Exercise Price: TRY 4.24; Counterparty: Goldman Sachs Bank USA(c)			5,614,953		2,367
ZAR/USD Expiration: Dec 2017; Contracts: 10,576,000; Exercise Price: ZAR 13.22; Counterparty: Bank of America, NA(c)	ZAR		10,576,000		2,299
ZAR/USD Expiration: Dec 2017; Contracts: 10,400,000; Exercise Price: ZAR 13.00; Counterparty: JPMorgan Chase Bank, NA(c)			10,400,000		1,521
					53,127
Total Options Purchased – Puts (premiums paid $1,653,057)					177,542

44    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 0.0%
United States – 0.0%
Alameda Corridor Transportation Authority Series 1999C 6.60%, 10/01/29 (cost $111,258)	U.S.$		100	$	123,413
		Shares
PREFERRED STOCKS – 0.0%
Utility – 0.0%
Electric – 0.0%
Dynegy, Inc. 7.00%, 7/01/19(i) (cost $89,951)			1,400		114,800
WARRANTS – 0.0%
SandRidge Energy, Inc., A-CW22, expiring 10/03/22(c)			1,292		1,163
SandRidge Energy, Inc., B-CW22, expiring 10/03/22(c)			544		435
Total Warrants (cost $688)					1,598
		Principal Amount (000)
SHORT-TERM INVESTMENTS – 38.2%
U.S. Treasury Bills – 26.2%
U.S. Treasury Bill Zero Coupon, 1/11/18	U.S.$		39,500		39,417,812
Zero Coupon, 12/07/17-12/14/17(p)			41,000		40,958,785
Total U.S. Treasury Bills (cost $80,374,985)					80,376,597
Governments – Treasuries – 5.9%
Japan – 5.9%
Japan Treasury Discount Bill Series 713 Zero Coupon, 1/15/18 (cost $18,341,190)	JPY		2,060,000		18,121,496
		Shares
Investment Companies – 3.3%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.85%(s)(t)(u) (cost $10,002,782)			10,002,782		10,002,782

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)			U.S. $ Value
Time Deposits – 2.4%
Bank of Montreal, London 0.15%, 11/01/17	CAD		8,776		$	6,802,362
BBH, Grand Cayman (0.568)%, 11/01/17	EUR		220			256,639
(0.24)%, 11/01/17	JPY		286			2,513
0.05%, 11/01/17	GBP		– 0	–**		2
0.05%, 11/01/17	NOK		96			11,729
0.491%, 11/01/17	AUD		– 0	–**		1
0.95%, 11/01/17	NZD		18			11,994
Standard Chartered Bank, London 0.60%, 11/01/17	U.S.$		147			146,895
Total Time Deposits (cost $7,243,165)						7,232,135
Emerging Markets - Sovereigns – 0.4%
Citigroup Global Markets Holdings, Inc./United States Series E Zero Coupon, 3/08/18(a)	EGP		7,627			404,520
HSBC Bank PLC Zero Coupon, 2/01/18			7,875			427,382
Zero Coupon, 11/02/17(a)(b)			7,775			438,809
Total Emerging Markets – Sovereigns (cost $1,264,429)						1,270,711
Total Short-Term Investments (cost $117,226,551)						117,003,721
Total Investments – 96.7% (cost $297,831,075)						296,511,853
Other assets less liabilities – 3.3%						10,225,845
Net Assets – 100.0%					$	306,737,698

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Notional (000)		Original Value		Value at October 31, 2017		Unrealized Appreciation/ (Depreciation)
Purchased Contracts
3 Yr Australian Bond Futures		144		December 2017	AUD	14,400	$	12,285,153	$	12,298,482	$	13,329
10 Yr Canadian Bond Futures		223		December 2017	CAD	22,300		23,475,909		23,755,438		279,529

46    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description	Number of Contracts		Expiration Month		Notional (000)			Original Value		Value at October 31, 2017		Unrealized Appreciation/ (Depreciation)
Euro STOXX 50 Index Futures		361		December 2017	EUR	4		$	14,679,403	$	15,484,527	$	805,124
Nikkei 225 (CME) Futures		88		December 2017	USD	– 0	–***		8,621,800		9,860,221		1,238,421
STOXX 600 Bank Futures		261		December 2017	EUR	13			2,762,075		2,832,887		70,812
U.S. T-Note 2 Yr (CBT) Futures		115		December 2017	USD	23,000			24,877,766		24,766,328		(111,438	)
U.S. Ultra Bond (CBT) Futures		146		December 2017	USD	14,600			24,387,625		24,058,062		(329,563	)
Sold Contracts
10 Yr Australian Bond Futures		65		December 2017	AUD	6,500			6,420,444		6,410,149		10,295
Euro-BOBL Futures		12		December 2017	EUR	1,200			1,834,895		1,842,047		(7,152	)
Euro-Bono Futures		93		December 2017	EUR	9,300			14,905,385		15,107,848		(202,463	)
Euro-Bund Futures		96		December 2017	EUR	9,600			18,015,104		18,199,616		(184,512	)
Long Gilt Futures		92		December 2017	GBP	9,200			15,306,822		15,191,857		114,965
S&P 500 E-mini Futures		91		December 2017	USD	5			11,214,534		11,706,012		(491,478	)
U.S. 10 Yr Ultra Futures		134		December 2017	USD	13,400			17,876,938		17,945,531		(68,593	)
U.S. Long Bond (CBT) Futures		6		December 2017	USD	6,000			926,156		914,812		11,344
U.S. T-Note 5 Yr (CBT) Futures		35		December 2017	USD	3,500			4,136,594		4,101,562		35,032
												$	1,183,652

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Australia and New Zealand Banking Group Ltd.	EUR	4,699	USD	5,565		11/30/17	$	83,042
Bank of America, NA	USD	746	AUD	973		11/30/17		(1,214	)
Bank of America, NA	USD	1,787	RUB	104,014		11/30/17		(12,339	)

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Bank of America, NA	USD	800	ZAR	11,413		12/07/17	$	2,086
Bank of America, NA	USD	133	RUB	7,747		12/11/17		(915	)
Bank of America, NA	ZAR	4,964	USD	363		12/13/17		14,576
Bank of America, NA	BRL	18,192	USD	5,616		12/15/17		85,413
Bank of America, NA	GBP	6,219	USD	8,193		12/15/17		(77,633	)
Bank of America, NA	KRW	1,760,808	USD	1,556		12/15/17		(18,664	)
Bank of America, NA	RUB	147,764	USD	2,519		12/15/17		5,914
Bank of America, NA	TWD	85,780	USD	2,838		12/15/17		(16,271	)
Barclays Bank PLC	USD	3,108	EUR	2,667		11/30/17		3,469
Barclays Bank PLC	ZAR	25,819	USD	1,917		11/30/17		100,428
Barclays Bank PLC	USD	4,500	NOK	36,341		12/15/17		(45,750	)
Barclays Bank PLC	USD	3,461	TRY	13,239		12/15/17		(15,165	)
BNP Paribas SA	USD	1,781	ARS	32,188		12/13/17		(4,051	)
Brown Brothers Harriman & Co.	CAD	4,362	USD	3,523		11/30/17		141,018
Brown Brothers Harriman & Co.	GBP	647	USD	874		11/30/17		13,840
Brown Brothers Harriman & Co.	JPY	62,825	USD	561		11/30/17		7,401
Brown Brothers Harriman & Co.	MXN	19,002	USD	1,045		11/30/17		58,940
Brown Brothers Harriman & Co.	USD	10,521	AUD	13,737		11/30/17		(11,080	)
Brown Brothers Harriman & Co.	USD	447	ZAR	6,371		11/30/17		1,264
Brown Brothers Harriman & Co.	GBP	103	USD	140		12/01/17		3,197
Brown Brothers Harriman��& Co.	USD	473	GBP	349		12/01/17		(8,945	)
Brown Brothers Harriman & Co.	AUD	4,204	USD	3,235		12/15/17		18,892
Brown Brothers Harriman & Co.	CAD	4,021	USD	3,131		12/15/17		12,847
Brown Brothers Harriman & Co.	EUR	13,648	USD	15,986		12/15/17		48,699
Brown Brothers Harriman & Co.	JPY	666,889	USD	5,863		12/15/17		(14,324	)
Brown Brothers Harriman & Co.	USD	159	EUR	136		12/15/17		151
Citibank, NA	USD	1,618	TRY	5,837		11/30/17		(91,686	)
Citibank, NA	USD	3,212	CAD	4,135		12/15/17		(5,763	)
Citibank, NA	USD	6,307	PLN	23,071		12/15/17		32,381
Citibank, NA	NOK	1,464	CAD	230		1/10/18		(1,166	)
Citibank, NA	TRY	5,521	USD	1,446		1/10/18		20,847
Citibank, NA	TRY	505	USD	140		3/13/18		12,012
Citibank, NA	SEK	29,997	EUR	3,116		4/03/18		45,372
Credit Suisse International	CAD	454	MXN	6,534		11/08/17		(11,398	)
Credit Suisse International	CAD	476	NOK	2,981		11/29/17		(3,950	)
Credit Suisse International	CHF	329	SEK	2,757		11/30/17		(91	)
Credit Suisse International	EUR	834	USD	983		11/30/17		10,628
Credit Suisse International	NZD	2,287	CAD	2,000		11/30/17		(12,898	)
Credit Suisse International	CHF	329	SEK	2,734		12/01/17		(2,846	)
Credit Suisse International	ZAR	6,041	USD	423		12/07/17		(1,604	)
Credit Suisse International	SEK	5,895	USD	707		12/13/17		758
Credit Suisse International	USD	363	ZAR	4,964		12/13/17		(14,576	)
Credit Suisse International	EUR	5,180	USD	6,019		12/15/17		(30,778	)
Credit Suisse International	USD	426	ZAR	5,718		12/18/17		(25,237	)
Credit Suisse International	AUD	504	CHF	367		12/19/17		(16,421	)
Credit Suisse International	AUD	209	NOK	1,329		12/27/17		3,118
Credit Suisse International	EUR	963	TRY	4,181		1/04/18		(43,953	)
Credit Suisse International	TRY	216	EUR	50		1/04/18		2,303
Credit Suisse International	CAD	421	NZD	473		1/23/18		(3,110	)
Credit Suisse International	USD	140	TRY	505		3/13/18		(12,011	)
Credit Suisse International	EUR	3,116	SEK	29,997		4/03/18		(45,355	)
Credit Suisse International	CHF	518	NOK	4,285		4/30/18		1,375

48    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Credit Suisse International	USD	166	MXN	3,084		7/23/18	$	(11,640	)
Credit Suisse International	MXN	13,214	USD	698		8/06/18		39,380
Credit Suisse International	USD	698	MXN	13,214		8/06/18		(39,380	)
Deutsche Bank AG	USD	162	ZAR	2,208		11/02/17		(6,219	)
Deutsche Bank AG	MXN	733	CAD	51		11/08/17		1,273
Deutsche Bank AG	NOK	2,981	CAD	476		11/29/17		3,949
Deutsche Bank AG	CAD	1,919	NZD	2,200		11/30/17		17,012
Deutsche Bank AG	SEK	2,757	CHF	329		11/30/17		94
Deutsche Bank AG	CHF	367	AUD	504		12/19/17		16,429
Deutsche Bank AG	NOK	1,329	AUD	209		12/27/17		(3,117	)
Deutsche Bank AG	TRY	1,012	EUR	234		1/04/18		11,660
Deutsche Bank AG	SEK	2,849	EUR	297		1/22/18		5,517
Deutsche Bank AG	NOK	4,285	CHF	518		4/30/18		(1,375	)
Goldman Sachs Bank USA	MXN	5,800	CAD	403		11/08/17		10,118
Goldman Sachs Bank USA	EUR	5,436	USD	6,325		12/15/17		(22,977	)
Goldman Sachs Bank USA	USD	1,615	BRL	5,291		12/15/17		(6,694	)
Goldman Sachs Bank USA	USD	9,776	CZK	214,929		12/15/17		2,120
Goldman Sachs Bank USA	ZAR	44,927	USD	3,127		12/15/17		(26,397	)
Goldman Sachs Bank USA	TRY	2,953	EUR	679		1/04/18		30,092
HSBC Bank USA	USD	5,035	BRL	15,873		11/29/17		(201,163	)
HSBC Bank USA	AUD	13,768	USD	10,862		11/30/17		327,844
HSBC Bank USA	USD	1,437	BRL	4,626		11/30/17		(28,038	)
HSBC Bank USA	MXN	20,956	USD	1,082		12/15/17		(2,448	)
JPMorgan Chase Bank, NA	ZAR	2,208	USD	162		11/02/17		6,219
JPMorgan Chase Bank, NA	USD	2,858	TWD	85,773		11/22/17		(8,726	)
JPMorgan Chase Bank, NA	SEK	2,734	CHF	329		12/01/17		2,846
JPMorgan Chase Bank, NA	ZAR	10,164	USD	724		12/07/17		9,700
JPMorgan Chase Bank, NA	ZAR	5,909	USD	414		12/07/17		(875	)
JPMorgan Chase Bank, NA	RUB	7,747	USD	133		12/11/17		915
JPMorgan Chase Bank, NA	ZAR	5,718	USD	426		12/18/17		25,238
JPMorgan Chase Bank, NA	CAD	230	NOK	1,464		1/10/18		1,165
JPMorgan Chase Bank, NA	EUR	297	SEK	2,848		1/22/18		(5,668	)
JPMorgan Chase Bank, NA	NZD	473	CAD	421		1/23/18		3,126
JPMorgan Chase Bank, NA	TRY	982	USD	274		3/08/18		24,180
JPMorgan Chase Bank, NA	USD	274	TRY	982		3/08/18		(24,184	)
JPMorgan Chase Bank, NA	TRY	508	USD	138		3/20/18		9,932
JPMorgan Chase Bank, NA	USD	138	TRY	508		3/20/18		(9,932	)
JPMorgan Chase Bank, NA	MXN	3,084	USD	166		7/23/18		11,640
Royal Bank of Scotland PLC	USD	6,833	CAD	8,776		11/30/17		(28,606	)
Royal Bank of Scotland PLC	EUR	2,103	USD	2,479		12/15/17		22,508
Royal Bank of Scotland PLC	USD	2,226	RUB	129,147		12/15/17		(28,964	)
Standard Chartered Bank	USD	1,086	JPY	121,478		11/30/17		(16,330	)
Standard Chartered Bank	EUR	1,520	USD	1,794		12/15/17		19,277
Standard Chartered Bank	JPY	2,011,450	USD	17,990		1/16/18		229,022
							$	539,300

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

CALL OPTIONS WRITTEN (see Note D)

Description

Counter- Party

Contracts

Exercise Price

Expiration Month

Notional (000)

Premiums Received

U.S. $ Value

ProShares Short S&P 500

Morgan Stanley & Co. LLC

5,700

USD  36.00

January 2018

USD  570

$

1,293,640

$

(57,000

)

PUT OPTIONS WRITTEN (see Note D)

Description

Counter- Party

Contracts

Exercise Price

Expiration Month

Notional (000)

Premiums Received

U.S. $ Value

Vanguard REIT ETF

Deutsche Bank AG

211,000

USD  76.00

January 2018

USD  211

$

99,170

$

(124,472

)

CREDIT DEFAULT SWAPTIONS WRITTEN (see Note D)

Description	Counter- Party		Buy/Sell Protection		Strike Rate			Expiration Month		Notional Amount (000)		Premiums Received		Market Value
Put
CDX-NAHY Series 29, 5 Year Index		Credit Suisse International		Sell		105.50	%		Nov 2017	$	3,100	$	3,410	$	(1,119	)

INTEREST RATE SWAPTIONS WRITTEN (see Note D)

Description	Index	Counter- Party	Strike Rate			Expiration Date		Notional Amount (000)		Premiums Received		Market Value
Put
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Barclays Bank PLC		1.10	%		11/06/17	GBP	1,260	$	5,267	$	(2,511	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Barclays Bank PLC		1.53			11/17/17	GBP	240		4,872		(1,551	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Barclays Bank PLC		1.10			11/20/17	GBP	1,240		5,084		(4,515	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Barclays Bank PLC		1.58			11/20/17	GBP	240		4,872		(3,214	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Citibank, NA		2.12			11/20/17	GBP	1,625		5,281		(3,076	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Citibank, NA		1.18			11/20/17	GBP	900		5,190		(2,299	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	Citibank, NA		2.12			11/24/17	USD	1,625		5,606		(3,248	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Citibank, NA		1.24			11/24/17	GBP	850		4,991		(4,505	)

50    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description	Index	Counter- Party	Strike Rate			Expiration Date		Notional Amount (000)		Premiums Received		Market Value
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Citibank, NA		1.12	%		11/30/17	GBP	1,200	$	4,701	$	(4,785	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Citibank, NA		1.39			11/30/17	GBP	625		4,772		(4,870	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	Deutsche Bank AG		2.64			11/27/17	USD	350		4,926		(2,810	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	Deutsche Bank AG		2.64			11/27/17	USD	350		4,926		(6,822	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Goldman Sachs International		1.12			11/06/17	GBP	1,260		5,214		(1,768	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	Goldman Sachs International		2.20			11/06/17	USD	1,230		5,560		(2,017	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	Goldman Sachs International		2.17			11/06/17	USD	1,230		5,720		(1,055	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Goldman Sachs International		1.06			11/17/17	GBP	1,240		5,427		(5,875	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Goldman Sachs International		1.06			11/20/17	GBP	1,250		5,075		(6,522	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	Goldman Sachs International		2.28			11/27/17	USD	1,175		5,444		(2,620	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Goldman Sachs International		1.12			11/30/17	GBP	1,200		5,142		(4,710	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Goldman Sachs International		1.12			11/30/17	GBP	1,200		5,142		(4,876	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	JPMorgan Chase Bank, NA		2.10			11/24/17	USD	1,625		5,606		(4,292	)
OTC -1 Year Interest Rate Swap	3 Month LIBOR	JPMorgan Chase Bank, NA		2.32			11/27/17	USD	1,200		6,180		(1,961	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Morgan Stanley Capital Services LLC		1.24			11/20/17	GBP	860		4,987		(4,048	)
OTC -1 Year Interest Rate Swap	6 Month LIBOR	Morgan Stanley Capital Services LLC		1.21			11/23/17	GBP	850		4,993		(3,427	)

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

Description	Index		Counter- Party		Strike Rate			Expiration Date		Notional Amount (000)		Premiums Received		Market Value
OTC -1 Year Interest Rate Swap		6 Month LIBOR		Morgan Stanley Capital Services LLC		0.29	%		11/27/17	EUR	1,300	$	2,916	$	(6,275	)
OTC -1 Year Interest Rate Swap		6 Month LIBOR		Morgan Stanley Capital Services LLC		0.24			11/27/17	EUR	1,300		2,471		(3,352	)
												$	130,365	$	(97,004	)

CURRENCY OPTIONS WRITTEN (see Note D)

Description/ Counterparty	Exercise Price		Expiration Month		Contracts		Notional Amount (000)		Premiums Received		U.S. $ Value
Call
CHF vs. AUD/ Deutsche Bank AG	CHF	0.760		12/2017		1,596,000	CHF	1,596	$	13,619	$	(18,932	)
MXN vs. CAD/ Goldman Sachs Bank USA	MXN	15.000		11/2017		30,750,000	MXN	30,750		11,677		(3,877	)
MXN vs. USD/ Credit Suisse International	MXN	21.500		07/2018		17,737,500	MXN	17,738		14,108		(22,643	)
MXN vs. USD/ JPMorgan Chase Bank, NA	MXN	20.000		07/2018		16,000,000	MXN	16,000		20,824		(39,406	)
MXN vs. USD/ Credit Suisse International	MXN	22.000		08/2018		35,200,000	MXN	35,200		31,152		(39,947	)
MXN vs. USD/ Goldman Sachs Bank USA	MXN	22.000		08/2018		18,260,000	MXN	18,260		15,050		(21,636	)
NOK vs. AUD/ Deutsche Bank AG	NOK	6.700		12/2017		7,370,000	NOK	7,370		5,726		(602	)
NOK vs. CAD/ Deutsche Bank AG	NOK	6.430		11/2017		13,083,000	NOK	13,083		9,999		(3,343	)
NOK vs. CAD/ Citibank, NA	NOK	6.525		01/2018		6,525,000	NOK	6,525		4,528		(2,284	)

52    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description/ Counterparty	Exercise Price		Expiration Month		Contracts		Notional Amount (000)		Premiums Received		U.S. $ Value
NOK vs. CHF/ Deutsche Bank AG	NOK	8.460		04/2018		13,113,000	NOK	13,113	$	26,991	$	(20,116	)
NOK vs. EUR/ Goldman Sachs Bank USA	NOK	9.590		11/2017		13,419,000	NOK	13,419		9,138		(1,712	)
NZD vs. AUD/ JPMorgan Chase Bank, NA	NZD	1.120		11/2017		2,303,000	NZD	2,303		9,596		(10,445	)
NZD vs. AUD/ Citibank, NA	NZD	1.140		12/2017		2,249,000	NZD	2,249		9,172		(5,787	)
RUB vs. USD/ JPMorgan Chase Bank, NA	RUB	61.500		12/2017		49,200,000	RUB	49,200		7,184		(2,897	)
RUB vs. USD/ Credit Suisse International	RUB	65.850		02/2018		54,326,000	RUB	54,326		13,830		(4,372	)
SEK vs. CHF/ Deutsche Bank AG	SEK	8.650		11/2017		13,400,000	SEK	13,400		10,988		(1,666	)
SEK vs. CHF/ JPMorgan Chase Bank, NA	SEK	8.560		11/2017		13,279,000	SEK	13,279		10,607		(3,137	)
SEK vs. EUR/ Bank of America, NA	SEK	9.650		11/2017		13,462,000	SEK	13,462		9,976		(18,677	)
SEK vs. EUR/ Goldman Sachs Bank USA	SEK	9.750		12/2017		13,163,000	SEK	13,163		7,491		(10,683	)
SEK vs. EUR/ Deutsche Bank AG	SEK	9.780		01/2018		13,199,000	SEK	13,199		6,848		(13,685	)
SEK vs. EUR/ Citibank, NA	SEK	9.850		03/2018		52,205,000	SEK	52,205		53,853		(63,600	)
TRY vs. EUR/ Deutsche Bank AG	TRY	4.520		01/2018		6,219,000	TRY	6,219		16,339		(32,002	)
TRY vs. EUR/ Goldman Sachs Bank USA	TRY	4.550		01/2018		6,029,000	TRY	6,029		14,423		(27,760	)

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

Description/ Counterparty	Exercise Price		Expiration Month		Contracts		Notional Amount (000)		Premiums Received		U.S. $ Value
TRY vs. USD/ Citibank, NA	TRY	4.050		01/2018		12,859,000	TRY	12,859	$	30,643	$	(30,053	)
TRY vs. USD/ JPMorgan Chase Bank, NA	TRY	3.840		03/2018		6,136,000	TRY	6,136		24,320		(70,027	)
TRY vs. USD/ Citibank, NA	TRY	3.860		03/2018		3,088,000	TRY	3,088		12,268		(33,322	)
TRY vs. USD/ JPMorgan Chase Bank, NA	TRY	3.930		03/2018		3,144,000	TRY	3,144		12,756		(28,076	)
TRY vs. USD/ Morgan Stanley Capital Services LLC	TRY	4.370		07/2018		3,604,000	TRY	3,604		21,863		(22,196	)
ZAR vs. USD/ Bank of America, NA	ZAR	14.400		12/2017		11,520,000	ZAR	11,520		6,849		(16,404	)
ZAR vs. USD/ JPMorgan Chase Bank, NA	ZAR	14.000		12/2017		11,200,000	ZAR	11,200		8,824		(28,210	)
ZAR vs. USD/ Bank of America, NA	ZAR	16.000		04/2018		12,800,000	ZAR	12,800		9,476		(15,638	)
Put
CAD vs. NZD/ JPMorgan Chase Bank, NA	CAD	0.867		01/2018		1,907,000	CAD	1,907		8,643		(12,124	)
									$	468,761	$	(625,259	)

54    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency	Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		(5.00	)%	Quarterly		2.80	%	USD	2,146	$	(204,019	)	$	(150,802	)	$	(53,217	)
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		(5.00	)	Quarterly		2.80		USD	1,430		(135,949	)		(100,488	)		(35,461	)
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		(5.00	)	Quarterly		2.80		USD	1,311		(125,872	)		(93,167	)		(32,705	)
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		(5.00	)	Quarterly		2.80		USD	5,120		(486,756	)		(282,008	)		(204,748	)
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		(5.00	)	Quarterly		2.80		USD	3,919		(376,380	)		(220,578	)		(155,802	)
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		(5.00	)	Quarterly		2.80		USD	7,681		(730,229	)		(419,362	)		(310,867	)
CDX-NAHY Series 29, 5 Year Index, 12/20/22*		(5.00	)	Quarterly		3.11		USD	4,310		(386,442	)		(315,968	)		(70,474	)
CDX-NAIG Series 23, 5 Year Index, 12/20/19*		(1.00	)	Quarterly		0.27		USD	37,500		(621,037	)		(303,923	)		(317,114	)
CDX-NAIG Series 25, 5 Year Index, 12/20/20*		(1.00	)	Quarterly		0.31		USD	12,660		(281,661	)		(88,553	)		(193,108	)
CDX-NAIG Series 25, 5 Year Index, 12/20/20*		(1.00	)	Quarterly		0.31		USD	36,570		(812,597	)		(173,839	)		(638,758	)
CDX-NAIG Series 25, 5 Year Index, 12/20/20*		(1.00	)	Quarterly		0.31		USD	16,710		(371,302	)		(80,558	)		(290,744	)
CDX-NAIG Series 26, 5 Year Index, 6/20/21*		(1.00	)	Quarterly		0.35		USD	30,100		(725,206	)		(298,543	)		(426,663	)
CDX-NAIG Series 26, 5 Year Index, 6/20/21*		(1.00	)	Quarterly		0.35		USD	25,820		(622,087	)		(262,073	)		(360,014	)
iTraxx Europe Crossover Series 28, 5 Year Index, 12/20/22*		(5.00	)	Quarterly		2.25		EUR	13,600		(2,148,800	)		(1,840,491	)		(308,309	)

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
iTraxx Europe Senior Financials Series 23, 5 Year Index, 6/20/20*		(1.00	)%		Quarterly		0.20	%	EUR	10,160	$	(266,602	)	$	(96,081	)	$	(170,521	)
Sale Contracts
CDX-NAHY Series 20, 5 Year Index, 6/20/18*		5.00			Quarterly		1.03		USD	1,940		56,770			8,043			48,727
CDX-NAHY Series 20, 5 Year Index, 6/20/18*		5.00			Quarterly		1.03		USD	1,671		48,899			19,910			28,989
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		5.00			Quarterly		2.80		USD	4,310		409,750			308,412			101,338
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		5.00			Quarterly		2.80		USD	4,900		465,840			331,541			134,299
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		5.00			Quarterly		2.80		USD	6,350		603,691			435,525			168,166
CDX-NAHY Series 28, 5 Year Index, 6/20/22*		5.00			Quarterly		2.80		USD	6,100		579,923			399,205			180,718
CDX-NAIG Series 25, 5 Year Index, 12/20/20*		1.00			Quarterly		0.31		USD	39,970		888,146			(6,288	)		894,434
CDX-NAIG Series 25, 5 Year Index, 12/20/20*		1.00			Quarterly		0.31		USD	25,970		577,782			90,390			487,392
CDX-NAIG Series 26, 5 Year Index, 6/20/21*		1.00			Quarterly		0.35		USD	55,920		1,347,293			519,769			827,524
											$	(3,316,845	)	$	(2,619,927	)	$	(696,918	)

* Termination date

56    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
GBP	115,320		5/21/18	6 Month LIBOR	0.780%	Semi-Annual/ Semi-Annual	$	403,293		$	—	$	403,293
BRL	74,700		1/02/19	7.340%	1 Day CDI	Maturity/ Maturity		(3,586	)		—		(3,586	)
BRL	32,500		1/02/19	9.235%	1 Day CDI	Maturity/ Maturity		(196,704	)		—		(196,704	)
BRL	32,500		1/02/19	9.180%	1 Day CDI	Maturity/ Maturity		(189,957	)		—		(189,957	)
GBP	115,320		2/20/19	0.878%	6 Month LIBOR	Semi-Annual/ Semi-Annual		(463,803	)		—		(463,803	)
GBP	119,710		10/26/19	6 Month LIBOR	0.840%	Semi-Annual/ Semi-Annual		1,464			—		1,464
MXN	20,011		6/22/20	4 Week TIIE	6.770%	Monthly/ Monthly		(13,395	)		—		(13,395	)
USD	31,700		12/14/20	1.663%	3 Month LIBOR	Semi-Annual/ Quarterly		129,726			—		129,726
BRL	34,100		1/04/21	1 Day CDI	8.760%	Maturity/ Maturity		(65,045	)		—		(65,045	)
BRL	17,000		1/04/21	1 Day CDI	10.215%	Maturity/ Maturity		151,725			—		151,725
BRL	17,000		1/04/21	1 Day CDI	10.165%	Maturity/ Maturity		145,334			—		145,334
CAD	44,120		11/07/21	3 Month CDOR	1.050%	Semi-Annual/ Semi-Annual		(1,209,767	)		—		(1,209,767	)
CAD	59,390		11/14/21	3 Month CDOR	1.303%	Semi-Annual/ Semi-Annual		(1,126,444	)		—		(1,126,444	)
CAD	31,880		12/05/21	3 Month CDOR	1.398%	Semi-Annual/ Semi-Annual		(518,300	)		—		(518,300	)
GBP	1,110		1/09/22	6 Month LIBOR	0.911%	Semi-Annual/ Semi-Annual		(5,806	)		—		(5,806	)
USD	36,830		7/13/22	3 Month LIBOR	2.056%	Quarterly/ Semi-Annual		171,159			—		171,159
GBP	48,920		10/26/22	1.126%	6 Month LIBOR	Semi-Annual/ Semi-Annual		(84,640	)		—		(84,640	)
MXN	117,100		9/11/26	4 Week TIIE	6.290%	Monthly/ Monthly		(454,935	)		—		(454,935	)
MXN	7,347		6/14/27	7.090%	4 Week TIIE	Monthly/ Monthly		9,538			—		9,538
GBP	33,150		7/17/27	6 Month LIBOR	1.322%	Semi-Annual/ Semi-Annual		(48,372	)		—		(48,372	)
EUR	19,200		10/30/27	6 Month EURIBOR	0.901%	Semi-Annual/ Annual		147,178			—		147,178
USD	3,630		3/07/46	2.173%	3 Month LIBOR	Semi-Annual/ Quarterly		340,035			—		340,035
CAD	8,570		11/07/46	1.868%	3 Month CDOR	Semi-Annual/ Semi-Annual		976,833			—		976,833
CAD	12,040		11/14/46	2.182%	3 Month CDOR	Semi-Annual/ Semi-Annual		726,563			—		726,563
CAD	8,010		12/05/46	2.310%	3 Month CDOR	Semi-Annual/ Semi-Annual		312,667			—		312,667
USD	12,010		1/17/47	2.466%	3 Month LIBOR	Semi-Annual/ Quarterly		331,556			—		331,556

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
USD	6,370		2/03/47		2.724%		3 Month LIBOR	Semi-Annual/ Quarterly	$	(155,957	)	$	—		$	(155,957	)
GBP	12,920		7/17/47		1.621%		6 Month LIBOR	Semi-Annual/ Semi-Annual		(180,553	)		—			(180,553	)
EUR	16,540		9/01/47		6 Month EURIBOR		1.468%	Semi-Annual/ Annual		(287,220	)		—			(287,220	)
GBP	1,110		1/09/22		0.981%		6 Month LIBOR	Semi-Annual/ Semi-Annual		1,196			—			1,196
EUR	230,000		10/09/27		6 Month EURIBOR		0.889%	Semi-Annual/ Annual		1,740,290			1,108,250			632,040
EUR	230,000		10/09/27		0.889%		6 Month EURIBOR	Annual/ Semi-Annual		(1,734,885	)		—			(1,734,885	)
EUR	115,000		10/09/27		6 Month EURIBOR		0.883%	Semi-Annual/ Annual		790,408			—			790,408
EUR	115,000		10/09/27		6 Month EURIBOR		0.839%	Semi-Annual/ Annual		208,874			—			208,874
EUR	115,000		10/09/27		0.839%		6 Month EURIBOR	Annual/ Semi-Annual		(206,736	)		115,453			(322,189	)
EUR	115,000		10/09/27		0.883%		6 Month EURIBOR	Annual/ Semi-Annual		(788,158	)		(473,824	)		(314,334	)
GBP	810		2/28/24		6 Month LIBOR		1.251%	Semi-Annual/ Semi-Annual		6,379			22,475			(16,096	)
GBP	810		2/29/24		1.251%		6 Month LIBOR	Semi-Annual/ Semi-Annual		(6,388	)		—			(6,388	)
EUR	250		2/08/47		6 Month EURIBOR		1.298%	Semi-Annual/ Annual		(14,222	)		—			(14,222	)
EUR	250		2/08/47		6 Month EURIBOR		1.293%	Semi-Annual/ Annual		(14,630	)		—			(14,630	)
EUR	250		2/08/47		1.426%		6 Month EURIBOR	Annual/ Semi-Annual		4,753			—			4,753
EUR	250		2/08/47		1.425%		6 Month EURIBOR	Annual/ Semi-Annual		4,827			—			4,827
									$	(1,165,705	)	$	772,354		$	(1,938,059	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
Bank of America, NA
LCDX-NA Series 20, 5 Year Index, 6/20/18*		(2.50	)%		Quarterly		0.16	%	USD	9,100	$	(150,973	)	$	(35,996	)	$	(114,977	)
Barclays Bank PLC
Malaysia Government International, 12/20/22*		(1.00	)		Quarterly		0.63		USD	16,900		(322,234	)		(280,509	)		(41,725	)

58    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency	Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Windstream Services LLC Wind, 7.50%, 6/01/22, 3/20/18*		(5.00	)%	Quarterly		17.11	%	USD	122	$	4,630		$	14,558		$	(9,928	)
Windstream Services LLC Wind, 7.50%, 6/01/22, 6/20/18*		(5.00	)	Quarterly		13.87		USD	128		5,884			21,607			(15,723	)
BNP Paribas SA
Kingdom of Thailand, 12/20/22*		(1.00	)	Quarterly		0.47		USD	20,000		(536,127	)		(455,312	)		(80,815	)
Kingdom of Thailand, 12/20/22*		(1.00	)	Quarterly		0.47		USD	20,000		(536,127	)		(454,843	)		(81,284	)
Citibank, NA
iTraxx Japan Series 28, 5 Year Index, 12/20/20*		(1.00	)	Quarterly		0.48		JPY	5,740,190		(1,399,320	)		(1,384,234	)		(15,086	)
Credit Suisse International
BellSouth LLC, 6.55%, 6/15/34, 9/20/19*		(1.00	)	Quarterly		0.22		USD	7,520		(116,281	)		(69,557	)		(46,724	)
Deutsche Bank AG
iTraxx Japan Series 24, 5 Year Index, 12/20/20*		(1.00	)	Quarterly		0.31		JPY	3,720,370		(746,066	)		(166,939	)		(579,127	)
iTraxx Australia Series 25, 5 Year Index, 6/20/21*		(1.00	)	Quarterly		0.37		USD	55,920		(1,308,813	)		708,570			(2,017,383	)
Goldman Sachs International
Korea International Bond, 7.125%, 4/16/19, 12/20/22*		(1.00	)	Quarterly		0.73		USD	29,585		(425,379	)		(379,638	)		(45,741	)
United Mexican States, 5.95%, 3/19/19, 12/20/19*		(1.00	)	Quarterly		0.49		USD	32,970		(396,490	)		(83,690	)		(312,800	)

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    59

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency	Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA
Malaysia Government International, 12/20/22*		(1.00	)%	Quarterly		0.63	%	USD	19,000	$	(362,275	)	$	(274,089	)	$	(88,186	)
Morgan Stanley Capital Services LLC
Chile Government International Bond, 3.875%, 8/05/20, 12/20/22*		(1.00	)	Quarterly		0.51		USD	49,030		(1,238,958	)		(1,047,063	)		(191,895	)
Sale Contracts
Bank of America, NA
Genworth Holdings, Inc., 6.515%, 5/22/18, 6/20/20*		5.00		Quarterly		5.55		USD	300		(2,323	)		6,989			(9,312	)
iTraxx Australia Series 25, 5 Year Index, 6/20/21*		1.00		Quarterly		0.37		USD	25,820		604,322			(20,011	)		624,333
Barclays Bank PLC
Assured Guaranty Municipal Corp., 6/20/20*		5.00		Quarterly		1.22		USD	300		30,354			12,482			17,872
iTraxx Japan Series 24, 5 Year Index, 12/20/20*		1.00		Quarterly		0.31		JPY	3,720,370		747,884			490,017			257,867
United Mexican States, 5.95%, 3/19/19, 12/20/19*		1.00		Quarterly		0.49		USD	14,620		175,005			(47,435	)		222,440

60    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency	Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
United Mexican States, 5.95%, 3/19/19, 12/20/19*		1.00	%	Quarterly		0.49	%	USD	18,350	$	220,673		$	(40,706	)	$	261,379
Windstream Services LLC Wind, 7.50%, 6/01/22, 12/20/22*		5.00		Quarterly		15.65		USD	250		(74,290	)		(91,985	)		17,695
Citibank, NA
iTraxx Australia Series 25, 5 Year Index, 6/20/21*		1.00		Quarterly		0.37		USD	30,100		704,493			(108,530	)		813,023
Nabors Industries, Inc., 6.15%, 2/15/18, 6/20/20*		1.00		Quarterly		1.53		USD	300		(5,450	)		(18,966	)		13,516
Safeway, Inc., 7.25%, 2/01/31, 6/20/20*		1.00		Quarterly		2.13		USD	300		(9,231	)		(13,828	)		4,597
Staples, Inc., 2.75%, 1/12/18, 6/20/20*		1.00		Quarterly		3.20		USD	300		(17,806	)		(6,743	)		(11,063	)
Weatherford International LLC, 4.50%, 4/15/22, 6/20/20*		1.00		Quarterly		3.04		USD	300		(16,521	)		(14,690	)		(1,831	)
Credit Suisse International
AT&T, Inc., 3.375%, 3/30/20, 9/20/19*		1.00		Quarterly		0.19		USD	7,520		121,201			80,739			40,462
Avon Products, Inc., 6.50%, 3/01/19, 6/20/20*		1.00		Quarterly		5.41		USD	300		(33,536	)		(29,299	)		(4,237	)
CDX-CMBX.NA.BBB- Series 6, 5/11/63*		3.00		Monthly		7.25		USD	8,810		(1,470,242	)		139,119			(1,609,361	)
Freeport-McMoran, Inc., 3.55%, 3/01/22, 6/20/20*		1.00		Quarterly		0.66		USD	300		2,566			(12,007	)		14,573
Teck Resources Ltd., 3.75%, 2/01/23, 6/20/20*		1.00		Quarterly		0.43		USD	300		4,455			(12,766	)		17,221

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    61

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2017			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Transocean, Inc., 7.375%, 4/15/18, 6/20/20*		1.00	%		Quarterly		1.79	%	USD	300	$	(6,416	)	$	(35,763	)	$	29,347
											$	(6,553,391	)	$	(3,610,518	)	$	(2,942,873	)

* Termination date

INTEREST RATE SWAPS (see Note D)

					Rate Type
Swap Counterparty	Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA	USD	650		4/20/20		3.738%		3 Month LIBOR		Semi- Annual/ Quarterly	$	(29,563	)
JPMorgan Chase Bank, NA	USD	950		4/26/20		3.772%		3 Month LIBOR		Semi- Annual/ Quarterly		(43,907	)
											$	(73,470	)

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation

# of Shares or Units

Rate Paid/ Received

Payment Frequency

Notional Amount (000)

Maturity Date

Unrealized Appreciation/ (Depreciation)

Receive Total Return on Reference Obligation

Citibank, NA

Euro Stoxx 50 Index

30,009

—

Maturity

EUR

3,160

12/18/20

$

681,642

Goldman Sachs International

GS Unconstrained Bond Custom Basket Long 1

114,963

LIBOR Plus 0.42

%

Quarterly

USD

11,533

10/15/18

(180,492

)

JPMorgan Chase Bank, NA

Euro Stoxx 50 Index

30,009

—

Maturity

EUR

3,211

12/18/20

622,216

62    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Counterparty & Referenced Obligation	# of Shares or Units		Rate Paid/ Received			Payment Frequency		Notional Amount (000)		Maturity Date		Unrealized Appreciation/ (Depreciation)
Pay Total Return on Reference Obligation
Citibank, NA
Euro Stoxx 50 Index		30,009		—			Maturity	EUR	3,337		12/15/17	$	(199,249	)
iShares J.P. Morgan USD Emerging Markets Bond ETF		52,000		LIBOR Plus 0.10	%		Monthly	USD	6,043		11/15/17		1,711
Goldman Sachs International
Bundesrepublik Deutschland 2.500% 8/2046		14,000,000		0.85	%		Maturity	EUR	18,772		12/01/17		241,245
GS Unconstrained Bond Custom Basket Long 1		85,289		LIBOR Plus 0.28	%		Quarterly	USD	8,597		10/15/18		(52,026	)
JPMorgan Chase Bank, NA
Euro Stoxx 50 Index		30,009		—			Maturity	EUR	3,376		12/15/17		(153,806	)
												$	961,241

** Principal amount less than 500.

*** Notional amount less than 500.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2017, the aggregate market value of these securities amounted to $36,712,499 or 12.0% of net assets.

(b) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(c) Non-income producing security.

(d) Fair valued by the Adviser.

(e) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost			Market Value			Percentage of Net Assets
Exide Technologies		5/23/17	$	– 0	–	$	11,694			0.00	%
Momentive Performance Materials, Inc. 8.875%, 10/15/20		9/06/16		1			– 0	–		0.00	%

(f) Illiquid security.

(g) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2017.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    63

PORTFOLIO OF INVESTMENTS (continued)

(h) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 1.25% of net assets as of October 31, 2017, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Bellemeade Re II Ltd. Series 2016-1A, Class M2B 7.738%, 4/25/26		4/29/16	$	2,391,300	$	2,452,076		0.80	%
Dominican Republic International Bond 15.95%, 6/04/21		6/14/11		732,751		679,540		0.22	%
Exide Technologies 7.00%, 4/30/25		11/10/16		146,604		152,118		0.05	%
Exide Technologies 11.00%, 4/30/22		5/24/17		99,707		93,500		0.03	%
Golden Energy Offshore Services AS 5.00%, 12/31/17		10/31/14		1,118,522		417,546		0.14	%
Virgolino de Oliveira Finance SA 10.50%, 1/28/18		1/23/14		477,436		41,204		0.01	%

(i) Convertible security.

(j) Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at October 31, 2017.

(k) Defaulted.

(l) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(m) Floating Rate Security. Stated interest/floor rate was in effect at October 31, 2017.

(n) Defaulted matured security.

(o) IO – Interest Only.

(p) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(q) Variable rate coupon, rate shown as of October 31, 2017.

(r) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2017.

(s) Affiliated investments.

(t) The rate shown represents the 7-day yield as of period end.

(u) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618.

Currency Abbreviations:   ARS – Argentine Peso AUD – Australian Dollar BRL – Brazilian Real CAD – Canadian Dollar CHF – Swiss Franc CZK – Czech Koruna DOP – Dominican Peso EGP – Egyptian Pound EUR – Euro GBP – Great British Pound JPY – Japanese Yen KRW – South Korean Won MXN – Mexican Peso MYR – Malaysian Ringgit NOK – Norwegian Krone NZD – New Zealand Dollar PLN – Polish Zloty RUB – Russian Ruble SEK – Swedish Krona TRY – Turkish Lira TWD – New Taiwan Dollar USD – United States Dollar UYU – Uruguayan Peso ZAR – South African Rand

64    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Glossary:

12MTA – 12 Month Treasury Average

ABS – Asset-Backed Securities

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

CDI – Brazil CETIP Interbank Deposit Rate

CDOR – Canadian Dealer Offered Rate

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CDX-NAIG – North American Investment Grade Credit Default Swap Index

CMBS – Commercial Mortgage-Backed Securities

CME – Chicago Mercantile Exchange

ETF – Exchange Traded Fund

EURIBOR – Euro Interbank Offered Rate

INTRCONX – Inter-Continental Exchange

LCDX.NA – North American Loan Credit Default Swap Index

LIBOR – London Interbank Offered Rates

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SPDR – Standard & Poor’s Depository Receipt

TIIE – Banco de México Equilibrium Interbank Interest Rate

TIPS – Treasury Inflation Protected Security

The following table represents the 50 largest equity basket holdings underlying the total return swap with GS Unconstrained Bond Custom Basket Long 1 as of October 31, 2017.

Security Description	Shares		Market Value as of 10/31/17		Percent of Basket’s Net Assets
GS Unconstrained Bond Custom Basket Long 1
Procter & Gamble Co./The		8,154	$	727,785		7.2	%
Coca-Cola Co./The		13,793		642,340		6.3	%
Wal-Mart Stores Inc.		6,315		627,894		6.2	%
PepsiCo. Inc.		5,207		599,846		5.9	%
McDonald’s Corp.		2,940		493,861		4.9	%
Newmont Mining Corp.		11,276		406,387		4.0	%
CVS Health Corp.		5,087		357,209		3.5	%
Kroger Co./The		15,504		345,274		3.4	%
AT&T Inc.		9,934		342,475		3.4	%
Walgreens Boots Alliance Inc.		4,606		328,270		3.2	%
CostCo. Wholesale Corp.		1,913		326,970		3.2	%
Starbucks Corp.		5,251		300,567		3.0	%
Verizon Communications Inc.		6,579		293,818		2.9	%
Colgate-Palmolive Co.		2,842		206,443		2.0	%
Constellation Brands Inc.		621		135,043		1.3	%
NextEra Energy Inc.		834		131,063		1.3	%
Kimberly-Clark Corp.		1,134		130,229		1.3	%
Royal Gold Inc.		1,386		118,531		1.2	%
Duke Energy Corp.		1,254		111,838		1.1	%
Yum! Brands Inc.		1,241		97,431		1.0	%
Dominion Energy Inc.		1,157		94,793		0.9	%
Southern Co./The		1,813		94,113		0.9	%
Monster Beverage Corp.		1,504		93,278		0.9	%
American Tower Corp.		626		93,086		0.9	%
Estee Lauder Cos Inc./The		709		89,086		0.9	%
Casey’s General Stores Inc.		663		77,458		0.8	%

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    65

PORTFOLIO OF INVESTMENTS (continued)

Security Description	Shares		Market Value as of 10/31/17		Percent of Basket’s Net Assets
Simon Property Group Inc.		462	$	73,929		0.7	%
Exelon Corp.		1,729		71,364		0.7	%
American Electric Power Co. Inc.		866		66,440		0.6	%
Crown Castle International Corp.		588		65,415		0.6	%
Dr Pepper Snapple Group Inc.		661		57,553		0.6	%
Equinix Inc.		117		55,659		0.5	%
Clorox Co./The		411		55,316		0.5	%
Sempra Energy		453		54,306		0.5	%
Molson Coors Brewing Co.		661		52,543		0.5	%
Prologis Inc.		780		52,377		0.5	%
PG&E Corp.		910		50,223		0.5	%
Consolidated Edison Inc.		550		48,070		0.5	%
Public Storage		224		47,884		0.5	%
Edison International		578		47,211		0.5	%
Public Service Enterprise Group Inc.		915		46,907		0.5	%
Xcel Energy Inc.		900		46,053		0.4	%
Sprouts Farmers Market Inc.		2,254		45,914		0.4	%
PPL Corp.		1,221		44,249		0.4	%
Brown-Forman Corp.		701		40,889		0.4	%
Weyerhaeuser Co.		1,107		40,422		0.4	%
WEC Energy Group Inc.		561		38,574		0.4	%
Welltower Inc.		553		37,632		0.4	%
Equity Residential		541		37,502		0.4	%
Eversource Energy		575		37,315		0.4	%
Other		41,270		1,681,466		16.6	%
Total			$	10,160,301		100.0	%

The following table represents the 50 largest equity basket holdings underlying the total return swap with GS Unconstrained Bond Custom Basket Long 1 as of October 31, 2017.

Security Description	Shares		Market Value as of 10/31/17		Percent of Basket’s Net Assets
GS Unconstrained Bond Custom Basket Long 1
Caterpillar Inc.		3,970	$	541,349		5.4	%
Union Pacific Corp.		4,105		478,479		4.8	%
Louisiana-Pacific Corp.		17,068		452,985		4.5	%
Johnson Controls International plc		12,119		437,981		4.4	%
General Motors Co		7,511		327,555		3.3	%
Ford Motor Co		22,907		275,800		2.8	%
CSX Corp.		4,720		236,614		2.4	%
Intel Corp.		4,612		210,492		2.1	%
Delta Air Lines Inc.		3,947		199,126		2.0	%
Norfolk Southern Corp.		1,474		190,500		1.9	%
Southwest Airlines Co		3,365		185,967		1.9	%
Cummins Inc.		1,061		177,282		1.8	%
Boise Cascade Co.		4,740		173,721		1.7	%
MasCo. Corp.		4,240		166,038		1.7	%
PACCAR Inc.		2,345		163,423		1.6	%
Jacobs Engineering Group Inc.		2,702		157,878		1.6	%
Delphi Automotive PLC		1,547		153,524		1.5	%

66    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Security Description	Shares		Market Value as of 10/31/17		Percent of Basket’s Net Assets
Mohawk Industries Inc.		565	$	152,923		1.5	%
DR Horton Inc.		3,092		146,932		1.5	%
Fluor Corp.		3,150		146,223		1.5	%
Fortune Brands Home & Security Inc.		2,070		133,432		1.3	%
Newell Brands Inc.		4,494		126,641		1.3	%
Deltic Timber Corp.		1,328		125,987		1.3	%
NVIDIA Corp.		587		124,215		1.2	%
American Airlines Group Inc.		2,588		123,396		1.2	%
Quanta Services Inc.		3,427		123,269		1.2	%
AECOM		3,568		123,167		1.2	%
PNC Financial Services Group Inc./The		864		114,489		1.1	%
AO Smith Corp.		1,894		111,803		1.1	%
Whirlpool Corp.		668		108,824		1.1	%
Broadcom Ltd		396		107,736		1.1	%
EMCOR Group Inc.		1,331		103,978		1.0	%
Allegion PLC		1,247		102,778		1.0	%
Lennar Corp.		1,758		102,122		1.0	%
NVR Inc.		30		98,146		1.0	%
QUALCOMM Inc.		1,465		96,851		1.0	%
Lennox International Inc.		491		95,750		1.0	%
Texas Instruments Inc.		963		94,673		0.9	%
United Continental Holdings Inc.		1,538		90,250		0.8	%
Valmont Industries Inc.		508		82,677		0.8	%
PulteGroup Inc.		2,539		80,994		0.8	%
BB&T Corp.		1,469		68,705		0.7	%
Toll Brothers Inc.		1,366		63,833		0.6	%
Applied Materials Inc.		1,067		61,715		0.6	%
Dycom Industries Inc.		702		61,706		0.6	%
Garmin Ltd		1,006		61,094		0.6	%
BorgWarner Inc.		1,165		60,615		0.6	%
KBR Inc.		3,193		58,592		0.6	%
Granite Construction Inc.		907		56,171		0.6	%
Leggett & Platt Inc.		1,211		55,682		0.6	%
Other		56,728		2,226,016		22.2	%
Total			$	10,020,099		100.0	%

See notes to financial statements.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    67

STATEMENT OF ASSETS & LIABILITIES

October 31, 2017

Assets
Investments in securities, at value
Unaffiliated issuers (cost $287,828,293)	$	286,509,071
Affiliated issuers (cost $10,002,782)		10,002,782
Cash collateral due from broker		7,706,202
Foreign currencies, at value (cost $523,083)		518,490
Receivable for investment securities sold		15,641,758
Unrealized appreciation on credit default swaps		2,334,325
Unaffiliated interest receivable		1,718,655
Unrealized appreciation on forward currency exchange contracts		1,561,227
Upfront premiums paid on credit default swaps		1,474,081
Unrealized appreciation on total return swaps		1,546,814
Receivable for capital stock sold		336,102
Receivable for variation margin on futures		209,913
Receivable for variation margin on exchange-traded swaps		65,818
Affiliated dividends receivable		10,468
Total assets		329,635,706
Liabilities
Options written, at value (premiums received $1,861,571)		806,731
Swaptions written, at value (premiums received $133,775)		98,123
Payable for capital stock redeemed		7,369,115
Unrealized depreciation on credit default swaps		5,277,198
Upfront premiums received on credit default swaps		5,084,599
Payable for investment securities purchased and foreign currency transactions		1,019,872
Cash collateral received from broker		1,040,000
Unrealized depreciation on forward currency exchange contracts		1,021,927
Unrealized depreciation on total return swaps		585,573
Advisory fee payable		75,202
Unrealized depreciation on interest rate swaps		73,470
Dividends payable		70,694
Administrative fee payable		22,130
Distribution fee payable		20,605
Transfer Agent fee payable		11,122
Directors fee payable		2,434
Payable for variation margin on exchange-traded swaps		1,743
Accrued expenses and other liabilities		317,470
Total liabilities		22,898,008
Net Assets	$	306,737,698
Composition of Net Assets
Capital stock, at par	$	35,364
Additional paid-in capital		312,911,123
Undistributed net investment income		1,532,597
Accumulated net realized loss on investment and foreign currency transactions		(4,544,389	)
Net unrealized depreciation on investments and foreign currency denominated assets and liabilities		(3,196,997	)
	$	306,737,698

See notes to financial statements.

68    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	36,135,864		4,160,518	$	8.69	*
B	$	151,159		17,376	$	8.70
C	$	13,908,080		1,601,004	$	8.69
Advisor	$	195,763,606		22,568,165	$	8.67
R	$	1,377,664		158,178	$	8.71
K	$	247,546		28,375	$	8.72
I	$	47,915,374		5,532,603	$	8.66
Z	$	11,238,405		1,298,277	$	8.66

* The maximum offering price per share for Class A shares was $9.08, which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    69

STATEMENT OF OPERATIONS

Year Ended October 31, 2017

Investment Income
Interest (net of foreign taxes withheld of $28,488)	$	10,296,889
Dividends
Unaffiliated issuers		6,591
Affiliated issuers		183,954		$	10,487,434
Expenses
Advisory fee (see Note B)		1,507,596
Distribution fee—Class A		102,874
Distribution fee—Class B		1,994
Distribution fee—Class C		178,317
Distribution fee—Class R		5,064
Distribution fee—Class K		596
Transfer agency—Class A		24,351
Transfer agency—Class B		182
Transfer agency—Class C		11,105
Transfer agency—Advisor Class		104,793
Transfer agency—Class R		2,474
Transfer agency—Class K		419
Transfer agency—Class I		9,426
Transfer agency—Class Z		1,982
Custodian		166,463
Audit and tax		139,741
Registration fees		137,468
Administrative		58,807
Printing		51,136
Legal		36,890
Directors’ fees		28,079
Miscellaneous		97,035
Total expenses before dividend and interest expense		2,666,792
Dividend and interest expense		115,548
Total expenses		2,782,340
Less: expenses waived and reimbursed by the Adviser (see Note B)		(480,057	)
Net expenses					2,302,283
Net investment income					8,185,151

See notes to financial statements.

70    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

STATEMENT OF OPERATIONS (continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions	$	(1,298,666	)
Forward currency exchange contracts		(12,607,837	)
Futures		4,542,375
Options written		1,354,731
Swaps		(525,890	)
Swaptions written		948,327
Foreign currency transactions		(2,709,546	)
Net change in unrealized appreciation/depreciation on:
Investments		782,193
Forward currency exchange contracts		13,988,749
Futures		208,226
Options written		1,027,712
Swaps		(1,810,100	)
Swaptions written		62,116
Foreign currency denominated assets and liabilities		(3,721	)
Net gain on investment and foreign currency transactions		3,958,669
Contributions from Affiliates (see Note B)		851
Net Increase in Net Assets from Operations	$	12,144,671

See notes to financial statements.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    71

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2017			Year Ended October 31, 2016
Increase (Decrease) in Net Assets from Operations
Net investment income	$	8,185,151		$	9,389,308
Net realized gain (loss) on investment and foreign currency transactions		(10,296,506	)		26,017,024
Net change in unrealized appreciation/depreciation on investments and foreign currency denominated assets and liabilities		14,255,175			(24,740,796	)
Contributions from Affiliates (see Note B)		851			263,677
Net increase in net assets from operations		12,144,671			10,929,213
Dividends to Shareholders from
Net investment income
Class A		(1,288,080	)		(833,579	)
Class B		(5,262	)		(3,537	)
Class C		(476,767	)		(275,293	)
Advisor Class		(5,847,603	)		(4,380,674	)
Class R		(26,864	)		(14,229	)
Class K		(7,125	)		(3,680	)
Class I		(1,620,260	)		(985,783	)
Class Z		(336,792	)		(111,885	)
Tax return of capital
Class A		(53,442	)		– 0	–
Class B		(218	)		– 0	–
Class C		(19,781	)		– 0	–
Advisor Class		(242,616	)		– 0	–
Class R		(1,115	)		– 0	–
Class K		(296	)		– 0	–
Class I		(67,224	)		– 0	–
Class Z		(13,973	)		– 0	–
Capital Stock Transactions
Net increase (decrease)		23,456,796			(67,542,791	)
Total increase (decrease)		25,594,049			(63,222,238	)
Net Assets
Beginning of period		281,143,649			344,365,887
End of period (including undistributed net investment income of $1,532,597 and $19,776,148, respectively)	$	306,737,698		$	281,143,649

See notes to financial statements.

72    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2017

NOTE A

Significant Accounting Policies

AB Unconstrained Bond Fund, Inc. (the “Fund”) was incorporated in the State of Maryland on October 25, 1995 and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares. Class T shares have been authorized but currently are not offered. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class B shares are currently sold with a contingent deferred sales charge which declines from 4% to zero depending on the period of time the shares are held. Effective January 31, 2009, sales of Class B shares of the Fund to new investors were suspended. Class B shares will only be issued (i) upon the exchange of Class B shares from another AB Mutual Fund, (ii) for purposes of dividend reinvestment, (iii) through the Fund’s Automatic Investment Program (the “Program”) for accounts that established the Program prior to January 31, 2009, and (iv) for purchases of additional shares by Class B shareholders as of January 31, 2009. The ability to establish a new Program for accounts containing Class B shares was suspended as of January 31, 2009. Class B shares will automatically convert to Class A shares eight years after the end of the calendar month of purchase. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective April 10, 2017, Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All nine classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    73

NOTES TO FINANCIAL STATEMENTS (continued)

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Fund’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and asked prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short-term securities that have an original maturity of 60 days or less, as well as short-term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

74    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    75

NOTES TO FINANCIAL STATEMENTS (continued)

unique security features in order to estimate the relevant cash flows which is then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3. In addition, non-agency rated investments are classified as Level 3.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange-traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable

76    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of October 31, 2017:

Investments in Securities	Level 1			Level 2			Level 3			Total
Assets:
Corporates – Non-Investment Grade	$	– 0	–	$	56,954,660		$	916,724	#	$	57,871,384
Collateralized Mortgage Obligations		– 0	–		38,588,586			– 0	–		38,588,586
Governments – Treasuries		– 0	–		22,889,593			– 0	–		22,889,593
Inflation-Linked Securities		– 0	–		18,923,631			– 0	–		18,923,631
Corporates – Investment Grade		– 0	–		14,164,661			– 0	–		14,164,661
Agencies		– 0	–		7,202,513			– 0	–		7,202,513
Emerging Markets – Treasuries		– 0	–		4,284,468			– 0	–		4,284,468
Emerging Markets – Corporate Bonds		– 0	–		3,022,665			– 0	–		3,022,665
Quasi-Sovereigns		– 0	–		2,795,244			– 0	–		2,795,244
Governments – Sovereign Bonds		– 0	–		1,960,461			– 0	–		1,960,461
Emerging Markets – Sovereigns		– 0	–		1,863,559			– 0	–		1,863,559
Bank Loans		– 0	–		1,339,052			– 0	–		1,339,052
Whole Loan Trusts		– 0	–		– 0	–		1,038,518			1,038,518
Commercial Mortgage-Backed Securities		– 0	–		– 0	–		1,007,164			1,007,164
Common Stocks		700,550			– 0	–		163,347			863,897
Asset-Backed Securities		– 0	–		380,195			443,168			823,363
Local Governments – Regional Bonds		– 0	–		452,020			– 0	–		452,020
Options Purchased – Puts		– 0	–		177,542			– 0	–		177,542
Local Governments – US Municipal Bonds		– 0	–		123,413			– 0	–		123,413
Preferred Stocks		114,800			– 0	–		– 0	–		114,800

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    77

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities

Level 1

Level 2

Level 3

Total

Warrants

$

1,598

$

– 0

–

$

– 0

–

$

1,598

Short-Term Investments:

U.S. Treasury Bills

– 0

–

80,376,597

– 0

–

80,376,597

Governments – Treasuries

– 0

–

18,121,496

– 0

–

18,121,496

Investment Companies

10,002,782

– 0

–

– 0

–

10,002,782

Time Deposits

– 0

–

7,232,135

– 0

–

7,232,135

Emerging Markets – Sovereigns

– 0

–

831,902

438,809

1,270,711

Total Investments in Securities

10,819,730

281,684,393

4,007,730

296,511,853

Other Financial Instruments*:

Assets

Futures

464,494

2,114,357

– 0

–

2,578,851

†

Forward Currency Exchange Contracts

– 0

–

1,561,227

– 0

–

1,561,227

Centrally Cleared Credit Default Swaps

– 0

–

4,978,094

– 0

–

4,978,094

†

Centrally Cleared Interest Rate Swaps

– 0

–

6,603,798

– 0

–

6,603,798

†

Credit Default Swaps

– 0

–

2,621,467

– 0

–

2,621,467

Total Return Swaps

– 0

–

1,546,814

– 0

–

1,546,814

Liabilities

Futures

(1,395,199

)

– 0

–

– 0

–

(1,395,199

)†

Forward Currency Exchange Contracts

– 0

–

(1,021,927

)

– 0

–

(1,021,927

)

Call Options Written

– 0

–

(57,000

)

– 0

–

(57,000

)

Put Options Written

– 0

–

(124,472

)

– 0

–

(124,472

)

Credit Default Swaptions Written

– 0

–

(1,119

)

– 0

–

(1,119

)

Interest Rate Swaptions Written

– 0

–

(97,004

)

– 0

–

(97,004

)

Currency Options Written

– 0

–

(625,259

)

– 0

–

(625,259

)

Centrally Cleared Credit Default Swaps

– 0

–

(8,294,939

)

– 0

–

(8,294,939

)†

Centrally Cleared Interest Rate Swaps

– 0

–

(7,769,503

)

– 0

–

(7,769,503

)†

Credit Default Swaps

– 0

–

(9,174,858

)

– 0

–

(9,174,858

)

Interest Rate Swaps

– 0

–

(73,470

)

– 0

–

(73,470

)

Total Return Swaps

– 0

–

(585,573

)

– 0

–

(585,573

)

Total^

$

9,889,025

$

273,285,026

$

4,007,730

$

287,181,781

# The Fund held securities with zero market value at period end.

* Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

† Only variation margin receivable/payable at period end is reported within the statements of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on exchange-traded derivatives as reported in the portfolio of investments. Exchange-traded swaps with upfront premiums are presented here as market value.

^ There were no transfers between Level 1 and Level 2 during the reporting period.

The Fund recognizes all transfers between levels of the fair value hierarchy assuming the financial instrument was transferred at the beginning of the reporting period.

78    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Corporates  - Non-Investment Grade#			Collateralized Mortgage Obligations			Whole Loan Trusts			Commercial Mortgage- Backed Securities
Balance as of 10/31/16	$	341,866		$	4,308,018		$	1,327,991		$	3,443,874
Accrued discounts/ (premiums)		5,992			– 0	–		4,602			509
Realized gain (loss)		– 0	–		– 0	–		(82,023	)		(41,566	)
Change in unrealized appreciation/ depreciation		(117,531	)		(14,663	)		(126,597	)		8,242
Purchases		371,986			– 0	–		– 0	–		203,000
Sales/Paydowns		(62,149	)		(1,564,071	)		(85,455	)		(2,606,895	)
Transfers into Level 3		376,560			– 0	–		– 0	–		– 0	–
Transfers out of Level 3		– 0	–		(2,729,284	)		– 0	–		– 0	–
Balance as of 10/31/17	$	916,724		$	– 0	–	$	1,038,518		$	1,007,164
Net change in unrealized appreciation/depreciation from investments held as of 10/31/17**	$	(111,748	)	$	– 0	–	$	(126,597	)	$	(9,128	)

	Common Stocks			Asset-Backed Securities			Short Term Investments: Emerging Markets - Sovereigns			Total
Balance as of 10/31/16	$	– 0	–	$	– 0	–	$	– 0	–	$	9,421,749
Accrued discounts/ (premiums)		– 0	–		119			37,031			48,253
Realized gain (loss)		– 0	–		1,154			– 0	–		(122,435	)
Change in unrealized appreciation/ depreciation		29,875			6,488			6,705			(207,481	)
Purchases		133,472			874,726			395,073			1,978,257
Sales/Paydowns		– 0	–		(439,319	)		– 0	–		(4,757,889	)
Transfers into Level 3		– 0	–		– 0	–		– 0	–		376,560
Transfers out of Level 3		– 0	–		– 0	–		– 0	–		(2,729,284	)
Balance as of 10/31/17	$	163,347		$	443,168		$	438,809		$	4,007,730	+
Net change in unrealized appreciation/depreciation from investments held as of 10/31/17**	$	29,875		$	3,187		$	6,705		$	(207,706	)

# The Fund held securities with zero market value at period end.

** The unrealized appreciation/depreciation is included in net change in unrealized appreciation/depreciation on investments and other financial instruments in the accompanying statement of operations.

+ There were de minimis transfers between Level 2 and Level 3 during the reporting period.

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The following presents information about significant unobservable inputs related to the Fund’s Level 3 investments at October 31, 2017. Securities priced by third party vendors and by brokers are excluded from the following table:

Quantitative Information about Level 3 Fair Value Measurements

	Fair Value at 10/31/17		Valuation Technique	Unobservable Input	Range/ Weighted Average
Whole Loan Trusts	$	446,822	Market Approach	Underlying NAV of the Collateral	$84.32/ N/A

Generally, a change in the assumptions used in any input in isolation may be accompanied by a change in another input. Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. Significant increases (decreases) in Underlying NAV of the Collateral would be expected to result in a significantly higher (lower) fair value measurement.

The Adviser established the Committee to oversee the pricing and valuation of all securities held in the Fund. The Committee operates under pricing and valuation policies and procedures established by the Adviser and approved by the Board, including pricing policies which set forth the mechanisms and processes to be employed on a daily basis to implement these policies and procedures. In particular, the pricing policies describe how to determine market quotations for securities and other instruments. The Committee’s responsibilities include: 1) fair value and liquidity determinations (and oversight of any third parties to whom any responsibility for fair value and liquidity determinations is delegated), and 2) regular monitoring of the Adviser’s pricing and valuation policies and procedures and modification or enhancement of these policies and procedures (or recommendation of the modification of these policies and procedures) as the Committee believes appropriate.

The Committee is also responsible for monitoring the implementation of the pricing policies by the Adviser’s Pricing Group (the “Pricing Group”) and any third party which performs certain pricing functions in accordance with the pricing policies. The Pricing Group is responsible for the oversight of the third party on a day-to-day basis. The Committee and the Pricing Group perform a series of activities to provide reasonable assurance of the accuracy of prices including: 1) periodic vendor due diligence meetings, review of methodologies, new developments and process at vendors, 2) daily comparison of security valuation versus prior day for all securities that exceeded established thresholds, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by senior management and the Committee.

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In addition, several processes outside of the pricing process are used to monitor valuation issues including: 1) performance and performance attribution reports are monitored for anomalous impacts based upon benchmark performance, and 2) portfolio managers review all portfolios for performance and analytics (which are generated using the Adviser’s prices).

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation and depreciation on foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

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5. Investment Income and Investment Transactions

Dividend income (or dividend expense) is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Realized and unrealized gains and losses are allocated among the various share classes based on their respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

8. Repurchase Agreements

It is the Fund’s policy that its custodian or designated sub-custodian take control of securities as collateral under repurchase agreements and to determine on a daily basis that the value of such securities is sufficient to cover the value of the repurchase agreements. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings are commenced with respect to seller of the security, realization of collateral by the Fund may be delayed or limited. As of October 31, 2017, the Fund did not hold repurchase agreements.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to reimburse its fees and bear certain expenses to the extent necessary to limit total operating expenses on an annual basis to .90%, 1.65%, 1.65%, .65%, 1.15%, .90%, .65% and .65% of the daily average net assets for Class A, Class B, Class C, Advisor Class, Class R,

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Class K, Class I and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement extends through January 31, 2018 and then may be extended by the Adviser for additional one-year terms. For the year ended October 31, 2017, such reimbursements/waivers amounted to $418,033. Effective January 29, 2016, the Expense Caps were increased from 1.60% to 1.65%, 1.60% to 1.65%, ..60% to .65%, 1.10% to 1.15%, .85% to .90%, .60% to .65% and .60% to .65% of the daily average net assets for Class B, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively.

For the years ended October 31, 2017 and October 31, 2016 the Adviser reimbursed the Fund $851 and $263,677, respectively, for trading losses incurred due to trade entry errors and overdraft reimbursement.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2017, the reimbursement for such services amounted to $58,807.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $56,900 for the year ended October 31, 2017.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $658 from the sale of Class A shares and received $366, $38 and $319 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the year ended October 31, 2017.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. In connection with the investment by the Fund in the Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2017, such waiver amounted to $62,024.

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A summary of the Fund’s transactions in shares of the AB mutual funds for the year ended October 31, 2017 is as follows:

Fund	Market Value October 31, 2016 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value October 31, 2017 (000)		Dividend Income (000)
Government Money Market Portfolio	$	40,316	$	329,955	$	360,268	$	10,003	$	184

Brokerage commissions paid on investment transactions for the year ended October 31, 2017 amounted to $147,246, of which $0 and $0, respectively, was paid to Sanford C. Bernstein & Co., LLC or Sanford C. Bernstein Limited, affiliates of the Adviser.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class B and Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. Effective January 29, 2016, payments under the Agreement in respect of Class A shares are limited to an annual rate of .25% of Class A shares’ average daily net assets. There are no distribution and servicing fees on Advisor Class, Class I and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $8,332,798, $2,166,445, $43,730 and $13,172 for Class B, Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

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NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2017 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	113,831,116	$	160,113,010
U.S. government securities		17,610,679		2,801,863

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	297,983,246
Gross unrealized appreciation	$	26,381,606
Gross unrealized depreciation		(28,251,103	)
Net unrealized depreciation	$	(1,869,497	)

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sales commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

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During the year ended October 31, 2017, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into a future, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counter party to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a future can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2017, the Fund held futures for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities,

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including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. At October 31, 2017, the maximum payment for written put options amounted to $17,322,286. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

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The Fund may also invest in options on swaps, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return of a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties.

During the year ended October 31, 2017, the Fund held purchased options for hedging and non-hedging purposes.

During the year ended October 31, 2017, the Fund held written options for hedging and non-hedging purposes.

During the year ended October 31, 2017, the Fund held purchased swaptions for hedging and non-hedging purposes.

During the year ended October 31, 2017, the Fund held written swaptions for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures including by making direct investments in foreign currencies, as described below under “Currency Transactions” or in order to take a “long” or “short” position with respect to an underlying referenced asset described below under “Total Return Swaps”. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the

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Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

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Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2017, the Fund held interest rate swaps for hedging and non-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation.

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In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same reference obligation with the same counterparty. As of October 31, 2017, the Fund had Buy Contracts outstanding with respect to the same referenced obligation and counterparty as certain Sale Contracts which may partially offset the Maximum Payout Amount in the amount of $113,453,400.

Credit default swaps may involve greater risks than if the Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterpart. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/ performance risk and typically reflect the market’s assessment of the likelihood of default by the issuer on the referenced obligation. The implied credit spread of a particular reference entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced entity’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.

During the year ended October 31, 2017, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of

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the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2017, the Fund held total return swaps for hedging and non-hedging purposes.

Variance Swaps:

The Fund may enter into variance swaps to hedge equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on underlying asset(s) or index(es). Actual “variance” as used here is defined as the sum of the square of the returns on the reference asset(s) or index(es) (which in effect is a measure of its “volatility”) over the length of the contract term. So the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility.

During the year ended October 31, 2017, the Fund held variance swaps for hedging and non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. For additional details, please refer to netting arrangements by the OTC counterparty table below.

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During the year ended October 31, 2017, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Unrealized appreciation on total return swaps	$	242,956		Unrealized depreciation on interest rate swaps	$	73,470
Interest rate contracts	Receivable/Payable for variation margin on futures		464,494	*	Receivable/Payable for variation margin on futures		903,721	*
Interest rate contracts	Receivable/Payable for variation margin on exchange-traded swaps		5,489,169	*	Receivable/Payable for variation margin on exchange-traded swaps		7,427,228	*
Interest rate contracts					Swaptions written, at value		97,004
Foreign exchange contracts	Unrealized appreciation on forward currency exchange contracts		1,561,227		Unrealized depreciation on forward currency exchange contracts		1,021,927
Foreign exchange contracts	Investments in securities, at value		53,127
Foreign exchange contracts					Options written, at value		625,259
Credit contracts	Unrealized appreciation on credit default swaps		2,334,325		Unrealized depreciation on credit default swaps		5,277,198
Credit contracts	Receivable/Payable for variation margin on exchange-traded swaps		2,871,587	*	Receivable/Payable for variation margin on exchange-traded swaps		3,568,505	*
Credit contracts					Swaptions written, at value		1,119
Equity contracts	Unrealized appreciation on total return swaps		1,303,858		Unrealized depreciation on total rate swaps		585,573

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	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Equity contracts	Receivable/Payable for variation margin on futures	$	2,114,357	*	Receivable/Payable for variation margin on futures	$	491,478	*
Equity contracts	Investment in securities, at value		124,415		Options written, at value		181,472
Total		$	16,559,515			$	20,253,954

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/depreciation on exchange-traded futures and swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain/(loss) on swaps; Net change in unrealized appreciation/ depreciation on swaps	$	(521,790	)	$	(1,887,897	)
Interest rate contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation/ depreciation on futures		2,490,177			(1,115,471	)
Interest rate contracts	Net realized gain/(loss) on investment transactions; Net change in unrealized appreciation/depreciation on investments		1,577,323			(592,247	)
Interest rate contracts	Net realized gain/(loss) on options written; Net change in unrealized appreciation/depreciation on options written		(129,881	)		8,527
Interest rate contracts	Net realized gain/(loss) on swaptions written; Net change in unrealized appreciation/depreciation on swaptions written		1,340,405			59,825

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Foreign exchange contracts	Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation on forward currency exchange contracts	$	(12,607,837	)	$	13,988,749
Foreign exchange contracts	Net realized gain/(loss) on investment transactions; Net change in unrealized appreciation/depreciation on investments		(161,836	)		(96,370	)
Foreign exchange contracts	Net realized gain/(loss) on options written; Net change in unrealized appreciation/depreciation on options written		692,816			(156,498	)
Credit contracts	Net realized gain/(loss) on investment transactions; Net change in unrealized appreciation/depreciation on investments		(591,066	)		(13,737	)
Credit contracts	Net realized gain/(loss) on swaps; Net change in unrealized appreciation/ depreciation on swaps		(3,392,160	)		(1,176,244	)
Credit Contracts	Net realized gain/(loss) on swaptions written; Net change in unrealized appreciation/depreciation on swaptions written		(392,078	)		2,291
Equity contracts	Net realized gain/(loss) on swaps; Net change in unrealized appreciation/depreciation on swaps		3,388,060			1,254,041

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Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Equity contracts	Net realized gain/(loss) on futures; Net change in unrealized appreciation/depreciation on futures	$	2,052,198		$	1,323,697
Equity contracts	Net realized gain/(loss) on investment transactions; Net change in unrealized appreciation/depreciation on investment transactions		(652,097	)		(1,567,444	)
Equity contracts	Net realized gain/(loss) on options written; Net change in unrealized appreciation/depreciation on options written		791,796			1,175,683
Total		$	(6,115,970	)	$	11,206,905

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2017:

Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts.	$	266,132,558
Average notional amount of sale contracts	$	240,959,850
Centrally Cleared Interest Rate Swaps:
Average notional amount.	$	730,116,974
Credit Default Swaps:
Average notional amount of buy contracts.	$	384,980,316
Average notional amount of sale contracts	$	151,877,244
Forward Currency Exchange Contracts:
Average principal amount of buy contracts.	$	63,178,876
Average principal amount of sale contracts	$	139,012,814
Futures:
Average original value of buy contracts.	$	264,059,165
Average original value of sale contracts	$	181,156,576
Interest Rate Swaps:
Average notional amount	$	1,600,000
Total Return Swaps:
Average notional amount	$	34,068,283
Variance Swaps:
Average notional amount	$	1,135,409	(a)
Options Written:
Average notional amount	$	20,291,558

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Purchased Options:
Average cost.	$	1,353,964
Purchased Swaptions:
Average cost.	$	633,693	(b)
Swaptions Written:
Average notional amount	$	110,636,116

(a) Positions were open three months during the reporting period.

(b) Positions were open eleven months during the reporting period.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at year end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements and net of the related collateral received/pledged by the Fund as of October 31, 2017. Exchange-traded derivatives are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivatives Assets
OTC Derivatives:
Australia & New Zealand Bank Group Ltd.	$	83,042	$	– 0	–	$	– 0	–	$	– 0	–	$	83,042
Bank of America, NA.		714,610		(331,051	)		(250,000	)		– 0	–		133,559
Barclays Bank PLC		1,288,327		(469,230	)		(790,000	)		– 0	–		29,097
Brown Brothers Harriman & Co.		306,249		(34,349	)		– 0	–		– 0	–		271,900
Citibank, NA.		1,537,633		(1,537,633	)		– 0	–		– 0	–		– 0	–
Credit Suisse International.		193,549		(193,549	)		– 0	–		– 0	–		– 0	–
Deutsche Bank AG		55,934		(55,934	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		285,942		(285,942	)		– 0	–		– 0	–		– 0	–
HSBC Bank USA.		327,844		(231,649	)		– 0	–		– 0	–		96,195
JPMorgan Chase Bank, NA.		718,698		(718,698	)		– 0	–		– 0	–		– 0	–
Morgan Stanley Capital Services LLC.		67,665		(67,665	)		– 0	–		– 0	–		– 0	–
Royal Bank of Scotland PLC		22,508		(22,508	)		– 0	–		– 0	–		– 0	–
Standard Chartered Bank.		248,299		(16,330	)		– 0	–		– 0	–		231,969
Total	$	5,850,300	$	(3,964,538	)	$	(1,040,000	)	$	– 0	–	$	845,762	^

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Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivatives Liabilities
OTC Derivatives:
Bank of America, NA.	$	331,051	$	(331,051	)	$	– 0	–	$	– 0	–	$	– 0	–
Barclays Bank PLC		469,230		(469,230	)		– 0	–		– 0	–		– 0	–
BNP Paribas SA		1,076,305		– 0	–		– 0	–		(1,076,305	)		– 0	–
Brown Brothers Harriman & Co.		34,349		(34,349	)		– 0	–		– 0	–		– 0	–
Citibank, NA.		1,904,021		(1,537,633	)		– 0	–		(210,899	)		155,489
Credit Suisse International.		1,969,804		(193,549	)		– 0	–		(1,514,600	)		261,655
Deutsche Bank AG		2,290,040		(55,934	)		– 0	–		(2,234,106	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		1,205,566		(285,942	)		– 0	–		(638,064	)		281,560
HSBC Bank USA.		231,649		(231,649	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA.		839,511		(718,698	)		– 0	–		(120,813	)		– 0	–
Morgan Stanley Capital Services LLC		1,278,256		(67,665	)		– 0	–		(1,176,046	)		34,545
Royal Bank of Scotland PLC.		57,570		(22,508	)		– 0	–		– 0	–		35,062
Standard Chartered Bank		16,330		(16,330	)		– 0	–		– 0	–		– 0	–
Total	$	11,703,682	$	(3,964,538	)	$	– 0	–	$	(6,970,833	)	$	768,311	^

* The actual collateral received/pledged may be more than the amount reported due to overcollateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. Reverse Repurchase Agreements

Under a reverse repurchase agreement, the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At

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the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having at least equal to the repurchase price. For the year ended October 31, 2017, the Fund had no transactions in reverse repurchase agreements.

4. Loan Participations and Assignments

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers, either in the form of participations at the time the loan is originated (“Participations”) or by buying an interest in the loan in the secondary market from a financial institution or institutional investor (“Assignments”). A loan is often administered by a bank or other financial institution (the “Lender”) that acts as agent for all holders. The agent administers the terms of the loan as specified in the loan agreement. When investing in Participations, the Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. In addition, when investing in Participations, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender and only upon receipt of payments by the Lender from the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the Lender. When the Fund purchases Assignments from Lenders, it will typically acquire direct rights against the borrower on the loan. These loans may include participations in “bridge loans”, which are loans taken out by borrowers for a short period (typically less than six months) pending arrangement of more permanent financing through, for example, the issuance of bonds, frequently high-yield bonds issued for the purpose of acquisitions. The Fund may also participate in unfunded loan commitments, which are contractual obligations for investing in future Participations, and may receive a commitment fee based on the amount of the commitment. Under these arrangements, the Fund may receive a fixed rate commitment fee and, if and to the extent the borrower borrows under the facility, the Fund may receive an additional funding fee.

Unfunded loan commitments and funded loans are marked to market daily.

As of October 31, 2017, the Fund had no unfunded loan commitments outstanding or bridge loan commitments outstanding.

During the year ended October 31, 2017, the Fund received no commitment fees or additional funding fees.

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NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2017			Year Ended October 31, 2016			Year Ended October 31, 2017			Year Ended October 31, 2016
Class A
Shares sold		1,220,423			713,605		$	10,594,167		$	5,994,844
Shares issued in reinvestment of dividends		101,813			65,862			869,293			555,658
Shares converted from Class B		6,619			17,148			57,585			143,731
Shares converted from Class C		193,998			– 0	–		1,693,663			– 0	–
Shares redeemed		(2,128,262	)		(1,936,836	)		(18,468,316	)		(16,296,831	)
Net decrease		(605,409	)		(1,140,221	)	$	(5,253,608	)	$	(9,602,598	)
Class B
Shares sold		1,685			1,089		$	14,571		$	9,131
Shares issued in reinvestment of dividends		580			381			4,933			3,214
Shares converted to Class A		(6,609	)		(17,128	)		(57,585	)		(143,731	)
Shares redeemed		(5,209	)		(9,494	)		(45,154	)		(78,726	)
Net decrease		(9,553	)		(25,152	)	$	(83,235	)	$	(210,112	)
Class C
Shares sold		207,622			278,562		$	1,781,562		$	2,330,559
Shares issued in reinvestment of dividends		45,573			25,515			386,845			215,331
Shares converted to Class A		(193,998	)		– 0	–		(1,693,663	)		– 0	–
Shares redeemed		(924,467	)		(921,321	)		(7,995,906	)		(7,760,594	)
Net decrease		(865,270	)		(617,244	)	$	(7,521,162	)	$	(5,214,704	)
Advisor Class
Shares sold		12,428,633			7,453,627		$	107,644,192		$	62,641,185
Shares issued in reinvestment of dividends		545,245			357,345			4,662,441			3,009,574
Shares redeemed		(9,259,079	)		(14,979,238	)		(79,966,458	)		(126,107,577	)
Net increase (decrease)		3,714,799			(7,168,266	)	$	32,340,175		$	(60,456,818	)

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	Shares						Amount
	Year Ended October 31, 2017			Year Ended October 31, 2016			Year Ended October 31, 2017			Year Ended October 31, 2016
Class R
Shares sold		93,737			21,604		$	818,994		$	182,043
Shares issued in reinvestment of dividends		3,277			1,687			27,979			14,229
Shares redeemed		(44,485	)		(50,693	)		(388,175	)		(425,697	)
Net increase (decrease)		52,529			(27,402	)	$	458,798		$	(229,425	)
Class K
Shares sold		2,846			3,861		$	24,712		$	32,720
Shares issued in reinvestment of dividends		866			435			7,420			3,679
Shares redeemed		(917	)		(1	)		(8,055	)		(8	)
Net increase		2,795			4,295		$	24,077		$	36,391
Class I
Shares sold		44,474			2,544		$	381,770		$	21,384
Shares issued in reinvestment of dividends		197,941			117,082			1,687,484			985,717
Shares redeemed		(18,197	)		(43,942	)		(156,984	)		(365,637	)
Net increase		224,218			75,684		$	1,912,270		$	641,464
Class Z
Shares sold		326,742			1,281,581		$	2,828,259		$	10,892,012
Shares issued in reinvestment of dividends		41,135			13,235			350,763			111,744
Shares redeemed		(185,498	)		(419,268	)		(1,599,541	)		(3,510,745	)
Net increase		182,379			875,548		$	1,579,481		$	7,493,011

NOTE F

Risks Involved in Investing in the Fund

Interest Rate Risk and Credit Risk—Interest rate risk is the risk that changes in interest rates will affect the value of the Fund’s investments in fixed-income debt securities such as bonds or notes. Increases in interest rates may cause the value of the Fund’s investments to decline. Credit risk is the risk that the issuer or guarantor of a debt security, or the counterparty to a derivative contract, will be unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. The degree of risk for a particular security may be reflected in its credit rating. Credit risk is greater for medium quality and lower-rated securities.

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Lower-rated debt securities and similar unrated securities (commonly known as “junk bonds”) have speculative elements or are predominantly speculative risks.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, negative perceptions of the junk bond market generally and less secondary market liquidity.

Duration Risk—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater if the Fund invests a significant portion of its assets in fixed-income securities with longer maturities.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options

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and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Prepayment Risk—The value of mortgage-related or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early payments of principal on some mortgage-related securities may occur during periods of falling mortgage interest rates and expose the Fund to a lower rate of return upon reinvestment of principal. Early payments associated with mortgage-related securities cause these securities to experience significantly greater price and yield volatility than is experienced by traditional fixed income securities. During periods of rising interest rates, a reduction in prepayments may increase the effective life of mortgage related securities, subjecting them to greater risk of decline in market value in response to rising interest rates. If the life of a mortgage-related security is inaccurately predicted, the Fund may not be able to realize the rate of return it expected.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Liquidity Risk—Liquidity risk occurs when certain investments become difficult to purchase or sell. Difficulty in selling less liquid securities may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of liquidity risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Over recent years liquidity risk has also increased because the capacity of dealers in the secondary market for fixed-income securities to make markets in these securities has decreased, even as the overall bond market has grown significantly, due to, among other things, structural changes, additional regulatory requirements and capital and risk restraints that have led to reduced inventories. Liquidity risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification

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provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $280 million revolving credit facility (the “Facility”) intended to provide short-term financing if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2017.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2017 and October 31, 2016 were as follows:

	2017		2016
Distributions paid from:
Ordinary income	$	9,608,752	$	6,608,660
Distributions paid		9,608,752		6,608,660
Tax return of capital		398,666		– 0	–
Total distributions paid	$	10,007,418	$	6,608,660

As of October 31, 2017, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(3,829,042	)(a)
Unrealized appreciation/(depreciation)		(1,870,637	)(b)
Total accumulated earnings/(deficit)	$	(5,699,679	)(c)

(a) As of October 31, 2017, the Fund had a net capital loss carryforward of $3,548,673. The Fund also had $1,177,357 of capital loss carryforwards expire during the fiscal year. As of October 31, 2017, the cumulative deferred loss on straddles was $280,369.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales, the tax treatment of swaps, the difference between book and tax amortization methods for premium, and the recognition for tax purposes of unrealized gains/losses on certain derivative instruments.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to dividends payable, and the tax treatment of defaulted securities.

For tax purposes, net capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an indefinite period. These post-December 22, 2010 capital losses must be utilized prior

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to the earlier capital losses, which are subject to expiration. Post-December 22, 2010 capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered short-term as under previous regulation.

As of October 31, 2017 the Fund had a net capital loss carryforward of $3,548,673, which will expire as follows:

Short-Term Amount	Long-Term Amount	Expiration
$ 1,053,051	N/A	2018
1,313,588	N/A	2019
– 0 –	1,182,034	No Expiration

During the current fiscal year, permanent differences primarily due to the tax treatment of swaps, options, and futures, foreign currency reclassifications, paydown gain/loss reclassifications, the expiration of capital loss carryforwards, and contributions from affiliates, resulted in a net decrease in undistributed net investment income, a net decrease in accumulated net realized loss on investment and foreign currency transactions, and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the “ASU”) which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

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FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.62			$  8.47			$  8.67			$  8.68			$  9.09
Income From Investment Operations
Net investment income(a)(b)		.22			.24			.22			.16			.06
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.14			.06			(.19	)		(.06	)		(.02	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase in net asset value from operations		.36			.31			.04			.10			.04
Less: Dividends and Distributions
Dividends from net investment income		(.28	)		(.16	)		(.24	)		(.11	)		(.34	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.11	)
Total dividends and distributions		(.29	)		(.16	)		(.24	)		(.11	)		(.45	)
Net asset value, end of period		$  8.69			$  8.62			$  8.47			$  8.67			$  8.68
Total Return
Total investment return based on net asset value(d)		4.24	%^		3.74	%^*†		0.49	%†		1.11	%		0.46	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$36,136			$41,061			$50,031			$62,396			$73,922
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.92	%		.91	%		.90	%		.90	%		.90	%
Expenses, before waivers/reimbursements(e)(f)		1.08	%		1.07	%		1.06	%		1.06	%		1.19	%
Net investment income(b)		2.57	%		2.80	%		2.51	%		1.81	%		.68	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

106    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class B
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.62			$  8.48			$  8.68			$  8.68			$  9.10
Income From Investment Operations
Net investment income(a)(b)		.16			.15			.15			.10			.00	(c)
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.14			.08			(.18	)		(.05	)		(.03	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.30			.24			(.02	)		.05			(.03	)
Less: Dividends and Distributions
Dividends from net investment income		(.21	)		(.10	)		(.18	)		(.05	)		(.26	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.13	)
Total dividends and distributions		(.22	)		(.10	)		(.18	)		(.05	)		(.39	)
Net asset value, end of period		$  8.70			$  8.62			$  8.48			$  8.68			$  8.68
Total Return
Total investment return based on net asset value(d)		3.52	%		2.85	%*†		(0.23	)%†		0.52	%		(0.30	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$151			$232			$442			$828			$1,406
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		1.66	%		1.65	%		1.60	%		1.60	%		1.60	%
Expenses, before waivers/reimbursements(e)(f)		1.86	%		1.81	%		1.76	%		1.77	%		1.93	%
Net investment income(b)		1.82	%		1.82	%		1.71	%		1.11	%		.05	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    107

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.62			$  8.47			$  8.67			$  8.68			$  9.10
Income From Investment Operations
Net investment income(a)(b)		.16			.18			.17			.10			.00	(c)
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			.06			(.19	)		(.06	)		(.03	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.29			.25			(.01	)		.04			(.03	)
Less: Dividends and Distributions
Dividends from net investment income		(.21	)		(.10	)		(.19	)		(.05	)		(.29	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.10	)
Total dividends and distributions		(.22	)		(.10	)		(.19	)		(.05	)		(.39	)
Net asset value, end of period		$  8.69			$  8.62			$  8.47			$  8.67			$  8.68
Total Return
Total investment return based on net asset value(d)		3.43	%^		2.98	%^*†		(0.19	)%†		0.42	%		(0.31	)%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$13,908			$21,247			$26,119			$20,681			$18,707
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		1.66	%		1.65	%		1.60	%		1.60	%		1.60	%
Expenses, before waivers/reimbursements(e)(f)		1.83	%		1.81	%		1.77	%		1.77	%		1.89	%
Net investment income(b)		1.85	%		2.08	%		1.95	%		1.14	%		.04	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

108    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.61			$  8.46			$  8.66			$  8.67			$  9.09
Income From Investment Operations
Net investment income(a)(b)		.24			.25			.25			.19			.08
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			.07			(.19	)		(.07	)		(.02	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase in net asset value from operations		.37			.33			.07			.12			.06
Less: Dividends and Distributions
Dividends from net investment income		(.30	)		(.18	)		(.27	)		(.13	)		(.40	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.08	)
Total dividends and distributions		(.31	)		(.18	)		(.27	)		(.13	)		(.48	)
Net asset value, end of period		$  8.67			$  8.61			$  8.46			$  8.66			$  8.67
Total Return
Total investment return based on net asset value(d)		4.39	%^		4.02	%^*†		0.80	%†		1.42	%		0.63	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$195,764			$162,255			$220,195			$248,510			$143,980
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.67	%		.65	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements(e)(f)		.83	%		.81	%		.76	%		.77	%		.87	%
Net investment income(b)		2.79	%		3.02	%		2.89	%		2.14	%		.96	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    109

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.62			$  8.46			$  8.65			$  8.65			$  9.07
Income From Investment Operations
Net investment income(a)(b)		.20			.21			.21			.14			.05
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.14			.07			(.20	)		(.06	)		(.04	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase in net asset value from operations		.34			.29			.02			.08			.01
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.13	)		(.21	)		(.08	)		(.28	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.15	)
Total dividends and distributions		(.25	)		(.13	)		(.21	)		(.08	)		(.43	)
Net asset value, end of period		$  8.71			$  8.62			$  8.46			$  8.65			$  8.65
Total Return
Total investment return based on net asset value(d)		4.02	%		3.43	%^*†		0.35	%†		0.98	%		0.14	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,378			$911			$1,126			$801			$911
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		1.16	%		1.15	%		1.10	%		1.10	%		1.10	%
Expenses, before waivers/reimbursements(e)(f)		1.52	%		1.48	%		1.46	%		1.46	%		1.59	%
Net investment income(b)		2.33	%		2.53	%		2.48	%		1.66	%		.52	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

110    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.64			$  8.49			$  8.68			$  8.68			$  9.10
Income From Investment Operations
Net investment income(a)(b)		.22			.25			.22			.16			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.14			.04			(.18	)		(.05	)		(.03	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase in net asset value from operations		.36			.30			.05			.11			.04
Less: Dividends and Distributions
Dividends from net investment income		(.27	)		(.15	)		(.24	)		(.11	)		(.32	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.14	)
Total dividends and distributions		(.28	)		(.15	)		(.24	)		(.11	)		(.46	)
Net asset value, end of period		$  8.72			$  8.64			$  8.49			$  8.68			$  8.68
Total Return
Total investment return based on net asset value(d)		4.23	%		3.63	%*†		0.55	%†		1.24	%		0.40	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$248			$221			$181			$245			$48
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.92	%		.90	%		.85	%		.85	%		.85	%
Expenses, before waivers/reimbursements(e)(f)		1.20	%		1.17	%		1.12	%		1.14	%		1.24	%
Net investment income(b)		2.54	%		2.94	%		2.55	%		1.87	%		.75	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    111

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2017			2016			2015			2014			2013
Net asset value, beginning of period		$  8.60			$  8.45			$  8.65			$  8.66			$  9.08
Income From Investment Operations
Net investment income(a)(b)		.25			.27			.25			.18			.08
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.12			.06			(.19	)		(.06	)		(.02	)
Contributions from Affiliates		.00	(c)		.01			.01			– 0	–		– 0	–
Net increase in net asset value from operations		.37			.34			.07			.12			.06
Less: Dividends and Distributions
Dividends from net investment income		(.30	)		(.19	)		(.27	)		(.13	)		(.45	)
Tax return of capital		(.01	)		– 0	–		– 0	–		– 0	–		(.03	)
Total dividends and distributions		(.31	)		(.19	)		(.27	)		(.13	)		(.48	)
Net asset value, end of period		$  8.66			$  8.60			$  8.45			$  8.65			$  8.66
Total Return
Total investment return based on net asset value(d)		4.44	%^		4.07	%^*†		0.78	%†		1.42	%		0.67	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$47,915			$45,629			$44,242			$39,782			$8,036
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.67	%		.65	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements(e)(f)		.80	%		.77	%		.78	%		.74	%		.80	%
Net investment income(b)		2.84	%		3.17	%		2.93	%		2.10	%		.92	%
Portfolio turnover rate		66	%		137	%		149	%		161	%		301	%

See footnote summary on pages 113-114.

112    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,						November 4, 2014(g) to October 31, 2015
	2017			2016
Net asset value, beginning of period		$  8.59			$  8.45			$  8.65
Income From Investment Operations
Net investment income(a)(b)		.25			.28			.31
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.13			.04			(.25	)
Contributions from Affiliates		.00	(c)		.01			.01
Net increase in net asset value from operations		.38			.33			.07
Less: Dividends
Dividends from net investment income		(.30	)		(.19	)		(.27	)
Tax return of capital		(.01	)		– 0	–		– 0	–
Total dividends and distributions		(.31	)		(.19	)		(.27	)
Net asset value, end of period		$  8.66			$  8.59			$  8.45
Total Return
Total investment return based on net asset value(d)		4.57	%		3.94	%*†		0.85	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$11,238			$9,587			$2,031
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.67	%		.65	%		.60	%(h)
Expenses, before waivers/reimbursements(e)(f)		.80	%		.78	%		.80	%(h)
Net investment income(b)		2.86	%		3.31	%		3.68	%(h)
Portfolio turnover rate		66	%		137	%		149	%

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $0.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total investment return. Total investment return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return for a period of less than one year is not annualized.

(e) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses but bears proportionate shares of the fees and expenses (i.e. operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the years ended October 31, 2017 and October 31, 2016, such waiver amounted to 0.02% and 0.01%, respectively.

See notes to financial statements.

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    113

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(f) The expense ratios presented below exclude non-operating expense:

	Year Ended October 31,
	2017			2016			2015			2014			2013
Class A
Net of waivers/reimbursements		.88	%		.89	%		.90	%		.90	%		.90	%
Before waivers/reimbursements		1.04	%		1.05	%		1.06	%		1.06	%		1.19	%
Class B
Net of waivers/reimbursements		1.63	%		1.63	%		1.60	%		1.60	%		1.60	%
Before waivers/reimbursements		1.83	%		1.78	%		1.76	%		1.77	%		1.93	%
Class C
Net of waivers/reimbursements		1.63	%		1.63	%		1.60	%		1.60	%		1.60	%
Before waivers/reimbursements		1.80	%		1.79	%		1.77	%		1.77	%		1.89	%
Advisor Class
Net of waivers/reimbursements		.63	%		.63	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.79	%		.78	%		.76	%		.77	%		.87	%
Class R
Net of waivers/reimbursements		1.13	%		1.13	%		1.10	%		1.10	%		1.10	%
Before waivers/reimbursements		1.49	%		1.46	%		1.46	%		1.46	%		1.59	%
Class K
Net of waivers/reimbursements		.88	%		.88	%		.85	%		.85	%		.85	%
Before waivers/reimbursements		1.16	%		1.15	%		1.12	%		1.14	%		1.24	%
Class I
Net of waivers/reimbursements		.63	%		.63	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.76	%		.75	%		.78	%		.74	%		.80	%

	Year Ended October 31,						November 4, 2014(g) to October 31, 2015
	2017			2016
Class Z
Net of waivers/reimbursements		.63	%		.63	%		.60	%(h)
Before waivers/reimbursements		.76	%		.76	%		.80	%(h)

(g) Commencement of distribution.

(h) Annualized.

^ The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the performance of each share class for the year ended October 31, 2017 by 0.05%.

† Includes the impact of reimbursements from the Adviser which enhanced the Fund’s performance for the years ended October 31, 2016 and October 31, 2015 by 0.08% and 0.08%, respectively.

See notes to financial statements.

114    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Unconstrained Bond Fund, Inc.

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of AB Unconstrained Bond Fund, Inc. (the “Fund”), as of October 31, 2017, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2017, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of AB Unconstrained Bond Fund, Inc. at October 31, 2017, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

New York, New York

December 29, 2017

abfunds.com AB UNCONSTRAINED BOND FUND    ^|    115

2017 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable period ended October 31, 2017. For individual shareholders, the Fund designates 0.08% of dividends paid as qualified dividend income. For corporate shareholders, 0.08% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 25.09% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2018.

116    ^|    AB UNCONSTRAINED BOND FUND abfunds.com

BOARD OF DIRECTORS

Marshall C. Turner, Jr.⁽¹⁾, Chairman John H. Dobkin⁽¹⁾⁽²⁾ Michael J. Downey⁽¹⁾ William H. Foulk, Jr.⁽¹⁾ D. James Guzy⁽¹⁾⁽²⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Philip L. Kirstein⁽³⁾, Senior Vice President and Independent Compliance Officer Scott DiMaggio⁽⁴⁾, Vice President Gershon Distenfeld⁽⁴⁾, Vice President Douglas J. Peebles⁽⁴⁾, Vice President Dimitri Silva⁽⁴⁾, Vice President John Taylor⁽⁴⁾, Vice President Emilie D. Wrapp, Secretary Joseph J. Mantineo, Treasurer and Chief Financial Officer Stephen M. Woetzel, Controller Vincent S. Noto, Chief Compliance Officer

Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105   Custodian and Accounting Agent Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110   Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672   Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 Messrs. Dobkin and Guzy are expected to retire on or about December 31, 2017.

3 Mr. Kirstein is expect to retire on or about December 31, 2017.

4 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Global Fixed Income Investment Team and the Global Credit Investment Team. Messrs. DiMaggio, Distenfeld, Peebles, Silva and Taylor are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

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MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (FIRST YEAR ELECTED**)	PRINCIPAL OCCUPATION(S)       DURING PAST FIVE YEARS       AND OTHER INFORMATION***	PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,† 1345 Avenue of the Americas New York, NY 10105 57 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”), and the head of AllianceBernstein Investments, Inc. (“ABI”), since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		96	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (FIRST YEAR ELECTED**)	PRINCIPAL OCCUPATION(S)       DURING PAST FIVE YEARS       AND OTHER INFORMATION***	PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.# Chairman of the Board 76 (2014)	Private Investor since prior to 2012. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi- conductor manufacturing). He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non- profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB fund since 1992, and director or trustee of multiple AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		96	Xilinx, Inc. (programmable logic semi-conductors) since 2007
John H. Dobkin,#,## 75 (1995)	Independent Consultant since prior to 2012. Formerly, President of Save Venice, Inc. (preservation organization) from 2001–2002; Senior Advisor from June 1999-June 2000 and President of Historic Hudson Valley (historic preservation) from December 1989-May 1999. Previously, Director of the National Academy of Design. He has served as a director or trustee of various AB Funds since 1992, and as Chairman of the Audit Committees of a number of such AB Funds from 2001-2008.		95	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (FIRST YEAR ELECTED**)	PRINCIPAL OCCUPATION(S)       DURING PAST FIVE YEARS       AND OTHER INFORMATION***	PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Michael J. Downey,# 73 (2005)	Private Investor since prior to 2012. Formerly, managing partner of Lexington Capital, LLC (investment advisory firm) from December 1997 until December 2003. He served as Director of Prospect Acquisition Corp. (financial services) from 2007 until 2009. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005 and is a director and Chairman of one other registered investment company.		96	The Asia Pacific Fund, Inc. (registered investment company) since prior to 2012
William H. Foulk, Jr.,# 85 (1995)	Investment Adviser and an Independent Consultant since prior to 2012. Previously, he was Senior Manager of Barrett Associates, Inc., a registered investment adviser. He was formerly Deputy Comptroller and Chief Investment Officer of the State of New York and, prior thereto, Chief Investment Officer of the New York Bank for Savings. He has served as a director or trustee of various AB Funds since 1983, and was Chairman of the Independent Directors Committees of the AB Funds from 2003 until early February 2014. He served as Chairman of such AB Funds from 2003 through December 2013. He is also active in a number of mutual fund related organizations and committees.		96	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (FIRST YEAR ELECTED**)	PRINCIPAL OCCUPATION(S)       DURING PAST FIVE YEARS       AND OTHER INFORMATION***	PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
D. James Guzy,#,## 81 (2005)	Chairman of the Board of SRC Computers, Inc. (semi-conductors), with which he has been associated since prior to 2012. He served as Chairman of the Board of PLX Technology (semi-conductors) since prior to 2012 until November 2013. He was a director of Intel Corporation (semi-conductors) from 1969 until 2008, and served as Chairman of the Finance Committee of such company for several years until May 2008. He has served as a director or trustee of one or more of the AB Funds since 1982.		93	None
Nancy P. Jacklin,# 69 (2006)	Private Investor since prior to 2012. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chairman of the Governance and Nominating Committees of the Funds since August 2014.		96	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (FIRST YEAR ELECTED**)	PRINCIPAL OCCUPATION(S)       DURING PAST FIVE YEARS       AND OTHER INFORMATION***	PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,# 62 (2016)	Managing Director of Slalom Consulting (consulting) since 2014 and private investor; and member of the Partners Healthcare Investment Committee. Formerly, Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; and Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016, and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Head of Global Investment Research). She has served on a number of private company and nonprofit boards, and as a director or trustee of the AB Funds since June 2016.		96	None

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MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (FIRST YEAR ELECTED**)	PRINCIPAL OCCUPATION(S)       DURING PAST FIVE YEARS       AND OTHER INFORMATION***	PORTFOLIOS IN FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,# 65 (2008)	Independent Consultant. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		96	None
Earl D. Weiner,# 78 (2007)	Of Counsel, and Partner prior to January 2007, of the law firm Sullivan & Cromwell LLP and is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		96	None

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MANAGEMENT OF THE FUND (continued)

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Office of the Senior Officer, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

† Mr. Keith is an “interested person” of the Fund, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

# Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

## Messrs. Dobkin and Guzy are expected to retire on or about December 31, 2017.

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MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Robert M. Keith 57	President and Chief Executive Officer	See biography above.
Philip L. Kirstein# 72	Senior Vice President and Independent Compliance Officer	Senior Vice President and Independent Compliance Officer of the AB Funds, with which he has been associated since October 2004. Prior thereto, he was Of Counsel to Kirkpatrick & Lockhart, LLP from October 2003 to October 2004, and General Counsel of Merrill Lynch Investment Managers, L.P. since prior to March 2003.
Scott A. DiMaggio 46	Vice President	Senior Vice President of the Adviser,** with which he has been associated since prior to 2012.
Gershon M. Distenfeld 41	Vice President	Senior Vice President of the Adviser,** with which he has been associated since prior to 2012.
Douglas J. Peebles 52	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2012.
Dimitri Silva 35	Vice President	Vice President of the Adviser,** with which he has been associated since prior to 2012.
John Taylor 40	Vice President	Senior Vice President of the Adviser,** with which he has been associated since prior to 2012.
Emilie D. Wrapp 62	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2012.
Joseph J. Mantineo 58	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2012.
Stephen M. Woetzel 46	Controller	Vice President of ABIS**, with which he has been associated since prior to 2012.
Vincent S. Noto 53	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since 2014. Prior thereto, he was Vice President and Director of Mutual Fund Compliance of the Adviser** since 2012.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

# Mr. Kirstein is expected to retire on or about December 31, 2017.

The Fund’s Statement of Additional Information (SAI) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Unconstrained Bond Fund, Inc. (formerly named AllianceBernstein Diversified Yield Fund, Inc.) (the “Fund”) unanimously approved the continuance of the Fund’s Advisory Agreement with the Adviser at a meeting held on November 1-3, 2016 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed an independent evaluation prepared by the Fund’s Senior Officer (who is also the Fund’s Independent Compliance Officer) of the reasonableness of the advisory fee, in which the Senior Officer concluded that the contractual fee for the Fund was reasonable. The directors also discussed the proposed continuance in private sessions with counsel and the Fund’s Senior Officer.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they receive presentations from the Adviser on the investment results of the Fund and review extensive materials and information presented by the Adviser.

The directors also considered all other factors they believed relevant, including the specific matters discussed below. In their deliberations, the directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The

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material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s Senior Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2014 and 2015 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s Senior Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the periods reviewed.

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Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund’s unprofitability to the Adviser would be exacerbated without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed information prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), an analytical service that is not affiliated with the Adviser, showing the performance of the Class A Shares of the Fund against a peer group and a peer universe selected by Broadridge, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2016 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate paid by the Fund to the Adviser and information prepared by Broadridge concerning advisory fee rates paid by other funds in the same Broadridge category as the Fund at a common asset level. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for institutional clients pursuing a similar investment style. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and the evaluation from the Fund’s Senior Officer and noted the differences between the Fund’s fee schedule, on the one hand, and the institutional fee schedule and the schedule of fees charged to any offshore funds and any sub-advised funds, on the other. The directors noted that the Adviser

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may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to funds such as the Fund, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by Broadridge. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year. The directors noted the effects of any fee waivers and/or expense reimbursements as a result of an undertaking by the Adviser. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s Broadridge category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

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This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

US CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

US GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

US VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund¹

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

INTERNATIONAL/ GLOBAL CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund¹

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL GROWTH

Concentrated International Growth Portfolio

International Growth Fund

INTERNATIONAL/ GLOBAL EQUITY (continued)

INTERNATIONAL/ GLOBAL VALUE

Asia ex-Japan Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

TAXABLE

Bond Inflation Strategy

FlexFee^™ International Bond Portfolio

Global Bond Fund

High Income Fund

High Yield Portfolio

Income Fund

Intermediate Bond Portfolio

Limited Duration High Income Portfolio

Short Duration Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Credit Long/Short Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

Unconstrained Bond Fund

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio¹

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio¹

TARGET-DATE

Multi-Manager Select Retirement Allocation Fund

Multi-Manager Select 2010 Fund

Multi-Manager Select 2015 Fund

Multi-Manager Select 2020 Fund

Multi-Manager Select 2025 Fund

Multi-Manager Select 2030 Fund

Multi-Manager Select 2035 Fund

Multi-Manager Select 2040 Fund

Multi-Manager Select 2045 Fund

Multi-Manager Select 2050 Fund

Multi-Manager Select 2055 Fund

CLOSED-END FUNDS

Alliance California Municipal Income Fund

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio¹, which serves as the money market fund exchange vehicle for the AB mutual funds. An investment in Government Money Market Portfolio is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to January 9, 2017, Relative Value Fund was named Growth & Income Fund; prior to April 17, 2017, Tax-Managed All Market Income Portfolio was named Tax-Managed Balanced Wealth Strategy; prior to April 24, 2017, All Market Total Return Portfolio was named Balanced Wealth Strategy; prior to November 10, 2017, Government Money Market Portfolio was named Government Exchange Reserves.

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NOTES

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NOTES

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AB UNCONSTRAINED BOND FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

UB-0151-1017                

ITEM 2. CODE OF ETHICS.

(a) The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant’s code of ethics is filed herewith as Exhibit 12(a)(1).

(b) During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.

(c) During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Directors has determined that independent directors Garry L. Moody, William H. Foulk, Jr. and Marshall C. Turner, Jr. qualify as audit committee financial experts.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) - (c) The following table sets forth the aggregate fees billed by the independent registered public accounting firm Ernst & Young LLP, for the Fund’s last two fiscal years for professional services rendered for: (i) the audit of the Fund’s annual financial statements included in the Fund’s annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues and quarterly press release review (for those Funds which issue press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

		Audit Fees		Audit-Related Fees		Tax Fees
AB Unconstrained Bond Fund	2016	$	107,809	$	16	$	27,772
	2017	$	107,809	$	41	$	29,902

(d) Not applicable.

(e) (1) Beginning with audit and non-audit service contracts entered into on or after May 6, 2003, the Fund’s Audit Committee policies and procedures require the pre-approval of all audit and non-audit services provided to the Fund by the Fund’s independent registered public accounting firm. The Fund’s Audit Committee policies and procedures also require pre-approval of all audit and non-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.

(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in the table under Item 4 (a) – (c) are for services pre-approved by the Fund’s Audit Committee.

(f) Not applicable.

(g) The following table sets forth the aggregate non-audit services provided to the Fund, the Fund’s Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund:

		All Fees for Non-Audit Services Provided to the Portfolio, the Adviser and Service Affiliates		Total Amount of Foregoing Column Pre- approved by the Audit Committee (Portion Comprised of Audit Related Fees) (Portion Comprised of Tax Fees)
AB Unconstrained Bond Fund	2016	$	463,608	$	27,788
				$	(16	)
				$	(27,772	)
	2017	$	753,058	$	29,943
				$	(41	)
				$	(29,902	)

(h) The Audit Committee of the Fund has considered whether the provision of any non-audit services not pre-approved by the Audit Committee provided by the Fund’s independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. SCHEDULE OF INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
12 (a) (1)	Code of Ethics that is subject to the disclosure of Item 2 hereof
12 (b) (1)	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2)	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (c)	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): AB Unconstrained Bond Fund, Inc.

By:	/s/ Robert M. Keith
	Robert M. Keith
	President

Date: December 29, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Robert M. Keith
	Robert M. Keith
	President

Date: December 29, 2017

By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer

Date: December 29, 2017