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: 811-21497
AB CORPORATE SHARES
(Exact name of registrant as specified in charter)
66 Hudson Boulevard East
New York, New York 10005
(Address of principal executive offices) (Zip code)
Stephen M. Woetzel
AllianceBernstein L.P.
66 Hudson Boulevard East
New York, New York 10005
(Name and address of agent for service)
Registrant’s telephone number, including area code: (800) 221-5672
Date of fiscal year end: April 30, 2025
Date of reporting period: October 31, 2024
ITEM 1. REPORTS TO STOCKHOLDERS.
AB Corporate Income Shares: ACISX
Please scan QR code for
Fund Information
AB Corporate Income Shares
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about the AB Corporate Income Shares (the “Fund”) for the period of May 1, 2024 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/ACISX-S. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|
AB Corporate Income Shares | $0 | 0.00% |
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| AB Corporate Income Shares | Bloomberg U.S. Corporate Bond Index |
---|
10/14 | $10,000 | $10,000 |
04/15 | $10,285 | $10,235 |
04/16 | $10,473 | $10,544 |
04/17 | $10,827 | $10,861 |
04/18 | $10,880 | $10,933 |
04/19 | $11,645 | $11,643 |
04/20 | $12,653 | $12,794 |
04/21 | $13,619 | $13,365 |
04/22 | $12,242 | $11,971 |
04/23 | $12,297 | $12,052 |
04/24 | $12,585 | $12,172 |
10/24 | $13,373 | $12,887 |
Average Annual Total Returns
| 6 Months | 1 Year | 5 Years | 10 Years |
---|
AB Corporate Income Shares | 6.26% | 15.08% | 1.19% | 2.95% |
Bloomberg U.S. Corporate Bond Index | 5.87% | 13.63% | 0.54% | 2.57% |
The addition of the Bloomberg U.S. Corporate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/ACISX-S for the most recent performance information.
AB Corporate Income Shares: ACISX
1
FUND STATISTICS | Fund Stats |
---|
Net Assets | $215,795,462 |
# of Portfolio Holdings | 311 |
Portfolio Turnover Rate | 62% |
Total Advisory Fees Paid | $0 |
Graphical Representation of Holdings
Value | Value |
---|
Corporates - Investment Grade | 96.7% |
Quasi-Sovereigns | 1.0% |
Governments - Sovereign Bonds | 0.5% |
Other assets less liabilities | 1.8% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/ACISX-S, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
AB Corporate Income Shares: ACISX
2
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/ACISX-S. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Corporate Income Shares: ACISX
3
AB Impact Municipal Income Shares: ABIMX
Please scan QR code for
Fund Information
AB Impact Municipal Income Shares
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about the AB Impact Municipal Income Shares (the “Fund”) for the period of May 1, 2024 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABIMX-S. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|
AB Impact Municipal Income Shares | $0 | 0.00% |
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| AB Impact Municipal Income Shares | Bloomberg Municipal Bond Index |
---|
09/17 | $10,000 | $10,000 |
04/18 | $9,956 | $9,866 |
04/19 | $10,709 | $10,473 |
04/20 | $10,752 | $10,700 |
04/21 | $12,158 | $11,528 |
04/22 | $11,154 | $10,619 |
04/23 | $11,316 | $10,925 |
04/24 | $11,734 | $11,152 |
10/24 | $12,302 | $11,427 |
Average Annual Total Returns
| 6 Months | 1 Year | 5 Years | Since Inception 9/12/2017 |
---|
AB Impact Municipal Income Shares | 4.84% | 16.24% | 1.75% | 2.95% |
Bloomberg Municipal Bond Index | 2.46% | 9.70% | 1.05% | 1.89% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABIMX-S for the most recent performance information.
AB Impact Municipal Income Shares: ABIMX
1
FUND STATISTICS | Fund Stats |
---|
Net Assets | $585,360,577 |
# of Portfolio Holdings | 251 |
Portfolio Turnover Rate | 11% |
Total Advisory Fees Paid | $0 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
Value | Value |
---|
AAA | -% |
AA | 27.0% |
A | 26.3% |
BBB | 29.4% |
BB | 7.8% |
NR | 8.4% |
Footnote | Description |
Footnote* | The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment grade by AllianceBernstein L.P.(the "Adviser"). If applicable, Not Applicable (N/A) includes non-credit worthy investments; such as, equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment. |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABIMX-S, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
AB Impact Municipal Income Shares: ABIMX
2
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABIMX-S. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Impact Municipal Income Shares: ABIMX
3
AB Municipal Income Shares: MISHX
Please scan QR code for
Fund Information
AB Municipal Income Shares
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about the AB Municipal Income Shares (the “Fund”) for the period of May 1, 2024 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/BWM/MISHX-S. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|
AB Municipal Income Shares | $0 | 0.00% |
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| AB Municipal Income Shares | Bloomberg Municipal Bond Index |
---|
10/14 | $10,000 | $10,000 |
04/15 | $10,295 | $10,117 |
04/16 | $11,153 | $10,652 |
04/17 | $11,288 | $10,667 |
04/18 | $11,802 | $10,833 |
04/19 | $12,690 | $11,501 |
04/20 | $12,153 | $11,749 |
04/21 | $14,786 | $12,659 |
04/22 | $13,673 | $11,661 |
04/23 | $13,935 | $11,996 |
04/24 | $14,326 | $12,246 |
10/24 | $15,154 | $12,548 |
Average Annual Total Returns
| 6 Months | 1 Year | 5 Years | 10 Years |
---|
AB Municipal Income Shares | 5.78% | 17.27% | 2.59% | 4.24% |
Bloomberg Municipal Bond Index | 2.46% | 9.70% | 1.05% | 2.30% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/BWM/MISHX-S for the most recent performance information.
AB Municipal Income Shares: MISHX
1
FUND STATISTICS | Fund Stats |
---|
Net Assets | $13,865,709,106 |
# of Portfolio Holdings | 2,087 |
Portfolio Turnover Rate | 5% |
Total Advisory Fees Paid | $0 |
Graphical Representation of Holdings
Credit Rating BreakdownFootnote Reference*
Value | Value |
---|
AAA | 2.1% |
AA | 17.3% |
A | 24.2% |
BBB | 21.0% |
BB | 8.4% |
B | 0.8% |
CCC | 0.1% |
CC | -% |
C | 0.0% |
A-1 | 0.0% |
SP-1 | 1.5% |
SP-2 | 0.2% |
NR | 24.6% |
Footnote | Description |
Footnote* | The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment grade by AllianceBernstein L.P.(the "Adviser"). If applicable, Not Applicable (N/A) includes non-credit worthy investments; such as, equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment. |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/BWM/MISHX-S, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
AB Municipal Income Shares: MISHX
2
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/BWM/MISHX-S. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
AB Municipal Income Shares: MISHX
3
AB Taxable Multi-Sector Income Shares: CSHTX
Please scan QR code for
Fund Information
AB Taxable Multi-Sector Income Shares
Semi-Annual Shareholder Report
This semi-annual shareholder report contains important information about the AB Taxable Multi-Sector Income Shares (the “Fund”) for the period of May 1, 2024 to October 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/CSHTX-S. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last six months?
(Based on a hypothetical $10,000 investment)
Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|
AB Taxable Multi-Sector Income Shares | $0 | 0.00% |
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects applicable sales charges and assumes the reinvestment of dividends.
| AB Taxable Multi-Sector Income Shares | Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Aggregate ex Government Bond Index |
---|
10/14 | $10,000 | $10,000 | $10,000 |
04/15 | $10,074 | $10,206 | $10,208 |
04/16 | $10,188 | $10,483 | $10,482 |
04/17 | $10,352 | $10,570 | $10,662 |
04/18 | $10,419 | $10,536 | $10,677 |
04/19 | $10,836 | $11,094 | $11,281 |
04/20 | $11,207 | $12,297 | $12,242 |
04/21 | $11,534 | $12,264 | $12,521 |
04/22 | $11,203 | $11,220 | $11,353 |
04/23 | $11,451 | $11,172 | $11,343 |
04/24 | $11,956 | $11,008 | $11,279 |
10/24 | $12,429 | $11,593 | $11,928 |
Average Annual Total Returns
| 6 Months | 1 Year | 5 Years | 10 Years |
---|
AB Taxable Multi-Sector Income Shares | 3.95% | 7.23% | 2.23% | 2.20% |
Bloomberg U.S. Aggregate Bond Index | 5.31% | 10.55% | -0.23% | 1.49% |
Bloomberg U.S. Aggregate ex Government Bond Index | 5.75% | 12.20% | 0.02% | 1.78% |
The addition of the Bloomberg U.S. Aggregate Bond Index broad-based benchmark provides a comparison of the Fund's performance against the broader market as regulatorily required.
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/CSHTX-S for the most recent performance information.
FUND STATISTICS | Fund Stats |
---|
Net Assets | $446,556,905 |
# of Portfolio Holdings | 251 |
Portfolio Turnover Rate | 28% |
Total Advisory Fees Paid | $0 |
Graphical Representation of Holdings
Value | Value |
---|
Corporates - Investment Grade | 63.2% |
Local Governments - US Municipal Bonds | 15.5% |
Governments - Treasuries | 8.3% |
Asset-Backed Securities | 4.1% |
Collateralized Mortgage Obligations | 3.8% |
Agencies | 2.2% |
Commercial Mortgage-Backed Securities | 0.3% |
Corporates - Non-Investment Grade | 0.1% |
Short-Term Investments | 2.0% |
Other assets less liabilities | 0.5% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/CSHTX-S, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/CSHTX-S. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
Please scan QR code for
Fund Information
ITEM 2. CODE OF ETHICS.
Not applicable when filing a semi-annual report to shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable when filing a semi-annual report to shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable when filing a semi-annual report to shareholders.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. INVESTMENTS.
Please see Schedule of Investments contained in the Financial Statements included under Item 7 of this Form N-CSR.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
OCT 10.31.24
SEMI-ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
AB CORPORATE INCOME SHARES
| | |
| |
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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. 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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024 (unaudited)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
CORPORATES - INVESTMENT GRADE – 96.7% | | | | | | | | |
Industrial – 59.4% | |
Basic – 2.4% | |
AngloGold Ashanti Holdings PLC 3.375%, 11/01/2028 | | $ | 1,705 | | | $ | 1,572,845 | |
Ecolab, Inc. 2.70%, 11/01/2026 | | | 190 | | | | 183,464 | |
Glencore Funding LLC 5.70%, 05/08/2033(a) | | | 590 | | | | 604,036 | |
6.50%, 10/06/2033(a) | | | 750 | | | | 805,778 | |
Inversiones CMPC SA 3.85%, 01/13/2030(a) | | | 210 | | | | 194,250 | |
6.125%, 02/26/2034(a) | | | 207 | | | | 210,933 | |
Sherwin-Williams Co. (The) 3.45%, 06/01/2027 | | | 1,493 | | | | 1,449,106 | |
Suzano Austria GmbH 6.00%, 01/15/2029 | | | 253 | | | | 256,083 | |
| | | | | | | | |
| | | | | | | 5,276,495 | |
| | | | | | | | |
Capital Goods – 4.8% | |
Boeing Co. (The) 2.196%, 02/04/2026 | | | 1,477 | | | | 1,422,676 | |
3.25%, 02/01/2028 | | | 136 | | | | 127,714 | |
3.625%, 02/01/2031 | | | 1,169 | | | | 1,055,327 | |
5.15%, 05/01/2030 | | | 52 | | | | 51,371 | |
6.528%, 05/01/2034(a) | | | 212 | | | | 223,497 | |
Caterpillar Financial Services Corp. 4.45%, 10/16/2026 | | | 1,096 | | | | 1,097,041 | |
5.00%, 05/14/2027 | | | 505 | | | | 512,090 | |
GE Capital International Funding Co. Unlimited Co. 4.418%, 11/15/2035 | | | 443 | | | | 417,359 | |
General Electric Co. 5.875%, 01/14/2038 | | | 1,317 | | | | 1,383,943 | |
John Deere Capital Corp. 4.40%, 09/08/2031 | | | 658 | | | | 642,340 | |
Parker-Hannifin Corp. 3.25%, 06/14/2029 | | | 999 | | | | 938,261 | |
4.25%, 09/15/2027 | | | 1,408 | | | | 1,395,919 | |
Waste Management, Inc. 4.50%, 03/15/2028 | | | 1,084 | | | | 1,082,157 | |
| | | | | | | | |
| | | | | | | 10,349,695 | |
| | | | | | | | |
Communications - Media – 5.0% | |
Charter Communications Operating LLC/Charter Communications Operating Capital 6.384%, 10/23/2035 | | | 765 | | | | 764,801 | |
6.484%, 10/23/2045 | | | 936 | | | | 886,036 | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Discovery Communications LLC 5.30%, 05/15/2049 | | $ | 82 | | | $ | 63,848 | |
Fox Corp. 6.50%, 10/13/2033 | | | 610 | | | | 649,534 | |
Meta Platforms, Inc. 5.55%, 08/15/2064 | | | 764 | | | | 773,428 | |
5.75%, 05/15/2063 | | | 1,304 | | | | 1,358,351 | |
Paramount Global 4.20%, 05/19/2032 | | | 267 | | | | 232,407 | |
4.375%, 03/15/2043 | | | 1,601 | | | | 1,150,431 | |
5.90%, 10/15/2040 | | | 310 | | | | 268,119 | |
Thomson Reuters Corp. 5.85%, 04/15/2040 | | | 69 | | | | 71,180 | |
Time Warner Cable LLC 6.55%, 05/01/2037 | | | 360 | | | | 345,701 | |
6.75%, 06/15/2039 | | | 918 | | | | 892,985 | |
Warnermedia Holdings, Inc. 3.755%, 03/15/2027 | | | 1,394 | | | | 1,342,157 | |
4.279%, 03/15/2032 | | | 1,607 | | | | 1,409,660 | |
5.141%, 03/15/2052 | | | 757 | | | | 570,097 | |
| | | | | | | | |
| | | | | | | 10,778,735 | |
| | | | | | | | |
Communications - Telecommunications – 0.7% | | | | | | | | |
AT&T, Inc. 6.55%, 01/15/2028 | | | 100 | | | | 104,259 | |
T-Mobile USA, Inc. 2.625%, 04/15/2026 | | | 1,465 | | | | 1,420,361 | |
| | | | | | | | |
| | | | | | | 1,524,620 | |
| | | | | | | | |
Consumer Cyclical - Automotive – 5.0% | |
Aptiv PLC/Aptiv Global Financing DAC 5.15%, 09/13/2034 | | | 774 | | | | 733,295 | |
Ford Motor Co. 3.25%, 02/12/2032 | | | 1,509 | | | | 1,263,606 | |
Ford Motor Credit Co., LLC 4.00%, 11/13/2030 | | | 626 | | | | 565,960 | |
6.05%, 03/05/2031 | | | 826 | | | | 831,055 | |
6.125%, 03/08/2034 | | | 238 | | | | 235,601 | |
General Motors Co. 5.15%, 04/01/2038 | | | 52 | | | | 48,765 | |
6.60%, 04/01/2036 | | | 522 | | | | 553,383 | |
General Motors Financial Co., Inc. 3.10%, 01/12/2032 | | | 566 | | | | 486,471 | |
3.60%, 06/21/2030 | | | 540 | | | | 495,056 | |
5.95%, 04/04/2034 | | | 1,114 | | | | 1,134,587 | |
Harley-Davidson Financial Services, Inc. 5.95%, 06/11/2029(a) | | | 558 | | | | 559,189 | |
| | |
| |
2 | AB CORPORATE INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Hyundai Capital America 5.30%, 03/19/2027(a) | | $ | 385 | | | $ | 389,008 | |
5.65%, 06/26/2026(a) | | | 1,125 | | | | 1,137,499 | |
5.68%, 06/26/2028(a) | | | 566 | | | | 577,297 | |
Nissan Motor Acceptance Co., LLC 5.30%, 09/13/2027(a) | | | 302 | | | | 296,999 | |
Toyota Motor Credit Corp. 4.55%, 08/09/2029 | | | 663 | | | | 658,538 | |
5.10%, 03/21/2031 | | | 772 | | | | 782,808 | |
| | | | | | | | |
| | | | | | | 10,749,117 | |
| | | | | | | | |
Consumer Cyclical - Entertainment – 0.3% | |
Mattel, Inc. 3.375%, 04/01/2026(a) | | | 588 | | | | 574,141 | |
| | | | | | | | |
|
Consumer Cyclical - Other – 1.1% | |
DR Horton, Inc. 5.00%, 10/15/2034 | | | 462 | | | | 450,885 | |
Marriott International, Inc./MD Series GG 3.50%, 10/15/2032 | | | 1,629 | | | | 1,448,751 | |
Series R 3.125%, 06/15/2026 | | | 482 | | | | 470,721 | |
| | | | | | | | |
| | | | | | | 2,370,357 | |
| | | | | | | | |
Consumer Cyclical - Restaurants – 1.0% | |
McDonald’s Corp. 3.50%, 03/01/2027 | | | 1,435 | | | | 1,401,722 | |
6.30%, 10/15/2037 | | | 622 | | | | 679,554 | |
| | | | | | | | |
| | | | | | | 2,081,276 | |
| | | | | | | | |
Consumer Cyclical - Retailers – 1.4% | |
CK Hutchison International 23 Ltd. 4.875%, 04/21/2033(a) | | | 1,396 | | | | 1,375,967 | |
Costco Wholesale Corp. 1.60%, 04/20/2030 | | | 586 | | | | 501,452 | |
Ross Stores, Inc. 4.70%, 04/15/2027 | | | 160 | | | | 159,291 | |
4.80%, 04/15/2030 | | | 115 | | | | 112,866 | |
5.45%, 04/15/2050 | | | 175 | | | | 163,947 | |
VF Corp. 2.80%, 04/23/2027 | | | 727 | | | | 685,365 | |
| | | | | | | | |
| | | | | | | 2,998,888 | |
| | | | | | | | |
Consumer Non-Cyclical – 14.4% | |
AbbVie, Inc. 2.95%, 11/21/2026 | | | 1,450 | | | | 1,406,079 | |
Altria Group, Inc. 2.45%, 02/04/2032 | | | 1,740 | | | | 1,444,826 | |
3.40%, 02/04/2041 | | | 462 | | | | 344,185 | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Archer-Daniels-Midland Co. 2.50%, 08/11/2026 | | $ | 469 | | | $ | 452,308 | |
2.90%, 03/01/2032 | | | 1,473 | | | | 1,293,839 | |
3.25%, 03/27/2030 | | | 121 | | | | 112,390 | |
4.50%, 08/15/2033 | | | 476 | | | | 461,154 | |
Bunge Ltd. Finance Corp. 2.75%, 05/14/2031 | | | 1,637 | | | | 1,434,781 | |
Cargill, Inc. 3.625%, 04/22/2027(a) | | | 560 | | | | 547,238 | |
4.375%, 04/22/2052(a) | | | 350 | | | | 300,797 | |
5.125%, 10/11/2032(a) | | | 166 | | | | 168,736 | |
Cencora, Inc. 3.45%, 12/15/2027 | | | 1,501 | | | | 1,448,870 | |
Cencosud SA 5.95%, 05/28/2031(a) | | | 650 | | | | 658,190 | |
Coca-Cola Co. (The) 5.40%, 05/13/2064 | | | 748 | | | | 754,268 | |
CVS Health Corp. 2.875%, 06/01/2026 | | | 1,468 | | | | 1,422,360 | |
4.78%, 03/25/2038 | | | 1,557 | | | | 1,386,882 | |
5.125%, 07/20/2045 | | | 505 | | | | 442,143 | |
5.70%, 06/01/2034 | | | 133 | | | | 133,616 | |
Eli Lilly & Co. 3.375%, 03/15/2029 | | | 1,468 | | | | 1,404,025 | |
5.20%, 08/14/2064 | | | 421 | | | | 410,707 | |
General Mills, Inc. 4.70%, 01/30/2027 | | | 304 | | | | 304,231 | |
HCA, Inc. 5.25%, 06/15/2026 | | | 1,266 | | | | 1,270,887 | |
5.375%, 09/01/2026 | | | 1,418 | | | | 1,425,203 | |
Imperial Brands Finance PLC 5.875%, 07/01/2034(a) | | | 873 | | | | 880,333 | |
Philip Morris International, Inc. 0.875%, 05/01/2026 | | | 767 | | | | 725,743 | |
5.25%, 02/13/2034 | | | 875 | | | | 878,063 | |
5.375%, 02/15/2033 | | | 960 | | | | 972,874 | |
6.375%, 05/16/2038 | | | 86 | | | | 94,327 | |
Pilgrim’s Pride Corp. 3.50%, 03/01/2032 | | | 1,351 | | | | 1,182,963 | |
6.25%, 07/01/2033 | | | 1,062 | | | | 1,100,551 | |
Procter & Gamble Co. (The) 4.15%, 10/24/2029 | | | 1,096 | | | | 1,088,635 | |
Roche Holdings, Inc. 4.203%, 09/09/2029(a) | | | 835 | | | | 820,863 | |
4.909%, 03/08/2031(a) | | | 774 | | | | 782,065 | |
Stryker Corp. 3.50%, 03/15/2026 | | | 692 | | | | 681,440 | |
| | |
| |
4 | AB CORPORATE INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Sysco Corp. 3.30%, 07/15/2026 | | $ | 1,451 | | | $ | 1,417,598 | |
Tyson Foods, Inc. 4.00%, 03/01/2026 | | | 1,404 | | | | 1,388,654 | |
| | | | | | | | |
| | | | | | | 31,041,824 | |
| | | | | | | | |
Energy – 8.8% | |
ConocoPhillips Co. 5.05%, 09/15/2033 | | | 1,356 | | | | 1,362,156 | |
5.30%, 05/15/2053 | | | 1,182 | | | | 1,136,564 | |
Continental Resources, Inc./OK 2.875%, 04/01/2032(a) | | | 384 | | | | 317,476 | |
4.375%, 01/15/2028 | | | 677 | | | | 656,717 | |
5.75%, 01/15/2031(a) | | | 1,261 | | | | 1,261,441 | |
Devon Energy Corp. 5.20%, 09/15/2034 | | | 754 | | | | 724,994 | |
5.60%, 07/15/2041 | | | 1,077 | | | | 1,019,208 | |
Diamondback Energy, Inc. 3.25%, 12/01/2026 | | | 1,463 | | | | 1,420,310 | |
5.90%, 04/18/2064 | | | 112 | | | | 108,834 | |
EQT Corp. 3.125%, 05/15/2026(a) | | | 492 | | | | 476,699 | |
Hess Corp. 4.30%, 04/01/2027 | | | 1,414 | | | | 1,398,870 | |
Marathon Oil Corp. 5.70%, 04/01/2034 | | | 447 | | | | 463,324 | |
6.60%, 10/01/2037 | | | 1,211 | | | | 1,331,870 | |
Occidental Petroleum Corp. 5.375%, 01/01/2032 | | | 334 | | | | 329,581 | |
6.625%, 09/01/2030 | | | 823 | | | | 864,800 | |
ONEOK Partners LP 6.65%, 10/01/2036 | | | 645 | | | | 697,497 | |
ONEOK, Inc. 5.05%, 11/01/2034 | | | 701 | | | | 679,451 | |
Pioneer Natural Resources Co. 5.10%, 03/29/2026 | | | 1,411 | | | | 1,421,794 | |
Saudi Arabian Oil Co. 5.75%, 07/17/2054(a) | | | 257 | | | | 247,273 | |
5.875%, 07/17/2064(a) | | | 545 | | | | 523,369 | |
Suncor Energy, Inc. 6.85%, 06/01/2039 | | | 181 | | | | 198,638 | |
TotalEnergies Capital SA 5.425%, 09/10/2064 | | | 877 | | | | 845,744 | |
Var Energi ASA 8.00%, 11/15/2032(a) | | | 1,300 | | | | 1,473,732 | |
| | | | | | | | |
| | | | | | | 18,960,342 | |
| | | | | | | | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Other Industrial – 0.3% | |
Hutchison Whampoa International 03/33 Ltd. 7.45%, 11/24/2033(a) | | $ | 636 | | | $ | 737,385 | |
| | | | | | | | |
|
Services – 3.6% | |
Amazon.com, Inc. 3.25%, 05/12/2061 | | | 2,087 | | | | 1,414,088 | |
Booking Holdings, Inc. 3.55%, 03/15/2028 | | | 1,151 | | | | 1,115,446 | |
Mastercard, Inc. 2.95%, 11/21/2026 | | | 677 | | | | 658,545 | |
3.35%, 03/26/2030 | | | 1,532 | | | | 1,439,176 | |
4.10%, 01/15/2028 | | | 369 | | | | 366,022 | |
4.875%, 05/09/2034 | | | 88 | | | | 87,964 | |
Moody’s Corp. 5.00%, 08/05/2034 | | | 567 | | | | 563,485 | |
S&P Global, Inc. 2.45%, 03/01/2027 | | | 1,482 | | | | 1,413,887 | |
4.25%, 05/01/2029 | | | 793 | | | | 778,996 | |
4.75%, 08/01/2028 | | | 20 | | | | 20,081 | |
| | | | | | | | |
| | | | | | | 7,857,690 | |
| | | | | | | | |
Technology – 9.3% | |
Apple, Inc. 2.85%, 08/05/2061 | | | 1,172 | | | | 739,239 | |
4.10%, 08/08/2062 | | | 1,699 | | | | 1,407,061 | |
Applied Materials, Inc. 1.75%, 06/01/2030 | | | 529 | | | | 453,337 | |
3.30%, 04/01/2027 | | | 1,439 | | | | 1,401,643 | |
4.80%, 06/15/2029 | | | 467 | | | | 470,876 | |
Autodesk, Inc. 2.85%, 01/15/2030 | | | 1,536 | | | | 1,397,775 | |
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.875%, 01/15/2027 | | | 654 | | | | 643,301 | |
Broadcom, Inc. 4.15%, 02/15/2028 | | | 194 | | | | 190,467 | |
CDW LLC/CDW Finance Corp. 2.67%, 12/01/2026 | | | 1,280 | | | | 1,221,978 | |
Hewlett Packard Enterprise Co. 4.40%, 09/25/2027 | | | 361 | | | | 357,978 | |
Intel Corp. 1.60%, 08/12/2028 | | | 998 | | | | 878,839 | |
Jabil, Inc. 3.00%, 01/15/2031 | | | 540 | | | | 475,751 | |
3.95%, 01/12/2028 | | | 584 | | | | 565,902 | |
Lam Research Corp. 1.90%, 06/15/2030 | | | 1,676 | | | | 1,442,684 | |
| | |
| |
6 | AB CORPORATE INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Microsoft Corp. 2.675%, 06/01/2060 | | $ | 791 | | | $ | 483,072 | |
3.041%, 03/17/2062 | | | 2,022 | | | | 1,351,303 | |
NXP BV/NXP Funding LLC 5.55%, 12/01/2028 | | | 1,124 | | | | 1,148,211 | |
Oracle Corp. 3.85%, 07/15/2036 | | | 1,634 | | | | 1,415,289 | |
QUALCOMM, Inc. 1.30%, 05/20/2028 | | | 1,582 | | | | 1,416,127 | |
SK Hynix, Inc. 2.375%, 01/19/2031(a) | | | 390 | | | | 330,743 | |
Tyco Electronics Group SA 4.625%, 02/01/2030 | | | 438 | | | | 434,960 | |
VMware LLC 1.40%, 08/15/2026 | | | 1,537 | | | | 1,448,930 | |
3.90%, 08/21/2027 | | | 436 | | | | 425,981 | |
| | | | | | | | |
| | | | | | | 20,101,447 | |
| | | | | | | | |
Transportation - Airlines – 0.7% | |
AS Mileage Plan IP Ltd. 5.021%, 10/20/2029(a) | | | 278 | | | | 269,746 | |
5.308%, 10/20/2031(a) | | | 359 | | | | 346,887 | |
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.75%, 10/20/2028(a) | | | 812 | | | | 802,522 | |
| | | | | | | | |
| | | | | | | 1,419,155 | |
| | | | | | | | |
Transportation - Services – 0.6% | |
ENA Master Trust 4.00%, 05/19/2048(a) | | | 370 | | | | 278,732 | |
TTX Co. 5.50%, 09/25/2026(a) | | | 1,105 | | | | 1,118,293 | |
| | | | | | | | |
| | | | | | | 1,397,025 | |
| | | | | | | | |
| | | | | | | 128,218,192 | |
| | | | | | | | |
Financial Institutions – 27.5% | |
Banking – 21.9% | |
AIB Group PLC 5.871%, 03/28/2035(a) | | | 778 | | | | 795,653 | |
Ally Financial, Inc. 6.848%, 01/03/2030 | | | 256 | | | | 266,079 | |
6.992%, 06/13/2029 | | | 430 | | | | 448,688 | |
American Express Co. 5.645%, 04/23/2027 | | | 756 | | | | 765,579 | |
Banco Bilbao Vizcaya Argentaria SA 7.883%, 11/15/2034 | | | 200 | | | | 223,836 | |
Banco de Credito del Peru SA 3.125%, 07/01/2030(a) | | | 274 | | | | 266,931 | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Banco Santander SA 1.722%, 09/14/2027 | | $ | 600 | | | $ | 564,630 | |
6.921%, 08/08/2033 | | | 1,000 | | | | 1,076,150 | |
9.625%, 05/21/2033(b) | | | 200 | | | | 231,032 | |
Bank of America Corp. 3.846%, 03/08/2037 | | | 1,605 | | | | 1,439,460 | |
5.518%, 10/25/2035 | | | 655 | | | | 650,160 | |
Series N 1.658%, 03/11/2027 | | | 1,368 | | | | 1,309,805 | |
Bank of Ireland Group PLC 5.601%, 03/20/2030(a) | | | 332 | | | | 337,910 | |
Barclays PLC 5.088%, 06/20/2030 | | | 490 | | | | 482,312 | |
5.335%, 09/10/2035 | | | 653 | | | | 640,064 | |
5.674%, 03/12/2028 | | | 287 | | | | 291,477 | |
7.119%, 06/27/2034 | | | 1,275 | | | | 1,381,016 | |
BBVA Bancomer SA/Texas 5.875%, 09/13/2034(a) | | | 330 | | | | 310,613 | |
BNP Paribas SA 4.625%, 02/25/2031(a)(b) | | | 434 | | | | 365,215 | |
CaixaBank SA 6.037%, 06/15/2035(a) | | | 894 | | | | 916,913 | |
6.84%, 09/13/2034(a) | | | 390 | | | | 421,929 | |
Capital One Financial Corp. 5.463%, 07/26/2030 | | | 763 | | | | 769,730 | |
Citibank NA 4.838%, 08/06/2029 | | | 601 | | | | 602,863 | |
Citigroup, Inc. 3.52%, 10/27/2028 | | | 1,293 | | | | 1,245,392 | |
4.542%, 09/19/2030 | | | 776 | | | | 760,185 | |
Series VAR 3.07%, 02/24/2028 | | | 1,362 | | | | 1,310,012 | |
Series W 4.00%, 12/10/2025(b) | | | 368 | | | | 358,852 | |
Series X 3.875%, 02/18/2026(b) | | | 344 | | | | 332,593 | |
Credit Agricole SA 4.00%, 01/10/2033(a) | | | 1,343 | | | | 1,273,339 | |
Danske Bank A/S 4.613%, 10/02/2030(a) | | | 407 | | | | 397,305 | |
Deutsche Bank AG/New York NY 4.999%, 09/11/2030 | | | 178 | | | | 175,264 | |
7.079%, 02/10/2034 | | | 1,098 | | | | 1,152,120 | |
DNB Bank ASA 4.875%, 11/12/2024(a)(b) | | | 331 | | | | 330,805 | |
Goldman Sachs Bank USA/New York NY 5.414%, 05/21/2027 | | | 767 | | | | 774,202 | |
| | |
| |
8 | AB CORPORATE INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Goldman Sachs Group, Inc. (The) 1.542%, 09/10/2027 | | $ | 881 | | | $ | 829,884 | |
1.948%, 10/21/2027 | | | 340 | | | | 321,484 | |
HSBC Holdings PLC 5.733%, 05/17/2032 | | | 1,092 | | | | 1,118,186 | |
Intesa Sanpaolo SpA 6.625%, 06/20/2033(a) | | | 368 | | | | 390,680 | |
7.20%, 11/28/2033(a) | | | 422 | | | | 466,234 | |
7.778%, 06/20/2054(a) | | | 935 | | | | 1,030,725 | |
JPMorgan Chase & Co. 1.04%, 02/04/2027 | | | 1,516 | | | | 1,445,324 | |
1.578%, 04/22/2027 | | | 1,511 | | | | 1,441,902 | |
2.956%, 05/13/2031 | | | 848 | | | | 760,707 | |
2.963%, 01/25/2033 | | | 808 | | | | 705,853 | |
4.505%, 10/22/2028 | | | 32 | | | | 31,786 | |
4.979%, 07/22/2028 | | | 329 | | | | 330,579 | |
5.04%, 01/23/2028 | | | 890 | | | | 894,655 | |
5.766%, 04/22/2035 | | | 410 | | | | 426,761 | |
KBC Group NV 4.932%, 10/16/2030(a) | | | 797 | | | | 788,950 | |
Lloyds Banking Group PLC 7.50%, 09/27/2025(b) | | | 287 | | | | 288,449 | |
M&T Bank Corp. 7.413%, 10/30/2029 | | | 833 | | | | 896,591 | |
Morgan Stanley 5.652%, 04/13/2028 | | | 1,077 | | | | 1,098,206 | |
Morgan Stanley Bank NA 4.447%, 10/15/2027 | | | 1,100 | | | | 1,094,346 | |
Series B 5.504%, 05/26/2028 | | | 1,094 | | | | 1,112,762 | |
Nationwide Building Society 2.972%, 02/16/2028(a) | | | 404 | | | | 385,767 | |
NatWest Group PLC 8.125%, 11/10/2033(b) | | | 256 | | | | 273,692 | |
Nordea Bank Abp 6.625%, 03/26/2026(a)(b) | | | 335 | | | | 336,775 | |
Royal Bank of Canada Series G 4.522%, 10/18/2028 | | | 764 | | | | 759,859 | |
Santander Holdings USA, Inc. 5.353%, 09/06/2030 | | | 488 | | | | 483,057 | |
Societe Generale SA 5.519%, 01/19/2028(a) | | | 884 | | | | 887,023 | |
7.367%, 01/10/2053(a) | | | 1,103 | | | | 1,123,913 | |
Standard Chartered PLC 5.005%, 10/15/2030(a) | | | 525 | | | | 518,516 | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Sumitomo Mitsui Trust Bank Ltd. 4.45%, 09/10/2027(a) | | $ | 233 | | | $ | 231,229 | |
Svenska Handelsbanken AB 4.375%, 03/01/2027(a)(b) | | | 400 | | | | 382,552 | |
Synchrony Financial 5.935%, 08/02/2030 | | | 268 | | | | 271,814 | |
Toronto-Dominion Bank (The) 5.146%, 09/10/2034 | | | 381 | | | | 374,439 | |
Truist Financial Corp. 1.267%, 03/02/2027 | | | 1,331 | | | | 1,269,042 | |
UBS Group AG 1.364%, 01/30/2027(a) | | | 528 | | | | 504,515 | |
9.25%, 11/13/2028(a)(b) | | | 273 | | | | 297,174 | |
US Bank NA/Cincinnati OH 4.507%, 10/22/2027 | | | 441 | | | | 439,474 | |
Wells Fargo & Co. 5.707%, 04/22/2028 | | | 569 | | | | 580,016 | |
| | | | | | | | |
| | | | | | | 47,261,035 | |
| | | | | | | | |
Brokerage – 0.2% | |
Charles Schwab Corp. (The) Series I 4.00%, 06/01/2026(b) | | | 595 | | | | 570,891 | |
| | | | | | | | |
|
Insurance – 2.7% | |
Allstate Corp. (The) Series B 8.318% (CME Term SOFR 3 Month + 3.20%), 08/15/2053(c) | | | 712 | | | | 712,306 | |
Athene Global Funding 1.985%, 08/19/2028(a) | | | 292 | | | | 260,552 | |
2.55%, 11/19/2030(a) | | | 73 | | | | 62,741 | |
2.717%, 01/07/2029(a) | | | 118 | | | | 107,079 | |
4.721%, 10/08/2029(a) | | | 708 | | | | 695,086 | |
5.526%, 07/11/2031(a) | | | 199 | | | | 201,555 | |
5.583%, 01/09/2029(a) | | | 46 | | | | 46,666 | |
5.684%, 02/23/2026(a) | | | 925 | | | | 932,252 | |
Cigna Group (The) 7.875%, 05/15/2027 | | | 53 | | | | 56,499 | |
Hartford Financial Services Group, Inc. (The) Series ICON 7.505% (CME Term SOFR 3 Month + 2.39%), 02/12/2047(a)(c) | | | 535 | | | | 494,779 | |
MetLife, Inc. Series D 5.875%, 03/15/2028(b) | | | 170 | | | | 171,727 | |
Principal Life Global Funding II 4.60%, 08/19/2027(a) | | | 412 | | | | 411,959 | |
| | |
| |
10 | AB CORPORATE INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Prudential Financial, Inc. 5.375%, 05/15/2045 | | $ | 260 | | | $ | 258,601 | |
6.50%, 03/15/2054 | | | 1,359 | | | | 1,417,818 | |
| | | | | | | | |
| | | | | | | 5,829,620 | |
| | | | | | | | |
REITs – 2.7% | |
American Tower Corp. 1.60%, 04/15/2026 | | | 567 | | | | 541,406 | |
2.75%, 01/15/2027 | | | 1,487 | | | | 1,424,888 | |
Essential Properties LP 2.95%, 07/15/2031 | | | 454 | | | | 386,113 | |
GLP Capital LP/GLP Financing II, Inc. 3.25%, 01/15/2032 | | | 139 | | | | 120,008 | |
4.00%, 01/15/2030 | | | 435 | | | | 405,142 | |
5.375%, 04/15/2026 | | | 1,414 | | | | 1,414,552 | |
Host Hotels & Resorts LP 5.50%, 04/15/2035 | | | 659 | | | | 646,156 | |
Simon Property Group LP 4.75%, 09/26/2034 | | | 480 | | | | 460,286 | |
Trust Fibra Uno 7.375%, 02/13/2034(a) | | | 358 | | | | 354,384 | |
| | | | | | | | |
| | | | | | | 5,752,935 | |
| | | | | | | | |
| | | | | | | 59,414,481 | |
| | | | | | | | |
Utility – 9.8% | |
Electric – 9.7% | |
AEP Texas, Inc. 5.25%, 05/15/2052 | | | 1,193 | | | | 1,114,083 | |
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(a) | | | 193 | | | | 170,539 | |
Alexander Funding Trust II 7.467%, 07/31/2028(a) | | | 640 | | | | 677,210 | |
Alfa Desarrollo SpA 4.55%, 09/27/2051(a) | | | 218 | | | | 163,870 | |
American Electric Power Co., Inc. 6.95%, 12/15/2054 | | | 270 | | | | 282,023 | |
Berkshire Hathaway Energy Co. 5.95%, 05/15/2037 | | | 1,245 | | | | 1,313,550 | |
6.125%, 04/01/2036 | | | 1,298 | | | | 1,385,226 | |
CenterPoint Energy Houston Electric LLC 5.05%, 03/01/2035 | | | 562 | | | | 560,314 | |
Commonwealth Edison Co. 5.65%, 06/01/2054 | | | 762 | | | | 781,728 | |
DTE Energy Co. 4.95%, 07/01/2027 | | | 655 | | | | 658,589 | |
Empresas Publicas de Medellin ESP 4.25%, 07/18/2029(a) | | | 200 | | | | 175,104 | |
Enel Chile SA 4.875%, 06/12/2028 | | | 62 | | | | 61,388 | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Engie Energia Chile SA 6.375%, 04/17/2034(a) | | $ | 663 | | | $ | 675,696 | |
Entergy Louisiana LLC 5.70%, 03/15/2054 | | | 778 | | | | 796,283 | |
Entergy Texas, Inc. 5.55%, 09/15/2054 | | | 258 | | | | 256,648 | |
Fells Point Funding Trust 3.046%, 01/31/2027(a) | | | 261 | | | | 250,307 | |
FirstEnergy Transmission LLC 2.866%, 09/15/2028(a) | | | 1,520 | | | | 1,411,214 | |
Florida Power & Light Co. 4.40%, 05/15/2028 | | | 1,127 | | | | 1,120,689 | |
5.05%, 04/01/2028 | | | 1,364 | | | | 1,382,687 | |
NextEra Energy Capital Holdings, Inc. 6.70%, 09/01/2054 | | | 74 | | | | 75,939 | |
Niagara Energy SAC 5.746%, 10/03/2034(a) | | | 333 | | | | 326,340 | |
Niagara Mohawk Power Corp. 2.759%, 01/10/2032(a) | | | 556 | | | | 473,061 | |
4.278%, 12/15/2028(a) | | | 361 | | | | 349,979 | |
5.29%, 01/17/2034(a) | | | 1,392 | | | | 1,382,075 | |
Pacific Gas and Electric Co. 5.55%, 05/15/2029 | | | 182 | | | | 185,343 | |
PECO Energy Co. 5.25%, 09/15/2054 | | | 372 | | | | 364,742 | |
PPL Capital Funding, Inc. 5.25%, 09/01/2034 | | | 86 | | | | 85,373 | |
Public Service Electric and Gas Co. 5.30%, 08/01/2054 | | | 656 | | | | 655,357 | |
5.45%, 03/01/2054 | | | 483 | | | | 489,004 | |
Public Service Enterprise Group, Inc. 8.625%, 04/15/2031 | | | 248 | | | | 288,771 | |
Virginia Electric and Power Co. 5.55%, 08/15/2054 | | | 884 | | | | 890,197 | |
Vistra Operations Co. LLC 4.30%, 07/15/2029(a) | | | 706 | | | | 676,327 | |
Vistra Operations Co., LLC 6.95%, 10/15/2033(a) | | | 1,297 | | | | 1,412,109 | |
| | | | | | | | |
| | | | | | | 20,891,765 | |
| | | | | | | | |
Natural Gas – 0.1% | |
GNL Quintero SA 4.634%, 07/31/2029(a) | | | 118 | | | | 116,144 | |
| | | | | | | | |
| | | | | | | 21,007,909 | |
| | | | | | | | |
Total Corporates - Investment Grade (cost $207,569,287) | | | | | | | 208,640,582 | |
| | | | | |
| | |
| |
12 | AB CORPORATE INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
QUASI-SOVEREIGNS – 1.0% | |
Quasi-Sovereign Bonds – 1.0% | |
Chile – 0.3% | |
Empresa de Transporte de Pasajeros Metro SA 3.65%, 05/07/2030(a) | | $ | 350 | | | $ | 324,898 | |
4.70%, 05/07/2050(a) | | | 295 | | | | 247,357 | |
| | | | | | | | |
| | | | | | | 572,255 | |
| | | | | | | | |
Mexico – 0.3% | |
Comision Federal de Electricidad 3.348%, 02/09/2031(a) | | | 321 | | | | 270,523 | |
Petroleos Mexicanos 6.50%, 01/23/2029 | | | 135 | | | | 126,710 | |
6.75%, 09/21/2047 | | | 112 | | | | 79,906 | |
6.95%, 01/28/2060 | | | 169 | | | | 120,412 | |
7.69%, 01/23/2050 | | | 80 | | | | 62,152 | |
| | | | | | | | |
| | | | | | | 659,703 | |
| | | | | | | | |
Peru – 0.3% | |
Corp. Financiera de Desarrollo SA 2.40%, 09/28/2027(a) | | | 250 | | | | 230,000 | |
5.95%, 04/30/2029(a) | | | 432 | | | | 436,968 | |
| | | | | | | | |
| | | | | | | 666,968 | |
| | | | | | | | |
Qatar – 0.1% | |
QatarEnergy 3.125%, 07/12/2041(a) | | | 277 | | | | 209,828 | |
| | | | | | | | |
| | |
Total Quasi-Sovereigns (cost $2,435,820) | | | | | | | 2,108,754 | |
| | | | | |
| | | | | | | | |
GOVERNMENTS - SOVEREIGN BONDS – 0.5% | | | | | | | | |
Colombia – 0.3% | |
Colombia Government International Bond 3.125%, 04/15/2031 | | | 562 | | | | 447,352 | |
5.20%, 05/15/2049 | | | 200 | | | | 136,700 | |
| | | | | | | | |
| | | | | | | 584,052 | |
| | | | | | | | |
Mexico – 0.1% | |
Mexico Government International Bond 4.60%, 01/23/2046 | | | 200 | | | | 152,000 | |
4.75%, 03/08/2044 | | | 120 | | | | 95,280 | |
| | | | | | | | |
| | | | | | | 247,280 | |
| | | | | | | | |
Qatar – 0.1% | |
Qatar Government International Bond 4.817%, 03/14/2049(a) | | | 228 | | | | 215,175 | |
| | | | | | | | |
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Uruguay – 0.0% | |
Uruguay Government International Bond 4.375%, 01/23/2031 | | $ | 54 | | | $ | 53,037 | |
| | | | | | | | |
| | |
Total Governments - Sovereign Bonds (cost $1,349,588) | | | | | | | 1,099,544 | |
| | | | | |
| | | | | | | | |
EMERGING MARKETS - CORPORATE BONDS – 0.0% | | | | | | | | |
Industrial – 0.0% | |
Energy – 0.0% | |
Ecopetrol SA 5.875%, 05/28/2045 (cost $22,025) | | | 25 | | | | 17,563 | |
| | | | | | | | |
| | |
Total Investments – 98.2% (cost $211,376,720) | | | | | | | 211,866,443 | |
Other assets less liabilities – 1.8% | | | | | | | 3,929,019 | |
| | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 215,795,462 | |
| | | | | | | | |
FUTURES (see Note C)
| | | | | | | | | | | | | | | | |
Description | | Number of Contracts | | | Expiration Month | | | Current Notional | | | Value and Unrealized Appreciation (Depreciation) | |
Purchased Contracts | |
U.S. T-Note 5 Yr (CBT) Futures | | | 5 | | | | December 2024 | | | $ | 536,172 | | | $ | (163 | ) |
U.S. T-Note 10 Yr (CBT) Futures | | | 29 | | | | December 2024 | | | | 3,203,594 | | | | (107,635 | ) |
U.S. Ultra Bond (CBT) Futures | | | 189 | | | | December 2024 | | | | 23,743,125 | | | | (1,423,504 | ) |
| | | | |
Sold Contracts | | | | | | | | | | | | | | | | |
U.S. 10 Yr Ultra Futures | | | 58 | | | | December 2024 | | | | 6,597,500 | | | | 244,917 | |
U.S. T-Note 2 Yr (CBT) Futures | | | 112 | | | | December 2024 | | | | 23,065,875 | | | | 210,730 | |
| | | | | | | | | | | | | | | | |
| | | $ | (1,075,655 | ) |
| | | | | |
(a) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2024, the aggregate market value of these securities amounted to $45,813,557 or 21.2% of net assets. |
(b) | Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
(c) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2024. |
Glossary:
CBT – Chicago Board of Trade
CME – Chicago Mercantile Exchange
REIT – Real Estate Investment Trust
SOFR – Secured Overnight Financing Rate
See notes to financial statements.
| | |
| |
14 | AB CORPORATE INCOME SHARES | | abfunds.com |
STATEMENT OF ASSETS & LIABILITIES
October 31, 2024 (unaudited)
| | | | |
Assets | |
Investments in securities, at value (cost $211,376,720) | | $ | 211,866,443 | |
Cash | | | 2,144,660 | |
Cash collateral due from broker | | | 1,015,401 | |
Interest receivable | | | 2,239,894 | |
Receivable for investment securities sold | | | 2,145,582 | |
Receivable for shares of beneficial interest sold | | | 140,258 | |
Receivable for variation margin on futures | | | 48,263 | |
| | | | |
Total assets | | | 219,600,501 | |
| | | | |
Liabilities | |
Payable for investment securities purchased | | | 2,760,281 | |
Dividends payable | | | 959,249 | |
Payable for shares of beneficial interest redeemed | | | 80,514 | |
Foreign capital gains tax payable | | | 4,995 | |
| | | | |
Total liabilities | | | 3,805,039 | |
| | | | |
Net Assets | | $ | 215,795,462 | |
| | | | |
Composition of Net Assets | |
Shares of beneficial interest, at par | | $ | 219 | |
Additional paid-in capital | | | 253,508,389 | |
Accumulated loss | | | (37,713,146 | ) |
| | | | |
Net Assets | | $ | 215,795,462 | |
| | | | |
Net Asset Value Per Share—unlimited shares of beneficial interest authorized, $.00001 par value (based on 21,859,392 common shares outstanding) | | $ | 9.87 | |
| | | | |
See notes to financial statements.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 15 |
STATEMENT OF OPERATIONS
Six Months Ended October 31, 2024 (unaudited)
| | | | | | | | |
Investment Income | |
Interest | | $ | 5,827,003 | | | | | |
| | | | | | | | |
Total investment income | | | | | | $ | 5,827,003 | |
| | | | | | | | |
Realized and Unrealized Gain on Investment Transactions | | | | | | | | |
Net realized gain on: | | | | | | | | |
Investment transactions | | | | | | | 923,765 | |
Futures | | | | | | | 684,363 | |
Swaps | | | | | | | 13,253 | |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments | | | | | | | 5,908,490 | |
Futures | | | | | | | 63,576 | |
Swaps | | | | | | | (5,586 | ) |
| | | | | | | | |
Net gain on investment transactions | | | | | | | 7,587,861 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 13,414,864 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
16 | AB CORPORATE INCOME SHARES | | abfunds.com |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, 2024 | |
Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 5,827,003 | | | $ | 11,116,964 | |
Net realized gain (loss) on investment transactions | | | 1,621,381 | | | | (12,312,370 | ) |
Net change in unrealized appreciation of investments | | | 5,966,480 | | | | 6,120,000 | |
| | | | | | | | |
Net increase in net assets from operations | | | 13,414,864 | | | | 4,924,594 | |
Distribution to Shareholders | | | (5,842,402 | ) | | | (11,191,914 | ) |
Transactions in Shares of Beneficial Interest | | | | | | | | |
Net increase (decrease) | | | (7,353,810 | ) | | | 38,607,981 | |
| | | | | | | | |
Total increase | | | 218,652 | | | | 32,340,661 | |
Net Assets | | | | | | | | |
Beginning of period | | | 215,576,810 | | | | 183,236,149 | |
| | | | | | | | |
End of period | | $ | 215,795,462 | | | $ | 215,576,810 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 17 |
NOTES TO FINANCIAL STATEMENTS
October 31, 2024 (unaudited)
NOTE A
Significant Accounting Policies
AB Corporate Shares (the “Trust”) is registered under the Investment Company Act of 1940 (the “1940 Act”), as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a “series” company currently offering four separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares and AB Impact Municipal Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Corporate Income Shares (the “Fund”).
Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the “Adviser”). The Fund’s shares may be purchased at the relevant net asset value without a sales charge or other fee. 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.
1. Security Valuation
Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Trust’s Board of Trustees (the “Board”). Pursuant to these procedures, the the Adviser serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.
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
| | |
| |
18 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 ask prices. If either a current bid or current ask price is unavailable, 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. 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.
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
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 19 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 unique security features in order to estimate the relevant cash flows which are 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.
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
| | |
| |
20 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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, 2024:
| | | | | | | | | | | | | | | | |
Investments in Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Corporates – Investment Grade | | $ | – 0 | – | | $ | 208,640,582 | | | $ | – 0 | – | | $ | 208,640,582 | |
Quasi-Sovereigns | | | – 0 | – | | | 2,108,754 | | | | – 0 | – | | | 2,108,754 | |
Governments – Sovereign Bonds | | | – 0 | – | | | 1,099,544 | | | | – 0 | – | | | 1,099,544 | |
Emerging Markets – Corporate Bonds | | | – 0 | – | | | 17,563 | | | | – 0 | – | | | 17,563 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | – 0 | – | | | 211,866,443 | | | | – 0 | – | | | 211,866,443 | |
Other Financial Instruments(a): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Futures | | | 455,647 | | | | – 0 | – | | | – 0 | – | | | 455,647 | (b) |
Liabilities: | | | | | | | | | | | | | | | | |
Futures | | | (1,531,302 | ) | | | – 0 | – | | | – 0 | – | | | (1,531,302 | )(b) |
| | | | | | | | | | | | | | | | |
Total | | $ | (1,075,655 | ) | | $ | 211,866,443 | | | $ | – 0 | – | | $ | 210,790,788 | |
| | | | | | | | | | | | | | | | |
(a) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments are valued at the unrealized appreciation (depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, written options and written swaptions which are valued at market value. |
(b) | 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 futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value. |
3. 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.
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.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 21 |
NOTES TO FINANCIAL STATEMENTS (continued)
4. Investment Income and Investment Transactions
Dividend income 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 the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from real estate investment trust (“REIT”) investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.
5. 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.
6. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the Advisory Agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund’s operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund’s Board. The Advisory Agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.
| | |
| |
22 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund’s principal underwriter (the “Underwriter”), to permit the Underwriter to distribute the Fund’s shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.
AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, acts as the Fund’s registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.
NOTE C
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the six months ended October 31, 2024 were as follows:
| | | | | | | | |
| | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 132,290,523 | | | $ | 138,908,018 | |
U.S. government securities | | | – 0 | – | | | – 0 | – |
The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Gross unrealized appreciation | | $ | 3,406,750 | |
Gross unrealized depreciation | | | (3,992,682 | ) |
| | | | |
Net unrealized depreciation | | $ | (585,932 | ) |
| | | | |
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:
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
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 23 |
NOTES TO FINANCIAL STATEMENTS (continued)
purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies.
At the time the Fund enters into futures, the Fund deposits with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the exchange on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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 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 futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.
During the six months ended October 31, 2024, the Fund held futures for hedging purposes.
The Fund may enter into swaps for investment purposes or to hedge its exposure to interest rates, credit risk or inflation. 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, rates or indexes for a specified amount of an underlying asset or inflation. 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.
| | |
| |
24 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 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, inflation 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 for swaps 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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments are known as variation margin and are recorded by the
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 25 |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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. 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 referenced obligations with the same counterparty.
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 counterparty. 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.
| | |
| |
26 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
Implied credit spreads over U.S. 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 likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’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 obligation.
During the six months ended October 31, 2024, the Fund held credit default swaps for 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. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 27 |
NOTES TO FINANCIAL STATEMENTS (continued)
During the six months ended October 31, 2024, 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 | | Receivable for variation margin on futures | | $ | 455,647 | * | | Payable for variation margin on futures | | $ | 1,531,302 | * |
| | | | | | | | | | | | |
Total | | | | $ | 455,647 | | | | | $ | 1,531,302 | |
| | | | | | | | | | | | |
* | 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 futures and centrally cleared 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 futures; Net change in unrealized appreciation (depreciation) of futures | | $ | 684,363 | | | $ | 63,576 | |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | 13,253 | | | | (5,586 | ) |
| | | | | | | | | | |
Total | | | | $ | 697,616 | | | $ | 57,990 | |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended October 31, 2024:
| | | | |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 29,365,373 | |
Average notional amount of sale contracts | | $ | 29,351,960 | |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of sale contracts | | $ | 9,800,000 | (a) |
(a) | Positions were open for one month during the period. |
| | |
| |
28 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE D
Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Shares | | | | | | Amount | | | | |
| | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, 2024 | | | | | | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, 2024 | | | | |
| | | | | | | | |
Shares sold | | | 1,617,296 | | | | 9,268,895 | | | | | | | $ | 15,989,385 | | | $ | 89,251,896 | | | | | |
| | | | | |
Shares redeemed | | | (2,366,502 | ) | | | (5,302,811 | ) | | | | | | | (23,343,195 | ) | | | (50,643,915 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (749,206 | ) | | | 3,966,084 | | | | | | | $ | (7,353,810 | ) | | $ | 38,607,981 | | | | | |
| | | | | |
NOTE E
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.
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 any 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. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.
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. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effects of potential central bank monetary policy, and government fiscal policy, initiatives and market reactions to those initiatives.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 29 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 more risk and will decrease in price as interest rates rise.
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 for 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 more difficult to trade due to adverse market, economic, political, regulatory or other factors.
Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, reference rate or index, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.
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 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.
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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
| | |
| |
30 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE F
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 six months ended October 31, 2024.
NOTE G
Distributions to Shareholders
The tax character of distributions to be paid for the year ending April 30, 2025 will be determined at the end of the current fiscal year.
The tax character of distributions paid during the fiscal years ended April 30, 2024 and April 30, 2023 were as follows:
| | | | | | | | |
| | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 11,191,914 | | | $ | 6,423,355 | |
| | | | | | | | |
Total distributions paid | | $ | 11,191,914 | | | $ | 6,423,355 | |
| | | | | | | | |
As of April 30, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 1,109,917 | |
Accumulated capital and other losses | | | (39,909,401 | )(a) |
Unrealized appreciation (depreciation) | | | (5,509,381 | )(b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (44,308,865 | )(c) |
| | | | |
(a) | As of April 30, 2024, the Fund had a net capital loss carryforward of $39,909,401. |
(b) | The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales. |
(c) | The differences between book-basis and tax-basis components of accumulated earnings (deficit) are attributable primarily to the accrual of foreign capital gains tax and dividends payable |
For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2024, the Fund had a net short-term capital loss carryforward of $12,164,577 and a net long-term capital loss carryforward of $27,744,824, which may be carried forward for an indefinite period.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 31 |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE H
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
NOTE I
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.
| | |
| |
32 | AB CORPORATE INCOME SHARES | | abfunds.com |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, | |
| | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 9.54 | | | | $ 9.83 | | | | $ 10.22 | | | | $ 11.82 | | | | $ 11.56 | | | | $ 11.11 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a) | | | .26 | | | | .51 | | | | .39 | | | | .33 | | | | .37 | | | | .44 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .33 | | | | (.29 | ) | | | (.39 | ) | | | (1.47 | ) | | | .55 | | | | .51 | |
| | | | |
| | | | | | |
Net increase (decrease) in net asset value from operations | | | .59 | | | | .22 | | | | – 0 | – | | | (1.14 | ) | | | .92 | | | | .95 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.26 | ) | | | (.51 | ) | | | (.39 | ) | | | (.34 | ) | | | (.38 | ) | | | (.45 | ) |
| | | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | (.12 | ) | | | (.28 | ) | | | (.05 | ) |
| | | | |
Total dividends and distributions | | | (.26 | ) | | | (.51 | ) | | | (.39 | ) | | | (.46 | ) | | | (.66 | ) | | | (.50 | ) |
| | | | |
Net asset value, end of period | | | $ 9.87 | | | | $ 9.54 | | | | $ 9.83 | | | | $ 10.22 | | | | $ 11.82 | | | | $ 11.56 | |
| | | | |
| | | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(b) | | | 6.26 | % | | | 2.35 | % | | | .16 | % | | | (10.08 | )% | | | 7.90 | % | | | 8.65 | % |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $215,795 | | | | $215,577 | | | | $183,236 | | | | $222,550 | | | | $208,745 | | | | $114,455 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income | | | 5.28 | %^ | | | 5.31 | % | | | 3.94 | % | | | 2.84 | % | | | 3.02 | % | | | 3.83 | % |
| | | | | | |
Portfolio turnover rate | | | 62 | % | | | 140 | % | | | 85 | % | | | 49 | % | | | 43 | % | | | 87 | % |
(a) | Based on average shares outstanding. |
(b) | 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. Total 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 calculated for a period of less than one year is not annualized. |
See notes to financial statements.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 33 |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested trustees (the “directors”) of AB Corporate Shares (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Corporate Income Shares (the “Fund”) at a meeting held in-person on July 30-31, 2024 (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 additional materials, including comparative analytical data prepared by the Senior Vice President of the Fund. The directors also discussed the proposed continuance in private sessions with counsel.
The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund’s ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the “Sponsors”) that use the Fund as an investment vehicle for their clients.
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 review extensive materials and information from the Adviser, including information on the investment performance of the Fund.
| | |
| |
34 | AB CORPORATE INCOME SHARES | | abfunds.com |
The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. 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 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. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. 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 2022 and 2023 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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. 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 concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 35 |
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund. The directors noted that the Adviser is compensated by the Sponsors. 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 performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended May 31, 2024 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts (“SMAs”). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors’ request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.
Advisory Fees
The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. 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 payable by other funds.
The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm’s length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser’s fee arrangements with the Sponsors vary, the directors acknowledged the Adviser’s view that a portion of such fees (less the expenses of the Fund
| | |
| |
36 | AB CORPORATE INCOME SHARES | | abfunds.com |
paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the “implied fee”) and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.
The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Vice President and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors recognized that such information was of limited utility in light of the Fund’s unusual fee arrangement. The directors noted that the Adviser 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 clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.
The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.
Economies of Scale
The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 37 |
Adviser by the Fund and the Fund’s expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.
| | |
| |
38 | AB CORPORATE INCOME SHARES | | abfunds.com |
NOTES
| | |
| |
abfunds.com | | AB CORPORATE INCOME SHARES | 39 |
NOTES
| | |
| |
40 | AB CORPORATE INCOME SHARES | | abfunds.com |
AB CORPORATE INCOME SHARES
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
CIS-0152-1024
OCT 10.31.24
SEMI-ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
AB IMPACT MUNICIPAL INCOME SHARES
| | |
| |
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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. 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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024 (unaudited)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
MUNICIPAL OBLIGATIONS – 98.1% | |
Long-Term Municipal Bonds – 98.1% | |
Alabama – 0.9% | |
Alabama Community College System ACCS Enhancements Fee Revenue AGM Series 2021 4.00%, 09/01/2051 | | $ | 5,500 | | | $ | 5,194,712 | |
| | | | | | | | |
|
Arizona – 4.1% | |
Arizona Industrial Development Authority Series 2021-A 4.00%, 07/01/2051 | | | 3,195 | | | | 2,811,709 | |
Arizona Industrial Development Authority (KIPP NYC Public Charter Schools) Series 2021-A 4.00%, 07/01/2061 | | | 3,980 | | | | 3,398,077 | |
Series 2021-B 4.00%, 07/01/2051 | | | 1,250 | | | | 1,100,042 | |
Arizona Industrial Development Authority (Phoenix Children’s Hospital Obligated Group) Series 2020 4.00%, 02/01/2050 | | | 4,500 | | | | 4,245,768 | |
Series 2021 4.00%, 02/01/2038 | | | 1,400 | | | | 1,411,632 | |
Industrial Development Authority of the County of Pima (The) (TMC HealthCare Obligated Group) Series 2021 4.00%, 04/01/2046 | | | 3,500 | | | | 3,249,172 | |
Maricopa County Industrial Development Authority (Arizona Autism Charter Schools Obligated Group) Series 2020 5.00%, 07/01/2040(a) | | | 500 | | | | 504,308 | |
5.00%, 07/01/2050(a) | | | 1,175 | | | | 1,153,255 | |
5.00%, 07/01/2054(a) | | | 640 | | | | 618,829 | |
Series 2021 4.00%, 07/01/2051(a) | | | 1,625 | | | | 1,333,133 | |
4.00%, 07/01/2061(a) | | | 5,210 | | | | 4,105,530 | |
| | | | | | | | |
| | | | | | | 23,931,455 | |
| | | | | | | | |
California – 14.9% | |
California Educational Facilities Authority (Mount St Mary’s University/CA) Series 2018-A 5.00%, 10/01/2036 | | | 405 | | | | 427,183 | |
5.00%, 10/01/2046 | | | 2,750 | | | | 2,852,353 | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
California Health Facilities Financing Authority (Children’s Hospital Los Angeles) Series 2017-A 5.00%, 08/15/2047 | | $ | 3,750 | | | $ | 3,797,031 | |
California Health Facilities Financing Authority (On Lok Senior Health Services Obligated Group) Series 2020 5.00%, 08/01/2050 | | | 1,000 | | | | 1,021,692 | |
5.00%, 08/01/2055 | | | 1,200 | | | | 1,219,765 | |
California Health Facilities Financing Authority (State of California Personal Income Tax Revenue) Series 2022 4.19%, 06/01/2037 | | | 3,390 | | | | 3,150,753 | |
California Infrastructure & Economic Development Bank (California Academy of Sciences) Series 2024 3.25%, 08/01/2029 | | | 5,000 | | | | 5,015,701 | |
California Infrastructure & Economic Development Bank (California Science Center Foundation) Series 2021 4.00%, 05/01/2046 | | | 5,000 | | | | 4,943,864 | |
4.00%, 05/01/2051 | | | 5,000 | | | | 4,825,832 | |
4.00%, 05/01/2055 | | | 5,000 | | | | 4,767,764 | |
California Infrastructure & Economic Development Bank (Roseville Sustainable Energy Partner LLC) Series 2024 5.00%, 07/01/2044 | | | 2,000 | | | | 2,121,161 | |
California Municipal Finance Authority (Community Health Centers of The Central Coast, Inc.) Series 2021-A 5.00%, 12/01/2036(a) | | | 710 | | | | 733,371 | |
5.00%, 12/01/2046(a) | | | 7,985 | | | | 8,037,071 | |
5.00%, 12/01/2054(a) | | | 1,990 | | | | 1,972,953 | |
California Municipal Finance Authority (Healthright 360) Series 2019-A 5.00%, 11/01/2039(a) | | | 1,775 | | | | 1,726,258 | |
5.00%, 11/01/2049(a) | | | 6,075 | | | | 5,500,399 | |
California Municipal Finance Authority (La Maestra Family Clinic, Inc.) Series 2021 4.00%, 09/01/2046 | | | 2,960 | | | | 2,908,756 | |
4.00%, 09/01/2051 | | | 2,745 | | | | 2,649,611 | |
| | |
| |
2 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
California Municipal Finance Authority (Valley Health Team, Inc.) Series 2021 4.00%, 07/01/2037 | | $ | 1,200 | | | $ | 1,222,106 | |
4.00%, 07/01/2046 | | | 2,090 | | | | 2,052,769 | |
4.00%, 07/01/2051 | | | 1,945 | | | | 1,893,238 | |
California School Finance Authority (Bright Star Schools Obligated Group) Series 2017 5.00%, 06/01/2037(a) | | | 600 | | | | 602,248 | |
5.00%, 06/01/2054(a) | | | 250 | | | | 239,208 | |
California School Finance Authority (Downtown College Prep Obligated Group) Series 2016 4.75%, 06/01/2036(a) | | | 1,365 | | | | 1,169,361 | |
5.00%, 06/01/2051(a) | | | 2,500 | | | | 1,857,172 | |
California School Finance Authority (Ednovate Obligated Group) Series 2018 5.00%, 06/01/2037(a) | | | 1,000 | | | | 1,001,102 | |
5.00%, 06/01/2048(a) | | | 1,085 | | | | 1,028,839 | |
5.00%, 06/01/2056(a) | | | 1,000 | | | | 931,075 | |
California School Finance Authority (Equitas Academy Obligated Group) Series 2018-A 5.00%, 06/01/2048(a) | | | 3,750 | | | | 3,623,866 | |
California School Finance Authority (Girls Athletic Leadership Schools Los Angeles) Series 2021 4.00%, 06/01/2041(a) | | | 955 | | | | 804,100 | |
4.00%, 06/01/2051(a) | | | 1,000 | | | | 768,659 | |
California School Finance Authority (Green DOT Public Schools Obligated Group) Series 2018 5.00%, 08/01/2038(a) | | | 3,000 | | | | 3,067,449 | |
Series 2022 5.375%, 08/01/2042(a) | | | 1,500 | | | | 1,585,853 | |
City of Oakland CA Series 2023-A 5.50%, 07/15/2053 | | | 2,500 | | | | 2,835,624 | |
Series 2023-D 5.50%, 07/15/2053 | | | 2,500 | | | | 2,835,624 | |
Port of Los Angeles Series 2024-2 5.00%, 08/01/2037 | | | 2,000 | | | | 2,186,976 | |
| | | | | | | | |
| | | | | | | 87,376,787 | |
| | | | | | | | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Colorado – 0.5% | |
Denver Health & Hospital Authority Series 2019-A 4.00%, 12/01/2038 | | $ | 1,020 | | | $ | 965,312 | |
4.00%, 12/01/2039 | | | 1,000 | | | | 943,853 | |
4.00%, 12/01/2040 | | | 750 | | | | 703,988 | |
| | | | | | | | |
| | | | | | | 2,613,153 | |
| | | | | | | | |
Connecticut – 0.9% | |
City of Bridgeport CT Series 2021-A 4.00%, 08/01/2037 | | | 775 | | | | 781,900 | |
4.00%, 08/01/2039 | | | 1,000 | | | | 1,002,598 | |
4.00%, 08/01/2040 | | | 325 | | | | 324,210 | |
BAM Series 2018-C 5.00%, 07/15/2036 | | | 1,000 | | | | 1,050,192 | |
5.00%, 07/15/2038 | | | 620 | | | | 648,605 | |
BAM Series 2019-A 5.00%, 02/01/2035 | | | 1,500 | | | | 1,591,373 | |
| | | | | | | | |
| | | | | | | 5,398,878 | |
| | | | | | | | |
District of Columbia – 4.7% | |
District of Columbia (Gallaudet University) Series 2021 5.00%, 04/01/2046 | | | 1,715 | | | | 1,791,143 | |
5.00%, 04/01/2051 | | | 2,635 | | | | 2,727,446 | |
District of Columbia (KIPP DC Obligated Group) Series 2017-A 5.00%, 07/01/2042 | | | 1,785 | | | | 1,812,476 | |
Series 2017-B 5.00%, 07/01/2037 | | | 2,425 | | | | 2,483,921 | |
5.00%, 07/01/2042 | | | 2,000 | | | | 2,030,785 | |
District of Columbia (KIPP DC Public Charter Schools) Series 2019 4.00%, 07/01/2039 | | | 4,275 | | | | 4,097,187 | |
District of Columbia (Plenary Infrastructure DC LLC State Lease) Series 2022 5.00%, 08/31/2027 | | | 620 | | | | 644,068 | |
5.50%, 02/28/2035 | | | 4,025 | | | | 4,537,210 | |
5.50%, 02/29/2036 | | | 1,625 | | | | 1,839,954 | |
5.50%, 08/31/2036 | | | 1,800 | | | | 2,040,388 | |
5.50%, 02/28/2037 | | | 3,100 | | | | 3,523,388 | |
| | | | | | | | |
| | | | | | | 27,527,966 | |
| | | | | | | | |
| | |
| |
4 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Florida – 1.2% | |
Florida Development Finance Corp. (United Cerebral Palsy of Central Florida, Inc.) Series 2020 5.00%, 06/01/2040 | | $ | 825 | | | $ | 791,311 | |
5.00%, 06/01/2050 | | | 3,735 | | | | 3,408,430 | |
Miami-Dade County Housing Finance Authority (Wynwood Works LLC) Series 2023-A 5.70%, 06/01/2052(a) | | | 2,000 | | | | 2,026,056 | |
Series 2023-B 5.78%, 06/01/2027(a) | | | 1,000 | | | | 1,006,399 | |
| | | | | | | | |
| | | | | | | 7,232,196 | |
| | | | | | | | |
Illinois – 8.0% | |
Chicago Housing Authority Series 2018-A 5.00%, 01/01/2035 | | | 3,545 | | | | 3,678,207 | |
Chicago Transit Authority (Chicago Transit Authority Sales Tax) Series 2017 5.00%, 12/01/2051 | | | 5,085 | | | | 5,146,184 | |
Chicago Transit Authority Sales Tax Receipts Fund Series 2014 5.25%, 12/01/2049 | | | 5,000 | | | | 5,012,129 | |
Series 2020-A 5.00%, 12/01/2045 | | | 7,315 | | | | 7,569,095 | |
Series 2022-A 4.00%, 12/01/2049 | | | 4,190 | | | | 3,929,608 | |
5.00%, 12/01/2057 | | | 3,770 | | | | 3,896,477 | |
Cook County Community College District No. 508 BAM Series 2017 5.00%, 12/01/2047 | | | 620 | | | | 630,048 | |
Illinois Finance Authority (Lawndale Educational & Regional Network Charter School Obligated Group) Series 2021 4.00%, 11/01/2041 | | | 2,600 | | | | 2,369,703 | |
4.00%, 11/01/2051 | | | 3,680 | | | | 3,151,542 | |
4.00%, 11/01/2056 | | | 3,850 | | | | 3,229,126 | |
Illinois Finance Authority (University of Illinois) Series 2020 4.00%, 10/01/2040 | | | 615 | | | | 574,885 | |
4.00%, 10/01/2050 | | | 6,505 | | | | 5,842,630 | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
4.00%, 10/01/2055 | | $ | 2,000 | | | $ | 1,753,592 | |
| | | | | | | | |
| | | | | | | 46,783,226 | |
| | | | | | | | |
Indiana – 0.5% | |
Muncie Sanitary District AGM Series 2021-A 5.00%, 01/01/2029 | | | 685 | | | | 729,465 | |
5.00%, 07/01/2029 | | | 600 | | | | 642,967 | |
5.00%, 01/01/2030 | | | 1,000 | | | | 1,075,998 | |
5.00%, 07/01/2030 | | | 420 | | | | 453,640 | |
| | | | | | | | |
| | | | | | | 2,902,070 | |
| | | | | | | | |
Louisiana – 0.5% | |
Tangipahoa Parish Hospital Service District No. 1 Series 2021 4.00%, 02/01/2041 | | | 1,500 | | | | 1,379,839 | |
4.00%, 02/01/2042 | | | 1,500 | | | | 1,365,894 | |
| | | | | | | | |
| | | | | | | 2,745,733 | |
| | | | | | | | |
Maryland – 4.1% | |
Maryland Economic Development Corp. Series 2020 5.00%, 07/01/2056 | | | 1,225 | | | | 1,241,253 | |
Maryland Economic Development Corp. (Bowie State University) Series 2020 4.00%, 07/01/2050 | | | 1,200 | | | | 1,034,378 | |
Maryland Economic Development Corp. (Maryland Econ Dev Corp.-Morgan View & Thurgood Marshall Student Hsg) Series 2020 5.00%, 07/01/2050 | | | 2,500 | | | | 2,549,755 | |
Series 2022 5.00%, 07/01/2033 | | | 1,895 | | | | 2,040,674 | |
5.00%, 07/01/2034 | | | 1,840 | | | | 1,970,633 | |
Maryland Economic Development Corp. (Maryland Economic Development Corp. Morgan View & Thurgood Marshall Student Hsg) Series 2022 6.00%, 07/01/2058 | | | 1,250 | | | | 1,375,538 | |
Maryland Economic Development Corp. (Purple Line Transit Partners LLC) Series 2022 5.25%, 06/30/2052 | | | 8,000 | | | | 8,320,762 | |
5.25%, 06/30/2055 | | | 5,000 | | | | 5,198,084 | |
| | | | | | | | |
| | | | | | | 23,731,077 | |
| | | | | | | | |
| | |
| |
6 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Massachusetts – 4.6% | |
Massachusetts Bay Transportation Authority Sales Tax Revenue Series 2024-B 5.25%, 07/01/2054 | | $ | 2,000 | | | $ | 2,195,116 | |
Massachusetts Development Finance Agency Series 2023 4.375%, 07/01/2052 | | | 5,500 | | | | 5,292,021 | |
Massachusetts Development Finance Agency (Boston Medical Center Corp. Obligated Group) Series 2015-D 5.00%, 07/01/2044 | | | 8,265 | | | | 8,277,825 | |
Series 2016-E 5.00%, 07/01/2037 | | | 765 | | | | 774,652 | |
Series 2017-F 5.00%, 07/01/2030 | | | 1,475 | | | | 1,535,325 | |
Series 2023 5.25%, 07/01/2048 | | | 2,720 | | | | 2,916,463 | |
Massachusetts Development Finance Agency (Tufts Medicine Obligated Group) Series 2019-A 5.00%, 07/01/2036 | | | 1,765 | | | | 1,790,810 | |
5.00%, 07/01/2039 | | | 2,250 | | | | 2,269,232 | |
AGM Series 2020-C 4.00%, 10/01/2045 | | | 1,090 | | | | 1,041,230 | |
Massachusetts Development Finance Agency (WGBH Educational Foundation) Series 2017-A 4.00%, 01/01/2032 | | | 825 | | | | 836,733 | |
| | | | | | | | |
| | | | | | | 26,929,407 | |
| | | | | | | | |
Michigan – 8.4% | |
Center Line Public Schools Series 2018 5.00%, 05/01/2038 | | | 895 | | | | 937,248 | |
City of Detroit MI Series 2018 5.00%, 04/01/2027 | | | 500 | | | | 519,384 | |
5.00%, 04/01/2032 | | | 770 | | | | 800,534 | |
5.00%, 04/01/2034 | | | 1,255 | | | | 1,300,521 | |
5.00%, 04/01/2035 | | | 1,500 | | | | 1,551,843 | |
5.00%, 04/01/2036 | | | 1,200 | | | | 1,239,571 | |
5.00%, 04/01/2037 | | | 1,100 | | | | 1,134,698 | |
Series 2021-A 4.00%, 04/01/2042 | | | 1,050 | | | | 980,797 | |
5.00%, 04/01/2050 | | | 3,650 | | | | 3,749,291 | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2023-A 5.25%, 05/01/2028 | | $ | 300 | | | $ | 319,166 | |
5.25%, 05/01/2030 | | | 700 | | | | 764,975 | |
5.25%, 05/01/2031 | | | 600 | | | | 660,431 | |
5.25%, 05/01/2032 | | | 600 | | | | 665,599 | |
5.25%, 05/01/2033 | | | 800 | | | | 893,769 | |
6.00%, 05/01/2039 | | | 2,500 | | | | 2,857,859 | |
Detroit City School District Series 2020-A 5.00%, 05/01/2036 | | | 1,145 | | | | 1,224,491 | |
5.00%, 05/01/2037 | | | 1,150 | | | | 1,223,631 | |
5.00%, 05/01/2039 | | | 1,645 | | | | 1,735,504 | |
5.00%, 05/01/2040 | | | 1,000 | | | | 1,050,481 | |
Downriver Utility Wastewater Authority AGM Series 2018 5.00%, 04/01/2043 | | | 1,515 | | | | 1,563,564 | |
Ferris State University Series 2019-A 5.00%, 10/01/2025 | | | 2,000 | | | | 2,031,231 | |
5.00%, 10/01/2026 | | | 2,185 | | | | 2,256,386 | |
Flint Hospital Building Authority Series 2013 4.75%, 07/01/2028 | | | 110 | | | | 109,141 | |
Series 2013-A 5.25%, 07/01/2039 | | | 1,250 | | | | 1,247,475 | |
Flint Hospital Building Authority (Hurley Medical Center) Series 2020 4.00%, 07/01/2035 | | | 1,000 | | | | 937,007 | |
4.00%, 07/01/2038 | | | 1,575 | | | | 1,450,012 | |
4.00%, 07/01/2041 | | | 3,500 | | | | 3,109,318 | |
5.00%, 07/01/2031 | | | 2,405 | | | | 2,470,294 | |
Flint Public Library AGM Series 2020 3.00%, 05/01/2029 | | | 1,085 | | | | 1,056,057 | |
3.00%, 05/01/2030 | | | 1,175 | | | | 1,138,228 | |
Great Lakes Water Authority Water Supply System Revenue Series 2016-B 5.00%, 07/01/2046 | | | 1,225 | | | | 1,242,194 | |
Series 2020-B 5.00%, 07/01/2045 | | | 1,350 | | | | 1,424,579 | |
5.00%, 07/01/2049 | | | 1,300 | | | | 1,356,993 | |
Series 2022-A 5.00%, 07/01/2038 | | | 1,215 | | | | 1,342,715 | |
5.25%, 07/01/2039 | | | 1,925 | | | | 2,150,152 | |
5.25%, 07/01/2040 | | | 735 | | | | 818,593 | |
| | | | | | | | |
| | | | | | | 49,313,732 | |
| | | | | | | | |
| | |
| |
8 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Minnesota – 0.6% | |
City of Minneapolis MN Series 2021-A 4.00%, 07/01/2051 | | $ | 3,585 | | | $ | 2,599,208 | |
Housing & Redevelopment Authority of The City of St. Paul Minnesota (Metro Deaf School) Series 2018-A 5.00%, 06/15/2048(a) | | | 1,000 | | | | 970,272 | |
| | | | | | | | |
| | | | | | | 3,569,480 | |
| | | | | | | | |
Missouri – 0.0% | |
St. Louis Community College District Series 2017 4.00%, 04/01/2035 | | | 200 | | | | 201,143 | |
| | | | | | | | |
|
New Jersey – 4.7% | |
Essex County Improvement Authority (North Star Academy Charter School of Newark, Inc.) Series 2020 4.00%, 07/15/2040(a) | | | 3,200 | | | | 3,037,120 | |
4.00%, 07/15/2050(a) | | | 3,260 | | | | 2,906,055 | |
New Jersey Economic Development Authority (Foundation Academy Charter School A NJ Nonprofit Corp.) Series 2018-A 5.00%, 07/01/2050 | | | 1,000 | | | | 1,002,418 | |
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2023 | | | | | | | | |
5.185%, 03/01/2030 | | | 1,500 | | | | 1,533,653 | |
5.198%, 03/01/2031 | | | 1,500 | | | | 1,534,200 | |
New Jersey Economic Development Authority (New Jersey Transit Corp. State Lease) Series 2020 5.00%, 11/01/2044 | | | 10,925 | | | | 11,343,354 | |
New Jersey Economic Development Authority (North Star Academy Charter School of Newark, Inc.) Series 2017 5.00%, 07/15/2047 | | | 1,175 | | | | 1,186,205 | |
New Jersey Economic Development Authority (Seeing Eye, Inc. (The)) Series 2015 5.00%, 03/01/2025 | | | 3,205 | | | | 3,219,751 | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
New Jersey Economic Development Authority (State of New Jersey Division of Property Management & Construction Lease) Series 2018-C 5.00%, 06/15/2027 | | $ | 645 | | | $ | 675,121 | |
5.00%, 06/15/2042 | | | 1,000 | | | | 1,025,038 | |
| | | | | | | | |
| | | | | | | 27,462,915 | |
| | | | | | | | |
New York – 17.0% | |
Buffalo Sewer Authority Series 2021 1.75%, 06/15/2049(b) | | | 2,380 | | | | 1,720,772 | |
Build NYC Resource Corp. Series 2017 5.00%, 06/01/2037(a) | | | 500 | | | | 505,258 | |
Build NYC Resource Corp. (Academic Leadership Charter School) Series 2021 4.00%, 06/15/2031 | | | 200 | | | | 198,979 | |
4.00%, 06/15/2036 | | | 990 | | | | 967,952 | |
Build NYC Resource Corp. (Children’s Aid Society (The)) Series 2019 4.00%, 07/01/2044 | | | 1,890 | | | | 1,814,739 | |
4.00%, 07/01/2049 | | | 600 | | | | 564,430 | |
Build NYC Resource Corp. (Classical Charter School, Inc.) Series 2023 4.75%, 06/15/2058 | | | 760 | | | | 735,483 | |
Build NYC Resource Corp. (East Harlem Scholars Academy Charter School Obligated Group) Series 2022 5.75%, 06/01/2052(a) | | | 2,250 | | | | 2,364,694 | |
5.75%, 06/01/2062(a) | | | 7,000 | | | | 7,342,906 | |
Build NYC Resource Corp. (Global Community Charter School) Series 2022 4.00%, 06/15/2032 | | | 900 | | | | 904,505 | |
5.00%, 06/15/2042 | | | 2,800 | | | | 2,865,718 | |
5.00%, 06/15/2052 | | | 1,520 | | | | 1,530,448 | |
5.00%, 06/15/2057 | | | 1,300 | | | | 1,304,831 | |
Build NYC Resource Corp. (Inwood Academy for Leadership Charter School) Series 2018-A 5.50%, 05/01/2048(a) | | | 500 | | | | 507,456 | |
| | |
| |
10 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Build NYC Resource Corp. (KIPP NYC Public Charter Schools) Series 2023 5.25%, 07/01/2057 | | $ | 1,625 | | | $ | 1,678,961 | |
5.25%, 07/01/2062 | | | 2,000 | | | | 2,059,930 | |
Build NYC Resource Corp. (Metropolitan Lighthouse Charter School) Series 2017 5.00%, 06/01/2052(a) | | | 3,260 | | | | 3,221,225 | |
Series 2017-A 5.00%, 06/01/2047(a) | | | 1,725 | | | | 1,726,486 | |
Metropolitan Transportation Authority Series 2014-D 5.00%, 11/15/2039 | | | 4,000 | | | | 4,002,194 | |
Series 2020-A 4.00%, 11/15/2043 | | | 1,480 | | | | 1,430,255 | |
Series 2020-C 4.75%, 11/15/2045 | | | 6,015 | | | | 6,180,978 | |
5.25%, 11/15/2055 | | | 17,020 | | | | 17,818,427 | |
Series 2020-D 4.00%, 11/15/2050 | | | 5,000 | | | | 4,731,970 | |
Series 2020-E 4.00%, 11/15/2045 | | | 3,000 | | | | 2,881,678 | |
5.00%, 11/15/2032 | | | 3,250 | | | | 3,535,263 | |
Series 2021-A 4.00%, 11/15/2041 | | | 7,500 | | | | 7,422,393 | |
Series 2024-B 5.00%, 11/15/2043 | | | 2,000 | | | | 2,151,873 | |
BAM Series 2024-A 4.00%, 11/15/2048 | | | 4,500 | | | | 4,298,172 | |
Monroe County Industrial Development Corp./NY (True North Rochester Prep Charter School) Series 2020 5.00%, 06/01/2040(a) | | | 1,895 | | | | 1,933,282 | |
New York City Health and Hospitals Corp. (New York City Health and Hospital Corp. Lease) Series 2021-A 4.00%, 02/15/2045 | | | 1,110 | | | | 1,081,594 | |
New York Power Authority (New York Power Authority SFP Transmission Project) AGM Series 2023 5.00%, 11/15/2053 | | | 4,000 | | | | 4,293,480 | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
New York State Dormitory Authority (Montefiore Obligated Group) Series 2018 5.00%, 08/01/2032 | | $ | 375 | | | $ | 388,513 | |
5.00%, 08/01/2034 | | | 750 | | | | 774,167 | |
AGM Series 2020 3.00%, 09/01/2050 | | | 2,000 | | | | 1,511,103 | |
New York Transportation Development Corp. (Elevated Accessibility Enhancements Holding Co., LLC) Series 2023 6.971%, 06/30/2051 | | | 2,000 | | | | 2,026,397 | |
Onondaga Civic Development Corp. (Crouse Health Hospital Inc Obligated Group) Series 2024 5.125%, 08/01/2044 | | | 1,250 | | | | 1,263,038 | |
| | | | | | | | |
| | | | | | | 99,739,550 | |
| | | | | | | | |
North Carolina – 0.8% | |
North Carolina Central University Series 2019 4.00%, 04/01/2049 | | | 2,270 | | | | 2,076,998 | |
5.00%, 04/01/2044 | | | 2,500 | | | | 2,551,709 | |
| | | | | | | | |
| | | | | | | 4,628,707 | |
| | | | | | | | |
Ohio – 3.2% | |
American Municipal Power, Inc. (American Municipal Power Solar Electricity Prepayment Revenue) Series 2019 5.00%, 02/15/2044 | | | 2,150 | | | | 2,224,715 | |
Cleveland-Cuyahoga County Port Authority (Cleveland Museum of Natural History (The)) Series 2021 4.00%, 07/01/2051 | | | 1,370 | | | | 1,238,730 | |
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2042 | | | 7,865 | | | | 7,956,672 | |
5.25%, 02/15/2047 | | | 1,500 | | | | 1,523,656 | |
County of Darke OH (Wayne Hospital Co. Obligated Group) Series 2019-A 5.00%, 09/01/2049 | | | 2,690 | | | | 2,616,915 | |
| | |
| |
12 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Ohio Higher Educational Facility Commission (Ashtabula County Medical Center Obligated Group) Series 2022 5.25%, 01/01/2041 | | $ | 2,000 | | | $ | 2,116,163 | |
5.25%, 01/01/2052 | | | 1,000 | | | | 1,034,683 | |
| | | | | | | | |
| | | | | | | 18,711,534 | |
| | | | | | | | |
Oklahoma – 1.8% | |
Oklahoma Development Finance Authority (OU Medicine Obligated Group) Series 2018-B 5.00%, 08/15/2033 | | | 2,100 | | | | 2,157,448 | |
5.50%, 08/15/2057 | | | 3,365 | | | | 3,432,312 | |
Series 2022-A 5.50%, 08/15/2041 | | | 5,000 | | | | 5,146,668 | |
| | | | | | | | |
| | | | | | | 10,736,428 | |
| | | | | | | | |
Pennsylvania – 8.6% | |
City of Philadelphia PA Water & Wastewater Revenue Series 2018-A 5.00%, 10/01/2048 | | | 3,050 | | | | 3,157,896 | |
Series 2019-B 5.00%, 11/01/2049 | | | 3,095 | | | | 3,214,958 | |
Series 2022-C 5.50%, 06/01/2047 | | | 5,780 | | | | 6,364,053 | |
Delaware County Authority (Elwyn Obligated Group) Series 2017 5.00%, 06/01/2037 | | | 2,585 | | | | 2,542,046 | |
Hospitals & Higher Education Facilities Authority of Philadelphia (The) (Temple University Health System Obligated Group) Series 2017 5.00%, 07/01/2032 | | | 885 | | | | 905,066 | |
5.00%, 07/01/2034 | | | 2,130 | | | | 2,169,814 | |
AGM Series 2022 4.00%, 07/01/2040 | | | 4,475 | | | | 4,400,311 | |
Philadelphia Authority for Industrial Development (City of Philadelphia PA) Series 2018 5.00%, 05/01/2036 | | | 1,620 | | | | 1,697,247 | |
5.00%, 05/01/2037 | | | 1,390 | | | | 1,453,707 | |
5.00%, 05/01/2038 | | | 1,000 | | | | 1,045,126 | |
AGM Series 2017 5.00%, 12/01/2035 | | | 200 | | | | 208,368 | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Philadelphia Authority for Industrial Development (Russell Byers Charter School) Series 2020 5.00%, 05/01/2040 | | $ | 2,100 | | | $ | 2,101,292 | |
Philadelphia Energy Authority (The) (City of Philadelphia PA Lease) Series 2023 5.00%, 11/01/2036 | | | 1,500 | | | | 1,669,032 | |
5.00%, 11/01/2039 | | | 1,850 | | | | 2,033,678 | |
5.00%, 11/01/2040 | | | 700 | | | | 766,323 | |
5.00%, 11/01/2041 | | | 1,265 | | | | 1,377,530 | |
5.00%, 11/01/2042 | | | 1,050 | | | | 1,139,656 | |
5.00%, 11/01/2043 | | | 750 | | | | 810,318 | |
Pittsburgh Water & Sewer Authority AGM Series 2019-A 5.00%, 09/01/2044 | | | 2,000 | | | | 2,099,260 | |
AGM Series 2020-B 4.00%, 09/01/2045 | | | 2,250 | | | | 2,198,624 | |
4.00%, 09/01/2050 | | | 2,500 | | | | 2,395,029 | |
AGM Series 2023-A 4.25%, 09/01/2053 | | | 2,500 | | | | 2,457,440 | |
School District of the City of Erie (The) AGM Series 2019-A 5.00%, 04/01/2031 | | | 930 | | | | 992,882 | |
AGM Series 2019-C 5.00%, 04/01/2028 | | | 1,850 | | | | 1,959,974 | |
5.00%, 04/01/2029 | | | 1,000 | | | | 1,074,553 | |
| | | | | | | | |
| | | | | | | 50,234,183 | |
| | | | | | | | |
Rhode Island – 1.2% | |
Rhode Island Health and Educational Building Corp. (City of Providence RI) | | | | | | | | |
BAM Series 2021-D 4.00%, 05/15/2038 | | | 2,930 | | | | 2,966,489 | |
4.00%, 05/15/2040 | | | 1,375 | | | | 1,380,646 | |
4.00%, 05/15/2041 | | | 2,485 | | | | 2,488,824 | |
| | | | | | | | |
| | | | | | | 6,835,959 | |
| | | | | | | | |
Texas – 1.4% | |
City of Mission TX BAM Series 2021 5.00%, 02/15/2028 | | | 1,000 | | | | 1,055,252 | |
5.00%, 02/15/2029 | | | 1,000 | | | | 1,065,693 | |
El Paso County Hospital District Series 2024 4.125%, 02/15/2049(c) | | | 1,000 | | | | 958,989 | |
| | |
| |
14 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
4.25%, 02/15/2054(c) | | $ | 600 | | | $ | 576,519 | |
5.00%, 08/15/2042 | | | 3,400 | | | | 3,649,524 | |
5.00%, 08/15/2043 | | | 1,000 | | | | 1,068,983 | |
| | | | | | | | |
| | | | | | | 8,374,960 | |
| | | | | | | | |
Washington – 0.6% | |
Pend Oreille County Public Utility District No. 1 Box Canyon Series 2018 5.00%, 01/01/2044 | | | 3,600 | | | | 3,673,811 | |
| | | | | | | | |
|
West Virginia – 0.8% | |
Morgantown Utility Board, Inc. Series 2018-B 5.00%, 12/01/2043 | | | 2,555 | | | | 2,640,825 | |
West Virginia Hospital Finance Authority (West Virginia United Health System Obligated Group) Series 2017-A 5.00%, 06/01/2047 | | | 1,775 | | | | 1,794,498 | |
| | | | | | | | |
| | | | | | | 4,435,323 | |
| | | | | | | | |
Wisconsin – 4.1% | |
Wisconsin Health & Educational Facilities Authority (Hmong American Peace Academy Ltd.) Series 2020 5.00%, 03/15/2050 | | | 3,520 | | | | 3,524,015 | |
Wisconsin Public Finance Authority (Bancroft Neurohealth Obligated Group) Series 2016 5.125%, 06/01/2048(a) | | | 4,430 | | | | 4,367,202 | |
Wisconsin Public Finance Authority (Crossroads Health Project) Series 2023 8.125%, 07/01/2058(a) | | | 1,000 | | | | 1,039,291 | |
Wisconsin Public Finance Authority (NC A&T Real Estate Foundation LLC) Series 2019 5.00%, 06/01/2034 | | | 1,000 | | | | 1,028,658 | |
5.00%, 06/01/2044 | | | 6,315 | | | | 6,354,301 | |
Wisconsin Public Finance Authority (Scotland Health Care System Obligated Group) Series 2021-A 4.00%, 10/01/2047 | | | 8,255 | | | | 7,405,816 | |
| | | | | | | | |
| | | | | | | 23,719,283 | |
| | | | | | | | |
Total Municipal Obligations (cost $593,455,305) | | | | | | | 574,003,668 | |
| | | | | | | | |
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 15 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Shares | | | U.S. $ Value | |
| |
SHORT-TERM INVESTMENTS – 0.6% | |
Investment Companies – 0.6% | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 4.72%(d)(e)(f) (cost $3,759,404) | | | 3,759,404 | | | $ | 3,759,404 | |
| | | | | | | | |
| | |
Total Investments – 98.7% (cost $597,214,709) | | | | | | | 577,763,072 | |
Other assets less liabilities – 1.3% | | | | | | | 7,597,505 | |
| | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 585,360,577 | |
| | | | | |
CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note C)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 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 | | | 29,852 | | | | 10/15/2029 | | | 2.516% | | CPI# | | Maturity | | $ | (22,997 | ) | | $ | – 0 | – | | $ | (22,997 | ) |
USD | | | 29,824 | | | | 10/15/2029 | | | 2.451% | | CPI# | | Maturity | | | 65,404 | | | | – 0 | – | | | 65,404 | |
USD | | | 29,824 | | | | 10/15/2029 | | | 2.499% | | CPI# | | Maturity | | | 250 | | | | – 0 | – | | | 250 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 42,657 | | | $ | – 0 | – | | $ | 42,657 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
# | Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI). |
CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 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 | | | 15,600 | | | | 07/31/2029 | | | 1 Day SOFR | | 3.986% | | Annual | | $ | 79,995 | | | $ | – 0 | – | | $ | 79,995 | |
USD | | | 12,400 | | | | 07/31/2029 | | | 1 Day SOFR | | 4.461% | | Annual | | | 332,839 | | | | – 0 | – | | | 332,839 | |
USD | | | 11,000 | | | | 07/31/2029 | | | 1 Day SOFR | | 3.975% | | Annual | | | 50,876 | | | | – 0 | – | | | 50,876 | |
USD | | | 10,000 | | | | 07/31/2029 | | | 1 Day SOFR | | 3.938% | | Annual | | | 29,337 | | | | – 0 | – | | | 29,337 | |
USD | | | 12,180 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.814% | | Annual | | | 14,580 | | | | – 0 | – | | | 14,580 | |
USD | | | 12,160 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.740% | | Annual | | | (26,821 | ) | | | – 0 | – | | | (26,821 | ) |
USD | | | 12,160 | | | | 10/15/2029 | | | 1 Day SOFR | | 3.761% | | Annual | | | (15,848 | ) | | | – 0 | – | | | (15,848 | ) |
| | |
| |
16 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
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 | | | 24,100 | | | | 07/31/2030 | | | 1 Day SOFR | | 4.016% | | Annual | | $ | 215,065 | | | $ | – 0 | – | | $ | 215,065 | |
USD | | | 28,600 | | | | 11/01/2030 | | | 1 Day SOFR | | 4.518% | | Annual | | | 905,546 | | | | – 0 | – | | | 905,546 | |
USD | | | 16,000 | | | | 07/31/2031 | | | 1 Day SOFR | | 4.181% | | Annual | | | 340,757 | | | | – 0 | – | | | 340,757 | |
USD | | | 15,400 | | | | 09/15/2031 | | | 1 Day SOFR | | 3.533% | | Annual | | | (237,077 | ) | | | – 0 | – | | | (237,077 | ) |
USD | | | 4,900 | | | | 09/15/2031 | | | 1 Day SOFR | | 3.768% | | Annual | | | – 0 | – | | | – 0 | – | | | – 0 | – |
USD | | | 4,500 | | | | 09/15/2031 | | | 1 Day SOFR | | 3.411% | | Annual | | | (107,952 | ) | | | – 0 | – | | | (107,952 | ) |
USD | | | 3,800 | | | | 09/15/2031 | | | 1 Day SOFR | | 3.517% | | Annual | | | (66,028 | ) | | | – 0 | – | | | (66,028 | ) |
USD | | | 33,400 | | | | 12/19/2033 | | | 3.571% | | 1 Day SOFR | | Annual | | | 1,038,465 | | | | – 0 | – | | | 1,038,465 | |
USD | | | 19,200 | | | | 06/15/2034 | | | 3.543% | | 1 Day SOFR | | Annual | | | 439,762 | | | | 2,370 | | | | 437,392 | |
USD | | | 13,410 | | | | 08/15/2034 | | | 3.314% | | 1 Day SOFR | | Annual | | | 525,530 | | | | – 0 | – | | | 525,530 | |
USD | | | 10,500 | | | | 08/15/2034 | | | 3.304% | | 1 Day SOFR | | Annual | | | 448,882 | | | | – 0 | – | | | 448,882 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 3,967,908 | | | $ | 2,370 | | | $ | 3,965,538 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At October 31, 2024, the aggregate market value of these securities amounted to $75,317,741 or 12.9% of net assets. |
(b) | Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at October 31, 2024. |
(c) | When-Issued or delayed delivery security. |
(d) | Affiliated investments. |
(e) | The rate shown represents the 7-day yield as of period end. |
(f) | 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. |
As of October 31, 2024, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 9.3% and 0.0%, respectively.
Glossary:
AGM – Assured Guaranty Municipal
BAM – Build American Mutual
DOT – Department of Transportation
SOFR – Secured Overnight Financing Rate
See notes to financial statements.
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 17 |
STATEMENT OF ASSETS & LIABILITIES
October 31, 2024 (unaudited)
| | | | |
Assets | | | | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $593,455,305) | | $ | 574,003,668 | |
Affiliated issuers (cost $3,759,404) | | | 3,759,404 | |
Cash collateral due from broker | | | 2,375,219 | |
Interest receivable | | | 9,031,924 | |
Receivable due from Adviser | | | 149,132 | |
Receivable for shares of beneficial interest sold | | | 40,144 | |
Affiliated dividends receivable | | | 10,931 | |
| | | | |
Total assets | | | 589,370,422 | |
| | | | |
Liabilities | | | | |
Due to custodian | | | 479,655 | |
Dividends payable | | | 1,878,513 | |
Payable for investment securities purchased | | | 1,549,712 | |
Payable for variation margin on centrally cleared swaps | | | 89,739 | |
Payable for shares of beneficial interest redeemed | | | 12,226 | |
| | | | |
Total liabilities | | | 4,009,845 | |
| | | | |
Net Assets | | $ | 585,360,577 | |
| | | | |
Composition of Net Assets | | | | |
Shares of beneficial interest, at par | | $ | 596 | |
Additional paid-in capital | | | 614,950,505 | |
Accumulated loss | | | (29,590,524 | ) |
| | | | |
Net Assets | | $ | 585,360,577 | |
| | | | |
Net Asset Value Per Share—unlimited shares of beneficial interest authorized, $.00001 par value (based on 59,610,129 common shares outstanding) | | $ | 9.82 | |
| | | | |
See notes to financial statements.
| | |
| |
18 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
STATEMENT OF OPERATIONS
Six Months Ended October 31, 2024 (unaudited)
| | | | | | | | |
Investment Income | |
Interest | | $ | 11,001,878 | | | | | |
Dividends—Affiliated issuers | | | 91,097 | | | | | |
Other income(a) | | | 3,324 | | | | | |
| | | | | | | | |
Total investment income | | | | | | $ | 11,096,299 | |
| | | | | |
Realized and Unrealized Gain (Loss) on Investment Transactions | | | | | | | | |
Net realized loss on: | | | | | | | | |
Investment transactions | | | | | | | (4,136,623 | ) |
Swaps | | | | | | | (474,381 | ) |
Net change in unrealized appreciation of: | | | | | | | | |
Investments | | | | | | | 16,758,823 | |
Swaps | | | | | | | 4,132,639 | |
| | | | | | | | |
Net gain on investment transactions | | | | | | | 16,280,458 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 27,376,757 | |
| | | | | |
(a) | Other income includes a reimbursement for investment in affiliated issuer (see Note B). |
See notes to financial statements.
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 19 |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, 2024 | |
Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 11,096,299 | | | $ | 20,719,875 | |
Net realized loss on investment transactions | | | (4,611,004 | ) | | | (5,978,197 | ) |
Net change in unrealized appreciation of investments | | | 20,891,462 | | | | 5,763,930 | |
| | | | | | | | |
Net increase in net assets from operations | | | 27,376,757 | | | | 20,505,608 | |
Distribution to Shareholders | | | (10,732,235 | ) | | | (20,167,561 | ) |
Transactions in Shares of Beneficial Interest | | | | | | | | |
Net increase (decrease) | | | (2,688,060 | ) | | | 29,036,450 | |
| | | | | | | | |
Total increase | | | 13,956,462 | | | | 29,374,497 | |
Net Assets | | | | | | | | |
Beginning of period | | | 571,404,115 | | | | 542,029,618 | |
| | | | | | | | |
End of period | | $ | 585,360,577 | | | $ | 571,404,115 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
20 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS
October 31, 2024 (unaudited)
NOTE A
Significant Accounting Policies
AB Corporate Shares (the “Trust”) is registered under the Investment Company Act of 1940 (the “1940 Act”), as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a “series” company currently offering four separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares and AB Impact Municipal Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Impact Municipal Income Shares (the “Fund”).
Shares of the Fund are offered exclusively to holders of accounts established under wrap fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the “Adviser”). The Fund’s shares may be purchased at the relevant net asset value without a sales charge or other fee. 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.
1. Security Valuation
Portfolio securities are valued at market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Trust’s Board of Trustees (the “Board”). Pursuant to these procedures, the the Adviser serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.
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
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 21 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 ask prices. If either a current bid or current ask price is unavailable, 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. 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.
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
| | |
| |
22 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 unique security features in order to estimate the relevant cash flows which are 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.
Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available,
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 23 |
NOTES TO FINANCIAL STATEMENTS (continued)
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, 2024:
| | | | | | | | | | | | | | | | |
Investments in Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Long-Term Municipal Bonds | | $ | – 0 | – | | $ | 574,003,668 | | | $ | – 0 | – | | $ | 574,003,668 | |
Short-Term Investments | | | 3,759,404 | | | | – 0 | – | | | – 0 | – | | | 3,759,404 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 3,759,404 | | | | 574,003,668 | | | | – 0 | – | | | 577,763,072 | |
Other Financial Instruments(a): | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Centrally Cleared Inflation (CPI) Swaps | | | – 0 | – | | | 65,654 | | | | – 0 | – | | | 65,654 | (b) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | 4,421,634 | | | | – 0 | – | | | 4,421,634 | (b) |
Liabilities: | | | | | | | | | | | | | | | | |
Centrally Cleared Inflation (CPI) Swaps | | | – 0 | – | | | (22,997 | ) | | | – 0 | – | | | (22,997 | )(b) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | (453,726 | ) | | | – 0 | – | | | (453,726 | )(b) |
| | | | | | | | | | | | | | | | |
Total | | $ | 3,759,404 | | | $ | 578,014,233 | | | $ | – 0 | – | | $ | 581,773,637 | |
| | | | | | | | | | | | | | | | |
(a) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments are valued at the unrealized appreciation (depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, written options and written swaptions which are valued at market value. |
(b) | 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 futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value. |
3. 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.
| | |
| |
24 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
4. Investment Income and Investment Transactions
Dividend income 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 the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from real estate investment trust (“REIT”) investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.
5. 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.
6. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the advisory agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund’s operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 25 |
NOTES TO FINANCIAL STATEMENTS (continued)
to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund’s Board. The advisory agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.
The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund’s principal underwriter (the “Underwriter”), to permit the Underwriter to distribute the Fund’s shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.
AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, acts as the Fund’s registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.
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. The Adviser had contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2023. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse 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 six months ended October 31, 2024, such reimbursement amounted to $3,324.
A summary of the Fund’s transactions in AB mutual funds for the six months ended October 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value 4/30/24 (000) | | | Purchases at Cost (000) | | | Sales Proceeds (000) | | | Market Value 10/31/24 (000) | | | Dividend Income (000) | |
Government Money Market Portfolio | | $ | 2,016 | | | $ | 59,143 | | | $ | 57,400 | | | $ | 3,759 | | | $ | 91 | |
| | |
| |
26 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE C
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the six months ended October 31, 2024 were as follows:
| | | | | | | | |
| | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 64,072,682 | | | $ | 59,318,621 | |
U.S. government securities | | | 4,523,630 | | | | 5,530,270 | |
The cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. Accordingly, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Gross unrealized appreciation | | $ | 10,295,333 | |
Gross unrealized depreciation | | | (25,738,775 | ) |
| | | | |
Net unrealized depreciation | | $ | (15,443,442 | ) |
| | | | |
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:
The Fund may enter into swaps for investment purposes or to hedge its exposure to interest rates, credit risk, equity markets or currencies. 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, rates or indexes for a specified amount of an underlying asset or inflation. 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
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 27 |
NOTES TO FINANCIAL STATEMENTS (continued)
each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the 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, inflation 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 for swaps 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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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
| | |
| |
28 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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 the 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 six months ended October 31, 2024, the Fund held interest rate swaps for hedging purposes.
Inflation (CPI) Swaps:
Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.
During the six months ended October 31, 2024, the Fund held inflation (CPI) swaps for hedging purposes.
The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 29 |
NOTES TO FINANCIAL STATEMENTS (continued)
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. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.
During the six months ended October 31, 2024, 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 | | Receivable for variation margin on centrally cleared swaps | | $ | 4,484,918 | * | | Payable for variation margin on centrally cleared swaps | | $ | 476,723 | * |
| | | | | | | | | | | | |
Total | | | | $ | 4,484,918 | | | | | $ | 476,723 | |
| | | | | | | | | | | | |
* | 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 futures and centrally cleared 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) of swaps | | $ | (474,381 | ) | | $ | 4,132,639 | |
| | | | | | | | | | |
Total | | | | $ | (474,381) | | | $ | 4,132,639 | |
| | | | | | | | | | |
| | |
| |
30 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The following table represents the average monthly volume of the Fund’s derivative transactions during the six months ended October 31, 2024:
| | | | |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 186,774,286 | |
Centrally Cleared Inflation Swaps: | | | | |
Average notional amount | | $ | 89,500,000 | (a) |
(a) | Positions were open for one month during the period. |
NOTE D
Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Shares | | | | | | Amount | | | | |
| | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, 2024 | | | | | | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, 2024 | | | | |
| | | | | | | | |
Shares sold | | | 3,980,739 | | | | 9,731,162 | | | | | | | $ | 39,044,488 | | | $ | 92,033,389 | | | | | |
| | | | | |
Shares redeemed | | | (4,250,078 | ) | | | (6,642,394 | ) | | | | | | | (41,732,548 | ) | | | (62,996,939 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (269,339 | ) | | | 3,088,768 | | | | | | | $ | (2,688,060 | ) | | $ | 29,036,450 | | | | | |
| | | | | |
NOTE E
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.
ESG Risk—Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities selected based on ESG factors may shift into and out of favor depending on market and economic conditions, and the Fund’s performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, ESG and sustainability criteria are not uniformly defined, and the Fund’s ESG and sustainability criteria may differ from those used by other funds. In addition, in evaluating an investment, the Adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG and sustainability factors relevant to a particular investment.
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 31 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 any 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. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.
Municipal Market Risk—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, and the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. The Fund’s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project’s ability to make payments of principal and interest on these securities.
In addition, changes in tax rates or the treatment of income from certain types of municipal securities, among other things, could negatively affect the municipal securities markets.
Tax Risk—There is no guarantee that all of the Fund’s income will remain exempt from U.S. federal or state income taxes. From time to time, the U.S. Government and the U.S. Congress consider changes in U.S. federal income tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt
| | |
| |
32 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield. The U.S. federal income tax treatment of payments in respect of certain derivative contracts is unclear.
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, interest rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.
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. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effects of potential central bank monetary policy, and government fiscal policy, initiatives and market reactions to those initiatives.
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.
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 for fixed-income securities with longer maturities.
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
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 33 |
NOTES TO FINANCIAL STATEMENTS (continued)
use of other types of derivative instruments by the Fund, such as options 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.
Illiquid Investments Risk—Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.
Derivatives Risk—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, reference rate or index, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.
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 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.
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. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
NOTE F
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain
| | |
| |
34 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the Adviser. The Fund did not utilize the Facility during the six months ended October 31, 2024.
NOTE G
Distributions to Shareholders
The tax character of distributions to be paid for the year ending April 30, 2025 will be determined at the end of the current fiscal year. The tax character of distributions paid during the fiscal years ended April 30, 2024 and April 30, 2023 were as follows:
| | | | | | | | |
| | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 1,357,374 | | | $ | 1,651,825 | |
| | | | | | | | |
Total taxable distributions paid | | | 1,357,374 | | | | 1,651,825 | |
Tax-exempt income | | | 18,810,187 | | | | 16,451,270 | |
| | | | | | | | |
Total distributions paid | | $ | 20,167,561 | | | $ | 18,103,095 | |
| | | | | | | | |
As of April 30, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed tax-exempt income | | $ | 1,708,828 | |
Accumulated capital and other losses | | $ | (10,276,152 | )(a) |
Unrealized appreciation (depreciation) | | | (35,954,581 | )(b) |
| | | | |
Total accumulated earnings (deficit) | | $ | (44,521,905 | )(c) |
| | | | |
(a) | As of April 30, 2024, the Fund had a net capital loss carryforward of $10,276,152. |
(b) | The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax treatment of swaps. |
(c) | The difference between book-basis and tax-basis components of accumulated earnings (deficit) is attributable primarily to dividends payable. |
For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2024, the Fund had a net short-term capital loss carryforward of $8,124,654 and a net long-term capital loss carryforward of $2,151,498, which may be carried forward for an indefinite period.
NOTE H
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 35 |
NOTES TO FINANCIAL STATEMENTS (continued)
LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
In November 2023, the Financial Accounting Standards Board issued Accounting Standards Update, ASU 2023-07, “Segment Reporting (Topic 280)”. ASU 2023-07 requires public entities to provide disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all necessary disclosures required by Topic 280 it, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit and loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of ASU 2023-07 is permitted. Management is currently evaluating the impact, if any, of applying ASU 2023-07.
NOTE I
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.
| | |
| |
36 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended October 31, 2024 (unaudited) | | | Year Ended April 30, | |
| | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | |
Net asset value, beginning of period | | | $ 9.54 | | | | $ 9.54 | | | | $ 9.76 | | | | $ 10.91 | | | | $ 9.91 | | | | $ 10.19 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income(a) | | | .19 | | | | .35 | | | | .31 | | | | .28 | | | | .31 | | | | .33 | |
| | | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | .27 | | | | (.01 | ) | | | (.20 | ) | | | (1.16 | ) | | | 1.00 | | | | (.27 | ) |
| | | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (b) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | .46 | | | | .34 | | | | .11 | | | | (.88 | ) | | | 1.31 | | | | .06 | |
| | | | |
Less: Dividends | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Dividends from net investment income | | | (.18 | ) | | | (.34 | ) | | | (.33 | ) | | | (.27 | ) | | | (.31 | ) | | | (.34 | ) |
| | | | |
Net asset value, end of period | | | $ 9.82 | | | | $ 9.54 | | | | $ 9.54 | | | | $ 9.76 | | | | $ 10.91 | | | | $ 9.91 | |
| | | | |
| | | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total investment return based on net asset value(c) | | | 4.84 | % | | | 3.70 | % | | | 1.20 | % | | | (8.23 | )% | | | 13.32 | % | | | .40 | % |
| | | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net assets, end of period (000’s omitted) | | | $585,361 | | | | $571,404 | | | | $542,030 | | | | $516,931 | | | | $458,181 | | | | $245,297 | |
| | | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net investment income | | | 3.76 | %^ | | | 3.73 | % | | | 3.32 | % | | | 2.59 | % | | | 2.88 | % | | | 3.18 | % |
| | | | | | |
Portfolio turnover rate | | | 11 | % | | | 15 | % | | | 8 | % | | | 13 | % | | | 14 | % | | | 2 | % |
(a) | Based on average shares outstanding. |
(b) | Amount is less than $.005. |
(c) | 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. Total 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 calculated for a period of less than one year is not annualized. |
See notes to financial statements.
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 37 |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested trustees (the “directors”) of AB Corporate Shares (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Impact Municipal Income Shares (the “Fund”) at a meeting held in-person on July 30-31, 2024 (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 additional materials, including comparative analytical data prepared by the Senior Vice President of the Fund. The directors also discussed the proposed continuance in private sessions with counsel.
The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund’s ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the “Sponsors”) that use the Fund as an investment vehicle for their clients.
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 review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.
| | |
| |
38 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. 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 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. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. 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 2022 and 2023 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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. 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
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 39 |
distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests. The directors noted that the Adviser is compensated by the Sponsors. 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 performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund’s performance against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended May 31, 2024 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts (“SMAs”). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors’ request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.
Advisory Fees
The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. 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 payable by other funds.
The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an
| | |
| |
40 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
arm’s length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser’s fee arrangements with the Sponsors vary, the directors acknowledged the Adviser’s view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the “implied fee”) and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.
The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.
The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.
Economies of Scale
The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund’s expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 41 |
NOTES
| | |
| |
42 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
NOTES
| | |
| |
abfunds.com | | AB IMPACT MUNICIPAL INCOME SHARES | 43 |
NOTES
| | |
| |
44 | AB IMPACT MUNICIPAL INCOME SHARES | | abfunds.com |
AB IMPACT MUNICIPAL INCOME SHARES
66 Hudson Boulevard East
New York, NY 10001
800 221 5672
IMISH-0152-1024
OCT 10.31.24
SEMI-ANNUAL FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
AB MUNICIPAL INCOME SHARES
| | |
| |
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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. 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 and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.
PORTFOLIO OF INVESTMENTS
October 31, 2024 (unaudited)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
MUNICIPAL OBLIGATIONS – 103.6% | | | | | | | | |
Long-Term Municipal Bonds – 103.5% | | | | | | | | |
Alabama – 4.4% | | | | | | | | |
Black Belt Energy Gas District Series 2024-B 5.00%, 10/01/2055 | | $ | 40,965 | | | $ | 43,497,850 | |
Black Belt Energy Gas District (Apollo Global Management, Inc.) Series 2024-A 5.25%, 05/01/2055 | | | 8,000 | | | | 8,666,788 | |
Black Belt Energy Gas District (Goldman Sachs Group, Inc. (The)) Series 2022-F 5.50%, 11/01/2053 | | | 15,500 | | | | 16,470,773 | |
Series 2023-A 5.25%, 01/01/2054(a)(b) | | | 46,865 | | | | 50,442,866 | |
Series 2023-C 5.50%, 10/01/2054 | | | 16,055 | | | | 17,650,894 | |
Series 2023-D 5.079% (SOFR + 1.85%), 06/01/2049(c) | | | 20,500 | | | | 21,074,843 | |
Black Belt Energy Gas District (Morgan Stanley) 5.728% (SOFR + 2.15%), 02/01/2053(a)(b)(c) | | | 10,000 | | | | 10,393,849 | |
Black Belt Energy Gas District (Nomura Holdings, Inc.) Series 2022-A 4.00%, 12/01/2052 | | | 17,325 | | | | 17,267,661 | |
Black Belt Energy Gas District (Pacific Mutual Holding Co.) Series 2024-C 5.00%, 05/01/2055 | | | 31,900 | | | | 34,053,142 | |
Black Belt Energy Gas District (Royal Bank of Canada) Series 2023-B 5.25%, 12/01/2053(a)(b) | | | 22,380 | | | | 24,180,424 | |
County of Jefferson AL Sewer Revenue Series 2024 5.25%, 10/01/2041 | | | 2,250 | | | | 2,450,491 | |
5.25%, 10/01/2044 | | | 2,665 | | | | 2,879,978 | |
5.50%, 10/01/2053 | | | 9,610 | | | | 10,402,947 | |
Energy Southeast A Cooperative District (Morgan Stanley) Series 2023-A 5.279% (SOFR + 2.05%), 11/01/2053(c) | | | 16,000 | | | | 16,209,954 | |
5.50%, 11/01/2053(b) | | | 17,645 | | | | 19,291,407 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2023-B 5.429% (SOFR + 2.20%), 04/01/2054(c) | | $ | 10,000 | | | $ | 10,225,350 | |
Series 2024-B 5.25%, 07/01/2054 | | | 41,865 | | | | 45,055,565 | |
Homewood Educational Building Authority (CHF – Horizons II LLC) Series 2024 5.00%, 10/01/2056 | | | 1,200 | | | | 1,201,956 | |
5.50%, 10/01/2049 | | | 4,500 | | | | 4,758,012 | |
5.50%, 10/01/2054 | | | 1,400 | | | | 1,470,505 | |
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016 5.00%, 02/01/2036 | | | 5,000 | | | | 5,059,562 | |
5.00%, 02/01/2041 | | | 5,000 | | | | 5,047,064 | |
Series 2021 4.00%, 02/01/2041 | | | 3,370 | | | | 3,163,648 | |
4.00%, 02/01/2046 | | | 9,640 | | | | 8,638,907 | |
Jefferson County Board of Education/AL Series 2018 5.00%, 02/01/2039(a)(b) | | | 5,000 | | | | 5,188,799 | |
5.00%, 02/01/2046(a)(b) | | | 23,280 | | | | 23,827,120 | |
Lower Alabama Gas District (The) (Goldman Sachs Group, Inc. (The)) Series 2016-A 5.00%, 09/01/2031 | | | 2,235 | | | | 2,386,508 | |
Mobile County Industrial Development Authority (ArcelorMittal SA) Series 2024 5.00%, 06/01/2054 | | | 28,330 | | | | 28,921,902 | |
Southeast Alabama Gas Supply District (The) (Morgan Stanley) Series 2024 5.00%, 06/01/2049 | | | 38,405 | | | | 41,072,753 | |
Southeast Alabama Gas Supply District (The) (Pacific Mutual Holding Co.) Series 2024-A 5.00%, 08/01/2054 | | | 35,220 | | | | 37,702,390 | |
Southeast Energy Authority A Cooperative District Series 2024-C 5.00%, 11/01/2055 | | | 10,000 | | | | 10,750,145 | |
| | |
| |
2 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Southeast Energy Authority A Cooperative District (Goldman Sachs Group, Inc. (The)) Series 2022-B 5.00%, 05/01/2053 | | $ | 4,085 | | | $ | 4,261,729 | |
Southeast Energy Authority A Cooperative District (Morgan Stanley) Series 2021-B 4.00%, 12/01/2051 | | | 15,000 | | | | 15,005,061 | |
Series 2022-A 5.50%, 01/01/2053 | | | 7,620 | | | | 8,210,211 | |
5.998% (SOFR + 2.42%), 01/01/2053(a)(b)(c) | | | 10,000 | | | | 10,521,817 | |
Southeast Energy Authority A Cooperative District (Royal Bank of Canada) Series 2023-B 5.00%, 01/01/2054 | | | 28,425 | | | | 30,160,594 | |
Southeast Energy Authority A Cooperative District (Sumitomo Mitsui Financial Group, Inc.) Series 2023-A 5.25%, 01/01/2054 | | | 10,000 | | | | 10,583,095 | |
| | | | | | | | |
| | | | | | | 608,146,560 | |
| | | | | | | | |
Alaska – 0.1% | | | | | | | | |
Municipality of Anchorage AK Solid Waste Services Revenue Series 2022-A 5.25%, 11/01/2062 | | | 3,000 | | | | 3,167,706 | |
State of Alaska International Airports System Series 2016-B 5.00%, 10/01/2033 | | | 6,500 | | | | 6,575,403 | |
5.00%, 10/01/2034 | | | 2,500 | | | | 2,527,741 | |
| | | | | | | | |
| | | | | | | 12,270,850 | |
| | | | | | | | |
American Samoa – 0.1% | | | | | | | | |
American Samoa Economic Development Authority (Territory of American Samoa) Series 2015-A 6.625%, 09/01/2035 | | | 3,235 | | | | 3,292,570 | |
Series 2018 7.125%, 09/01/2038(a) | | | 8,315 | | | | 8,915,042 | |
| | | | | | | | |
| | | | | | | 12,207,612 | |
| | | | | | | | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Arizona – 2.8% | | | | | | | | |
Arizona Industrial Development Authority Series 2024 5.00%, 11/01/2054 | | $ | 8,205 | | | $ | 8,642,364 | |
Arizona Industrial Development Authority (AZIDA 2019-2) Series 2019-2, Class A 3.625%, 05/20/2033 | | | 14,330 | | | | 13,606,409 | |
Arizona Industrial Development Authority (Benjamin Franklin Charter School Obligated Group) Series 2023 4.43%, 07/01/2033(a) | | | 520 | | | | 523,248 | |
5.25%, 07/01/2053(a) | | | 1,000 | | | | 1,002,567 | |
5.50%, 07/01/2058(a) | | | 1,000 | | | | 1,009,156 | |
Arizona Industrial Development Authority (Equitable School Revolving Fund LLC Obligated Group) Series 2021 4.00%, 11/01/2051(a) | | | 11,325 | | | | 9,989,818 | |
Arizona Industrial Development Authority (Heritage Academy Laveen & Gateway Obligated Group) Series 2021 5.00%, 07/01/2051(a) | | | 10,000 | | | | 9,225,382 | |
Arizona Industrial Development Authority (KIPP Nashville Obligated Group) Series 2022-A 5.00%, 07/01/2047 | | | 750 | | | | 758,493 | |
5.00%, 07/01/2057 | | | 1,500 | | | | 1,505,952 | |
5.00%, 07/01/2062 | | | 1,460 | | | | 1,462,217 | |
Arizona Industrial Development Authority (KIPP NYC Public Charter Schools) Series 2021-B 4.00%, 07/01/2051 | | | 1,000 | | | | 880,034 | |
4.00%, 07/01/2061 | | | 4,600 | | | | 3,927,426 | |
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 6.75%, 07/01/2030(d)(e)(f) | | | 1,500 | | | | 60,000 | |
7.75%, 07/01/2050(d)(e)(f) | | | 33,950 | | | | 1,358,000 | |
Series 2021-A 6.00%, 07/01/2051(d)(e)(f) | | | 1,425 | | | | 57,000 | |
Arizona Industrial Development Authority (North Carolina Central University Project) BAM Series 2019 5.00%, 06/01/2049 | | | 785 | | | | 797,041 | |
| | |
| |
4 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Arizona Industrial Development Authority (Pinecrest Academy of Nevada) Series 2018 5.75%, 07/15/2048(a) | | $ | 1,000 | | | $ | 1,012,683 | |
Series 2020-A 4.00%, 07/15/2030(a) | | | 1,395 | | | | 1,385,580 | |
4.00%, 07/15/2040(a) | | | 4,180 | | | | 3,800,820 | |
4.00%, 07/15/2050(a) | | | 1,000 | | | | 841,461 | |
Arizona Industrial Development Authority (Provident Group – EMU Properties LLC) Series 2018 5.00%, 05/01/2051(d)(f) | | | 1,100 | | | | 605,000 | |
Chandler Industrial Development Authority (Intel Corp.) Series 2022 5.00%, 09/01/2042 | | | 3,900 | | | | 3,993,337 | |
5.00%, 09/01/2052 | | | 1,500 | | | | 1,536,063 | |
Series 2023 4.10%, 12/01/2037 | | | 6,000 | | | | 6,025,611 | |
Series 2024 4.00%, 06/01/2049 | | | 40,000 | | | | 40,008,900 | |
City of Glendale AZ (City of Glendale AZ COP) Series 2021 2.442%, 07/01/2032 | | | 5,000 | | | | 4,275,952 | |
2.542%, 07/01/2033 | | | 5,000 | | | | 4,211,062 | |
2.642%, 07/01/2034 | | | 6,795 | | | | 5,640,567 | |
2.742%, 07/01/2035 | | | 10,000 | | | | 8,197,757 | |
2.842%, 07/01/2036 | | | 13,000 | | | | 10,538,417 | |
City of Phoenix Civic Improvement Corp. (City of Phoenix AZ Water System Revenue) Series 2014-B 5.00%, 07/01/2026 | | | 11,000 | | | | 11,016,808 | |
City of Tempe AZ (City of Tempe AZ COP) Series 2021 2.321%, 07/01/2034 | | | 10,500 | | | | 8,388,187 | |
2.421%, 07/01/2035 | | | 10,325 | | | | 8,118,113 | |
Glendale Industrial Development Authority (Beatitudes Campus Obligated Group (The)) Series 2017 5.00%, 11/15/2036 | | | 1,000 | | | | 937,784 | |
Glendale Industrial Development Authority (Royal Oaks Life Care Community) Series 2016 5.00%, 05/15/2039 | | | 2,700 | | | | 2,703,937 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 5 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Industrial Development Authority of the City of Phoenix Arizona (The) (AZ GFF Tiyan LLC Lease) Series 2014 5.00%, 02/01/2029 | | $ | 18,125 | | | $ | 17,764,137 | |
Industrial Development Authority of the City of Phoenix Arizona (The) (BASIS Schools, Inc. Obligated Group) Series 2015 5.00%, 07/01/2035(a) | | | 2,000 | | | | 2,008,446 | |
Industrial Development Authority of the City of Phoenix Arizona (The) (GreatHearts Arizona Obligated Group) Series 2014 5.00%, 07/01/2044 | | | 3,875 | | | | 3,874,943 | |
Industrial Development Authority of the County of Pima (The) (Edkey, Inc. Obligated Group) Series 2020 5.00%, 07/01/2049(a) | | | 6,890 | | | | 6,487,769 | |
5.00%, 07/01/2055(a) | | | 3,700 | | | | 3,436,513 | |
Industrial Development Authority of the County of Pima (The) (La Posada at Park Centre, Inc. Obligated Group) Series 2022 5.625%, 11/15/2030(a) | | | 9,500 | | | | 9,646,392 | |
6.875%, 11/15/2052(a) | | | 6,500 | | | | 7,058,194 | |
7.00%, 11/15/2057(a) | | | 2,915 | | | | 3,173,088 | |
La Paz County Industrial Development Authority (Harmony Public Schools) Series 2016 5.00%, 02/15/2046(a) | | | 3,500 | | | | 3,477,047 | |
Maricopa County Industrial Development Authority (Arizona Autism Charter Schools Obligated Group) Series 2021 4.00%, 07/01/2061(a) | | | 2,875 | | | | 2,265,528 | |
Maricopa County Industrial Development Authority (Benjamin Franklin Charter School Ltd.) Series 2018-A 6.00%, 07/01/2052(a) | | | 20,370 | | | | 20,933,292 | |
| | |
| |
6 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Maricopa County Industrial Development Authority (Commercial Metals Co.) Series 2022 4.00%, 10/15/2047(a) | | $ | 24,115 | | | $ | 21,391,647 | |
Maricopa County Industrial Development Authority (HonorHealth Obligated Group) Series 2024-D 5.00%, 12/01/2039 | | | 2,725 | | | | 3,016,233 | |
5.00%, 12/01/2040 | | | 5,750 | | | | 6,322,411 | |
5.00%, 12/01/2041 | | | 1,525 | | | | 1,668,844 | |
Maricopa County Industrial Development Authority (Legacy Traditional School Obligated Group) Series 2019 5.00%, 07/01/2049(a) | | | 2,000 | | | | 1,994,919 | |
5.00%, 07/01/2054(a) | | | 2,300 | | | | 2,262,261 | |
Maricopa County Industrial Development Authority (Morrison Education Group Obligated Group) Series 2024-A 6.50%, 07/01/2054(a) | | | 8,500 | | | | 8,833,765 | |
6.625%, 07/01/2059(a) | | | 5,000 | | | | 5,216,467 | |
6.75%, 07/01/2063(a) | | | 5,880 | | | | 6,158,166 | |
Maricopa County Industrial Development Authority (Valley Christian Schools) Series 2023 6.25%, 07/01/2053(a) | | | 1,650 | | | | 1,688,042 | |
6.375%, 07/01/2058(a) | | | 3,670 | | | | 3,765,834 | |
Salt Verde Financial Corp. (Citigroup, Inc.) Series 2007 5.00%, 12/01/2032 | | | 10,945 | | | | 11,765,431 | |
5.00%, 12/01/2037 | | | 2,915 | | | | 3,159,859 | |
5.25%, 12/01/2027 | | | 16,425 | | | | 17,244,954 | |
Sierra Vista Industrial Development Authority Series 2024 5.00%, 06/15/2044(a) | | | 1,300 | | | | 1,307,512 | |
5.00%, 06/15/2054(a) | | | 2,500 | | | | 2,476,958 | |
5.00%, 06/15/2064(a) | | | 2,500 | | | | 2,430,166 | |
Sierra Vista Industrial Development Authority (American Leadership Academy, Inc.) Series 2023 5.75%, 06/15/2058(a) | | | 10,000 | | | | 10,382,845 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 7 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Tempe Industrial Development Authority (Friendship Village of Tempe) Series 2019 5.00%, 12/01/2054 | | $ | 1,185 | | | $ | 1,147,523 | |
Tempe Industrial Development Authority (Mirabella at ASU, Inc.) Series 2017-A 6.125%, 10/01/2047(a) | | | 1,065 | | | | 667,011 | |
Yuma Industrial Development Authority Series 2024 4.00%, 08/01/2054 | | | 2,500 | | | | 2,403,061 | |
5.25%, 08/01/2054 | | | 10,235 | | | | 10,995,681 | |
| | | | | | | | |
| | | | | | | 384,468,085 | |
| | | | | | | | |
Arkansas – 0.5% | | | | | | | | |
Arkansas Development Finance Authority (Baptist Memorial Health Care Obligated Group) Series 2020 5.00%, 09/01/2044 | | | 21,000 | | | | 21,479,818 | |
Arkansas Development Finance Authority (Hybar LLC) Series 2023 6.875%, 07/01/2048(a) | | | 7,185 | | | | 7,912,736 | |
Series 2024 7.375%, 07/01/2048(a) | | | 34,700 | | | | 38,663,309 | |
Arkansas Development Finance Authority (United States Steel Corp.) Series 2022 5.45%, 09/01/2052 | | | 5,000 | | | | 5,184,299 | |
| | | | | | | | |
| | | | | | | 73,240,162 | |
| | | | | | | | |
California – 13.0% | | | | | | | | |
Alameda Corridor Transportation Authority Series 2022-A 5.35%, 10/01/2048(g) | | | 17,000 | | | | 9,776,595 | |
5.38%, 10/01/2049(g) | | | 10,435 | | | | 5,985,722 | |
5.40%, 10/01/2050(g) | | | 7,345 | | | | 4,192,724 | |
AGM Series 2024 Zero Coupon, 10/01/2049 | | | 7,250 | | | | 2,221,480 | |
Zero Coupon, 10/01/2053 | | | 15,000 | | | | 3,657,186 | |
Align Affordable Housing Bond Fund LP (Park Landing LP) Series 2022-2 5.66%, 08/01/2052 | | | 17,900 | | | | 17,867,510 | |
Align Affordable Housing Bond Fund LP (SHI – Lake Worth LLC) Series 2021 3.25%, 12/01/2051(a) | | | 26,000 | | | | 23,432,508 | |
| | |
| |
8 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
ARC70 II TRUST Series 2021 4.00%, 12/01/2059 | | $ | 7,860 | | | $ | 6,888,357 | |
Series 2023 4.84%, 04/01/2065(e)(h) | | | 60,680 | | | | 56,877,064 | |
California Community Choice Financing Authority Series 2024 5.00%, 02/01/2055(i) | | | 36,510 | | | | 39,247,845 | |
5.00%, 08/01/2055 | | | 26,635 | | | | 28,539,352 | |
California Community Choice Financing Authority (American International Group, Inc.) Series 2023-D 5.50%, 05/01/2054 | | | 61,410 | | | | 65,639,902 | |
California Community Choice Financing Authority (Apollo Global Management, Inc.) Series 2024 5.00%, 01/01/2055 | | | 14,745 | | | | 15,835,123 | |
California Community Choice Financing Authority (Deutsche Bank AG) Series 2023 5.25%, 01/01/2054 | | | 115,505 | | | | 124,013,491 | |
California Community Choice Financing Authority (Goldman Sachs Group, Inc. (The)) Series 2021 4.00%, 10/01/2052 | | | 1,000 | | | | 1,015,286 | |
Series 2023 5.25%, 11/01/2054 | | | 3,800 | | | | 4,102,721 | |
California Community Choice Financing Authority (Morgan Stanley) Series 2023 4.679% (SOFR + 1.63%), 07/01/2053(a)(b)(c) | | | 16,800 | | | | 16,789,883 | |
4.899% (SOFR + 1.67%), 02/01/2054(c) | | | 10,000 | | | | 10,092,419 | |
5.00%, 02/01/2054 | | | 48,650 | | | | 52,182,987 | |
Series 2024 5.00%, 05/01/2054 | | | 27,820 | | | | 30,013,315 | |
California Community College Financing Authority (NCCD-Orange Coast Properties LLC) Series 2018 5.25%, 05/01/2043 | | | 4,485 | | | | 4,637,518 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 9 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
5.25%, 05/01/2048 | | $ | 6,750 | | | $ | 6,955,764 | |
5.25%, 05/01/2053 | | | 6,300 | | | | 6,471,872 | |
California Community Housing Agency (California Community Housing Agency Aster Apartments) Series 2021-A 4.00%, 02/01/2056(a) | | | 23,800 | | | | 20,957,618 | |
California Community Housing Agency (California Community Housing Agency Brio Apartments & Next on Lex Apartments) Series 2021 4.00%, 02/01/2056(a) | | | 39,200 | | | | 33,356,248 | |
California Community Housing Agency (California Community Housing Agency Fountains at Emerald Park) Series 2021 3.00%, 08/01/2056(a) | | | 17,000 | | | | 12,519,274 | |
4.00%, 08/01/2046(a) | | | 7,585 | | | | 6,501,012 | |
California Community Housing Agency (California Community Housing Agency Summit at Sausalito Apartments) Series 2021 3.00%, 02/01/2057(a) | | | 19,715 | | | | 14,013,310 | |
California Community Housing Agency (California Community Housing Agency Twin Creek Apartments) Series 2022 Zero Coupon, 08/01/2065(a) | | | 121,230 | | | | 4,978,455 | |
5.50%, 02/01/2040(a) | | | 4,875 | | | | 4,409,846 | |
Series 2022-A 4.50%, 08/01/2052(a) | | | 21,280 | | | | 17,323,927 | |
California Educational Facilities Authority (Chapman University) Series 2015 5.00%, 04/01/2033 | | | 4,005 | | | | 4,028,285 | |
5.00%, 04/01/2034 | | | 4,205 | | | | 4,228,479 | |
California Educational Facilities Authority (Loma Linda University) Series 2017-A 5.00%, 04/01/2031 | | | 1,000 | | | | 1,036,656 | |
5.00%, 04/01/2042 | | | 1,000 | | | | 1,018,371 | |
California Enterprise Development Authority (Heights Christian Schools) Series 2023 6.25%, 06/01/2053(a) | | | 2,000 | | | | 2,021,843 | |
| | |
| |
10 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
California Enterprise Development Authority (Rocketship Education Obligated Group) Series 2022 4.00%, 06/01/2042(a) | | $ | 5,000 | | | $ | 4,339,846 | |
California Health Facilities Financing Authority (Children’s Hospital Los Angeles) Series 2017-A 5.00%, 08/15/2037 | | | 1,700 | | | | 1,743,908 | |
California Housing Finance Agency Series 2019-2, Class A 4.00%, 03/20/2033 | | | 14,120 | | | | 14,237,393 | |
Series 2021-1, Class A 3.50%, 11/20/2035 | | | 8,996 | | | | 8,625,204 | |
Series 2021-2, Class A 3.75%, 03/25/2035 | | | 42,617 | | | | 41,942,591 | |
Series 2021-2, Class X 0.82%, 03/25/2035(j) | | | 22,053 | | | | 969,692 | |
Series 2021-3, Class A 3.25%, 08/20/2036 | | | 6,823 | | | | 6,334,866 | |
Series 2021-3, Class X 0.77%, 08/20/2036(j) | | | 19,850 | | | | 964,972 | |
Series 2023-1, Class A 4.375%, 09/20/2036 | | | 21,275 | | | | 21,884,994 | |
California Infrastructure & Economic Development Bank (DesertXpress Enterprises LLC) Series 2024 8.00%, 01/01/2050(a) | | | 12,400 | | | | 12,778,186 | |
California Infrastructure & Economic Development Bank (Equitable School Revolving Fund LLC Obligated Group) Series 2020-B 4.00%, 11/01/2045 | | | 850 | | | | 826,741 | |
4.00%, 11/01/2050 | | | 860 | | | | 815,315 | |
California Infrastructure & Economic Development Bank (Roseville Sustainable Energy Partner LLC) Series 2024 5.25%, 07/01/2054 | | | 8,000 | | | | 8,457,750 | |
California Infrastructure & Economic Development Bank (WFCS Holdings II LLC) Series 2021 Zero Coupon, 01/01/2061(a) | | | 2,960 | | | | 231,804 | |
Series 2021-A1 5.00%, 01/01/2056(a) | | | 3,000 | | | | 2,995,086 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 11 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
California Municipal Finance Authority (Azusa Pacific University) Series 2015-B 5.00%, 04/01/2041 | | $ | 4,900 | | | $ | 4,684,995 | |
California Municipal Finance Authority (BOLD Program) Series 2023-B 5.75%, 09/01/2053 | | | 2,850 | | | | 3,084,024 | |
California Municipal Finance Authority (California Baptist University) Series 2016-A 5.00%, 11/01/2046(a) | | | 2,000 | | | | 2,005,079 | |
California Municipal Finance Authority (CHF-Riverside II LLC) Series 2019 5.00%, 05/15/2039 | | | 2,030 | | | | 2,124,693 | |
5.00%, 05/15/2040 | | | 1,000 | | | | 1,043,605 | |
California Municipal Finance Authority (Community Health Centers of The Central Coast, Inc.) Series 2021-A 5.00%, 12/01/2046(a) | | | 1,490 | | | | 1,499,716 | |
California Municipal Finance Authority (Goodwill Industries of Sacramento Valley & Northern Nevada, Inc.) Series 2012-A 6.625%, 01/01/2032(a) | | | 760 | | | | 756,924 | |
Series 2014 5.00%, 01/01/2035 | | | 1,085 | | | | 950,555 | |
California Municipal Finance Authority (LAX Integrated Express Solutions LLC) Series 2018 4.00%, 12/31/2047 | | | 7,040 | | | | 6,467,115 | |
5.00%, 12/31/2043 | | | 37,050 | | | | 37,432,197 | |
California Municipal Finance Authority (Samuel Merritt University) Series 2022 5.25%, 06/01/2053 | | | 5,000 | | | | 5,380,423 | |
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/2045(a) | | | 9,725 | | | | 9,725,321 | |
Series 2023 5.00%, 07/01/2027(a) | | | 2,000 | | | | 2,081,521 | |
5.00%, 07/01/2028(a) | | | 2,350 | | | | 2,478,799 | |
5.00%, 07/01/2029(a) | | | 2,300 | | | | 2,454,825 | |
| | |
| |
12 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
5.00%, 07/01/2030(a) | | $ | 2,600 | | | $ | 2,792,537 | |
5.00%, 07/01/2031(a) | | | 3,000 | | | | 3,244,083 | |
5.00%, 07/01/2032(a) | | | 5,470 | | | | 5,950,305 | |
5.00%, 07/01/2033(a) | | | 5,865 | | | | 6,419,082 | |
5.00%, 07/01/2034(a) | | | 3,000 | | | | 3,271,859 | |
5.00%, 07/01/2036(a) | | | 2,650 | | | | 2,865,746 | |
5.00%, 07/01/2037(a) | | | 2,250 | | | | 2,428,103 | |
5.00%, 07/01/2038(a) | | | 3,500 | | | | 3,766,448 | |
5.00%, 11/21/2045(a) | | | 1,100 | | | | 1,151,232 | |
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) Series 2019 7.50%, 12/01/2040(d)(e)(f)(k) | | | 785 | | | | 79 | |
California Pollution Control Financing Authority (San Diego County Water Authority Desalination Project Pipeline) Series 2019 5.00%, 11/21/2045(a) | | | 4,890 | | | | 5,000,597 | |
California Public Finance Authority (Enso Village) Series 2021 2.375%, 11/15/2028(a) | | | 1,360 | | | | 1,334,251 | |
California Public Finance Authority (Kendal at Ventura) Series 2023 10.00%, 05/15/2028(a) | | | 800 | | | | 945,513 | |
California School Finance Authority (Aspire Public Schools Obligated Group) Series 2020-A 5.00%, 08/01/2059(a) | | | 3,120 | | | | 3,135,900 | |
California School Finance Authority (Classical Academy Obligated Group) Series 2021 4.00%, 10/01/2046(a) | | | 2,800 | | | | 2,456,761 | |
Series 2022 5.00%, 10/01/2042(a) | | | 1,000 | | | | 1,019,524 | |
5.00%, 10/01/2052(a) | | | 1,000 | | | | 1,001,887 | |
5.00%, 10/01/2061(a) | | | 1,500 | | | | 1,498,043 | |
California School Finance Authority (Downtown College Prep Obligated Group) Series 2016 5.00%, 06/01/2046(a) | | | 3,630 | | | | 2,817,516 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 13 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
California School Finance Authority (Equitas Academy Obligated Group) Series 2018-A 5.00%, 06/01/2056(a) | | $ | 8,850 | | | $ | 8,379,884 | |
California School Finance Authority (Hawking STEAM Charter Schools, Inc.) Series 2022 5.25%, 07/01/2052(a) | | | 2,250 | | | | 2,294,555 | |
5.50%, 07/01/2062(a) | | | 2,775 | | | | 2,846,994 | |
California School Finance Authority (KIPP SoCal Public Schools Obligated Group) Series 2019-A 5.00%, 07/01/2039(a) | | | 2,325 | | | | 2,404,235 | |
5.00%, 07/01/2049(a) | | | 700 | | | | 709,905 | |
California School Finance Authority (KIPP SoCal Public Schools) Series 2014-A 5.00%, 07/01/2034(a) | | | 1,075 | | | | 1,075,704 | |
California School Finance Authority (Lighthouse Community Public Schools Obligated Group) Series 2022 6.375%, 06/01/2052(a) | | | 1,225 | | | | 1,291,633 | |
California School Finance Authority (Rocketship Education Obligated Group) Series 2017-G 5.00%, 06/01/2047(a) | | | 2,330 | | | | 2,274,442 | |
California State University 2.719%, 11/01/2052(a)(b) | | | 5,000 | | | | 3,430,783 | |
2.975%, 11/01/2051(a)(b) | | | 5,000 | | | | 3,525,256 | |
Series 2021-B 2.374%, 11/01/2035(a)(b) | | | 10,000 | | | | 7,881,193 | |
California Statewide Communities Development Authority (California Baptist University) Series 2017-A 5.00%, 11/01/2041(a) | | | 2,875 | | | | 2,901,582 | |
California Statewide Communities Development Authority (CHF-Irvine LLC) BAM Series 2021 3.00%, 05/15/2051 | | | 13,000 | | | | 9,993,119 | |
California Statewide Communities Development Authority (Enloe Medical Center Obligated Group) AGM Series 2022-A 5.25%, 08/15/2052 | | | 3,000 | | | | 3,202,338 | |
| | |
| |
14 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
5.375%, 08/15/2057 | | $ | 3,720 | | | $ | 3,991,960 | |
California Statewide Communities Development Authority (Lancer Educational Housing LLC) Series 2016 5.00%, 06/01/2036(a) | | | 5,250 | | | | 5,318,083 | |
5.00%, 06/01/2046(a) | | | 7,000 | | | | 7,019,756 | |
California Statewide Communities Development Authority (Loma Linda University Medical Center) Series 2016-A 5.00%, 12/01/2041(a) | | | 15,285 | | | | 15,434,633 | |
5.25%, 12/01/2056(a) | | | 14,795 | | | | 14,945,619 | |
Series 2018 5.25%, 12/01/2038(a) | | | 3,000 | | | | 3,121,779 | |
5.25%, 12/01/2048(a) | | | 6,440 | | | | 6,588,097 | |
Series 2018-A 5.00%, 12/01/2033(a) | | | 1,350 | | | | 1,400,279 | |
5.50%, 12/01/2058(a) | | | 19,145 | | | | 19,731,316 | |
California Statewide Communities Development Authority (NCCD-Hooper Street LLC) Series 2019 5.25%, 07/01/2049(a) | | | 1,125 | | | | 1,137,896 | |
5.25%, 07/01/2052(a) | | | 1,500 | | | | 1,514,061 | |
City of Los Angeles CA Series 2024 5.00%, 06/26/2025 | | | 62,000 | | | | 62,770,319 | |
City of Los Angeles Department of Airports Series 2019 5.00%, 05/15/2044 | | | 15,415 | | | | 15,861,916 | |
Series 2020-C 5.00%, 05/15/2036(a)(b) | | | 10,000 | | | | 10,545,958 | |
City of Roseville CA (HP Campus Oaks Community Facilities District No. 1) Series 2016 5.50%, 09/01/2046 | | | 850 | | | | 863,634 | |
City of Vernon CA Electric System Revenue Series 2022-2 5.00%, 08/01/2039 | | | 425 | | | | 457,484 | |
5.00%, 08/01/2040 | | | 375 | | | | 402,169 | |
5.00%, 08/01/2041 | | | 420 | | | | 448,614 | |
CMFA Special Finance Agency (CMFA Special Finance Agency Enclave) Series 2022-A 4.00%, 08/01/2058(a) | | | 15,100 | | | | 12,040,939 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 15 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
CMFA Special Finance Agency (CMFA Special Finance Agency Latitude33) Series 2021-A 3.00%, 12/01/2056(a) | | $ | 18,760 | | | $ | 13,250,831 | |
CMFA Special Finance Agency (CMFA Special Finance Agency Solana at Grand) Series 2021-A 4.00%, 08/01/2056(a) | | | 12,525 | | | | 11,134,704 | |
CMFA Special Finance Agency VII (CMFA Special Finance Agency VII The Breakwater Apartments) Series 2021 3.00%, 08/01/2056(a) | | | 8,415 | | | | 5,930,364 | |
CMFA Special Finance Agency VIII Elan Huntington Beach Series 2021 3.00%, 08/01/2056(a) | | | 15,450 | | | | 10,932,738 | |
4.00%, 08/01/2047(a) | | | 3,540 | | | | 3,087,371 | |
County of Los Angeles CA Series 2024 5.00%, 06/30/2025 | | | 4,605 | | | | 4,662,593 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 777 Place-Pomona) Series 2021 3.25%, 05/01/2057(a) | | | 23,500 | | | | 16,365,999 | |
4.00%, 05/01/2057(a) | | | 15,550 | | | | 11,135,868 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority 1818 Platinum Triangle-Anaheim) Series 2021 3.25%, 04/01/2057(a) | | | 13,940 | | | | 10,179,684 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) Series 2021 4.00%, 10/01/2056(a) | | | 13,215 | | | | 11,606,150 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Altana Apartments) Series 2021 4.00%, 10/01/2056(a) | | | 15,200 | | | | 12,365,148 | |
| | |
| |
16 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) Series 2021-A2 3.125%, 08/01/2056(a) | | $ | 10,025 | | | $ | 7,611,157 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Millennium South Bay-Hawthorne) Series 2021 3.25%, 07/01/2056(a) | | | 22,165 | | | | 15,556,769 | |
4.00%, 07/01/2058(a) | | | 6,000 | | | | 4,224,149 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Oceanaire Apartments) Series 2021 3.20%, 09/01/2046(a) | | | 2,500 | | | | 1,902,199 | |
4.00%, 09/01/2056(a) | | | 24,830 | | | | 19,229,909 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Park Crossing Apartments) Series 2021 3.25%, 12/01/2058(a) | | | 12,700 | | | | 8,993,615 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Pasadena Portfolio) Series 2021 3.00%, 12/01/2056(a) | | | 22,570 | | | | 15,686,333 | |
4.00%, 12/01/2056(a) | | | 3,400 | | | | 2,555,332 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority The Crescent) Series 2022 4.30%, 07/01/2059(a) | | | 11,500 | | | | 9,936,838 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Theo Apartments) Series 2021 4.00%, 05/01/2057(a) | | | 5,400 | | | | 3,915,269 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Union South Bay) Series 2021-A2 4.00%, 07/01/2056(a) | | | 27,100 | | | | 22,129,611 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 17 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Vineyard Gardens Apartments) Series 2021 3.25%, 10/01/2058(a) | | $ | 8,930 | | | $ | 6,296,658 | |
4.00%, 10/01/2048(a) | | | 2,000 | | | | 1,494,558 | |
CSCDA Community Improvement Authority (CSCDA Community Improvement Authority Waterscape Apartments) Series 2021-A 3.00%, 09/01/2056(a) | | | 15,405 | | | | 10,935,165 | |
Golden State Tobacco Securitization Corp. 3.293%, 06/01/2042(a)(b) | | | 6,850 | | | | 5,354,982 | |
Series 2021 3.85%, 06/01/2050 | | | 16,310 | | | | 14,983,606 | |
Series 2021-A 4.214%, 06/01/2050 | | | 2,900 | | | | 2,161,754 | |
Series 2021-B Zero Coupon, 06/01/2066 | | | 225,990 | | | | 24,453,994 | |
Golden State Tobacco Securitization Corp. (Golden State Tobacco Securitization Corp. Lease) Series 2021 2.746%, 06/01/2034(a)(b) | | | 14,780 | | | | 12,622,361 | |
3.115%, 06/01/2038(a)(b) | | | 29,325 | | | | 24,167,222 | |
Hastings Campus Housing Finance Authority Series 2020-A 5.00%, 07/01/2061(a) | | | 14,340 | | | | 12,994,967 | |
Los Angeles Unified School District/CA Series 2024-A 5.00%, 07/01/2031 | | | 17,500 | | | | 20,120,550 | |
M-S-R Energy Authority (Citigroup, Inc.) Series 2009-A 6.50%, 11/01/2039 | | | 3,390 | | | | 4,317,723 | |
Series 2009-B 6.50%, 11/01/2039 | | | 3,865 | | | | 4,922,713 | |
Series 2009-C 7.00%, 11/01/2034 | | | 5,000 | | | | 6,219,231 | |
Milpitas Unified School District/CA Series 2014-B 4.00%, 08/01/2037 | | | 8,195 | | | | 8,164,115 | |
Northern California Energy Authority (Pacific Mutual Holding Co.) Series 2024 5.00%, 12/01/2054 | | | 14,855 | | | | 15,751,743 | |
| | |
| |
18 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
River Islands Public Financing Authority (River Islands Public Financing Authority Community Facilities District No. 2003-1) Series 2022 5.75%, 09/01/2052 | | $ | 1,600 | | | $ | 1,648,212 | |
Sacramento County Water Financing Authority (Sacramento County Water Agency) NATL Series 2007-B 4.106% (CME Term SOFR 3 Month + 0.57%), 06/01/2039(c) | | | 33,680 | | | | 30,536,181 | |
San Diego County Regional Airport Authority Series 2023 5.00%, 07/01/2048 | | | 7,270 | | | | 7,615,446 | |
5.25%, 07/01/2058 | | | 3,275 | | | | 3,456,164 | |
San Francisco City & County Airport Comm 3.053%, 05/01/2034(a)(b) | | | 3,500 | | | | 3,008,226 | |
3.183%, 05/01/2035(a)(b) | | | 5,500 | | | | 4,693,732 | |
3.333%, 05/01/2037(a)(b) | | | 2,250 | | | | 1,880,451 | |
San Francisco Intl Airport Series 2018 5.00%, 05/01/2043 | | | 11,000 | | | | 11,248,323 | |
Series 2019-A 5.00%, 05/01/2044(a)(b) | | | 14,000 | | | | 14,403,001 | |
Series 2019-E 5.00%, 05/01/2050 | | | 7,000 | | | | 7,175,844 | |
Series 2020-E 5.00%, 05/01/2037 | | | 8,525 | | | | 8,947,467 | |
5.00%, 05/01/2038 | | | 11,000 | | | | 11,547,276 | |
Series 2023-E 5.50%, 05/01/2040 | | | 10,000 | | | | 11,165,144 | |
5.75%, 05/01/2048 | | | 10,000 | | | | 11,071,598 | |
Series 2024 5.25%, 05/01/2041 | | | 10,000 | | | | 10,996,107 | |
5.25%, 05/01/2042 | | | 10,000 | | | | 10,909,301 | |
5.25%, 05/01/2043 | | | 7,100 | | | | 7,685,782 | |
San Joaquin Hills Transportation Corridor Agency Series 2014-B 5.25%, 01/15/2044 | | | 1,000 | | | | 1,002,161 | |
Series 2021-A 4.00%, 01/15/2044 | | | 1,429 | | | | 1,438,199 | |
San Jose Evergreen Community College District Series 2012 5.833% (CME Term SOFR 3 Month + 1.00%), 07/01/2043(c) | | | 3,970 | | | | 3,929,572 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 19 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Southern California Logistics Airport Authority AGC Series 2006 5.00%, 12/01/2036 | | $ | 100 | | | $ | 100,996 | |
5.00%, 12/01/2043 | | | 1,585 | | | | 1,600,782 | |
Southern California Public Power Authority (American International Group, Inc.) Series 2024-A 5.00%, 04/01/2055 | | | 40,490 | | | | 43,035,606 | |
State of California Series 2023 6.00%, 03/01/2033 | | | 10,000 | | | | 10,878,995 | |
Series 2024 4.00%, 08/01/2049 | | | 11,300 | | | | 11,334,550 | |
4.00%, 08/01/2054 | | | 3,600 | | | | 3,586,629 | |
5.00%, 09/01/2025 | | | 8,800 | | | | 8,946,413 | |
Tobacco Securitization Authority of Northern California (Sacramento County Tobacco Securitization Corp.) Series 2021 Zero Coupon, 06/01/2060 | | | 19,650 | | | | 3,195,552 | |
Tobacco Securitization Authority of Southern California Series 2019 Zero Coupon, 06/01/2054 | | | 10,480 | | | | 2,083,132 | |
5.00%, 06/01/2039 | | | 1,555 | | | | 1,646,696 | |
| | | | | | | | |
| | | | | | | 1,807,175,200 | |
| | | | | | | | |
Colorado – 2.9% | | | | | | | | |
Aurora Highlands Community Authority Board Series 2021-A 5.75%, 12/01/2051 | | | 15,000 | | | | 14,190,320 | |
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/2037(a) | | | 5,000 | | | | 4,933,592 | |
Series 2022 6.50%, 12/01/2053 | | | 4,350 | | | | 4,474,662 | |
City & County of Denver CO Airport System Revenue Series 2022-A 5.00%, 11/15/2033 | | | 9,000 | | | | 9,700,167 | |
5.50%, 11/15/2053 | | | 10,475 | | | | 11,289,392 | |
City & County of Denver CO Airport System Revenue (United Airlines, Inc.) Series 2017 5.00%, 10/01/2032 | | | 645 | | | | 645,101 | |
| | |
| |
20 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Colorado Educational & Cultural Facilities Authority (Ascent Classical Academy Charter Schools, Inc.) Series 2024 5.75%, 04/01/2059(a) | | $ | 2,250 | | | $ | 2,320,424 | |
5.80%, 04/01/2054(a) | | | 3,725 | | | | 3,866,926 | |
Colorado Educational & Cultural Facilities Authority (James Irwin Educational Foundation Obligated Group) Series 2022 5.00%, 09/01/2052 | | | 850 | | | | 852,662 | |
5.00%, 09/01/2057 | | | 2,100 | | | | 2,104,237 | |
5.00%, 09/01/2062 | | | 2,000 | | | | 1,993,946 | |
Colorado Educational & Cultural Facilities Authority (STEAD School (The)) Series 2023-A 7.00%, 07/01/2034(a) | | | 18,215 | | | | 18,720,913 | |
Series 2023-B 8.125%, 07/01/2028(a) | | | 465 | | | | 466,694 | |
Colorado Educational & Cultural Facilities Authority (Vega Collegiate Academy) Series 2021 5.00%, 02/01/2051(a) | | | 3,500 | | | | 3,309,153 | |
5.00%, 02/01/2061(a) | | | 2,870 | | | | 2,649,563 | |
Colorado Health Facilities Authority 5.00%, 11/01/2040(a)(b) | | | 4,650 | | | | 5,042,521 | |
5.00%, 11/01/2041(a)(b) | | | 5,075 | | | | 5,484,236 | |
5.00%, 11/01/2042(a)(b) | | | 3,800 | | | | 4,086,082 | |
5.25%, 11/01/2052(a)(b) | | | 10,000 | | | | 10,696,789 | |
Colorado Health Facilities Authority (Aberdeen Ridge, Inc. Obligated Group) Series 2021-A 5.00%, 05/15/2049 | | | 1,300 | | | | 884,718 | |
5.00%, 05/15/2058 | | | 3,000 | | | | 1,927,286 | |
Series 2021-B 2.125%, 05/15/2028 | | | 1,500 | | | | 1,444,751 | |
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019-A 4.00%, 08/01/2038 | | | 6,600 | | | | 6,480,866 | |
5.00%, 08/01/2039 | | | 1,000 | | | | 1,043,452 | |
5.00%, 08/01/2044 | | | 93,310 | | | | 96,014,245 | |
Series 2022 5.50%, 11/01/2047 | | | 2,500 | | | | 2,748,663 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 21 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Colorado Health Facilities Authority (Frasier Meadows Manor, Inc. Obligated Group) Series 2023-2 4.00%, 05/15/2048 | | $ | 2,100 | | | $ | 1,824,685 | |
Colorado Health Facilities Authority (Intermountain Healthcare Obligated Group) Series 2024-A 5.00%, 05/15/2054 | | | 10,000 | | | | 10,523,582 | |
Colorado Health Facilities Authority (Sanford Obligated Group) Series 2019-A 5.00%, 11/01/2044 | | | 7,050 | | | | 7,347,200 | |
Series 2019-B 3.696%, 11/01/2039 | | | 1,525 | | | | 1,295,754 | |
Colorado State Education Loan Program Series 2024-A 5.00%, 06/30/2025 | | | 60,000 | | | | 60,700,236 | |
Douglas County Housing Partnership (Bridgewater Castle Rock ALF LLC) Series 2021 5.375%, 01/01/2041(d)(e)(f) | | | 19,590 | | | | 14,692,500 | |
Johnstown Plaza Metropolitan District Series 2022 4.25%, 12/01/2046 | | | 13,433 | | | | 12,039,215 | |
Longs Peak Metropolitan District Series 2021 5.25%, 12/01/2051(a) | | | 5,000 | | | | 4,954,222 | |
Meridian Ranch Metropolitan District 2018 Subdistrict Series 2022 6.25%, 12/01/2037 | | | 1,435 | | | | 1,453,680 | |
6.50%, 12/01/2042 | | | 1,105 | | | | 1,122,362 | |
6.75%, 12/01/2052 | | | 1,925 | | | | 1,952,388 | |
Platte River Metropolitan District Series 2023-A 6.50%, 08/01/2053(a) | | | 3,355 | | | | 3,466,921 | |
Plaza Metropolitan District No. 1 Series 2013 5.00%, 12/01/2040(a) | | | 1,500 | | | | 1,490,443 | |
Public Authority for Colorado Energy (Bank of America Corp.) Series 2008 6.50%, 11/15/2038 | | | 16,535 | | | | 19,896,752 | |
Pueblo Urban Renewal Authority Series 2021 4.75%, 12/01/2045(e) | | | 8,010 | | | | 5,463,283 | |
| | |
| |
22 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Regional Transportation District (Denver Transit Partners LLC) Series 2020 5.00%, 01/15/2032 | | $ | 2,300 | | | $ | 2,470,759 | |
Riverwalk Metropolitan District No. 2 Series 2022-A 5.00%, 12/01/2042 | | | 4,000 | | | | 3,675,868 | |
5.00%, 12/01/2052 | | | 1,500 | | | | 1,326,652 | |
Sagebrush Farm Metropolitan District No. 1 Series 2022-A 6.75%, 12/01/2052 | | | 3,500 | | | | 3,681,525 | |
Spring Hill Metropolitan District No. 3 Series 2022-A 6.75%, 12/01/2052(a) | | | 667 | | | | 683,550 | |
St. Vrain Lakes Metropolitan District No. 4 Series 2024-A 6.75%, 09/20/2054(a)(g) | | | 1,500 | | | | 1,076,650 | |
STC Metropolitan District No. 2 Series 2019-A 5.00%, 12/01/2038 | | | 940 | | | | 920,525 | |
5.00%, 12/01/2049 | | | 1,000 | | | | 946,772 | |
Sterling Ranch Community Authority Board (Sterling Ranch Colorado Metropolitan District No. 2) Series 2020-A 4.25%, 12/01/2050 | | | 2,250 | | | | 2,040,214 | |
Sterling Ranch Community Authority Board (Sterling Ranch Metropolitan District No. 3) Series 2022 6.50%, 12/01/2042 | | | 2,215 | | | | 2,354,965 | |
6.75%, 12/01/2053 | | | 11,000 | | | | 11,676,311 | |
Series 2023 8.375%, 12/15/2054 | | | 2,500 | | | | 2,533,952 | |
Vauxmont Metropolitan District AGM Series 2019 3.25%, 12/15/2050 | | | 646 | | | | 530,857 | |
AGM Series 2020 5.00%, 12/01/2033 | | | 370 | | | | 396,701 | |
5.00%, 12/01/2050 | | | 435 | | | | 449,531 | |
Verve Metropolitan District No. 1 Series 2023 6.50%, 12/01/2043 | | | 3,365 | | | | 3,294,032 | |
6.75%, 12/01/2052 | | | 4,000 | | | | 3,919,869 | |
| | | | | | | | |
| | | | | | | 407,573,317 | |
| | | | | | | | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 23 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Connecticut – 0.6% | | | | | | | | |
City of New Haven CT AGM Series 2019-A 5.00%, 08/01/2039 | | $ | 1,650 | | | $ | 1,725,185 | |
Connecticut State Health & Educational Facilities Authority (Hartford HealthCare Obligated Group) Series 2020-A 4.00%, 07/01/2036 | | | 1,000 | | | | 1,012,998 | |
Connecticut State Health & Educational Facilities Authority (Quinnipiac University) Series 2015-L 5.00%, 07/01/2045 | | | 5,750 | | | | 5,777,792 | |
Connecticut State Health & Educational Facilities Authority (Sacred Heart University, Inc.) Series 2017-I1 5.00%, 07/01/2035 | | | 1,000 | | | | 1,029,349 | |
5.00%, 07/01/2037 | | | 1,095 | | | | 1,123,722 | |
Connecticut State Health & Educational Facilities Authority (Seabury Retirement Community) Series 2016-A 5.00%, 09/01/2046(a) | | | 1,000 | | | | 979,245 | |
5.00%, 09/01/2053(a) | | | 1,475 | | | | 1,401,736 | |
Connecticut State Health & Educational Facilities Authority (University of Hartford (The)) Series 2019 4.00%, 07/01/2044 | | | 10,710 | | | | 8,534,679 | |
4.00%, 07/01/2049 | | | 3,325 | | | | 2,575,469 | |
5.00%, 07/01/2033 | | | 470 | | | | 468,982 | |
5.00%, 07/01/2034 | | | 295 | | | | 292,751 | |
Connecticut State Health & Educational Facilities Authority (University of New Haven, Inc.) Series 2018 5.00%, 07/01/2034 | | | 1,000 | | | | 1,012,765 | |
Series 2018-K1 5.00%, 07/01/2028 | | | 765 | | | | 787,867 | |
5.00%, 07/01/2035 | | | 1,055 | | | | 1,066,248 | |
5.00%, 07/01/2036 | | | 2,205 | | | | 2,224,222 | |
5.00%, 07/01/2037 | | | 1,085 | | | | 1,093,196 | |
5.00%, 07/01/2038 | | | 1,980 | | | | 1,988,557 | |
State of Connecticut Series 2016-E 5.00%, 10/15/2034 | | | 4,595 | | | | 4,709,414 | |
| | |
| |
24 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2016-F 5.00%, 10/15/2031 | | $ | 10,205 | | | $ | 10,537,922 | |
Series 2017-A 5.00%, 04/15/2032 | | | 6,700 | | | | 6,960,658 | |
5.00%, 04/15/2033 | | | 10,985 | | | | 11,381,275 | |
5.00%, 04/15/2034 | | | 4,855 | | | | 5,023,695 | |
Series 2019-B 5.00%, 02/15/2025 | | | 11,830 | | | | 11,882,962 | |
Town of Hamden CT (Whitney Center, Inc. Obligated Group) Series 2022-A 7.00%, 01/01/2053 | | | 3,900 | | | | 4,240,810 | |
| | | | | | | | |
| | | | | | | 87,831,499 | |
| | | | | | | | |
Delaware – 0.0% | | | | | | | | |
Delaware River & Bay Authority Series 2021 4.00%, 01/01/2042 | | | 550 | | | | 552,993 | |
Delaware State Economic Development Authority (Newark Charter School, Inc.) Series 2020 5.00%, 09/01/2050 | | | 1,125 | | | | 1,142,875 | |
| | | | | | | | |
| | | | | | | 1,695,868 | |
| | | | | | | | |
District of Columbia – 0.5% | | | | | | | | |
District of Columbia (District of Columbia International School Obligated Group) Series 2019 5.00%, 07/01/2039 | | | 1,000 | | | | 1,029,379 | |
5.00%, 07/01/2049 | | | 2,075 | | | | 2,095,695 | |
5.00%, 07/01/2054 | | | 3,565 | | | | 3,587,222 | |
District of Columbia (District of Columbia Union Market TIF Area) Series 2024 6.25%, 06/01/2041(a)(g) | | | 1,500 | | | | 891,039 | |
6.60%, 06/01/2049(a)(g) | | | 2,400 | | | | 1,395,762 | |
Series 2024-A 5.125%, 06/01/2034(a) | | | 6,580 | | | | 6,563,208 | |
District of Columbia (KIPP DC Obligated Group) Series 2017-A 5.00%, 07/01/2042 | | | 3,230 | | | | 3,279,718 | |
5.00%, 07/01/2048 | | | 5,350 | | | | 5,396,214 | |
Series 2017-B 5.00%, 07/01/2037 | | | 1,465 | | | | 1,500,595 | |
5.00%, 07/01/2042 | | | 2,000 | | | | 2,030,785 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 25 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
District of Columbia (Rocketship DC Obligated Group) Series 2019 5.00%, 06/01/2056(a) | | $ | 3,255 | | | $ | 3,125,175 | |
Series 2021 5.00%, 06/01/2041(a) | | | 1,190 | | | | 1,198,656 | |
5.00%, 06/01/2051(a) | | | 4,345 | | | | 4,226,482 | |
Series 2024 5.625%, 06/01/2044 | | | 1,000 | | | | 1,042,044 | |
5.75%, 06/01/2054 | | | 1,000 | | | | 1,032,530 | |
6.00%, 06/01/2058 | | | 1,000 | | | | 1,046,333 | |
District of Columbia Tobacco Settlement Financing Corp. Series 2006 Zero Coupon, 06/15/2055 | | | 182,000 | | | | 18,435,303 | |
Metropolitan Washington Airports Authority Aviation Revenue Series 2020-A 5.00%, 10/01/2025 | | | 5,000 | | | | 5,062,231 | |
Series 2021-A 5.00%, 10/01/2046 | | | 7,400 | | | | 7,655,500 | |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue Series 2009 Zero Coupon, 10/01/2037 | | | 10,000 | | | | 5,867,333 | |
| | | | | | | | |
| | | | | | | 76,461,204 | |
| | | | | | | | |
Florida – 5.7% | | | | | | | | |
Bexley Community Development District Series 2016 4.875%, 05/01/2047 | | | 985 | | | | 951,778 | |
Cape Coral Health Facilities Authority (Gulf Care, Inc. Obligated Group) Series 2015 5.875%, 07/01/2040(a) | | | 1,400 | | | | 1,041,859 | |
6.00%, 07/01/2045(a) | | | 1,215 | | | | 901,799 | |
6.00%, 07/01/2050(a) | | | 2,895 | | | | 2,139,157 | |
Capital Projects Finance Authority/FL Series 2024 5.00%, 06/15/2054(a) | | | 1,200 | | | | 1,179,893 | |
5.00%, 06/15/2064(a) | | | 1,890 | | | | 1,823,940 | |
Capital Projects Finance Authority/FL (CAPFA Capital Corp. 2000F) Series 2020-A 5.00%, 10/01/2026 | | | 2,000 | | | | 2,039,062 | |
5.00%, 10/01/2029 | | | 1,650 | | | | 1,724,053 | |
5.00%, 10/01/2032 | | | 1,000 | | | | 1,037,669 | |
5.00%, 10/01/2033 | | | 1,050 | | | | 1,084,878 | |
| | |
| |
26 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Capital Projects Finance Authority/FL (IDEA Lakeland) Series 2023 7.00%, 06/15/2030(a) | | $ | 12,790 | | | $ | 13,325,833 | |
Capital Trust Agency, Inc. (Aviva Senior Life) Series 2017 5.00%, 07/01/2046(a) | | | 1,300 | | | | 995,570 | |
Capital Trust Agency, Inc. (Educational Growth Fund LLC) Series 2021 Zero Coupon, 07/01/2061(a) | | | 83,000 | | | | 5,801,028 | |
3.375%, 07/01/2031(a) | | | 1,210 | | | | 1,170,010 | |
5.00%, 07/01/2056(a) | | | 45,885 | | | | 44,596,035 | |
Capital Trust Agency, Inc. (Southeastern University Obligated Group) Series 2023 6.00%, 05/01/2043(a) | | | 2,000 | | | | 2,027,061 | |
6.25%, 05/01/2048(a) | | | 2,500 | | | | 2,540,280 | |
6.375%, 05/01/2053(a) | | | 4,500 | | | | 4,576,607 | |
Capital Trust Agency, Inc. (Team Success A School of Excellence, Inc.) Series 2020 5.00%, 06/01/2045(a) | | | 1,615 | | | | 1,527,574 | |
5.00%, 06/01/2055(a) | | | 3,250 | | | | 2,979,232 | |
Series 2022 5.50%, 06/01/2057(a) | | | 3,000 | | | | 2,959,554 | |
Capital Trust Authority Series 2024 5.00%, 06/01/2064(a) | | | 4,250 | | | | 4,192,073 | |
Capital Trust Authority (IDEA Florida, Inc.) Series 2023-A 6.25%, 06/15/2053(a) | | | 6,250 | | | | 6,525,719 | |
6.375%, 06/15/2058(a) | | | 4,000 | | | | 4,190,589 | |
City of Jacksonville FL (Genesis Health, Inc. Obligated Group) Series 2020 4.00%, 11/01/2039 | | | 1,650 | | | | 1,577,870 | |
4.00%, 11/01/2040 | | | 2,175 | | | | 2,076,316 | |
4.00%, 11/01/2045 | | | 2,500 | | | | 2,290,058 | |
5.00%, 11/01/2050 | | | 8,625 | | | | 8,793,395 | |
City of Lakeland FL (Pre-refunded – US Treasuries) Series 2015 5.00%, 11/15/2040 | | | 5,610 | | | | 5,613,055 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 27 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
City of Palmetto FL (Renaissance Arts and Education, Inc.) Series 2022 5.25%, 06/01/2052 | | $ | 2,955 | | | $ | 3,006,270 | |
5.375%, 06/01/2057 | | | 1,000 | | | | 1,021,566 | |
5.625%, 06/01/2062 | | | 7,965 | | | | 8,229,002 | |
City of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group) Series 2017 5.00%, 08/15/2037 | | | 8,405 | | | | 8,675,233 | |
5.00%, 08/15/2047 | | | 6,125 | | | | 6,245,041 | |
City of Tallahassee FL (Tallahassee Memorial HealthCare, Inc.) Series 2016 5.00%, 12/01/2055 | | | 3,535 | | | | 3,477,077 | |
City of Tampa FL (State of Florida Cigarette Tax Revenue) Series 2020-A Zero Coupon, 09/01/2036 | | | 700 | | | | 425,433 | |
Zero Coupon, 09/01/2037 | | | 700 | | | | 405,637 | |
Zero Coupon, 09/01/2040 | | | 980 | | | | 486,406 | |
Zero Coupon, 09/01/2041 | | | 1,000 | | | | 469,979 | |
Zero Coupon, 09/01/2045 | | | 1,850 | | | | 699,110 | |
Zero Coupon, 09/01/2049 | | | 1,350 | | | | 410,812 | |
Collier County Industrial Development Authority (NCH Healthcare System, Inc. Obligated Group) Series 2024 5.00%, 10/01/2054 | | | 6,500 | | | | 6,974,902 | |
County of Lake FL (Waterman Communities, Inc.) Series 2020 5.75%, 08/15/2050 | | | 5,000 | | | | 5,029,053 | |
5.75%, 08/15/2055 | | | 3,905 | | | | 3,912,414 | |
County of Lee FL Airport Revenue Series 2024 5.25%, 10/01/2042 | | | 5,500 | | | | 5,989,657 | |
5.25%, 10/01/2044 | | | 4,550 | | | | 4,918,818 | |
County of Miami-Dade FL Aviation Revenue Series 2015-A 5.00%, 10/01/2031 | | | 1,100 | | | | 1,110,172 | |
County of Miami-Dade Seaport Department Series 2023-A 5.25%, 10/01/2052 | | | 7,900 | | | | 8,326,187 | |
| | |
| |
28 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
County of Osceola FL Transportation Revenue Series 2020-A Zero Coupon, 10/01/2035 | | $ | 1,000 | | | $ | 628,947 | |
Zero Coupon, 10/01/2036 | | | 860 | | | | 509,096 | |
Zero Coupon, 10/01/2037 | | | 1,390 | | | | 781,105 | |
Zero Coupon, 10/01/2038 | | | 1,185 | | | | 628,458 | |
Zero Coupon, 10/01/2039 | | | 1,610 | | | | 805,307 | |
County of Palm Beach FL (Provident Group – LU Properties II LLC) Series 2024 8.50%, 06/01/2033 | | | 650 | | | | 653,756 | |
County of Palm Beach FL (Provident Group – LU Properties LLC) Series 2024 6.00%, 06/01/2044 | | | 4,000 | | | | 4,037,461 | |
6.125%, 06/01/2054 | | | 5,000 | | | | 5,026,654 | |
6.25%, 06/01/2059 | | | 4,000 | | | | 4,042,509 | |
County of Palm Beach FL (Provident Group-PBAU Properties LLC) Series 2019 5.00%, 04/01/2039(a) | | | 1,435 | | | | 1,410,357 | |
5.00%, 04/01/2051(a) | | | 11,645 | | | | 11,024,290 | |
County of Pasco FL (H Lee Moffitt Cancer Center & Research Institute Obligated Group) Series 2023 5.00%, 07/01/2030(a)(b) | | | 52,000 | | | | 56,468,828 | |
Florida Development Finance Corp. Series 2024 4.375%, 10/01/2054(a) | | | 18,800 | | | | 18,797,932 | |
Florida Development Finance Corp. (Assistance Unlimited, Inc.) Series 2022 5.00%, 08/15/2032(a) | | | 460 | | | | 459,882 | |
5.25%, 08/15/2037(a) | | | 700 | | | | 695,293 | |
5.625%, 08/15/2042(a) | | | 1,520 | | | | 1,515,592 | |
5.875%, 08/15/2052(a) | | | 5,000 | | | | 4,975,737 | |
6.00%, 08/15/2057(a) | | | 1,000 | | | | 1,002,356 | |
Florida Development Finance Corp. (Brightline Trains Florida LLC) AGM Series 2024 5.00%, 07/01/2044 | | | 10,000 | | | | 10,375,781 | |
5.25%, 07/01/2053 | | | 12,900 | | | | 13,426,907 | |
Florida Development Finance Corp. (Cornerstone Charter Academy, Inc. Obligated Group) Series 2022 5.00%, 10/01/2032(a) | | | 925 | | | | 952,444 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 29 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
5.00%, 10/01/2042(a) | | $ | 4,815 | | | $ | 4,831,398 | |
5.125%, 10/01/2052(a) | | | 4,120 | | | | 4,068,587 | |
5.25%, 10/01/2056(a) | | | 4,825 | | | | 4,817,349 | |
Florida Development Finance Corp. (Drs Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc.) Series 2021 4.00%, 07/01/2051(a) | | | 1,000 | | | | 860,125 | |
Florida Development Finance Corp. (Mater Academy, Inc.) Series 2020-A 5.00%, 06/15/2040 | | | 3,150 | | | | 3,178,617 | |
5.00%, 06/15/2050 | | | 13,310 | | | | 13,317,862 | |
Series 2022-A 4.00%, 06/15/2042 | | | 1,000 | | | | 906,305 | |
5.00%, 06/15/2047 | | | 2,470 | | | | 2,475,960 | |
Florida Development Finance Corp. (Mayflower Retirement Center, Inc. Obligated Group) Series 2020 5.25%, 06/01/2050(a) | | | 5,000 | | | | 4,890,298 | |
5.25%, 06/01/2055(a) | | | 5,500 | | | | 5,290,215 | |
Series 2021 4.00%, 06/01/2041(a) | | | 830 | | | | 715,280 | |
Florida Development Finance Corp. (Parrish Charter Academy) Series 2023 6.25%, 04/23/2058(a) | | | 7,635 | | | | 7,665,366 | |
Florida Development Finance Corp. (Renaissance Charter School, Inc. Series 2020A/B Obligated Group) Series 2021 5.375%, 06/15/2040 | | | 1,000 | | | | 1,004,621 | |
Florida Development Finance Corp. (Renaissance Charter School, Inc.) Series 2023 6.75%, 06/15/2053(a) | | | 5,750 | | | | 6,317,390 | |
Florida Development Finance Corp. (River City Education Obligated Group) Series 2021 4.00%, 07/01/2035 | | | 925 | | | | 898,463 | |
Series 2022 5.00%, 07/01/2042 | | | 2,225 | | | | 2,278,754 | |
5.00%, 07/01/2051 | | | 1,045 | | | | 1,052,064 | |
5.00%, 02/01/2057 | | | 1,725 | | | | 1,728,417 | |
5.00%, 07/01/2057 | | | 740 | | | | 741,466 | |
| | |
| |
30 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Florida Development Finance Corp. (Seaside School Consortium, Inc.) Series 2022 6.00%, 06/15/2057 | | $ | 7,000 | | | $ | 7,380,850 | |
Florida Development Finance Corp. (SFP – Tampa I LLC) Series 2024 5.00%, 06/01/2044(a) | | | 3,275 | | | | 3,329,745 | |
5.25%, 06/01/2054(a) | | | 5,550 | | | | 5,650,147 | |
5.25%, 06/01/2059(a) | | | 7,900 | | | | 8,012,518 | |
6.50%, 06/01/2059(a) | | | 3,800 | | | | 3,864,722 | |
Florida Development Finance Corp. (United Cerebral Palsy of Central Florida, Inc.) Series 2020 5.00%, 06/01/2050 | | | 1,950 | | | | 1,779,501 | |
Florida Higher Educational Facilities Financial Authority (Florida Institute of Technology, Inc.) Series 2019 4.00%, 10/01/2037 | | | 1,000 | | | | 928,911 | |
5.00%, 10/01/2031 | | | 1,235 | | | | 1,279,803 | |
Florida Higher Educational Facilities Financial Authority (Ringling College of Art and Design, Inc.) Series 2017 5.00%, 03/01/2032 | | | 265 | | | | 270,568 | |
5.00%, 03/01/2034 | | | 2,395 | | | | 2,433,989 | |
5.00%, 03/01/2042 | | | 2,785 | | | | 2,802,398 | |
5.00%, 03/01/2047 | | | 1,950 | | | | 1,953,342 | |
Series 2019 5.00%, 03/01/2044 | | | 1,065 | | | | 1,070,879 | |
5.00%, 03/01/2049 | | | 10,425 | | | | 10,433,299 | |
Florida Municipal Power Agency (Florida Municipal Power Agency All-Requirements Power Supply Project Revenue) Series 2021 1.425%, 10/01/2026 | | | 2,700 | | | | 2,551,323 | |
Greater Orlando Aviation Authority Series 2017-A 5.00%, 10/01/2031(a)(b) | | | 4,350 | | | | 4,491,596 | |
5.00%, 10/01/2032(a)(b) | | | 1,500 | | | | 1,546,951 | |
5.00%, 10/01/2034(a)(b) | | | 2,150 | | | | 2,210,734 | |
5.00%, 10/01/2035(a)(b) | | | 3,500 | | | | 3,589,041 | |
5.00%, 10/01/2036(a)(b) | | | 4,000 | | | | 4,096,574 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 31 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2019-A 5.00%, 10/01/2034 | | $ | 2,000 | | | $ | 2,091,706 | |
5.00%, 10/01/2036 | | | 5,000 | | | | 5,206,995 | |
5.00%, 10/01/2044 | | | 13,000 | | | | 13,323,814 | |
5.00%, 10/01/2049 | | | 4,500 | | | | 4,585,726 | |
5.00%, 10/01/2054 | | | 4,000 | | | | 4,060,370 | |
Halifax Hospital Medical Center Series 2024 4.25%, 06/01/2054 | | | 2,250 | | | | 2,160,413 | |
Hillsborough County Aviation Authority Series 2024 5.25%, 10/01/2042 | | | 4,500 | | | | 4,927,460 | |
5.25%, 10/01/2044 | | | 11,475 | | | | 12,472,968 | |
5.50%, 10/01/2054 | | | 27,170 | | | | 29,659,152 | |
Hillsborough County Industrial Development Authority Series 2024 5.50%, 11/15/2054 | | | 13,500 | | | | 15,098,798 | |
Hillsborough County Industrial Development Authority (BayCare Obligated Group) Series 2024-C 4.125%, 11/15/2051 | | | 14,000 | | | | 13,486,536 | |
Jacksonville Transportation Authority Series 2025 5.00%, 08/01/2026(i) | | | 1,785 | | | | 1,823,306 | |
5.00%, 08/01/2028(i) | | | 2,750 | | | | 2,903,645 | |
5.00%, 08/01/2029(i) | | | 1,000 | | | | 1,070,225 | |
5.00%, 08/01/2034(i) | | | 1,190 | | | | 1,319,501 | |
5.00%, 08/01/2036(i) | | | 1,500 | | | | 1,667,162 | |
Lakewood Ranch Stewardship District (Lakewood Ranch Stewardship District Series 2019 Assessment) Series 2018 5.30%, 05/01/2039 | | | 1,000 | | | | 1,028,831 | |
5.45%, 05/01/2048 | | | 1,525 | | | | 1,557,953 | |
Lakewood Ranch Stewardship District (Lakewood Ranch Stewardship District Series 2023 Assessment) Series 2023 6.125%, 05/01/2043 | | | 2,220 | | | | 2,358,295 | |
6.30%, 05/01/2054 | | | 4,160 | | | | 4,385,783 | |
Lee County Industrial Development Authority/FL Series 2024-C 5.00%, 11/15/2054 | | | 5,000 | | | | 5,151,555 | |
| | |
| |
32 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Lee County Industrial Development Authority/FL (Cypress Cove at Healthpark Florida Obligated Group) Series 2022 5.25%, 10/01/2052 | | $ | 1,350 | | | $ | 1,251,543 | |
5.25%, 10/01/2057 | | | 3,650 | | | | 3,341,954 | |
Lee County Industrial Development Authority/FL (Shell Point Obligated Group) Series 2024 5.25%, 11/15/2044 | | | 2,525 | | | | 2,713,283 | |
5.25%, 11/15/2054 | | | 1,000 | | | | 1,052,160 | |
Marshall Creek Community Development District (Marshall Creek Community Development District 2015A) Series 2015-A 5.00%, 05/01/2032 | | | 1,130 | | | | 1,133,581 | |
Miami Beach Health Facilities Authority (Mount Sinai Medical Center of Florida Obligated Group) Series 2014 5.00%, 11/15/2039 | | | 2,000 | | | | 2,000,537 | |
Miami-Dade County Educational Facilities Authority Series 2024-A 5.25%, 04/01/2048(i) | | | 10,000 | | | | 10,897,185 | |
Miami-Dade County Expressway Authority Series 2014-A 5.00%, 07/01/2034 | | | 4,000 | | | | 4,002,994 | |
Miami-Dade County Housing Finance Authority (Wynwood Works LLC) Series 2023-A 5.70%, 06/01/2052(a) | | | 6,875 | | | | 6,964,568 | |
Series 2023-B 5.78%, 06/01/2027(a) | | | 3,640 | | | | 3,663,293 | |
Miami-Dade County Industrial Development Authority (AcadeMir Charter School Middle & Preparatory Academy Obligated Group) Series 2022 5.00%, 07/01/2037(a) | | | 525 | | | | 535,270 | |
5.25%, 07/01/2042(a) | | | 770 | | | | 784,525 | |
5.25%, 07/01/2052(a) | | | 2,435 | | | | 2,443,963 | |
5.50%, 07/01/2061(a) | | | 4,375 | | | | 4,431,943 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 33 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Mid-Bay Bridge Authority Series 2015-A 5.00%, 10/01/2028 | | $ | 1,600 | | | $ | 1,619,513 | |
5.00%, 10/01/2040 | | | 2,000 | | | | 2,010,151 | |
Series 2015-C 5.00%, 10/01/2035 | | | 1,750 | | | | 1,763,598 | |
5.00%, 10/01/2040 | | | 1,000 | | | | 1,005,522 | |
Middleton Community Development District A (Middleton Community Development District A Series 2022 Phase I Special Assmnt) Series 2022 6.20%, 05/01/2053 | | | 3,470 | | | | 3,681,207 | |
North Broward Hospital District Series 2017-B 5.00%, 01/01/2037 | | | 4,070 | | | | 4,191,932 | |
5.00%, 01/01/2042 | | | 10,510 | | | | 10,739,024 | |
5.00%, 01/01/2048 | | | 10,000 | | | | 10,146,594 | |
Orange County Health Facilities Authority (Presbyterian Retirement Communities, Inc. Obligated Group) Series 2023 4.00%, 08/01/2042 | | | 6,020 | | | | 5,669,150 | |
Palm Beach County Educational Facilities Authority (Palm Beach Atlantic University Obligated Group) Series 2021 4.00%, 10/01/2041 | | | 1,030 | | | | 931,230 | |
4.00%, 10/01/2051 | | | 4,330 | | | | 3,641,089 | |
Series 2024 5.00%, 10/01/2043 | | | 2,260 | | | | 2,303,425 | |
5.25%, 10/01/2053 | | | 2,850 | | | | 2,898,809 | |
Palm Beach County Health Facilities Authority (Federation CCRC Operations Corp. Obligated Group) Series 2020 5.00%, 06/01/2055 | | | 2,880 | | | | 2,814,136 | |
Series 2022 4.25%, 06/01/2056 | | | 5,825 | | | | 4,963,727 | |
Palm Beach County Health Facilities Authority (Green Cay Life Plan Village, Inc.) Series 2022 11.50%, 07/01/2027(a) | | | 1,800 | | | | 2,283,727 | |
| | |
| |
34 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Palm Beach County Health Facilities Authority (Jupiter Medical Center Obligated Group) Series 2022 5.00%, 11/01/2038 | | $ | 400 | | | $ | 421,964 | |
5.00%, 11/01/2039 | | | 685 | | | | 720,077 | |
5.00%, 11/01/2040 | | | 650 | | | | 680,255 | |
5.00%, 11/01/2041 | | | 2,330 | | | | 2,428,417 | |
5.00%, 11/01/2042 | | | 500 | | | | 519,238 | |
5.00%, 11/01/2047 | | | 13,835 | | | | 14,172,290 | |
5.00%, 11/01/2052 | | | 19,480 | | | | 19,874,043 | |
Pinellas County Industrial Development Authority Series 2019 5.00%, 07/01/2039 | | | 6,620 | | | | 6,688,116 | |
Pinellas County Industrial Development Authority (Drs Kiran & Pallavi Patel 2017 Foundation for Global Understanding, Inc.) Series 2019 5.00%, 07/01/2029 | | | 1,055 | | | | 1,075,621 | |
Polk County Industrial Development Authority/FL (Mineral Development LLC) Series 2020 5.875%, 01/01/2033(a) | | | 3,805 | | | | 3,393,674 | |
St. Johns County Industrial Development Authority (Presbyterian Retirement Communities, Inc. Obligated Group) Series 2020 4.00%, 08/01/2055 | | | 5,300 | | | | 4,569,240 | |
Village Community Development District No. 13 (Village Community Development District No. 13 Phase I Series 2019 Special Assmnts) Series 2019 3.00%, 05/01/2029 | | | 950 | | | | 920,018 | |
3.375%, 05/01/2034 | | | 1,425 | | | | 1,358,825 | |
3.55%, 05/01/2039 | | | 2,480 | | | | 2,293,368 | |
3.70%, 05/01/2050 | | | 9,475 | | | | 8,095,015 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 35 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Village Community Development District No. 13 (Village Community Development Dist No. 13 Phase II Series 2020 Special Assmnts) Series 2020 3.50%, 05/01/2051(a) | | $ | 4,820 | | | $ | 3,940,297 | |
Village Community Development District No. 14 (Village Community Development District No. 14 Series 2022 Phase I Special Asmnts) Series 2022 5.50%, 05/01/2053 | | | 2,160 | | | | 2,244,656 | |
Village Community Development District No. 15 (Village Community Development District No. 15 Series 2023 Phase I Special Asmnts) Series 2023 5.00%, 05/01/2043(a) | | | 1,250 | | | | 1,289,523 | |
5.25%, 05/01/2054(a) | | | 2,140 | | | | 2,209,212 | |
Village Community Development District No. 15 (Village Community Development District No 15 Series 2024 Special Assessment) Series 2024 4.80%, 05/01/2055(a) | | | 1,000 | | | | 997,948 | |
| | | | | | | | |
| | | | | | | 790,540,460 | |
| | | | | | | | |
Georgia – 4.5% | | | | | | | | |
Atlanta Development Authority (The) Series 2024-A 5.00%, 04/01/2034(a) | | | 3,250 | | | | 3,267,375 | |
Atlanta Development Authority (The) (City of Atlanta GA Westside Tax Allocation District Gulch Area) Series 2024 6.50%, 12/15/2048(a)(g) | | | 39,450 | | | | 32,943,665 | |
Series 2024-A 5.50%, 04/01/2039(a) | | | 10,500 | | | | 10,642,666 | |
Augusta Development Authority (WellStar Health System Obligated Group) Series 2018 5.00%, 07/01/2027 | | | 1,635 | | | | 1,706,252 | |
City of Atlanta GA Department of Aviation Series 2019-B 5.00%, 07/01/2044 | | | 9,000 | | | | 9,221,311 | |
Series 2022-B 5.00%, 07/01/2047 | | | 10,000 | | | | 10,351,474 | |
| | |
| |
36 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
5.00%, 07/01/2052 | | $ | 10,000 | | | $ | 10,291,274 | |
City of Atlanta GA Water & Wastewater Revenue (Pre-refunded – US Treasuries) Series 2015 5.00%, 11/01/2043 | | | 16,000 | | | | 16,140,424 | |
Clarke County Hospital Authority (Piedmont Healthcare, Inc. Obligated Group) Series 2016 5.00%, 07/01/2031 | | | 2,500 | | | | 2,565,080 | |
DeKalb County Housing Authority (HADC Avenues LLC) Series 2023 6.17%, 06/01/2053(a) | | | 29,150 | | | | 28,114,496 | |
7.00%, 06/01/2041(a) | | | 6,740 | | | | 6,384,152 | |
Development Authority for Fulton County (Piedmont Healthcare, Inc. Obligated Group) Series 2016-A 5.00%, 07/01/2032 | | | 2,000 | | | | 2,048,076 | |
Development Authority of Gwinnett County (Board of Regents of the University System of Georgia Lease) Series 2017-A 5.00%, 07/01/2032 | | | 1,205 | | | | 1,247,713 | |
5.00%, 07/01/2033 | | | 2,370 | | | | 2,450,875 | |
5.00%, 07/01/2035 | | | 4,945 | | | | 5,093,646 | |
5.00%, 07/01/2037 | | | 2,335 | | | | 2,399,089 | |
Development Authority of Monroe County (The) (Georgia Power Co.) Series 2023 3.875%, 10/01/2048 | | | 5,000 | | | | 5,037,985 | |
Fayette County Development Authority Series 2024 5.00%, 10/01/2032 | | | 750 | | | | 817,267 | |
5.00%, 10/01/2034 | | | 750 | | | | 824,206 | |
5.00%, 10/01/2035 | | | 825 | | | | 902,952 | |
5.00%, 10/01/2036 | | | 900 | | | | 981,423 | |
5.25%, 10/01/2049 | | | 9,360 | | | | 10,024,644 | |
Fayette County Development Authority (United States Soccer Federation, Inc.) Series 2024 5.00%, 10/01/2044 | | | 1,000 | | | | 1,056,267 | |
5.25%, 10/01/2054 | | | 13,250 | | | | 14,092,118 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 37 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Fayette County Hospital Authority/GA (Piedmont Healthcare, Inc. Obligated Group) Series 2016 5.00%, 07/01/2034 | | $ | 1,620 | | | $ | 1,655,246 | |
5.00%, 07/01/2035 | | | 6,355 | | | | 6,489,897 | |
5.00%, 07/01/2036 | | | 2,735 | | | | 2,791,366 | |
George L Smith II Congress Center Authority Series 2021 4.00%, 01/01/2054 | | | 1,485 | | | | 1,320,805 | |
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health System Obligated Group) Series 2017 5.00%, 08/01/2043 | | | 10,880 | | | | 10,890,646 | |
5.00%, 08/01/2047 | | | 1,800 | | | | 1,774,317 | |
Main Street Natural Gas, Inc. Series 2024-D 5.00%, 04/01/2054 | | | 26,300 | | | | 28,237,092 | |
Main Street Natural Gas, Inc. (Citadel LP) Series 2022-C 4.00%, 08/01/2052(a) | | | 37,500 | | | | 37,372,005 | |
Main Street Natural Gas, Inc. (Citigroup, Inc.) Series 2022-A 4.00%, 09/01/2052 | | | 2,185 | | | | 2,208,789 | |
Series 2022-B 5.00%, 12/01/2052 | | | 12,195 | | | | 12,917,368 | |
Series 2023-A 5.00%, 06/01/2053 | | | 6,750 | | | | 7,171,429 | |
Series 2023-D 5.00%, 05/01/2054 | | | 55,235 | | | | 58,879,604 | |
Series 2024-C 5.00%, 12/01/2054 | | | 23,805 | | | | 25,366,163 | |
Main Street Natural Gas, Inc. (Macquarie Group Ltd.) Series 2019-A 5.00%, 05/15/2033 | | | 5,000 | | | | 5,164,937 | |
5.00%, 05/15/2043 | | | 15,500 | | | | 15,965,003 | |
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2023 4.929% (SOFR + 1.70%), 12/01/2053(c) | | | 25,000 | | | | 25,725,197 | |
Series 2023-B 5.00%, 07/01/2053 | | | 11,720 | | | | 12,421,135 | |
| | |
| |
38 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2023-C 5.00%, 09/01/2053 | | $ | 24,815 | | | $ | 26,393,740 | |
Series 2024-A 5.00%, 05/01/2054 | | | 35,000 | | | | 37,319,436 | |
Series 2024-B 5.00%, 12/01/2054 | | | 44,070 | | | | 47,181,148 | |
Municipal Electric Authority of Georgia Series 2019 5.00%, 01/01/2038 | | | 675 | | | | 702,056 | |
5.00%, 01/01/2039 | | | 1,215 | | | | 1,252,591 | |
5.00%, 01/01/2048 | | | 2,460 | | | | 2,489,944 | |
5.00%, 01/01/2049 | | | 5,000 | | | | 5,101,984 | |
5.00%, 01/01/2056 | | | 4,655 | | | | 4,734,182 | |
5.00%, 01/01/2059 | | | 6,270 | | | | 6,307,140 | |
Series 2022 4.50%, 07/01/2063 | | | 15,000 | | | | 14,729,694 | |
5.00%, 07/01/2052 | | | 12,000 | | | | 12,453,629 | |
Series 2023 5.00%, 07/01/2039 | | | 1,000 | | | | 1,087,177 | |
5.50%, 07/01/2064 | | | 10,200 | | | | 10,882,922 | |
Series 2024 5.25%, 01/01/2049 | | | 5,645 | | | | 6,100,764 | |
AGM Series 2023 5.00%, 07/01/2048 | | | 1,570 | | | | 1,658,955 | |
5.00%, 07/01/2055 | | | 3,200 | | | | 3,341,538 | |
5.00%, 07/01/2064 | | | 6,055 | | | | 6,301,694 | |
| | | | | | | | |
| | | | | | | 622,994,023 | |
| | | | | | | | |
Guam – 0.4% | | | | | | | | |
Guam Education Financing Foundation (Guam Education Financing Foundation COP) Series 2016-B 5.00%, 10/01/2026(a) | | | 6,595 | | | | 6,561,414 | |
Guam Government Waterworks Authority Series 2020-A 5.00%, 01/01/2050 | | | 3,790 | | | | 3,884,010 | |
Guam Power Authority Series 2022-A 5.00%, 10/01/2043 | | | 3,300 | | | | 3,472,173 | |
Territory of Guam Series 2019 5.00%, 11/15/2031 | | | 1,510 | | | | 1,533,550 | |
Territory of Guam (Guam Section 30 Income Tax) Series 2016-A 5.00%, 12/01/2029 | | | 1,310 | | | | 1,343,663 | |
5.00%, 12/01/2030 | | | 4,160 | | | | 4,258,219 | |
| | |
| |
abfunds.com | | AB MUNICIPAL INCOME SHARES | 39 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
5.00%, 12/01/2032 | | $ | 3,545 | | | $ | 3,620,683 | |
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2015 5.00%, 11/15/2029 | | | 13,375 | | | | 13,548,858 | |
Series 2015-D 5.00%, 11/15/2033 | | | 3,570 | | | | 3,600,710 | |
5.00%, 11/15/2035 | | | 8,945 | | | | 9,008,684 | |
Series 2021-F 4.00%, 01/01/2036 | | | 4,050 | | | | 3,972,568 | |
| | | | | | | | |
| | | | | | | 54,804,532 | |
| | | | | | | | |
Hawaii – 0.2% | | | | | | | | |
City & County Honolulu HI Wastewater System Revenue Series 2025 5.00%, 07/01/2032(i) | | | 3,950 | | | | 4,399,097 | |
5.00%, 07/01/2033(i) | | | 6,750 | | | | 7,562,600 | |
5.00%, 07/01/2034(i) | | | 4,875 | | | | 5,510,472 | |
5.00%, 07/01/2036(i) | | | 3,375 | | | | 3,830,939 | |
| | | | | | | | |
| | | | | | | 21,303,108 | |
| | | | | | | | |
Idaho – 0.1% | | | | | | | | |
Idaho Health Facilities Authority (North Canyon Medical Center, Inc.) Series 2023 7.00%, 11/01/2048 | | | 4,500 | | | | 4,879,333 | |
7.125%, 11/01/2057 | | | 7,495 | | | | 8,147,178 | |
Idaho Housing & Finance Association (Battelle Energy Alliance LLC) Series 2010-A 7.00%, 02/01/2036 | | | 200 | | | | 200,371 | |
| | | | | | | | |
| | | | | | | 13,226,882 | |
| | | | | | | | |
Illinois – 6.5% | | | | | | | | |
Bellwood Municipal Housing Corp. (Village of Bellwood IL) Series 2024 6.375%, 12/01/2059(a) | | | 6,450 | | | | 6,388,830 | |
Chicago Board of Education Series 2012-A 5.00%, 12/01/2042 | | | 6,635 | | | | 6,511,184 | |
Series 2015-C 5.25%, 12/01/2035 | | | 2,790 | | | | 2,790,779 | |
5.25%, 12/01/2039 | | | 8,080 | | | | 8,080,339 | |
Series 2015-E 5.125%, 12/01/2032 | | | 1,000 | | | | 1,000,321 | |
Series 2016-A 7.00%, 12/01/2044 | | | 1,400 | | | | 1,430,396 | |
| | |
| |
40 | AB MUNICIPAL INCOME SHARES | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| | Principal Amount (000) | | | U.S. $ Value | |
| |
Series 2016-B 6.50%, 12/01/2046 | | $ | 1,900 | | | $ | 1,960,580 | |
Series 2017-G 5.00%, 12/01/2034 | | | 4,150 | | | | 4,201,807 | |
Series 2017-H 5.00%, 12/01/2036 | | | 900 | | | | 907,280 | |
Series 2018-A 5.00%, 12/01/2026 | | | 5,430 | | | | 5,539,248 | |
5.00%, 12/01/2027 | | | 6,300 | | | | 6,488,831 | |
Series 2019-A 5.00%, 12/01/2029 | | | 2,950 | | | | 3,076,723 | |
5.00%, 12/01/2030 | | | 5,120 | | | | 5,303,828 | |
Series 2019-B 5.00%, 12/01/2030 | | | 935 | | | | 968,570 | |
5.00%, 12/01/2031 | | < |